WILLIAM DONALD SCHAEFER, Governor                               Ch. 6

(C)     NORMAL CONTRIBUTION RATES.

(1)      AS PART OF EACH ACTUARIAL VALUATION, THE ACTUARY SHALL
DETERMINE THE NORMAL CONTRIBUTIONS, NET OF MEMBER CONTRIBUTIONS, ON
ACCOUNT OF THE STATE MEMBERS OF EACH STATE SYSTEM.

(2)      FOR EACH STATE SYSTEM, THE NORMAL CONTRIBUTION RATE
EQUALS THE FRACTION THAT HAS:

(I)       AS ITS NUMERATOR, THE SUM OF THE NORMAL
CONTRIBUTIONS DETERMINED UNDER THIS SUBSECTION; AND

(II)     AS ITS DENOMINATOR, THE AGGREGATE ANNUAL EARNABLE
COMPENSATION OF THE STATE MEMBERS OF THE STATE SYSTEM.

(D)     ACCRUED LIABILITY CONTRIBUTION RATE.

(1)      FOR EACH STATE SYSTEM, THE ACCRUED LIABILITY CONTRIBUTION
RATE SHALL BE COMPUTED AS THE PERCENT OF THE AGGREGATE ANNUAL
EARNABLE COMPENSATION OF THE STATE MEMBERS OF THAT STATE SYSTEM THAT
IS SUFFICIENT TO LIQUIDATE OVER 40 YEARS BEGINNING JULY 1, 1980, THE AMOUNT,
AS OF JUNE 30, 1980, BY WHICH THE TOTAL LIABILITIES OF THAT STATE SYSTEM ON
ACCOUNT OF STATE MEMBERS EXCEEDED THE SUM OF:

(I)       THE ASSETS OF THE ACCUMULATION FUND AND THE ANNUITY
SAVINGS FUND OF THAT STATE SYSTEM, OTHER THAN ASSETS TO THE CREDIT OF
THE PARTICIPATING GOVERNMENTAL UNITS; AND

(II)     THE PRESENT VALUE OF FUTURE NORMAL CONTRIBUTIONS
AND FUTURE MEMBER CONTRIBUTIONS TO THAT STATE SYSTEM ON BEHALF OF OR
BY STATE MEMBERS.

(2)      ON THE RECOMMENDATION OF THE ACTUARY, THE BOARD OF
TRUSTEES MAY ADJUST THE ACCRUED LIABILITY CONTRIBUTION RATES TO
REFLECT, OVER THE GREATER OF 15 YEARS OR THE TIME REMAINING TO
AMORTIZE THE ACCRUED LIABILITY:

(I)       EXPERIENCE GAINS AND LOSSES; AND

(II)     THE EFFECT OF CHANGES IN ACTUARIAL ASSUMPTIONS.

(3)      IF THE ACCRUED LIABILITY IS INCREASED BY LEGISLATION
ENACTED AFTER JULY 1, 1980, THE ADDITIONAL LIABILITY SHALL BE FUNDED OVER
30 YEARS BEGINNING ON JULY 1 COINCIDENT WITH OR NEXT FOLLOWING THE
EFFECTIVE DATE OF THE INCREASE.

REVISOR'S NOTE: Subsection (a) of this section is new language added to clarify
that the State contributions determined under this section are applicable to
and based on members of the State systems other than employees, law
enforcement officers, or fire fighters of participating governmental units on
whose behalf the participating governmental units are required to make
employer contributions under § 21-305 or § 21-306 of this subtitle.

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