§ 517. Annuity reserve fund; pension accumulation fund. 1. The annuity\nreserve fund shall be the fund from which shall be paid all annuities\nand all benefits in lieu of annuities.\n 2. The pension accumulation fund shall be the fund in which shall be\naccumulated all reserves for the payment of all benefits with the\nexception of the annuities provided by the accumulated contributions of\nmembers, and with the exception of supplemental retirement allowances\npayable in accordance with section five hundred thirty-two of this\nchapter. Contributions to and payments from the pension accumulation\nfund shall be made as follows:\n a. On account of each teacher who is a member of the retirement system\nthere shall be paid annually into the pension accumulation fund by\nemployers, a certain percentage of the earnable compensation of each of\nsuch members of the retirement system to be known as the "normal\ncontribution" and a further percentage known as the "deficiency\ncontribution." The rates per centum of such contributions shall be fixed\non the basis of the liabilities of the retirement system as shown by\nactuarial valuations.\n b. On the basis of regular interest and of such mortality and other\ntables as shall be adopted by the retirement board, the actuary engaged\nby the retirement board to make each valuation required by this article\nduring the period over which the deficiency contribution is payable,\nimmediately after making such valuation, shall determine the uniform and\nconstant percentage of the earnable compensation of the average new\nentrant, who is a contributor, which if contributed on the basis of the\ncompensation of such contributor throughout his entire period of active\nservice, would be sufficient to provide for the payment of a death\nbenefit payable on his account and to provide at the time of his\nretirement the total amount of his pension reserve. The rate per centum\nso determined shall be known as the "normal contribution" rate. After\nthe deficiency contribution has ceased to be payable, the normal\ncontribution shall be the rate per centum of the earnable salary of all\ncontributors obtained by deducting from the total liabilities of the\npension fund the amount of the funds in hand to the credit of that fund\nand dividing the remainder by one per centum of the present value of the\nprospective future salaries of all contributors as computed on the basis\nof the mortality and service tables adopted by the retirement board and\non the basis of regular interest. The normal rate of contribution shall\nbe determined by the actuary after each valuation and shall continue in\nforce until a new valuation and certification.\n c. The actuary engaged by the retirement board shall compute the rate\nper centum of the total compensation of all contributors during the\npreceding school year which is equivalent to four per centum of the\namount of the total pension liability on account of all contributors and\nbeneficiaries not dischargeable by the aforesaid normal contribution\nmade on account of such contributors during the remainder of their\nactive service. The contribution derived by deductions at the rate per\ncentum, so determined or at a rate increased therefrom as hereinafter\nprovided shall be known as the "deficiency contribution." On the basis\nof the actuarial valuation as of the thirtieth day of June, nineteen\nhundred fifty-seven, the actuary shall determine the amount of the\npension liability which is not dischargeable by the funds in hand and\nthe present value of the normal and deficiency contributions otherwise\npayable. Such pension liability shall be known as the special\ndeficiency. The actuary shall determine the annual payment which if made\nin each fiscal year commencing with the year beginning the first day of\nJuly, nineteen hundred fifty-eight, for a period of thirty years will\nprovide for such special deficiency and the per centum of the total\ncompensation of all contributor
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