§ 120-4.20. Contributions by the State.
§120‑4.20. Contributions by the State.
(a) Effective uponconvening of the 1985 Regular Session of the General Assembly, the State shallcontribute annually an amount equal to the sum of the "normalcontribution" and the "accrued liability contribution."
(b) The normalcontribution for any period shall be determined as a percentage, equal to thenormal contribution rate, of the total compensation of the members for theperiod. The normal contribution rate shall be determined as the percentagerepresented by the ratio of (i) the annual normal cost to provide the benefitsof the Retirement System, computed in accordance with recognized actuarialprinciples on the basis of methods and assumptions approved by the Board ofTrustees, in excess of the part thereof provided by the members' contributions,to (ii) the total annual compensation of the members of the Retirement System.
(c) The accruedliability contribution for any period shall be determined as a percentage,equal to the accrued liability contribution rate, of the total compensation ofthe members for the period. The accrued liability contribution rate shall bedetermined as the percentage represented by the ratio of (i) the level annualcontribution necessary to amortize the unfunded accrued liability over a periodof 15 years, computed in accordance with recognized actuarial principles on thebasis of methods and assumptions approved by the Board of Trustees, to (ii) thetotal annual compensation of the members of the Retirement System.
(d) The unfundedaccrued liability as of any date shall be determined, in accordance withrecognized actuarial principles on the basis of methods and assumptionsapproved by the Board of Trustees, as the excess of (i) the then present valueof the benefits to be provided under the Retirement System in the future over(ii) the sum of the assets of the Retirement System then currently on hand inthe Annuity Savings Fund and the Pension Accumulation Fund, plus the thenpresent value of the stipulated contributions to be made in the future by themembers, plus the then present value of the normal contributions expected to bemade in the future by the State.
(e) The normalcontribution rate and the accrued liability contribution rate shall bedetermined after each annual valuation of the Retirement System and shallremain in effect until a new valuation is made.
(f) The annualcontributions by the State for any year shall be at least sufficient, whencombined with the amount held in the Pension Accumulation Fund at the start ofthe year, to provide the retirement allowances and other benefits payable outof the fund during the current year. (1983, c. 761, s. 238.)