Legislative update (Employees' Retirement System of Georgia), 07 March 2014

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Employees' Retirement System of Georgia

For the Week of: March 3 - 7, 2014 Legislative Days: 30 - 34

Employees' Retirement System of Georgia
Legislative Update

March 7, 2014

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Inside This Update
1 Legislative Log
For More Information on Legislation, please visit: www.ers.ga.gov

Legislative Log
Monday, March 3, 2014 HB 935 Retirement and pensions; disclosure of public records shall include local retirement systems; provide exemption

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

This bill modifies the definition of retirement systems as it relates to the exemption from disclosure of public records. If enacted, the new definition would also include local retirement systems.
The bill also corrects a reference within the Public Retirement Standards Law relating to the completion of actuarial investigations. General provisions require local retirement systems to have an actuarial investigation on fiscal bills completed every two years. This amendment is necessary to ensure the two-year cycle is stated correctly throughout Title 47.
HB 935 received a DO PASS from the full House of Representatives by a vote of 171 to 0.
Tuesday, March 4, 2014
HB 477 Employees' Retirement System of Georgia; Georgia Judicial Retirement System; transfer service credit

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.

If the member has withdrawn contributions from JRS, the member may establish such amount as the member desires; however, no service shall be granted in excess of the service credited under JRS. No service shall be credited that will create an accrued liability on the system.

HB 477 received a DO PASS from the Senate Retirement Committee.

March 7, 2014

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Legislative Log (continued)

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 Senate Retirement Committee.
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 for the member 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 Senate Retirement Committee.

Wednesday, March 5, 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 House Retirement Committee.

March 7, 2014
Legislative Log (continued)

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Thursday, March 6, 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 for the member 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 Senate Rules Committee and was placed on the Senate debate calendar for 3/7/14.
Friday, March 7, 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 for the member 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 full Senate by a vote of 51-0.