§88-107  Interest.  (a)  The board oftrustees shall annually allocate the interest and other earnings of the systemto the funds of the system, as follows:

(1)  The annuity savings fund shall be credited withthe amount of regular interest credited to members' accounts;

(2)  The expense fund shall be credited with such sumsas provided in section 88-116; and

(3)  The remaining investment earnings, if any, shallbe credited to the pension accumulation fund.

(b)  Beginning with actual investment earningsin fiscal year 1995 in excess of the investment yield rate, to addressoutstanding unfunded pension obligations, ten per cent of such excess earningsshall be deposited in the pension accumulation fund; remaining excess earningsshall be applied to the amounts to be contributed under section 88-123.  Infiscal year 1996, twenty per cent of the actual investment earnings in excessof the investment yield rate shall be deposited in the pension accumulationfund; remaining excess earnings shall be applied to the amount contributedunder section 88-123.  In fiscal years 1997 and 1998, actuarial investmentearnings in excess of a ten per cent actuarial investment yield rate shall beapplied to the amount contributed under section 88-123.  Beginning in fiscalyear 1999, one hundred per cent of the investment earnings shall be depositedin the pension accumulation fund.

(c)  The application of actuarial investmentearnings to the amount contributed under section 88-123 for fiscal years 1997and 1998 as provided in subsection (b) is a one-time only provision and no lawshall be enacted to again require the employees' retirement system to applyactuarial investment earnings to offset the amount contributed under section88-123. [L 1925, c 55, pt of §7; am imp L 1927, c 251, §4; am imp L Sp 1933, c10, §1; RL 1935, pt of §7926; am imp L 1935, c 48, §2; RL 1945, §711, subs 1;RL 1955, §6-78; am L 1963, c 127, §15; am L 1965, c 222, §12; HRS §88-97; am L1969, c 110, pt of §1; am L 1984, c 23, §1; am L 1988, c 41, §4; am L 1994, c276, §6; am L 1997, c 327, §2; am L 1999, c 100, §1]