Georgia House of Representatives - 1995/1996 Sessions

HB 136 - Fiscal ret bills; cost reduction amendments; actuarial study

Page Numbers - 1/ 2

1. Cummings  27th         2. McBee  88th             3. Shanahan  10th


House Comm: Ret        /                Senate Comm: Ret        /               
House Vote: Yeas 169   Nays 0           Senate Vote: Yeas 45  Nays 0            
              ----------------------------------------                          
               House          Action         Senate                             
              ----------------------------------------                          
              1/11/95  Read 1st Time         1/26/95                            
              1/12/95  Read 2nd Time         2/2/95                             
              1/23/95  Favorably Reported    2/1/95                             
              1/25/95  Read 3rd Time         3/9/95                             
              1/25/95  Passed/Adopted        3/9/95                             
              3/20/95  Sent to Governor                                         
              4/7/95   Signed by Governor                                       
              259      Act/Veto Number                                          
              7/1/95   Effective Date                                           
              ----------------------------------------                          
                                                                                
Code Sections amended: 47-20-37                                                 


HB 136                                            LC 21 2892






                        A BILL TO BE ENTITLED
                               AN ACT


  1- 1  To amend Chapter 20 of Title 47 of the Official Code of
  1- 2  Georgia Annotated, the "Public Retirement Systems Standards
  1- 3  Law," so as to require an actuarial investigation for cost
  1- 4  reduction amendments to fiscal retirement bills; to change a
  1- 5  certain reference relating to the requirement of an
  1- 6  actuarial study; to repeal conflicting laws; and for other
  1- 7  purposes.

  1- 8       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

                         SECTION 1.

  1- 9  Chapter 20 of Title 47 of the Official Code of Georgia
  1-10  Annotated, the "Public Retirement Systems Standards Law," is
  1-11  amended by striking in its entirety subsection (b) of Code
  1-12  Section 47-20-37, relating to the consideration of
  1-13  retirement bills having a fiscal impact and amendments and
  1-14  substitutes thereto, and inserting in lieu thereof the
  1-15  following:

  1-16    "(b) After completion of an actuarial investigation, any
  1-17    amendment to a retirement bill having a fiscal impact
  1-18    shall be out of order and shall not be allowed either by a
  1-19    committee or by the House or Senate, except for a
  1-20    nonfiscal or a reduction in cost amendment.  Any amendment
  1-21    to a retirement bill having a fiscal impact shall be
  1-22    submitted to the state auditor by the chairman chairperson
  1-23    of the committee, if a committee amendment, or by the
  1-24    presiding officer of the Senate or House if the amendment
  1-25    was made by the Senate or House.  If the state auditor
  1-26    certifies in writing that the amendment is a nonfiscal
  1-27    amendment or if the amendment results in a reduction in
  1-28    cost amendment and the state auditor provides an actuarial
  1-29    investigation as required in subsection (a) of Code
  1-30    Section 47-20-36,  then the bill as amended, with the
  1-31    state auditor's certification or actuarial investigation
  1-32    attached to the original of the amendment, may continue in
  1-33    the legislative process.  If the state auditor will not
  1-34    issue such a certification for the amendment or if there


                                 -1- (Index)

                                                  LC 21 2892

  2- 1    is no actuarial study showing the reduced cost of the
  2- 2    amendment, the bill's progress in the legislative process
  2- 3    will end, and the bill shall not be considered further by
  2- 4    either the House or Senate and, if passed by the General
  2- 5    Assembly, the bill shall not become law and shall stand
  2- 6    repealed in its entirety on the first day of July
  2- 7    immediately following its enactment."

                         SECTION 2.

  2- 8  Said chapter is further amended by striking in its entirety
  2- 9  subsection (b) of Code Section 47-20-50, relating to  the
  2-10  effective date and funding of retirement bills with a fiscal
  2-11  impact, and inserting in lieu thereof the following:

  2-12    "(b) When a retirement bill having a fiscal impact amends
  2-13    a retirement system having employer contributions funded
  2-14    from appropriations by the General Assembly, then
  2-15    appropriations for the first fiscal year of effectiveness
  2-16    of the bill, after it becomes law, must include funds to
  2-17    pay the amount determined by the actuarial investigation
  2-18    under paragraph (5) of subsection (a) of Code Section
  2-19    47-20-36 or subsection (b) of Code Section 47-20-37, and
  2-20    future appropriations for subsequent fiscal years must
  2-21    include an amount necessary to maintain the actuarial
  2-22    soundness of the retirement system in accordance with the
  2-23    findings of the actuarial investigation.  Any limitation
  2-24    on the rate of employer contributions that may be included
  2-25    in a law which is the source of authority for a retirement
  2-26    system affected by this subsection is shall be amended to
  2-27    the extent necessary to comply with the requirements of
  2-28    this subsection."

                         SECTION 3.

  2-29  All laws and parts of laws in conflict with this Act are
  2-30  repealed.














                                 -2- (Index)