HARRY HUGHES, Governor                                     1815

Annuity Savings Fund and credited to his individual account
therein.

[(i)] (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.

135.

[(2) (a) 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.

(b)  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.

(c)  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