8-37-303 - Determination of percentage normal contribution rate.
8-37-303. Determination of percentage normal contribution rate.
(a) On the basis of each actuarial valuation of the retirement system during the period over which the accrued liability contribution is payable, the actuary shall determine the percentage normal contribution rate on account of each member classification as the percentage of the earnable compensation of all members in such classification obtained by deducting from the total present value of the benefits expected to be paid from the state accumulation fund on account of such classification:
(1) The amount of the funds in hand to the credit of that fund on account of such classification; and
(2) The unfunded accrued liability with respect to such classification remaining to be amortized as of the date of the valuation;
and dividing the remainder by one percent (1%) of the present value of the prospective future earnable compensation of all members in such classification as computed on the basis of regular interest and the mortality and service tables adopted by the board of trustees.
(b) After the accrued liability contribution has ceased to be payable for any member classification, the normal contribution rate for such classification shall be the percentage of the earnable compensation of all members in such classification obtained by deducting from the total liabilities of the state accumulation fund on account of such classification, the amount of the funds in hand to the credit of that fund on account of such classification, and dividing the remainder by one percent (1%) of the present value of the prospective future earnable compensation of all members in such classification as computed on the basis of the mortality and service tables adopted by the board of trustees and regular interest. Such normal rate of contribution shall be determined by the actuary after each valuation.
[Acts 1972, ch. 814, § 8; T.C.A., § 8-3930(2); Acts 1984, ch. 601, § 11.]