HARRY HUGHES, Governor

1811

89.

All of the assets of the retirement system shall be credited
according to the purpose for which they are held to one of three
funds, namely, the Annuity Savings Fund, the Accumulation Fund,
and the Expense Fund.

(2) (a) The Accumulation Fund shall be the fund in
which shall be accumulated all reserves for the payment of all
allowances and other benefits payable from contributions made by
the State, amounts transferred from the Annuity Savings Fund, and
from which shall be paid all benefits payable under the system
other than those payable from the Annuity Savings Fund.

[(b) Each year, on account of each member, the
State shall pay into the Accumulation Fund an amount at least
equal to a certain percentage of the annual earnable compensation
of the member, to be known as the "normal contribution," and an
additional amount equal to a certain percentage of his annual
earnable compensation, to be known as the "accrued liability
contribution." The rates percent of these contributions shall be
fixed oh the basis of the liabilities of the retirement system as
shown by actuarial valuation.]

[(c) 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.]

[(d) The accrued liability contribution rate
shall be computed, on the basis of the accrued benefit actuarial
cost method and any other assumption adopted by the board, as the
rate percent of the total annual earnable compensation of all
members that is sufficient to liquidate over a period of 40 years
from July 1, 1980 the amount of the total liabilities of the
system as of June 30, 1980 based on benefits accrued to said date
that is not dischargeable by the assets to the credit of the
Accumulation Fund and Annuity Savings Fund. On the
recommendation of the actuary, the board shall adjust the accrued
liability rate to reflect experience gains and losses or the
effect of changes in actuarial assumptions within the period
remaining to amortize the accrued liability but not less than 15
years. If the accrued liability is increased by legislation
enacted subsequent to July 1, 1980, the additional liability
shall be funded over a period of 30 years from the first day of
July, coincident with or next following the effective date of the
increase. The rate percent so determined shall be known as the
"accrued liability contribution" rate.]