ERS newsletter, 2005

Spring/Summer 2005

Volume 7 Issue 1
Employees' Retirement S G ystem of eorgia

Welcome to the ERS Newsletter!

Welcome to the new edition of the Employees' Retirement System newsletter. This newsletter is the first of two issues you will receive each year; Spring/Summer issue, Fall/Winter.
We are here to serve you and keep you informed of any changes or news that affects your benefit. If you need to contact the Employees' Retirement System

or obtain additional information as it may relate to your retirement benefit, call us at (404) 350-6300 or toll-free at 1-800-805-4609.
We strive to update our web site, www.ersga.org, with timely information that affects our members and retirees. We invite you to visit our web site and provide feedback.

New Health Insurance Premiums
Your June 30, 2005, monthly retirement check will reflect a health benefit premium change. If you have questions concerning your health benefit and/or any changes in the premium, please contact the State Health Benefit Plan eligibility department at (404) 656-6322 or 1-800- 610-1863.

Inside This Issue
Important News for Retirees ....2-3
Peach State Reserves Cost of Living Adjustments Changes to Your Benefit Amount We're Off to PARIS Tax Information Frequently Asked Questions
New ERS Executive Director .......4

Office Contacts

.......4

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Important News for Retirees...

Peach State Reserves is Joining the Employees' Retirement System

Effective July 1, 2005, the Peach State Reserves Section 457, 401(k) and 403(b) plans will become a part of the Employees' Retirement System. House Bill 275, passed and signed into law by Governor Perdue, mandates that Deferred Compensation plans move to ERS. The ERS Board of Trustees will now govern the administration of the plans. Your Quarterly Statements from Peach State Reserves will have a new format, as well as any new information about the plan.
"This change allows ERS to jointly administer its educational programs and seminars for the defined benefit plan, along with educational programs for the deferred compensation savings

plan. The result will be a group of state employees and retirees who are better educated about planning for their retirement years. Another result will be the improved selection of investment services and products available to state employees," said ERS Executive Director Mike Nehf.

Changes to the Net Amount of Your Retirement Benefit
For those of you who have direct deposit: When the net amount of your monthly benefit changes, an advice (check stub) will be mailed to the mailing address you have provided this office. The advice illustrates the changes to your pension payment and deductions.
Cost of Living Adjustments
Your July 31, 2005, monthly retirement check will reflect the 1.5% gross cost-of-living (COLA) increase for ERS that is granted twice each year, based on the soundness of the System.
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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.
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 web site at www.ersga.org, or you can contact Great-West at 1-800-701-8255 to request a form be mailed to you.
Q. How do I change my beneficiary?
A. You must have a separate Beneficiary form completed for each plan (457, 401(k)). Download a form from our web site at www.ersga.org or contact Great-West at 1-800-701-8255 to request a form be mailed to you.
Q. How do I receive help with other questions about Peach State Reserves?
A. Contact a Great-West professional at 1-800-701-8255 for assistance.

Important News For Retirees...

We're Off to ...
New Pension Software System to Protect Your Benefits

ERS is proud to announce that it is implementing a new pension software, Pension and Retirement Information System (PARIS). PARIS will help ERS create a paperless record of every member and retiree by implementing a stable, state-of-the-industry, fully integrated solution capable of supporting the mission

of ERS well into the 21st century.
PARIS will enable ERS staff to better provide pension management services including employer, member/retiree services, and financial services. PARIS is another way of ERS improving services.

Tax Infor mation
Federal Tax: Your pension is subject to federal tax withholding. To initiate or revise any tax withholding, you should contact our office or you may visit our web site at www.ersga.org to print the applicable tax form.
State Tax: There may be a difference in liability. Your pension is subject to state tax withholding as well as federal tax withholding. As with federal tax, to initiate or revise any state tax withholding, you should contact our office or visit our web site to obtain the correct forms. At age 62, you may be entitled to a special deduction. Contact the State Revenue Department at (404) 417-4480 or your independent tax advisor for additional information.
SPECIAL NOTE ABOUT TAX CHANGES: If you make a change to your tax withholding, either federal or state, please note that if the form is received in the ERS office by the 18th of the month, the tax changes will take effect that month. If the form is received after the 18th of the month, changes will take effect the next month.

Frequently Asked Questions
Q. What should I do if I move to a new address?
A. We must have your correct address on file at all times, even if your check is directly deposited. Address changes must be submitted to us in writing as soon as possible either by mail or fax. If you need assistance, please call us at (404) 350-6300 or 1-800-805-4609.
Q. What should I do if I want to change my beneficiary?
A. Remember that a primary and contingent beneficiary were designated for both your retirement benefit and for your Group Term Life Insurance (GTLI). You may change your beneficiaries for your GTLI at any time. Only the Maximum and Option 1 Plans allow you to change your beneficiaries for your retirement benefit at any time. If you want to change your beneficiaries (either primary or contingent), or if you experience a life-changing event (marriage, divorce, birth of a child), please contact us immediately. Changes must be submitted on a Change of Beneficiary form, and are valid only upon receipt by ERS.
Q. How can I have my check directly deposited into my bank account or change my direct deposit?
A. Mail or fax a completed direct deposit form to ERS. You will need to attach a blank check or copy of a check (if faxing), marked "void", to the direct deposit form. Your name (or responsible party, such as power of attorney's or guardian's name) must be on the account. PLEASE NOTE: Once this form is received, your first check will be mailed to your home address. The subsequent checks will be directly deposited into your checking or savings account, as requested.
Q. How can I change my health insurance coverage?
A. ERS cannot change your health insurance coverage. There is an open enrollment period each year for retirees. There are situations in which coverage can be changed outside of open enrollment, such as divorce or death of spouse. Please contact the State Health Benefit Plan directly at (404) 656-6322 or 1-800-610-1863 for assistance.
Q. What about dental insurance?
A. ERS cannot change your dental insurance. Please contact (404) 656-2730 for questions about your dental insurance.

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ERS Welcomes Our New Executive Director

ERS is pleased to announce that it has a new Executive Director, Michael J. Nehf. Mr. Nehf joined ERS in January following a nationwide search for a new Director. He brings to ERS many years of experience in working in the fields of pension, insurance and accounting. Most recently, he worked with the Public School Teachers' Pension and Retirement Fund of Chicago. He also worked with the Chicago Municipal Employees' Pension fund. Prior to serving public retirement systems, he worked in the areas of health insurance, insurance brokerage and public accounting. He holds a Master of Management Degree from Northwestern University, a CPA designation and earned a Bachelor's Degree in Accounting from Western Illinois University.

He and his wife, Kathy, are the proud parents of three sons, and are pleased to be living in the Atlanta area.
Mr. Nehf says, "Our vision is to become a premier retirement system a customer-centric system utilizing leading edge technology to proactively serve our members, retirees and beneficiaries. We will provide customer service by being responsive, timely, accurate and efficient."
"Here at ERS, we are on target to becoming one of the best retirement systems to ever be in place. Over the next few years, as we implement our new PARIS system (see related story on page 3), I think that you will see that we are achieving our mission," he adds.
Welcome aboard!

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

FIRST CLASS MAIL U.S. POSTAGE PAID
ATLANTA, GA PERMIT NO. 3336

Important Telephone Numbers to Remember
ERS General Office......................... 404-350-6300 ERS Toll Free.................................. 800-805-4609 Peach State Reserves..................... 404-651-6088

Great-West (Deferred Compensation)........ 800-701-8255 ERS Financial Services Fax............... 404-350-6308 Web Site ............................................. www.ersga.org

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