§ 4606. Reserves. (a) A system shall, except to the extent that its
benefits are reinsured by an insurance company authorized to transact
such business in this state, create and maintain reserves, calculated to
be adequate to cover the liabilities on account of benefits payable
under its contracts, by-laws, or declaration of trust.

(b) The calculation shall be made on the basis of mortality,
disability, and other experience tables based on reliable experience for
such or a similar group of employees and approved by the superintendent,
and of interest at a rate which is approved by the superintendent and is
not in excess of the maximum rate permitted to domestic life insurance
companies under section four thousand two hundred seventeen of this
chapter for the valuation of group annuities, for all participating
employees in the system upon application by the system and a showing
that such rate can be supported by the income from the investments of
the system.

(c) The reserves required in respect of service rendered or benefits
granted prior to the date of organization or creation of such system
under this chapter may be accumulated on a basis calculated to produce a
balance between the actuarial present value of the assets and of the
liabilities of the system within a period of not exceeding thirty years
from the date of the incorporation or creation thereunder.