(2) “Library” means a library that is established or operates under the Education Article.

(3) “Local employer” means a participating employer other than the State.

(b) (1) Subject to paragraph (3) of this subsection, for each fiscal year, the State and each local employer shall pay to the Board of Trustees their pro rata shares of the amount necessary for the administrative and operational expenses of the Board of Trustees and the State Retirement Agency.

(2) The pro rata share of the State and of each local employer for each fiscal year shall be based on the number of members of the several systems employed by the State or local employer as of June 30 of the second prior fiscal year compared to the total membership of the several systems as of that date.

(3) The State shall pay the pro rata share under this section of each library.

(4) The administrative and operational expenses of the Board of Trustees and the State Retirement Agency used to determine the pro rata shares under this subsection may not include costs for the personnel and operational expenses of the Investment Division.

(c) As part of its annual budget submission for a fiscal year, the Board of Trustees shall certify to the Secretary of Budget and Management the percentage of the total membership of the several systems that is employed by the State, the libraries, and each local employer as of June 30 of the second prior fiscal year.

(d) (1) The Governor shall include in the budget bill an appropriation to the expense funds of the State Retirement and Pension System that equals the authorized administrative and operational expenses of the Board of Trustees and the State Retirement Agency for the fiscal year.

(2) The amounts payable by the State under this section with respect to members employed by each State unit shall be charged against the budget of that unit.

(3) The State shall pay its pro rata share of the amount of administrative and operational expenses authorized in the State budget to the Board of Trustees on July 1 of the applicable fiscal year.

(e) (1) On or before February 1 of each year, the Board of Trustees shall:

(i) certify to each local employer other than a library the amount payable by the local employer that is equal to the percentage certified under subsection (c) of this section multiplied by the amount of administrative and operational expenses authorized in the State budget for the next fiscal year; and

(ii) notify the Secretary of Budget and Management and the Department of Legislative Services of the certifications sent under item (i) of this paragraph.

(2) On or before October 1, January 1, April 16, and June 1 of each fiscal year, each local employer shall pay to the Board of Trustees 25% of the amount certified to the local employer by the Board of Trustees under paragraph (1) of this subsection.

(3) If a local employer does not pay the amounts required under this section within the time required, the local employer is liable for interest on delinquent amounts at a rate of 4% a year until payment.

(4) The Secretary of the Board of Trustees may allow a grace period not to exceed 10 calendar days for payment of the amounts certified under this section.

(5) On notification by the Secretary of the Board of Trustees that a delinquency exists, the State Comptroller immediately shall exercise the right of setoff against any money due or coming due to that local employer from the State.

(6) A participating governmental unit or employer required to make employer contributions under § 21-307 of this subtitle may deduct the payments required under this section from payments for employer contributions required under §§ 21-305 through 21-307 of this subtitle.

(f) On receipt of payments under this section, the Board of Trustees shall credit these amounts to the expense fund of the appropriate State system.