(a) Each payroll period each participating municipality shall cause the contribution for the period to be deducted from the compensation of each member that it employs.
(b) In determining the amount of a member’s compensation for a payroll period, the board of trustees may use the rate of annual compensation payable to a member on the first day of the payroll period as the rate for the entire period and may omit deductions from compensation for less than a full payroll period if the employee was not a member on the first day of the period.

(c) The board of trustees may modify a member’s required deduction by an amount that does not exceed one-tenth of one percent of the annual compensation on which the deduction is made.
(d) A participating municipality shall certify to the board of trustees on each payroll, or in another manner prescribed by the board, the amount to be deducted from the compensation of each member that it employs.
(e) The treasurer or disbursing officer of each participating municipality shall:
(1) make deductions from each member’s compensation for contributions to the retirement system;
(2) transmit monthly, or at the time designated by the board of trustees, a certified copy of the payroll; and
(3) pay the deductions in cash to the board of trustees at the board’s home office before the 16th day of the month following that for which the deductions are required to be made.
(f) To facilitate the collection of member contributions, the city clerk or city secretary of each participating municipality, before January 31 of each year, shall file with the director a certified list that states the name and monthly and annual salaries of each employee of the municipality who is a member of the retirement system. Any addition to or deletion from the list must be certified.
(g) After the deductions for member contributions are paid, the board of trustees shall:
(1) record all receipts; and
(2) deposit the receipts in the benefit accumulation fund and credit the appropriate amounts to the members’ individual accounts.
(h) The treasurer or disbursing officer of a participating municipality shall make the deductions required by this section even if the member’s compensation is reduced below the amount equal to the minimum compensation provided by law.
(i) By becoming a member of the retirement system, a member consents to the deductions required by this section. The payment of compensation less those deductions is a complete release of all claims, except benefits provided by this subtitle, for services rendered by the member during the payroll period.