County employees’ retirement: retirement funds: transfers.
SB 671 amended CERL Government Code Section 31582 that permits a county and district to make an advance payment of all or part of the county’s or district’s estimated annual contributions to the retirement fund. The bill makes the following changes effective January 1, 2018:
- Increases the cap on the amount of advance payments allowed from up to one-year’s worth of contributions to up to two-years’ worth of contributions, provided that the payment is made within 30 days after the commencement of the county’s fiscal year. The retirement system will therefore potentially see up to double the prepayment amount and will consequently have to potentially deploy double the funds into the system’s investment portfolio.
- Clarifies that districts in all 1937 Act counties may make advanced payments of their estimated annual 1937 Act contributions.
- Includes technical, conforming clean up language to add references to “pensionable compensation” as defined by PEPRA to the requirement that the county auditor determine and transfer the estimated annual employer contribution based on the employees’ “compensation earnable” as defined under the classic formula.
Status: Approved by the Governor on July 17, 2017.