MD SB862

Repeals the requirement that participating employers pay separate administrative fees to the State Retirement and Pension System based on their number of employees

Shifts administrative and operational expenses of the Board of Trustees and State Retirement Agency into the employer contribution rates certified annually by the Board, excluding Investment Division expenses

Requires the system's actuary to recommend employer contribution rates that include amounts necessary for administrative costs, which the Board must certify to the Secretary of Budget and Management, the Governor, and all participating employers

For fiscal year 2026, administrative expenses will be paid from the accumulation fund on a pro rata basis; beginning fiscal year 2027, expenses will be incorporated into certified employer contribution rates

Local employers must still pay previously certified amounts for fiscal year 2025 by June 1, 2025, under the old fee structure before the new system takes effect