ERS retiree newsletter, 2006

Fall / Winter 2006

ERS Retiree Newsletter
Employees' Retirement System of Georgia

New Retiree Web Account Access
We are excited to announce the availability of on-line account access for retirees through the new ERS Retiree Web! The Web can be used to make changes to your retirement account and to access information in a secure way, as described below:
View personal information View payment information View payment history Update your home address Set up or update your Direct Deposit information Update your Federal and State withholding information View 1099-R information
Retiree Web is a quicker and more efficient way for you to make personal information changes and review your account. To access ERS Retiree Web, go to http://www.ersga.org and click on Retiree Web. You'll need to establish a user account, with password, after which you can log in to your account and access your retirement information. Try it today!
Costs of Living Adjustments (COLAs)
Subject to the approval of the Employees' Retirement System (ERS) Board of Trustees, COLAs are granted twice a year; with the January 31st check and the July 31st check. You must be at least age 45 and retired for 7 months to be eligible for COLAs. There is no age requirement for disability retirees.
If you retired early under age 60 and with more than 25 years of service but less than 30 you are not eligible to receive a COLA until you either turn 60 years old or would have 30 years service had you continued working, whichever is earlier.

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

Returning To Work After Retirement
The rules for returning to work depend on where you go to work and whether you retired on disability or service. Refer to the information below for general return to work rules. Please contact ERS for specific details if you are thinking of returning to work and have questions.
If you are a service retiree and return to work for an employer participating in the Employees' Retirement System or a community service board, you can only work 1,040 hours (roughly 6 months at full-time) during any calendar year. If you exceed that amount of hours, your ERS monthly benefit will be suspended for the rest of the calendar year. You will begin receiving your monthly benefit in January and are allowed to work 1,040 hours before your monthly retirement benefit would again be suspended. If you go to work for a non-ERS employer or for the private sector, you may work an unlimited time.
If you are a disability retiree, there are earnings limitations on your retirement (see article below). You are limited to the difference between the salary used to calculate the disability retirement allowance at retirement and the initial gross monthly disability retirement allowance.
HAPPY HOLIDAYS

Disability Earnings Limitations

All ERS disability retirees under the age of 60 are restricted in the earnings they receive from gainful employment. The earnings limitation is determined by taking the difference between the monthly salary used to calculate the disability retirement allowance at retirement and the initial gross monthly disability allowance. All disability retirees are advised of their individual earnings limitation at retirement. To the extent a disability retiree's earnings exceed this limitation, the monthly pension is reduced in a like amount.

ERS is also authorized to require disability retirees to submit to medical re-examination after retirement. The re-exams may be performed
annually for the first five years after retirement and every three years thereafter. If the re-exam indicates the retiree is capable of gainful employment, ERS reduces the pension to the extent the earnings ability exceeds the earnings limit.

Disability retirees are required to provide tax documents and other earnings records that will support all earned income and any other information relevant to their earnings capacity. Any noncompliance in providing this information could result in the suspension of a monthly disability retirement allowance.

Since July 2005, ERS has corresponded with over 2,000 disability retirees and requested various information and documentation on earned income. Because of the information ERS has received regarding its disability retirees, disability pensions have been reduced by over $60,000 per year.

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In the case of any conflict between what is printed here and the law, the law must take precedence.

Have you heard about the NEW Peach State Reserves?

If you are a participant in the Peach State Reserves (PSR) 457 and 401(k) plans, you probably know that PSR has added new features and a new investment lineup to make it easier to manage your supplemental retirement assets. CitiStreet, a leader in the financial services industry, is the new recordkeeper for PSR.
Investment Advice and Account Management
One of the great advantages of the new PSR is the availability of investment advice. CitiStreet Advisor Service, powered by Financial Engines, provides investment advice and planning to help you manage your assets in retirement. There are two levels of service offered and the advice can be utilized for not only your PSR assets, but all other assets you own and for which you seek professional guidance.
The first level of service is included in the cost of your quarterly fee and includes two web-based tools. With the Personal Retirement Guide, you can model different savings and investment options and view the outcomes. This tool can help you make more informed investment decisions. The Personal Online Advisor, based on your input, will display a forecast of your current investment choices, and make investment and savings recommendations. Representatives can assist you over the phone with utilizing these valuable tools.
The second level is a fee-based account management service. This full-service option is for those who would prefer to have an investment professional proactively manage your PSR account. Participants who elect this level of service benefit from ongoing assessments of progress, periodic proactive recommendations, and automatic tools to keep you on target. After your initial free consultation, you can decide whether to enroll in this service.
New Investment Options
PSR has replaced the current mutual fund lineup with investments that offer complete asset class coverage, including a new Bond fund. The Fixed Income Option is still available, but with a new name - the "Stable Value Fund." PSR has also added a series of Lifecycle Funds, focused on target "maturity dates."

You select a fund with a maturity date closest to the time when you expect to begin making withdrawals. The Lifecycle Income Fund is designed for those already in retirement and accessing their funds, utilizing a more conservative asset allocation to protect the value of your assets. The allocation of the Lifecycle Income Fund is shown below:

International Stock 8%

Large Cap 16%
Mid Cap 4%
Small Cap 2%
Bonds 5%

Stable Value* 65%
*The Stable Value Fund is the new name for the Fixed Income Option
For a schedule of informational meetings currently being held statewide, contact CitiStreet at 1-866694-2777, Monday Friday, 8:00 a.m. 8:00 p.m. or http://myGApsr.csplans.com.
Other Features New Plan Consultants available to assist you with various features of the plan. Get personalized investment performance by generating your own account statements for any time period with a start date of December 27, 2006. Download your account data to Quicken and Microsoft Money. Manage beneficiary information online.

Visit the new PSR Website at http://myGApsr.csplans.com, or call the PSR
Information Line at 1-866-694-2777, Monday - Friday, 8:00 a.m. 8:00 p.m. Full account access is available beginning
December 27, 2006.
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Contact Information

ERS General Office ERS Financial Services Fax ERS Toll Free Web Site

404-350-6300 404-350-6308 800-805-4609 www.ersga.org

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PAID Permit #7926 ATLANTA, GA

Social Security Checks to Increase in 2007
Social Security checks will be increasing by 3.3% in 2007. Because inflation has been lower, this is a smaller percentage gain than the 4.1% rise in monthly benefits for 2006. This adjustment is pegged to the September consumer price index. According to the Social Security Administration, the cost-of-living adjustment will translate into an average monthly increase of $33 for the typical retiree. Your increase may be more or less. For more information, contact the Social Security Administration at 1-800-772-1213 between 7 a.m. and 7 p.m., Monday through Friday. People who are deaf or hard of hearing may call the toll-free TTY number, 1-800-325-0778. Please have your Social Security number handy when you call. Additional information may be obtained from the Social Security website at 4 www.ssa.gov.