86.157. Actuary to determine normal contribution rate. - Missouri Statutes

Actuary to determine normal contribution rate.

86.157. On the basis of regular interest and of suchmortality and other tables as shall be adopted by the board oftrustees, the actuary engaged by the board to make each valuationrequired by sections 86.010 to 86.193 during the period overwhich the accrued liability contribution is payable, immediatelyafter making such valuation, shall determine the uniform andconstant percentage of the earnable compensation of the averagenew entrant, which, if contributed throughout his entire periodof active service, would be sufficient to provide for the paymentof any 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 mortalityand service tables adopted by the board of trustees and regularinterest. The normal rate of contribution shall be determined bythe actuary after each valuation.

(RSMo 1939 § 9471)

Prior revision: 1929 § 8913