PARRIS N. GLENDENING, Governor                             Ch. 661

(3) EACH FISCAL YEAR, A PARTICIPATING GOVERNMENTAL UNIT
SHALL REDUCE THE AMOUNTS REQUIRED TO BE PAID UNDER PARAGRAPHS (1) AND
(2) OF THIS SUBSECTION BY ANY ANNUAL CREDIT ALLOWED TO THE PARTICIPATING
GOVERNMENTAL UNIT UNDER § 21.305.4(B) OF THIS SUBTITLE.

[(3)](C) (1) The amount determined under [paragraphs (1) and (2) of
this subsection for each State system] SUBSECTION (B) OF THIS SECTION FOR THE
EMPLOYEES' SYSTEMS shall be based on an actuarial determination of the amounts that
are required to preserve the integrity of the accumulation fund of [each State system]
THE EMPLOYEES' SYSTEMS, using:

(i) the entry-age actuarial cost method; [and]

(ii) actuarial assumptions adopted by the Board of Trustees; AND

(III) THE ASSET VALUATION METHOD RECOMMENDED BY THE
ACTUARY AND ADOPTED BY THE BOARD OF TRUSTEES.

(2) EXCEPT AS PROVIDED IN SUBSECTION (B)(2)(III) OF THIS SECTION,
FOR THE PURPOSE OF MAKING THE DETERMINATIONS REQUIRED UNDER THIS
SECTION, THE EMPLOYEES' RETIREMENT SYSTEM AND THE EMPLOYEES' PENSION
SYSTEM SHALL BE CONSIDERED TOGETHER AS ONE STATE SYSTEM

[(4)] (D) The actuary shall compute the contributions payable under this
section.

[(5)] (E) 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.

[(c) (1) As part of each actuarial valuation, the actuary shall determine the
normal contributions, net of member contributions, on account of members of the
employees' systems who are employees of participating governmental units.

(2)     Except as provided in paragraph (3) of this subsection, for each of the
employees' systems, the normal contribution rate for participating governmental units
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 State system who are employees of participating governmental units.

(3)     On the recommendation of the actuary, the Board of Trustees may
adjust the normal contribution rates to reflect:

(i) experience gains and losses;

(ii) the effect of changes in actuarial assumptions; and

(iii) the effect of legislation enacted after July 1, 1980.

(d) For each of the employees' systems, the accrued liability contribution rate for
the participating governmental units shall be computed as the percent of the aggregate

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