3676

LAWS OF MARYLAND

Ch. 785

PENSION SYSTEMS. THIS SPECIAL ACCRUED LIABILITY CONTRIBUTION
SHALL BE PAYABLE IN ADDITION TO THE ACCRUED LIABILITY
CONTRIBUTION PAYABLE AS DETERMINED IN SECTION 167.

(2)  THE ANNUAL SPECIAL ACCRUED LIABILITY CONTRIBUTION
OF EACH PARTICIPATING MUNICIPAL CORPORATION SHALL BE THE FLAT
ANNUAL PAYMENT, OR OTHER ANNUAL PAYMENT THAT THE BOARD OF
TRUSTEES, WITH THE CONCURRENCE OF THE ACTUARY, MAY APPROVE THAT
IS SUFFICIENT TO LIQUIDATE, OVER A PERIOD OF NOT MORE THAN 40
YEARS FROM THE DATE OF APPROVAL BY THE LEGISLATIVE BODY OF THE
MUNICIPAL CORPORATION, THE SPECIAL ACCRUED LIABILITY OF SUCH
PARTICIPATING MUNICIPAL CORPORATION, AS OF THE DATE OF APPROVAL,
THAT IS NOT DISCHARGED BY THE VALUE, AS OF THE DATE OF APPROVAL,
OF FUTURE NORMAL CONTRIBUTIONS, FUTURE MEMBER CONTRIBUTIONS,
FUTURE ACCRUED LIABILITY CONTRIBUTIONS AND ANY CASH AND
SECURITIES TRANSFERRED TO THE PENSION SYSTEM IN ACCORDANCE WITH
THIS SECTION.

(3)  ANY SUCH PARTICIPATING MUNICIPAL CORPORATION MAY,
WITH THE CONSENT OF THE BOARD OF TRUSTEES, LIQUIDATE ITS UNFUNDED
SPECIAL ACCRUED LIABILITY IN A PERIOD SHORTER THAN 40 YEARS. THE
EXPENSE OF MAKING THE INITIAL SPECIAL ACCRUED LIABILITY ACTUARIAL
VALUATION SHALL BE ASSESSED AGAINST AND PAID BY THE MUNICIPAL
CORPORATION ON WHOSE ACCOUNT IT IS NECESSARY.

167.

(A)  THE ACTUARY OF THIS PENSION SYSTEM FOR EMPLOYEES OF THE
STATE SHALL COMPUTE THE CONTRIBUTIONS THAT WOULD BE PAYABLE EACH
YEAR ON BEHALF OF MEMBERS WHO ARE EMPLOYEES OF A PARTICIPATING
MUNICIPAL CORPORATION. THE AMOUNTS COMPUTED SHALL BE A CHARGE
AGAINST THE PARTICIPATING MUNICIPAL CORPORATION TO BE PAID IN
ACCORDANCE WITH THE PROVISIONS OF THIS SECTION.

(B)  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 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.

(C)  ON THE BASIS OF INTEREST AND THE MORTALITY AND SERVICE
TABLES THAT ARE ADOPTED BY THE BOARD OF TRUSTEES, IMMEDIATELY
AFTER MAKING EACH ACTUARIAL VALUATION, THE ACTUARY SHALL
DETERMINE THE NORMAL CONTRIBUTIONS ON ACCOUNT OF THE EMPLOYEES,
NET OF EMPLOYEE CONTRIBUTIONS, ON THE BASIS OF THE ENTRY-AGE
ACTUARIAL COST METHOD. THE RATIO OF THE SUM OF THE NORMAL
CONTRIBUTIONS SO DETERMINED TO THE AGGREGATE ANNUAL EARNABLE
COMPENSATION OF THE EMPLOYEES IS KNOWN AS THE "NORMAL
CONTRIBUTION" RATES. UPON THE RECOMMENDATION OF THE ACTUARY, THE
BOARD OF TRUSTEES MAY ADJUST THE NORMAL CONTRIBUTION RATES TO