Legislative update (Employees' Retirement System of Georgia), 21 February 2014

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E RSGA
Employees' Retirement System of Georgia

For the Week of: February 17 - 21, 2014 Legislative Days: 22 - 26

Employees' Retirement System of Georgia
Legislative Update

February 21, 2014

Page 1

Inside This Update
1 Legislative Log
For More Information on Legislation, please visit: www.ers.ga.gov
Contact Us
Jim Potvin Executive Director, ERSGA 404-603-5605 jim.potvin@ers.ga.gov
Kelly L. Moody Legislative Liaison and Communications Manager 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 17, 2014
No retirement bills were considered today.
Tuesday, February 18, 2014 SB 339 Retirement and Pension; revise, modernize, correct errors/omissions in said title; Code Revision Commission
This bill is a clean-up bill to correct typographical, stylistic, and other errors and omissions in Title 47.
SB 339 received a DO PASS from the Senate Retirement Committee.
Wednesday, February 19, 2014 HB 761 Public Retirement Systems Standards Law; definition of annual required contribution; change references
This legislation updates the Public Retirement Systems Standards law by providing a reference date of June 15, 2013 for Governmental Account Standards Board (GASB) Statements 25 and 27. GASB provides financial reporting requirements for retirement systems.

HB 761 received a DO PASS from the House Retirement Committee.

February 21, 2014
Legislative Log (continued)

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HB 764 Georgia State Employees' Pension and Savings Plan; certain employees make contributions at rate of 5 percent unless otherwise specified; provide

The current tier for new hires of the ERS pension system contains both a defined benefit (DB) and a defined contribution (401(k)) component. Membership in the DB plan is mandatory for new hires; membership in the 401(k) plan is optional. Currently, new hires are automatically enrolled in the 401(k) plan with an initial contribution rate of 1% of their salary unless they opt out or otherwise elect to change their contribution rate. This bill changes the initial contribution rate to 5% of the employees' salary for those hired after July 1, 2014, in order to take advantage of the full state offered match. Employees may continue to opt out or otherwise elect to change their contribution rate.

HB 764 received a DO PASS from the House Retirement Committee.
HB 843 Retirement and pensions; ensure compliance with federal laws and regulations; change certain provisions

In 2009/2010, legislation was passed to align Georgia law with the federal Internal Revenue Code. The IRS has required an additional change in Georgia law in order maintain compliance with IRS regulations as it relates to qualified pension plans for ERS and TRS. These changes are minor and impact the General Provisions (replace detailed IRC 415 language with a statement that the retirement systems will comply with IRC 415 requirements), Georgia Legislative Retirement System (add IRC 414 employer "pick-up" language) and the Georgia Judicial Retirement System (add IRC 414 employer "pick-up" language).

HB 843 received a DO PASS from the House Retirement Committee.

Thursday, February 20, 2014 No retirement bills were considered today.

Friday, February 21, 2014
HB 764 Georgia State Employees' Pension and Savings Plan; certain employees make contributions at rate of 5 percent unless otherwise specified; provide
The current tier for new hires of the ERS pension system contains both a defined benefit (DB) and a defined contribution (401(k)) component. Membership in the DB plan is mandatory for new hires; membership in the 401(k) plan is optional. Currently, new hires are automatically enrolled in the 401(k) plan with an initial contribution rate of 1% of their salary unless they opt out or otherwise elect to change their contribution rate. This bill changes the initial contribution rate to 5% of the employees' salary for those hired after July 1, 2014, in order to take advantage of the full state offered match. Employees may continue to opt out or otherwise elect to change their contribution rate.
HB 764 received a DO PASS from the House Rules Committee and was placed on the House debate calendar for 2/24/14.

February 21, 2014
Legislative Log (continued)

Page 3

HB 843 Retirement and pensions; ensure compliance with federal laws and regulations; change certain provisions

In 2009/2010, legislation was passed to align Georgia law with the federal Internal Revenue Code. The IRS has required an additional change in Georgia law in order maintain compliance with IRS regulations as it relates to qualified pension plans for ERS and TRS. These changes are minor and impact the General Provisions (replace detailed IRC 415 language with a statement that the retirement systems will comply with IRC 415 requirements), Georgia Legislative Retirement System (add IRC 414 employer "pick-up" language) and the Georgia Judicial Retirement System (add IRC 414 employer "pick-up" language).

HB 843 received a DO PASS from the House Rules Committee and was placed on the House debate calendar for 2/24/14.