HI SB2763

Allows the State and counties to make advance payments to the Employees' Retirement System in excess of annual required contributions, with payments held and credited against future obligations.

Requires employers to notify the system in writing whether payments apply to current fiscal year contributions or should be credited to future years; payments without notice are treated as current year contributions.

Advance payment credits earn interest set by the board (not to exceed the system's investment return), calculated on the average monthly balance and credited annually on the last day of each fiscal year.

System must notify employers within 60 days after each fiscal year ends of their advance payment credit balance; employers can apply credits to future contributions by written notice within 120 days of the fiscal year start.

Advance payments are included in the pension accumulation fund and do not affect unfunded liability calculations or employer contribution rates until the system receives written notice to apply the credits.