Legislative update (Employees' Retirement System of Georgia), 27 January 2012

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Employees' Retirement System of Georgia

For the Week of: January 23 - 27, 2012 Legislative Days: 6 - 9

Employees' Retirement System of Georgia
Legislative Update

January 27, 2012

Page 1

Inside This Update
1 Legislative Schedule
2 Legislative Log
For More Information on Legislation, please visit: www.ers.ga.gov
Contact Us
Jim Potvin Interim Executive Director, ERSGA 404-603-5605 jim.potvin@ers.ga.gov
Kelly L. Moody Legislative Liaison and Assistant Director, ERSGA 404-603-5646 kelly.moody@ers.ga.gov
Danise Thaxton Executive Assistant to the Director, ERSGA 404-603-5602 danise.thaxton@ers.ga.gov

Legislative Adjournment Schedule Announced through March 12th

January 30 January 31 February 1 February 2 February 3 February 4-5 February 6 February 7 February 8 February 9 February 10-14 February 15 February 16 February 17 February 18-19 February 20 February 21 February 22 February 23 February 24-26 February 27 February 28 February 29 March 1-4 March 5 March 6 March 7 March 8-11 March 12
* Recess is when the General Assembly is not in Session.

Legislative Day 10 Legislative Day 11 Legislative Day 12 Legislative Day 13 Legislative Day 14
Recess* Legislative Day 15 Legislative Day 16 Legislative Day 17 Legislative Day 18
Recess* Legislative Day 19 Legislative Day 20 Legislative Day 21
Recess* Legislative Day 22 Legislative Day 23 Legislative Day 24 Legislative Day 25
Recess* Legislative Day 26 Legislative Day 27 Legislative Day 28
Recess* Legislative Day 29
Recess* Legislative Day 30
Recess* Legislative Day 31

January 27, 2012
Legislative Log

Page 2

Monday, January 23, 2012
HB 295 - Georgia State Employees Pension and Savings Plan; transfer of accrued benefit; provide

This bill provides for transfers between the Georgia State Employees' Pension and Savings Plan (GSEPS) under the Employees' Retirement System (ERS) and the Teachers Retirement System (TRS) with retirement benefits being calculated on a pro-rated basis.
An individual could have nine years of TRS service and then transfers to the ERS (GSEPS) plan and lose the benefit they had under TRS. TRS is a 2% formula and ERS is now a 1% formula under GSEPS. This was an oversight when the new GSEPS plan was passed in 2008. This creates a windfall situation for some and a huge loss for others.
Under this legislation, if a non-vested GSEPS member of ERS transfers to TRS, the member would retain their 1% GSEPS ERS formula for the period they worked under ERS, and then would begin the 2% TRS formula once the transfer to TRS occurs.
If a non-vested member of TRS transfers to GSEPS under ERS, the member would retain their 2% TRS formula for the period they worked under TRS, and then would begin the 1% GSEPS ERS formula once the transfer to ERS occurs.
There is no cost to ERS for this legislation.
HB 295 was placed on the House Debate Calendar for 1/24/12.
Tuesday, January 24, 2012
HB 293 - Retirement bills; define a certain term
This bill amends the definition of a fiscal retirement bill in the Public Retirement Systems Standards to include any bill or amendment which grants a public retirement system an insurable interest in active or retired members, or authorizes or directs a public retirement system to expend or obligate funds to purchase life insurances on its members. A bill of such nature will be required to go through the Retirement Committee.
HB 293 received a DO PASS from the Senate Retirement Committee.

HB 295 - Georgia State Employees Pension and Savings Plan; transfer of accrued benefit; provide

This bill provides for transfers between the Georgia State Employees' Pension and Savings Plan (GSEPS) under the Employees' Retirement System (ERS) and the Teachers Retirement System (TRS) with retirement benefits being calculated on a pro-rated basis.
An individual could have nine years of TRS service and then transfers to the ERS (GSEPS) plan and lose the benefit they had under TRS. TRS is a 2% formula and ERS is now a 1% formula under GSEPS. This was an oversight when the new GSEPS plan was passed in 2008. This creates a windfall situation for some and a huge loss for others.

January 27, 2012
Legislative Log (continued)

Page 3

Under this legislation, if a non-vested GSEPS member of ERS transfers to TRS, the member would retain their 1% GSEPS ERS formula for the period they worked under ERS, and then would begin the 2% TRS formula once the transfer to TRS occurs.
If a non-vested member of TRS transfers to GSEPS under ERS, the member would retain their 2% TRS formula for the period they worked under TRS, and then would begin the 1% GSEPS ERS formula once the transfer to ERS occurs.
There is no cost to ERS for this legislation.
HB 295 received a DO PASS by the full House of Representatives.
HB 297 - Retirement and pensions; public systems prohibited from expending funds for certain purposes; provide
This bill prevents any public retirement system from having an insurable interest in the system's active or retired members unless benefits are paid to a designated beneficiary or the member's estate.
HB 297 received a DO PASS from the Senate Retirement Committee.
HB 308 - Public retirement systems; duties of boards of trustees; provide
Prior to July 1, 2010, boards of trustees of public retirement systems were subject to applicable provisions in Title 53 dealing with Common Law fiduciary duties. However, an oversight occurred when the statute was amended last session. This bill adds back the needed references concerning Common Law fiduciary duties for boards of trustees of public retirement systems.
HB 308 received a DO PASS from the Senate Retirement Committee.
Wednesday, January 25,2012
HB 542 - Employees' Retirement System of Georgia; transfer service credit; provide
This bill allows a member of the Employees' Retirement System of Georgia (ERS) who was previously an active member of the Judicial Retirement System (JRS) to transfer JRS service to ERS by December 31, 2012.
If a member has withdrawn his/her employee contributions from JRS, the member must provide notice to the Board of Trustees requesting a transfer to ERS. At that time, the member must pay the Board the total of such contributions, with regular interest thereon, and employee and employer contributions from JRS will be transferred to ERS.
HB 542 received a DO PASS by Committee Substitute from the House Retirement Committee.

January 27, 2012
Legislative Log (continued)

Page 4

Thursday, January 26, 2012

HB 805 - State Personnel Administration; abolition; make conforming amendments and correct references
This bill removes references to the State Personnel Administration throughout Title 47 and provides for the transfer of certain functions to the Department of Administrative Services.
HB 805 was assigned to the House Retirement Committee by the full House of Representatives.

Friday, January 27, 2012

No Bills were considered today due to the General Assembly being in Recess.