09 LC
21 0459S
The
Senate Retirement Committee offered the following substitute to HB
476:
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
provide for the reform of certain features of certain public retirement systems;
to amend Chapter 2 of Title 47 of the Official Code of Georgia Annotated,
relating to the Employees' Retirement System of Georgia, so as to provide that
an employing unit shall pay to the retirement system the actuarial cost of
granting an employee a salary increase in excess of 5 percent during the 12
months prior to such employee's retirement; to provide that the computation of
a retirement benefit for persons who become members on or after July 1, 2009,
shall not include a compensation increase in the last 12 months of employment
which exceeds 5 percent; to clarify provisions relative to a death benefit for
certain members of such retirement system; to provide for the authority to
increase liability contribution rates for certain members; to amend Code Section
47-17-80 of the Official Code of Georgia Annotated, relating to retirement
benefits options under the Peace Officers' Annuity and Benefit Fund, payment to
surviving spouse, requirements, effect of reemployment, effect of changes in
retirement benefits, and payment on the death of a member, so as to provide that
certain provisions relating to continued employment or reemployment shall not
apply to certain members; to provide for related matters; to repeal conflicting
laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Chapter
2 of Title 47 of the Official Code of Georgia Annotated, relating to the
Employees' Retirement System of Georgia, is amended in Code Section 47-2-120,
relating to retirement allowances, by adding a new subsection to read as
follows:
"(f)
The board of trustees shall cause the actuary for the retirement system to
calculate the actuarial cost to the retirement system of any salary increase
granted to a member in excess of 5 percent over the 12 months immediately prior
to such member's retirement date and shall notify the employing unit of such
amount. Such notice shall be sent not later than 60 days following such
member's retirement date. The employing unit shall pay such amount, together
with the cost of such actuarial calculation, as a supplemental employer
contribution to the board of trustees not later than the last day of the month
following receipt of such
notice."
SECTION
2.
Said
chapter is further amended in subsection (c) of Code Section 47-2-123, relating
to allowance payable upon death, disability, or involuntary separation from
employment, restrictions on separation for disability, and restrictions on
entitlement to involuntary separation benefits, by adding a new paragraph to
read as follows:
"(3)
In lieu of a death benefit as provided in paragraph (1) of this subsection, a
member who first or again becomes a member of the retirement system on or after
July 1, 2007, and who has at least 10 years of creditable service and is at
least 60 years of age or who is less than 60 years of age and has at least 15
years of creditable service shall upon death receive the equivalent of a service
retirement allowance calculated upon the number of years of creditable service
attained on the date of death and based upon his or her highest average monthly
compensation during a period of 24 consecutive calendar months while a member of
the retirement system."
SECTION
3.
Said
chapter is further amended by revising Code Section 47-2-222, relating to power
to increase liability contribution rates for Department of Public Safety,
Department of Natural Resources, and Department of Revenue and transfer of
employees, as follows:
"47-2-222.
Any
other provisions of law to the contrary notwithstanding, the board of trustees
may increase the normal and accrued liability employer contribution rates of the
Department of Public Safety, the Department of Natural Resources,
and
the Department of
Revenue, the
Georgia Bureau of Investigation, the Department of Corrections, the State Board
of Pardons and Paroles, and any other agency or
authority to an amount set by the board of
trustees as actuarially sufficient to fund the employer's cost of the benefits
provided in this chapter for groups of employees of such departments. In the
event any group of employees of any of such departments is transferred to the
administration of any other department or agency, that department or agency
shall continue to pay the normal and accrued liability contributions on behalf
of such employees at the rate set by the board of trustees."
SECTION
4.
Said
chapter is further amended in Code Section 47-2-334, relating to service
retirement allowance, calculation, employee membership contributions, employer
contributions, optional membership, conditions, and construction of provision,
by adding a new subsection to read as follows:
"(j)
The board of trustees shall cause the actuary for the retirement system to
calculate the actuarial cost to the retirement system of any salary increase
granted to a member in excess of 5 percent over the 12 months immediately prior
to such member's retirement date and shall notify the employing unit of such
amount. Such notice shall be sent not later than 60 days following such
member's retirement date. The employing unit shall pay such amount, together
with the cost of such actuarial calculation, as a supplemental employer
contribution to the board of trustees not later than the last day of the month
following receipt of such
notice."
SECTION
5.
Said
chapter is further amended by revising paragraph (2) of Code Section 47-2-353,
relating to the calculation of a service retirement allowance for members
subject to the provisions of the "Georgia State Employees' Pension and Savings
Plan," as follows:
"(2)
A monthly pension which, together with the annuity, shall provide a total
retirement allowance equal to
1.0
1
percent, or such future amount up to 2 percent to be set by the board of
trustees in direct relation to any increased appropriations provided by the
General Assembly expressly for such increase, of the member's highest average
monthly earnable compensation during a period of 24 consecutive calendar months
while a member of the retirement system, multiplied by the number of the
member's years of creditable
service;
provided, however, that for members employed on or after July 1, 2009, no salary
increase by adjustment in compensation in any manner during the last 12 months,
which increase is in excess of 5 percent, shall be included in such
computation."
SECTION
6.
Said
chapter is further amended by revising subsection (a) of Code Section 47-2-356,
relating to death allowances and benefits, as follows:
"(a)
Any
For purposes
of calculating a survivor's benefit, any
member who has at least 15 years of creditable service and who dies in service
before becoming eligible for a service retirement shall be
deemed to
be eligible to retire forthwith without
regard to age and to receive the equivalent of a service retirement allowance
calculated upon the number of years of creditable service attained to the date
of retirement and based upon his or her highest average monthly compensation
during a period of 24 consecutive calendar months while a member of the
retirement system. Any member who dies in service after becoming eligible for a
service retirement shall be
deemed to
be eligible to retire forthwith to receive
a service retirement allowance."
SECTION
7.
Code
Section 47-17-80 of the Official Code of Georgia Annotated, relating to
retirement benefits options under the Peace Officers' Annuity and Benefit Fund,
payment to surviving spouse, requirements, effect of reemployment, effect of
changes in retirement benefits, and payment on the death of a member, is amended
by revising subsection (g) as follows:
"(g)(1)
Except as provided in paragraphs (2) and (3) of this subsection, any member who
again becomes employed as a peace officer after having been placed on retirement
under this Code section shall immediately notify the secretary-treasurer of such
reemployment. Retirement benefits being paid to such member shall be terminated
as of the date of such reemployment and shall remain terminated for the duration
of such reemployment. During such period of reemployment, said member shall pay
regular monthly dues into this fund. Upon meeting the requirements provided by
law, such member shall be entitled to all benefits provided for in Code Sections
47-17-81 and 47-17-82; but such member shall not be entitled to any increase in
retirement benefits by virtue of service during the period of reemployment
unless such reemployment is for a term of three years or more, in which instance
such member may again apply for retirement as if he or she had not previously
been retired; and he or she shall be entitled to such benefits as may be
provided by law at that time, if he or she so chooses.
(2)
The provisions of paragraph (1) of this subsection shall not apply to a retired
member employed in any capacity for 1,040 hours or less in any calendar
year.
(3)
The provisions of paragraph (1) of this subsection shall not apply to a member
otherwise qualified for a normal service retirement under this chapter with at
least 30 years of creditable service and who has attained the age of 55. Any
such member may continue or reenter employment as a peace officer and shall for
all purposes be considered a retired member of this
fund;
provided, however, that the provisions of this paragraph shall not apply to any
person who first or again becomes a member on or after July 1,
2009."
SECTION
8.
All
laws and parts of laws in conflict with this Act are repealed.