Legislative update (Employees' Retirement System of Georgia), 10 February 2012

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Employees' Retirement System of Georgia

Employees' Retirement System of Georgia
Legislative Update

For the Week of: February 6 - February 10, 2012 Legislative Days: 10 - 14

February 10, 2012

Page 1

Inside This Update
1 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 Log
Monday, February 6, 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 received a DO PASS from the House Rules Committee and was placed on the House Debate Calendar for 2/7/12.
Tuesday, February 7, 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 received a DO PASS from the full House of Representatives by a vote of 164-0.

SB 246 - Retirement; provide an increase in the employee contribution; retirement benefit; conditions

This bill increases the monthly employee contribution from $4.00 to $10.00 for new members of the Public School Employees Retirement System (PSERS) beginning July 1, 2012. Provisions provide for the minimum monthly retirement benefit for PSERS members to increase from $12.00 to $14.75 for each year of creditable service. The maximum monthly retirement benefit will increase from $15.00 to $16.00 for each

February 10, 2012

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Legislative Log (continued)

year of creditable service. The benefit increases are to the extent that funds are appropriated by the General Assembly. Benefit increases will be payable to current and future PSERS retirees. However, there will be no benefit increase above $15.00 for members retired on and after the effective date of this legislation.

SB 246 received a DO PASS from the Senate Retirement Committee.
SB 286 - Retirement; tax commissioner or an employee of any such officer; membership; Employees' Retirement System of Georgia

This bill will close new ERS membership for Tax Commissioners, tax collectors, tax receivers and their employees for those first or again employed on or after July 1, 2012.

SB 286 received a DO PASS from the Senate Retirement Committee.

Wednesday, February 8, 2012

HB 236 - Judges and court employees; new employees not Retirement System of Georgia members; provide
This bill allows Tax Commissioners, tax collectors, tax receivers and their employees, who first or again take office or become employed after July 1, 2012 to have the option to become members of the Employees' Retirement System (ERS) or either a local pension plan. Membership would be prohibited in both plans. If membership in ERS is designated, the County will then be responsible for paying employer contributions for such member.
HB 236 received a DO PASS from the House Retirement Committee.

HB 250 - Georgia Judicial Retirement System; revised survivor's benefit option; provisions
Currently, JRS members must elect spousal coverage upon becoming a member of the Judicial Retirement System (JRS) or upon marriage. The member pays an additional 2.5% each year for 16 years for this coverage.
This bill allows for new members as of July 1, 2012, to pay normal employee contributions as required by the actuary, and then at retirement, elect an option to cover a spouse by taking a reduced retirement allowance. Such a change allows for equity to the current Employees' Retirement System (ERS) spousal coverage.
Current JRS members that have at least ten years of service, who at time of enrollment rejected spousal benefits, may pay the full actuarial cost for these benefits and may choose to cover their spouse according to the previous plan design.
HB 250 received a DO PASS from the House Retirement Committee.

February 10, 2012
Legislative Log (continued)

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SB 402 - "Employees' Retirement System of Georgia Enhanced Investment Authority Act"; define certain terms relating to certain types of investments

This bill amends provisions relating to the Public Retirement Systems Investment Authority Law by defining the term "alternative investments" and allows eligible large retirement systems, other than the Teachers Retirement System, to make certain alternative investments.

Senate Bill 402 allows investment in alternative investments of up to 1% per year, with a total of no more than 5% of total funds at any time.

The bill, as written, provides certain protections to ERS:

- Does not specify participation in investments based on geography

- Language is structure specific

Each investment requires at least 4 other investors on the same terms not affiliated with the issuer



Each investment shall only be made in private pools and issuers that have at least $100 million in assets

A code of ethics must be adopted relating to investing in and disposing of these investment vehicles

Annual reporting is required to the Governor and the House and Senate Retirement Committee Chairpersons detailing the performance of such investments.

SB 402 was assigned to the Senate Retirement Committee by the full Senate.

Thursday, February 9, 2012

HB 944 - Official Code of Georgia; retirement and pensions; revise, modernize, and correct errors or omissions

This bill is a clean-up bill to correct typographical, stylistic, and other errors and omissions in Title 47.

HB 944 was assigned to the House Judiciary Committee by the full House of Representatives.
SB 246 - Retirement; provide an increase in the employee contribution; retirement benefit; conditions

This bill increases the monthly employee contribution from $4.00 to $10.00 for new members of the Public School Employees Retirement System (PSERS) beginning July 1, 2012. Provisions provide for the minimum monthly retirement benefit for PSERS members to increase from $12.00 to $14.75 for each year of creditable service. The maximum monthly retirement benefit will increase from $15.00 to $16.00 for each year of creditable service. The benefit increases are to the extent that funds are appropriated by the General Assembly. Benefit increases will be payable to current and future PSERS retirees. However, there will be no benefit increase above $15.00 for members retired on and after the effective date of this legislation.

SB 246 received a DO PASS from the Senate Rules Committee and was placed on the Senate Debate Calendar for 2/15/12.

February 10, 2012
Legislative Log (continued)

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SB 286 - Retirement; tax commissioner or an employee of any such officer; membership; Employees' Retirement System of Georgia

This bill will close new ERS membership for Tax Commissioners, tax collectors, tax receivers and their employees for those first or again employed on or after July 1, 2012.

SB 286 received a DO PASS from the Senate Rules Committee and was placed on the Senate Debate Calendar for 2/15/12.

Friday, February 10, 2012

No bills were considered today due to the General Assembly being in recess.