§ 24. Method of financing.

Assets. All of the assets of this Retirement System shall be credited toward meeting the aggregate obligations of this Retirement System.

(a) Member contributions.

(1) Member contributions shall be accumulated from the compensation of members to provide for their annuities. The contributions by a member to the Retirement System shall equal 5% of his or her current annual earnable compensation, these contributions to continue throughout the member's entire period of service. However, no contributions may be made by the member after the member has attained age 60 and has acquired 35 years of service credit in this system.

(2) The deductions provided for in this subsection (a) shall be made notwithstanding that the minimum compensation provided for by law for any member is reduced by the deduction. Every member is deemed to consent and agree to the deductions made and provided for in this subsection, and the receipt of his or her full salary or compensation, and payment of salary or compensation, less this deduction, shall be a full and complete discharge and acquittance of all claims and demands whatsoever for the services rendered by that person during the period covered by the payment, except as to the benefits provided under this subtitle.

(3) The accumulated contributions of a member withdrawn by him or her, or paid to his or her estate or to his or her designated beneficiary in event of death shall be paid from the Retirement System.

(b) City contributions.

(1)(i) On the basis of regular interest and of the mortality and other tables and assumptions adopted by the Board of Trustees, the actuary engaged by the Board shall make a valuation to determine the required contribution by the City of Baltimore for the System.

(ii) Through the year ending June 30. 2014, the normal cost and accrued liability shall be determined by the projected unit credit cost method. Effective with the year beginning July 1, 2014, the normal cost and accrued liability shall be determined by the entry age normal cost method.

(2) The assets of the System shall be applied against the total accrued liability, computed above for all members, retirees, and beneficiaries, to determine the amount of unfunded accrued liability. An accrued liability contribution is the amount determined by the Board of Trustees to be sufficient to meet regular interest on the unfunded accrued liability and to amortize the principal of that unfunded accrued liability over the period of time determined by the Board of Trustees.

(3) The required contribution by the City of Baltimore shall be the sum of the normal cost and accrued liability contribution determined above. However, the aggregate payment by the City of Baltimore must be sufficient, when combined with the assets of the System, to provide the pensions and other benefits payable out of the fund during the year then current.

(1) On or before January 1 of each year, the Board of Trustees shall certify to the Board of Estimates the amount of the appropriation necessary to pay to this Retirement System the amounts payable by the City of Baltimore, as enumerated in this article, for the fiscal year beginning on the ensuing July 1.

(2) The amount so certified is due to the System on July 1 of the fiscal year, and appropriations for that amount shall be included in the Ordinance of Estimates for that fiscal year.

(d) {Repealed}