Actuarially sound retirement system means a retirement plan that pays for future obligations from its fund. The contributions to the system are made by both the employer and the employees. The contribution so received will be invested in accounts to pay future benefits.
In Stone v. State, 191 N.C. App. 402 (N.C. Ct. App. 2008), an actuarially sound retirement system is defined as “a retirement plan that contains sufficient funds to pay future obligations, as by receiving contributions from employees and the employer to be invested in accounts to pay future benefits”.