SPRINGFIELD - Following another strong month in fund balances, Comptroller Susana A. Mendoza is ordering the pre-payment of state pension payments in August.
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Total payments in August will be $1.336 billion to the five retirement systems which include $428 million in pre-payments, or nearly 50% more than the usual amount.
This comes after the Comptroller’s Office pre-paid 100% more in pre-payments in July.
These early payments allow the state’s five pension systems to keep more money in their investment portfolios and earn more in returns. Last month’s prepayment is estimated to produce an extra $20 million for retiree pension funds, and this month’s 50% pre-payment is expected to generate another $5 million.
Comptroller Mendoza first began using this cash management tool in July 2024, under new rules she sought to better manage state finances.
“Not only does this boost investment opportunities for the state’s retirement systems, these pre-payments also give my office the flexibility to address other state bills that need to be paid in October and November which are typically low revenue months,” Mendoza said. “Paying our state vendors on time and maximizing taxpayer dollars has been a core mission of my office.”
