07 LC 21
9531
House
Bill 870
By:
Representative Powell of the
29th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Title 47 of the Official Code of Georgia Annotated, relating to retirement
and pensions, so as to change the definition of employees of the Board of
Regents of the University System of Georgia who may opt not to participate in
the Teachers Retirement System of Georgia; to provide that certain persons who
elected to participate in the Regents Retirement Plan in lieu of the Teachers
Retirement System of Georgia may revoke such election; to provide for
application and payment of funds; to increase the employer contribution to the
members´ accounts in the Regents Retirement Plan; to provide conditions for
an effective date and automatic repeal; to repeal conflicting laws; and for
other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Title
47 of the Official Code of Georgia Annotated, relating to retirement and
pensions, is amended by revising Code Section 47-3-68, relating to membership of
eligible university system employees in the Teachers Retirement System of
Georgia, as follows:
"47-3-68.
(a)
As used in this Code section, the term 'eligible university system employee'
means faculty and principal administrators employed by the University System of
Georgia, as designated by regulations of the Board of Regents of the University
System of Georgia, who are:
(1)
Employed on or after July 1, 1990, and are eligible for membership in the
retirement system provided for in this chapter as of the date of employment;
or
(2)
Members of the retirement system provided for in this chapter on July 1, 1990,
with less than ten years of creditable service on that
date;
or
(3)
Faculty or employees who are exempt under the federal Fair Labor Standards Act
of 1938, as amended, 29 U.S.C. 201, et seq., and who are otherwise eligible for
membership in the retirement system provided for in this chapter as of the date
of employment.
(b)
Any other provisions of this chapter to the contrary notwithstanding, any
eligible university system employee may withdraw from or decline membership in
the retirement system provided for in this chapter and participate in the
optional retirement plan provided for in Chapter 21 of this title as provided in
this Code section.
(c)
Members of the retirement system provided for in this chapter who were eligible
university system employees on July 1, 1990, shall have the option to withdraw
from this retirement system and participate in the optional retirement plan
provided for in Chapter 21 of this title. Members exercising said
option,
which shall be irrevocable, shall forfeit
all rights under this retirement system except that they shall have the right to
have their accumulated contributions under this retirement system transferred to
the optional retirement plan. Upon such election´s becoming effective, the
board of trustees shall transfer the member´s accumulated contributions
directly to the optional retirement plan to purchase benefits thereunder and the
funds so transferred will not be made available to the member except as a
participant in the optional retirement plan. The option provided for in this
Code section shall be exercised by filing a written notification thereof with
the board of trustees and with the employer by not later than July 31, 1991.
The effective date of the option and transfer for each member who elects to
become a new participant in the optional retirement plan shall be August 1,
1991. The failure to exercise the option by July 31, 1991, shall be an
irrevocable election to remain a member of this retirement system.
(d)
Eligible university system employees employed on or after July 1, 1990, shall,
within 30 days immediately following the effective date of their employment,
make an
irrevocable
a
decision to be a member of this retirement system or participate in the optional
retirement plan provided for in Chapter 21 of this title; provided, however,
that such employees employed on or after July 1, 1995, shall make such
irrevocable
decision within 60 days immediately following the effective date of their
employment. A written statement of the decision shall be filed with the
employer and with the board of trustees and shall be effective from the date of
employment. If an eligible university system employee fails to file a statement
of decision provided for in this subsection, such failure shall be an
irrevocable election to become a member of the retirement system provided for in
this chapter.
(e)
Any former member of this retirement system who is presently a participant in
the optional retirement plan provided for in Chapter 21 of this title shall have
the right to have the former member´s accumulated contributions to this
retirement system transferred to said optional retirement plan. Such right
shall be exercised by filing a written notification thereof with the board of
trustees by not later than July 31, 1991. After receiving such notification,
the board of trustees shall, by not later than October 1, 1991, transfer the
former member´s accumulated contributions directly to the optional
retirement plan to purchase benefits thereunder and the funds so transferred
will not be made available to the former member except as a participant in the
optional retirement plan.
(f)
Any member of this retirement system who was employed on July 1, 2004, as an
assistant coach by the athletic department of a state university may make
an
irrevocable
a
decision to participate in the optional retirement plan provided by Chapter 21
of this title. Such election shall be made to the employer and the board of
trustees not later than August 31, 2004. The board of trustees shall transfer
to such member´s account in such optional retirement plan all employer and
employee contributions made by or on behalf of such member together with regular
interest thereon.
(g)(1)
Any eligible employee who elected to decline membership in this retirement
system and elected to participate in the regents retirement plan created by
Chapter 21 of this title may revoke such election and become a member of this
retirement system as provided in this subsection.
(2)
Any person desiring to revoke his or her participation in the regents retirement
plan as provided in paragraph (1) of this subsection shall notify the board of
trustees in writing in such manner as the board of trustees deems appropriate
and shall tender an amount equal to all contributions made by the University
System of Georgia in the regents retirement system on his or her
behalf.
(3)
Upon receipt of the completed application and all sums due, the board of
trustees shall credit the member with creditable service for all prior service
rendered while participating in the regents retirement plan.
(4)
Any person desiring to exercise the election provided for in this subsection
shall submit his or her application together with all sums due:
(A)
For persons in employment on July 1, 2008, not later than June 30, 2009;
and
(B)
For persons who become employed on or after July 1, 2008, any time during the
sixth year of his or her election to participate in the regents retirement
plan."
SECTION
2.
Said
title is further amended revising subsection (b) of Code Section 47-21-4,
relating to employee and other contributions in the Regents Retirement Plan, as
follows:
"(b)
The University System of Georgia shall contribute to the optional retirement
plan on behalf of each participating employee the following:
(1)
Prior to January 1, 1997, an amount equal to 4 percent of the participating
employee´s earnable compensation;
and
(2)
On and after January 1, 1997,
but prior to
July 1, 2008, an amount equal to the
normal cost contribution determined by the board of trustees in accordance with
the provisions of Code Section 47-3-48. The provisions of this subsection are
subject to subsequent legislation; provided, however, that such legislation
shall not provide for a rate of contribution lower than 4
percent;
and
(3)
On and after July 1, 2008, an amount equal to 9 percent of the participating
employee´s earnable compensation. The provisions of this paragraph shall
be subject to subsequent legislation; provided, however, that such legislation
may not provide for a rate of contribution lower than 9
percent."
SECTION
3.
This
Act shall become effective on July 1, 2008, only if it is determined to have
been concurrently funded as provided in Chapter 20 of Title 47 of the Official
Code of Georgia Annotated, the "Public Retirement Systems Standards Law";
otherwise, this Act shall not become effective and shall be automatically
repealed in its entirety on July 1, 2008, as required by subsection (a) of Code
Section 47-20-50.
SECTION
4.
All
laws and parts of laws in conflict with this Act are repealed.