WILLIAM DONALD SCHAEFER, Governor

Ch. 6

(3)      THE AMOUNTS DETERMINED UNDER PARAGRAPHS (1) AND (2) OF
THIS SUBSECTION SHALL BE BASED ON AN ACTUARIAL DETERMINATION OF THE
AMOUNTS THAT ARE REQUIRED TO PRESERVE THE INTEGRITY OF THE
ACCUMULATION FUND OF THE LOCAL FIRE AND POLICE SYSTEM, USING:

(I)       THE ENTRY-AGE ACTUARIAL COST METHOD; AND

(II)     ACTUARIAL ASSUMPTIONS ADOPTED BY THE BOARD OF
TRUSTEES.

(4)      THE ACTUARY SHALL COMPUTE THE CONTRIBUTIONS PAYABLE
UNDER THIS SECTION.

(5)      THE AMOUNTS COMPUTED UNDER THIS SECTION ARE A CHARGE
AGAINST THE PARTICIPATING GOVERNMENTAL UNIT TO BE PAID IN ACCORDANCE
WITH § 21-309 OF THIS SUBTITLE.

(B)      NORMAL CONTRIBUTION RATE.

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

(2)      EXCEPT AS PROVIDED IN PARAGRAPH (3) OF THIS SUBSECTION, THE
NORMAL CONTRIBUTION RATE FOR THE LOCAL FIRE AND POLICE SYSTEM 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 MEMBERS OF THE LOCAL FIRE AND POLICE SYSTEM.

(3)      ON THE RECOMMENDATION OF THE ACTUARY, THE BOARD OF
TRUSTEES MAY ADJUST THE NORMAL CONTRIBUTION RATE DETERMINED UNDER
THIS SECTION TO PROVIDE FOR:

(I)       EXPERIENCE GAINS AND LOSSES;

(II)     THE EFFECT OF CHANGES IN ACTUARIAL ASSUMPTIONS; AND

(III)    THE EFFECT OF LEGISLATION ENACTED AFTER JULY 1, 1989.

(C)     ACCRUED LIABILITY CONTRIBUTION RATE.

THE ACCRUED LIABILITY CONTRIBUTION RATE FOR THE LOCAL FIRE AND
POLICE SYSTEM SHALL BE COMPUTED AS THE PERCENT OF THE AGGREGATE
EARNABLE COMPENSATION OF THE MEMBERS OF THE LOCAL FIRE AND POLICE
SYSTEM THAT IS SUFFICIENT TO LIQUIDATE OVER 40 YEARS BEGINNING JULY 1, 1989,
THE AMOUNT, AS OF JUNE 30, 1989, BY WHICH THE TOTAL LIABILITIES OF THE LOCAL
FIRE AND POLICE SYSTEM EXCEEDED THE SUM OF:

(1) THE ASSETS IN THE ACCUMULATION FUND AND THE ANNUITY
SAVINGS FUND OF THE LOCAL FIRE AND POLICE SYSTEM; AND

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