HARRY HUGHES, Governor

83

all pensions and other benefits payable from contributions
made by the State of Maryland and from which shall be paid
all retirement allowances and the lump-sum death benefits
payable from the said contributions. Contributions to and
payments from the Accumulation Fund shall be made as
follows:

(b)   On account of each member there shall be
paid annually into the Accumulation Fund by the said State,
for the preceding fiscal year an amount equal to a certain
percentage of the earnable compensation of each member to be
known as the "normal contribution," and an additional amount
equal to a percentage of his earnable compensation to be
known as the "accrued liability contribution." The
percentage rates of such contributions shall be fixed on the
basis of the liabilities of the retirement system as shown
by actuarial valuation.

(c)   On the basis of regular interest and of
such mortality and other tables as shall be adopted by the
Board of Trustees, the actuary engaged by the board to make
each valuation required by this subtitle during the period
over which the accrued liability contribution is payable,
immediately after making such valuation, shall determine the
uniform and constant percentage of the earnable compensation
of the average new entrant, which if contributed on the
basis of compensation of such new entrant throughout his
entire period of active service would be sufficient to
provide for the payment of any death benefit or pension
payable on his account. The percentage rate so determined
shall be known as the "normal contribution" rate. After the
accrued liability contribution has ceased to be payable, the
normal contribution rate shall be the percentage rate of the
earnable salary of all members obtained by deducting from
the total liabilities of the Accumulation Fund the amount of
the funds in hand to the credit of that fund and dividing
the remainder by 1 percent of the present value of the
prospective future salaries of all members as computed on
the basis of the mortality and service tables adopted by the
Board of Trustees and regular interest. The normal rate of
contribution shall be determined by the actuary after each
valuation.

(d)   Immediately succeeding the valuation as of
June 30, 1976, the actuary engaged by the board of trustees
shall compute the percentage rate of the total annual
compensation of all members which is equivalent to the level
annual payment required over a 40-year period to liquidate
the total pension and death benefit liability on account of
all members and beneficiaries which is not dischargeable by
the funds in hand and the aforesaid normal contributions
made on account of such members during the remainder of
their active service. The percentage rate so determined
shall be known as the "accrued liability contribution" rate.
The board of trustees, on the recommendation of the actuary,
may increase this rate when necessary to reflect experience
deficiencies. If the accrued liability is increased by