1808

LAWS OF MARYLAND

Ch. 290

State of Maryland during the previous 12 months. Assets of the
Accumulation Fund equal to this proportionate share shall be
transferred to the Accumulation Fund of the pension system.]

[(h)] (D) All retirement allowances and all
lump-sum death benefits on account of death in active service
payable from contributions of the State shall be paid from the
Accumulation Fund.

[(i)] (E) Should a beneficiary retired on

account of disability be restored to membership, his annuity

reserve shall be transferred to the Annuity Savings Fund and

credited to his individual accounts therein.

[(j)] (F) The board of trustees may in its
discretion for purposes of actuarial valuation adopt a generally
accepted method for determining the value of the assets held by
the retirement system, provided that for general ledger
accounting and financial reporting the board of trustees will use
generally accepted accounting principles.

[(k) The board of trustees, on the
recommendation of the actuary, may increase the normal or accrued
liability rate when necessary to reflect experience deficiencies.
If the accrued liability is increased by legislation, the accrued
liability rate shall be increased to the extent required to
liquidate the additional liability in a period not exceeding 40
years.]

26.

[(b) (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.