§ 4606 — Reserves

§ 4606. Reserves. (a) A system shall, except to the extent that its\nbenefits are reinsured by an insurance company authorized to transact\nsuch business in this state, create and maintain reserves, calculated to\nbe adequate to cover the liabilities on account of benefits payable\nunder its contracts, by-laws, or declaration of trust.\n (b) The calculation shall be made on the basis of mortality,\ndisability, and other experience tables based on reliable experience for\nsuch or a similar group of employees and approved by the superintendent,\nand of interest at a rate which is approved by the superintendent and is\nnot in excess of the maximum rate permitted to domestic life insurance\ncompanies under section four thousand two hundred seventeen of this\nchapter for the valuation of group annuities, for all participating\nemployees in the system upon application by the system and a showing\nthat such rate can be supported by the income from the investments of\nthe system.\n (c) The reserves required in respect of service rendered or benefits\ngranted prior to the date of organization or creation of such system\nunder this chapter may be accumulated on a basis calculated to produce a\nbalance between the actuarial present value of the assets and of the\nliabilities of the system within a period of not exceeding thirty years\nfrom the date of the incorporation or creation thereunder.\n