87.330. Normal contribution rate, determination of.
Normal contribution rate, determination of.
87.330. On the basis of the interest rate and of suchmortality and other tables as shall be adopted by the board oftrustees, the actuary shall determine the uniform and constantpercentage of the earnable compensation of the average newentrant, which, if contributed throughout his entire period ofactive service, would be sufficient to provide for the payment ofany death benefit or pension payable on his account. The ratepercent so determined shall be known as "the normal contributionrate". After the accrued liability contribution has ceased to bepayable the normal contribution rate shall be the rate percent ofthe earnable compensation of all members obtained by deductingfrom the total liabilities of the fund the amount of the funds inhand to the credit of the fund and dividing the remainder by onepercent of the present value of the prospective futurecompensation of all members as computed on the basis of theinterest rate and the mortality and service tables adopted by theboard of trustees. The normal rate of contribution shall bedetermined by the actuary after each valuation.
(L. 1943 p. 708 § 8, A.L. 1959 S.B. 314 § 86.590)