HARRY HUGHES, Governor

1821

(3) THE ACCRUED LIABILITY CONTRIBUTION RATES SHALL BE
COMPUTED, ON THE BASIS OF THE ENTRY-AGE ACTUARIAL COST METHOD AND
ANY OTHER ASSUMPTION ASSUMPTIONS ADOPTED BY THE BOARD OF
TRUSTEES, AS THE RATE PERCENT OF THE AGGREGATE ANNUAL EARNABLE
COMPENSATION OF THE MEMBERS OF THE EMPLOYEES RETIREMENT SYSTEM
AND THE PENSION SYSTEM FOR EMPLOYEES, THE TEACHERS RETIREMENT
SYSTEM AND THE PENSION SYSTEM FOR TEACHERS, THE STATE POLICE
RETIREMENT SYSTEM, AND THE FUND OF THE JUDICIAL PLAN THAT IS
SUFFICIENT TO LIQUIDATE OVER A PERIOD OF 40 YEARS FROM JULY 1,
1980 THE AMOUNT OF THE TOTAL LIABILITIES OF THE EMPLOYEES
RETIREMENT SYSTEM AND THE PENSION SYSTEM FOR EMPLOYEES, THE
TEACHERS RETIREMENT SYSTEM AND THE PENSION SYSTEM FOR TEACHERS,
THE STATE POLICE RETIREMENT SYSTEM, AND THE FUND OF THE JUDICIAL
PLAN AS OF JUNE 30, 1980 BASED ON BENEFITS ACCRUED TO THAT DATE
THAT IS NOT DISCHARGED BY THE ASSETS TO THE CREDIT OF THE
ACCUMULATION FUNDS AND THE ANNUITY SAVINGS FUNDS OF EACH OF THE
EMPLOYEES RETIREMENT SYSTEM AND THE PENSION SYSTEM FOR EMPLOYEES,
THE TEACHERS RETIREMENT SYSTEM AND THE PENSION SYSTEM FOR
TEACHERS, THE STATE POLICE RETIREMENT SYSTEM, AND THE FUND OF THE
JUDICIAL PLAN AND THAT IS NOT DISCHARGED BY THE PRESENT VALUE OF
FUTURE NORMAL CONTRIBUTIONS AND FUTURE EMPLOYEE CONTRIBUTIONS TO
EACH OF THE EMPLOYEES RETIREMENT SYSTEM AND THE PENSION SYSTEM
FOR EMPLOYEES, THE TEACHERS RETIREMENT SYSTEM AND THE PENSION
SYSTEM FOR TEACHERS, THE STATE POLICE RETIREMENT SYSTEM, AND THE
FUND OF THE JUDICIAL PLAN. UPON THE RECOMMENDATION OF THE
ACTUARY, THE BOARD MAY 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 FOR 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
THAT IS DETERMINED SHALL BE KNOWN AS THE "ACCRUED LIABILITY
CONTRIBUTION" RATES.

163.

(1)  AS USED IN THIS SECTION, "EMPLOYEE" MEANS THE OFFICERS
AND EMPLOYEES OF A MUNICIPAL CORPORATION WHO ARE ELIGIBLE TO
PARTICIPATE IN THE EMPLOYEES' RETIREMENT SYSTEM OF THE STATE OF
MARYLAND OR THE PENSION SYSTEM FOR EMPLOYEES OF THE STATE OF
MARYLAND.

(2)  EACH YEAR, ON BEHALF OF ITS EMPLOYEES, THE
PARTICIPATING MUNICIPAL CORPORATIONS SHALL PAY AN AMOUNT THAT IS
AT LEAST EQUAL TO A PERCENTAGE OF THE AGGREGATE ANNUAL EARNABLE
COMPENSATION OF THE EMPLOYEES THAT IS KNOWN AS THE "NORMAL
CONTRIBUTION" AND AN ADDITIONAL AMOUNT THAT IS KNOWN AS THE
"ACCRUED LIABILITY CONTRIBUTION". THE AMOUNTS THAT ARE

DETERMINED UNDER THIS SECTION SHALL BE ALLOCATED TO THE

ACCUMULATION FUND OF DETERMINED WITH RESPECT TO EACH SYSTEM ON
THE BASIS OF AN ACTUARIAL DETERMINATION OF THE AMOUNTS THAT ARE
REQUIRED TO PRESERVE THE INTEGRITY OF EACH ACCUMULATION FUND.