1814

LAWS OF MARYLAND

Ch. 290

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 assumptions 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 this
system as of June 30, 1980 based on benefits accrued to said date
that are not dischargeable by the assets to the credit of the
Accumulation Fund and the Annuity Savings Fund. The board, on
the recommendation of the actuary, 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 after 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.]

[(e)] (B) The total amount payable to the
Accumulation Fund in each year after the first year following the
date of establishment may not be less than the sum of the rates
percent known as the normal contribution rate and the accrued
liability contribution rate, of the total compensation earnable
by all members during the preceding fiscal year, but the
aggregate payment by the State must be sufficient, when combined
with the amount in the Accumulation Fund, to provide the
allowances and other benefits payable out of the fund during the
year then current.

[(f)] (C) All interest and dividends earned on the
funds of this pension system shall be credited to the
Accumulation Fund. Each year, the board of trustees shall:

(i) Allow regular interest on the individual
accounts of members in the Annuity Savings Fund; and

(ii) Transfer these amounts from the
Accumulation Fund.

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

[(h)] (E) Should a beneficiary retired on account of
disability be restored to active service with a compensation not
less than his average final compensation at the time of his last
retirement, his annuity reserve shall be transferred to the