Pension news [ERS members] [Fall/Winter 2005]

Two Northside 75, Suite 300 Atlanta, Georgia 30318-7778
Tel 404-350-6300 Fax 404-350-6310
Michael J. Nehf Executive Director
PENSION NEWS
FALL / WINTER 2005 ISSUE

Inside This Issue
Peach State Reserves Update Achieving Financial Security Legislation Update

Member Statement Information ERS Seminar Registration

Our Pension Newsletter is the first of two issues we plan to publish each year. This particular
issue's publication is intended to coincide with the pension plan member statement you should receive in October.
Inside this newsletter you will find helpful information about what to do if corrections need to be made on your statement, as well as other helpful news affecting ERS members. Our financial and retirement planning seminars may be of particular interest to you; we have included a registration form on page 4. We invite you to visit our web site www.ersga.org which provides information that affects members. You may also call us at (404) 350-6300 or toll-free at 1-800-805-4609 with your questions or comments.
Our Mission is to Serve ...
The mission of ERSGA is to be the guardian of the retirement plans for the ultimate benefit of members, retirees, and beneficiaries of those plans. This mission is accomplished through ERSGA's core responsibilities which include pension administration; the collection, reconciliation and disbursement of contributions for the welfare of the members, retirees and beneficiaries of the plans; and the sound and secure investment of the retirement funds, including Peach State Reserves.
For detailed financial information about the retirement plan, please visit our web site www.ersga.org where you can download a copy of our annual report.

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Peach State Reserves has joined the Employees' Retirement System!
Effective July 1, 2005, the Peach State Reserves Section 457, 401(k) and 403(b) plans became a part of the Employees' Retirement System. House Bill 275, passed and signed into law by Governor Perdue, mandated that Deferred Compensation plans move to ERS. The ERS Board of Trustees now governs the administration of the plans.
Rollovers Into Peach State Reserves
Peach State Reserves has experienced a growing number of rollovers into the plan. To date, over 900 participants have transferred balances from other retirement accounts into their PSR account, totaling over $11,000,000. Participants are rolling into the plan because it offers a wide range of investment options with competitive fees. It's also easier to manage one account, rather than multiple accounts.
For help with transferring other retirement plans to PSR, including previous employer's 401(k) Plans and Individual Retirement Accounts (pre-tax assets only), contact a rollover specialist at 1-800-331-7180, or, in Metro Atlanta, 404-651-6088. The application can be downloaded at www.ersga.org,
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Frequently Asked Questions about Peach State Reserves
Q. Do I have to take my money out of the plan when I retire?
A. No. You can leave your money in the plan - you just can't make any additional contributions (unless you want to roll in money from other retirement plans you may have, such as an IRA). You maintain control of your investments, including the ability to trade among the investment options, with no trading fees (unless you use the Self-Directed Brokerage Option), and your account will continue to reflect the performance of the investment options you have chosen. Once you reach age 70 , the IRS does require that a small amount be withdrawn each year from any tax-deferred retirement accounts you have, including IRAs. You'll also continue to receive Quarterly Account Statements.
Q. How do I change my address with Peach State Reserves?
A. Currently, you will need to complete our address change form, available on our website at www.ersga.org, or you may contact Great-West at 1-800-701-8255 to request a form be mailed to you.
Q. Can I receive my Quarterly Statements by email?
A. Absolutely! PSR features the On-Line File Cabinet. After you sign up for this feature, you will be notified when your statement is available. You can access, view and print this information, and the documents are stored for future access. To sign up, log on to your account at www.peachstatereserves.com.

Achieving Financial Security
Remember when you were a kid and didn't have to worry about money? And all of your needs seemed to be taken care of magically?
And now that you're a grown-up, reality is that in order to achieve financial security, you often need help in planning and taking action.
Then ERS may have the answer for you. ERS has one and twoday seminars designed to help you plan for your financial future.
Our one-day seminar is an overview of your benefits as a state employee, and is suitable for new and mid-career members. Topics include: ERS retirement benefits, Peach State Reserves 401(k) & 457, Flexible Benefits, Financial Planning, Wills and Estates, and Social Security.
Our two-day seminar provides more comprehensive, practical information for late-career employees. The emphasis is on coordinating all of your state benefits and preparing for life during retirement.
Simply return the completed registration form on the reverse side to our office. A couple of months before the next available seminar, you'll receive an invitation. Mailing in your registration fee at that time will reserve your seat. It's that simple. Then you, too, can look forward to a happy and prosperous retirement.
Did You Know
While employees of the Employees' Retirement System of Georgia are here to serve you, our members, you may find it interesting to know that many of those who work at ERS are good stewards of the community. Each year employees of the State of Georgia are given the chance to contribute to their favorite charities through the State Charitable Contribution Program (SCCP). ERS has won the Governor's Cup for the last three consecutive years. The cup is given based on agency size to the agencies that raise the most money for the SCCP. Last year, ERS (a small agency of fewer than 100 employees) contributed more than $10,000! This money went to 46 independent charitable organizations providing a wide range of health, welfare and educational programs, and 42 charitable federations,.
A more recent example of good community stewardship is the response of ERS employees to the devastating effects of Hurricane Katrina. Some employees at ERS have relatives now living with them who are from the New Orleans area and evacuated with little more than a few of their possessions. They have since learned that their homes are gone or if not, it will be months before they are able to return. Other ERS employees have responded by donating clothing, toys and other items to these families.
"ERS is truly a family," said ERS executive director Mike Nehf. "They are professionals who care about the members and retirees of the retirement system, working to help members and retirees understand their benefits. Furthermore, they are good community stewards who give from the heart to those in need, whether they volunteer at shelters on the weekends or go home at night to pull together items to donate to those in need. I am proud to be a part of this team."
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Employees' Retirement System of Georgia Seminar Registration

Full Name: _____________________________________________________________

SS#: _________________________________________________________________ Office Phone: (____) __________________ Home Phone: (____)_________________

Home Address: _________________________________________________________ Street

______________________________________________________________________

City

State

Zip

Department or Agency: _______________________ Yrs. of State Service: __________

E-mail Address: ________________________________________________________

Signature: _________________________________ Date: ____________________

Your preference for a one-day or two-day seminar:

_____ One-day

_____ Two-day

Location preference with number 1 being your highest preference.

_____ Atlanta _____ Northeast Georgia

_____ Central Georgia _____ Northwest Georgia

_____ Southwest Georgia

_____ Southeast Georgia

Please indicate any range of dates you CANNOT attend a seminar or any special needs.

I cannot attend a seminar during these dates: __________________________________

Special needs: __________________________________________________________
Please mail the completed form to:
Employees' Retirement System Two Northside 75, Suite 300, Atlanta, GA 30318-77778
Or Fax to: (404) 350-6306

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Frequently Asked Questions about Pension Plan Member Statements

Q. Why does ERS send me a Member Statement each year?
A. The statement contains important personal information about your pension plan. It gives you the opportunity to make us aware of any changes and/or make any corrections.
Q. I did not receive a Member Statement. What should I do?
A. Please wait until October 31, 2005, as your Member Statement may have been delayed in the mail. If on October 31, 2005, you still have not received your statement, please contact our office by telephone, FAX, e-mail or U. S. mail. You will need to provide us with the Plan you are in, your name (including any name changes in the last year), street address (or P. O. Box), city, state, and zip code.
Q. What do I do if my name or address or other personal information such as my date of birth or Social Security number are incorrect on my Member Statement?
A. These corrections can only be made by your Agency. Contact your Agency to verify and/or correct your personal information on payroll records.
Q. My Retirement Service Credit or Years of Service is incorrect. How can I correct this?
A. Recent payments or corrections may not have been posted before the Member Statement was printed. If there have been "breaks in service", no service was reported by the Agency for that time period. Please mark the corrections on a copy of the Member statement in black ink and mail that copy to ERS or FAX to (404) 350-6308. An audit of your account will be done and you will be notified of the results. Please note on the statement if you advised us of the error on previous years' statements.

Q. How much do I contribute to my account?
A. If you are a member of the "Old Plan" (current membership date prior to July 1, 1982), the total employee/member contribution rate is 6.5% of the monthly pensionable salary less $7. The employee payroll deduction is 1.5%, of which 1.25% is credited to your retirement account and 0.25% is for ERS Group Term Life Insurance (GTLI) premiums. Your employer pays the remaining 5% less $7. Of that amount, 4.75% is credited to your retirement account and 0.25% is for GTLI premiums . (Old Plan employees of state courts and local tax offices pay the full 6.5% contribution less $7.)
If you are a member of the "New Plan" (current membership date of July 1, 1982, or later), you contribute 1.5% of your monthly pensionable salary, of which 1.25% is credited to your retirement account and 0.25% is for GTLI premiums. The contribution for GTLI premiums is used to pay for this benefit and is not credited to your account.
Q. My Contributions and/or Interest are incorrect. What should I do?
A. Please mark the corrections on a copy of the Member Statement in black ink and mail that copy to ERS or FAX to (404) 350-6308. ERS will review and audit your account. Please note on the statement if you advised us of the error on previous years' statements.
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LEGISLATION UPDATE
The following is a synopsis of legislation enacted during the 2005 session of the General Assembly which affects the Employees' Retirement System (ERS) and/or its members. The laws were effective July 1, 2005. Act No. 116 (Senate Bill 161) Amends 47-2-98 for certain Department of Community of Affairs members. Act No. 85 (House Bill 319) Amends 47-20-84 to authorize investments in exchange-traded securities. Act No. 14 (House Bill 381) Amends 47-2-121(e.4) to clarify Option 6 retirement choice. Act No. 104 (House Bill 459) Amends 47-2-125 to increase authority regarding disability benefits. Act No. 103 (House Bill 460) Amends Georgia Code to ensure Internal Revenue Code compliance. Act No. 23 (House Bill 275) Amends Georgia Code to transfer Peach State Reserves to the Employees' Retirement System of Georgia.

Two Northside 75, Suite 300 Atlanta, GA 30318-7778

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IMPORTANT TELEPHONE NUMBERS TO REMEMBER
ERS General Office ........... 404-350-6300 Peach State Reserves ............. .......... 800-701-8255 ERS Toll Free .................. 800-805-4609 ERS Member Services Fax ................ 404-350-6304
Web Site ........ www.ersga.org
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