HARRY HUGHES, Governor

5201

(1)  EACH YEAR, ON ACCOUNT OF EACH OF ITS MEMBERS
EACH MUNICIPAL CORPORATION SHALL PAY INTO THE ACCUMULATION
FUND AN AMOUNT AT LEAST EQUAL TO A CERTAIN PERCENTAGE OF THE
ANNUAL EARNABLE COMPENSATION OF EACH MEMBER TO BE KNOWN AS
THE "NORMAL CONTRIBUTION", AND AN ADDITIONAL AMOUNT TO BE
KNOWN AS THE "ACCRUED LIABILITY CONTRIBUTION". THESE
AMOUNTS SHALL BE FIXED ON THE BASIS OF THE LIABILITIES OF
THE RETIREMENT SYSTEM BY ACTUARIAL VALUATION.

(2)  ON THE BASIS OF INTEREST AND THE MORTALITY
AND SERVICE TABLES ADOPTED BY THE BOARD OF TRUSTEES,
IMMEDIATELY AFTER MAKING EACH ACTUARIAL VALUATION, THE
ACTUARY SHALL DETERMINE THE "NORMAL CONTRIBUTION" ON ACCOUNT
OF EACH MEMBER, NET OF EMPLOYEE CONTRIBUTIONS, ON THE BASIS
OF THE ACCRUED BENEFIT ACTUARIAL COST METHOD. THE RATIO OF
THE SUM OF THE NORMAL CONTRIBUTIONS SO DETERMINED TO THE
TOTAL ANNUAL EARNABLE COMPENSATION OF ALL MEMBERS SHALL BE
KNOWN AS THE "NORMAL CONTRIBUTION" RATE. UPON THE
RECOMMENDATION OF THE ACTUARY, THE BOARD MAY ADJUST THE
"NORMAL CONTRIBUTION" RATE FOR THE MUNICIPAL CORPORATIONS.
SUCH ADJUSTMENTS, ALSO, SHALL PROVIDE FOR EXPERIENCE GAINS
AND LOSSES, THE EFFECT OF CHANGES IN ACTUARIAL ASSUMPTIONS,
AND THE EFFECT OF LEGISLATION ENACTED SUBSEQUENT TO JULY 1,
1980.

(3)  EACH PARTICIPATING MUNICIPAL CORPORATION
SHALL MAKE A SPECIAL ACCRUED LIABILITY CONTRIBUTION ON
ACCOUNT OF ITS APPROVAL OF THE PARTICIPATION OF ITS OFFICERS
AND EMPLOYEES IN THE EMPLOYEES' RETIREMENT SYSTEM OF THE
STATE. THIS CONTRIBUTION SHALL BE DETERMINED BY AN
ACTUARIAL VALUATION OF THE ACCRUED LIABILITY, ON ACCOUNT OF
THE OFFICERS AND EMPLOYEES OF SUCH PARTICIPATING MUNICIPAL
CORPORATION WHO ELECT TO BECOME MEMBERS, IN THE SAME MANNER
AS THE ACCRUED LIABILITY IS DETERMINED FOR STATE EMPLOYEES.
THIS SPECIAL ACCRUED LIABILITY CONTRIBUTION SHALL BE
COMPUTED ON THE BASIS OF THE ACCRUED BENEFIT ACTUARIAL COST
METHOD AND ANY OTHER ASSUMPTIONS ADOPTED BY THE BOARD. THIS
SPECIAL ACCRUED LIABILITY CONTRIBUTION SHALL BE PAYABLE IN
LIEU OF THE ACCRUED LIABILITY CONTRIBUTION PAYABLE ON
ACCOUNT OF OTHER EMPLOYEES IN THE SYSTEM. ON THE BASIS OF
THE ACTUARIAL VALUATION AS OF JUNE 30, 1980 THE UNFUNDED
ACCRUED LIABILITY OF EACH PARTICIPATING MUNICIPAL
CORPORATION OUTSTANDING AS OF THAT DATE SHALL BE DETERMINED.
THE ANNUAL ACCRUED LIABILITY CONTRIBUTION OF EACH
PARTICIPATING MUNICIPAL CORPORATION SHALL BE THE FLAT
ANNUAL PAYMENT, OR OTHER ANNUAL PAYMENT THAT THE BOARD OF
TRUSTEES WITH THE CONCURRENCE OF THE ACTUARY MAY APPROVE,
THAT IS SUFFICIENT TO LIQUIDATE OVER A PERIOD OF 40 YEARS
FROM JULY 1, 1980 THE TOTAL LIABILITIES OF EACH
PARTICIPATING MUNICIPAL CORPORATION AS OF JUNE 30, 1980
BASED ON BENEFITS ACCRUED TO SAID DATE THAT ARE NOT
DISCHARGEABLE BY THE ASSETS TO THE CREDIT OF EACH PARTICULAR
MUNICIPAL CORPORATION IN THE ACCUMULATION FUND AND THE
ANNUITY SAVINGS FUND. THE ACCRUED LIABILITY CONTRIBUTION