TRS retirement report, a bi-annual newsletter for retired members, Spring 2015

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TRS RETIREE RETIREMENT REPORT
A BI-ANNUAL NEWSLETTER FOR RETIREES Spring 2015

Legislative Update: 2015-16 Biennium Session
Jeffrey L. Ezell
Executive Director
With the new year in full swing, our state legislators entered a new biennium session this past January, filled with many proposed retirement bills. We kept a close eye on the legislative proceedings as they happened so we could keep our members and employers up-to-date with the latest retirement news.
The 2015 legislative session concluded on April 2, 2015, and was the first year of the two-year (2015-16) biennium session. Retirement legislation that has a fiscal impact must be forwarded for an actuarial study in order to remain a valid bill for the 2016 session.
The House and Senate Retirement Committees met in a joint meeting on May 7, 2015, to decide which fiscal bills would be forwarded for an actuarial study. The Committees did not forward HB 459, HB 698, and SB 152. Since the bills were not forwarded for an actuarial study, the bills have "died in Committee" and are not valid during the 2016 legislative session.
The Senate Retirement Committee voted to forward SB 246 for an actuarial study. SB 246 and all non-fiscal bills will continue the legislative process through the 2016 legislative session. A brief description of each bill is listed below.
For detailed information on how retirement legislation becomes law, please visit www.trsga.com/legislation.
HB 217 is a non-fiscal bill that would expand the list of allowable investments for public retirement funds to include:
Mutual funds registered with the Securities and Exchange Commission.
Commingled and collective investment funds registered with the U.S. Comptroller of the Currency. These funds are similar to mutual
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2014 Comprehensive Annual Financial Report
Our 2014 annual report is available on our website under Publications.

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Legislative Update

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Working After Retirement

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Your Monthly Benefit

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EFT Benefit Payment Schedule

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Legislative Update, cont.
funds, but are offered by banking institutions to investors including qualified retirement plans.
HB 217 does not make any changes to current law regarding venture capital and/or alternative investments. Signed by the Governor
HB 250 is a non-fiscal bill that allows a TRS retiree to assign their benefit payment to a self-settled, supplemental needs trust. This bill will further allow assignment of benefits to a spouse for a retiree that is Medicaid eligible and institutionalized in a nursing home, hospital, skilled nursing facility, intermediate care home, assisted living community, personal care home or hospice care. By allowing a retiree to assign their benefit payment to a trust or individual, the retiree would be able to circumvent the rules and regulations regarding eligibility to receive governmental assistance.
HB 270 is a non-fiscal bill that makes a stylistic change in sentence structure regarding the Board of Trustees Chair. Specifically, the bill changes the wording from ".....from its membership a chairman" to ".....a chairperson from its membership". The bill does not change the membership requirements of the TRS Board of Trustees.
HB 344 is a non-fiscal bill that would create the Georgia Public Retirement System Trustee Training Council (the Council) effective January 1, 2016. The Council would be comprised of six members and would develop training requirements for public retirement system trustees. Trustees would be required to complete eight hours of a training course established by the Council within one year of appointment.
TRS already provides in-house, high-level, executive training to our trustees, including ex-officio trustees, and continuing trustee education with nationally recognized retirement programs on an annual basis.
HB 459 is a fiscal retirement bill that allows select individuals the ability to establish additional service credit for employment rendered with the Federal Bureau of Prisons and schools operated by the U.S. Department of Defense Education Activity. The cost to establish this service will require payment of the employee and employer contributions that the member would have contributed had they been a TRS member at the time of the employment, plus accrued interest. Current Georgia law already allows

service credit to be established for teaching rendered with American Dependents' schools, which are administered by the Department of Defense Education Activity. Therefore, HB 459 only amends the law to allow an individual who worked with the Federal Bureau of Prisons to establish additional service. Not Forwarded for an Actuarial Study
SB 152 is a fiscal retirement bill that creates a hybrid retirement plan for all individuals who first or again become TRS members on or after January 1, 2017. This bill does not affect individuals who are TRS members on December 31, 2016. Current TRS members may elect in writing to become a member of the hybrid plan. This blended type of retirement plan will consist of a defined benefit plan and a defined contribution plan.
Under the provisions of the defined benefit component:
The TRS Board of Trustees will continue to determine the employee contribution rate at no less than 5% and no greater than 6%.
The benefit multiplier for service, disability and death in service benefits will be decreased from 2% to 1%.
In addition to current salary caps, no salary increase in excess of 5% during the last 12 months will be used for the retirement computation.
There will be no prefunded COLA's. The Board may grant ad hoc COLA's. No retiree shall be entitled to or expect to receive a COLA.
Only certain military service as defined by federal law and applicable ERS transfers will be allowable. Out-of-state, private school, study leave, withdrawn, airtime or any other service currently allowed, will no longer be eligible.
Unused sick leave credit may be subject to reduction or repeal by subsequent legislation and is not to be considered an element of any employment contract.
Under the provisions of the defined contribution component:
TRS members are automatically enrolled in the State's 401(k) plan administered by the Employees' Retirement System with a 5% contribution, unless member indicates otherwise.
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Employer matching contribution is 100% for a 1% employee contribution. Employee contributions in excess of 1% receive a 50% employer match, up to an additional 2%.
Employee contributions are 100% vested and invested according to the member's investment choices.
Employer contributions are separate from employee contributions and invested according to the member's investment choices.
Employer contributions become vested 100% with the member after 5 years.
Not Forwarded for an Actuarial Study
HB 698 is a fiscal retirement bill that prohibits a public retirement fund from investing funds in companies or businesses that produce, sell, or market songs with lyrics containing specific words listed in the bill. A public retirement fund that holds such investments must divest any such holdings. Not Forwarded for an Actuarial Study
SB 246 is a fiscal retirement bill that requires public funds to identify all holdings, direct or indirect, in scrutinized companies. A scrutinized company is defined as a company doing business with the government of a proscribed country, a company complicit in the Darfur genocide, or a company that supplies certain military equipment to a proscribed country. A proscribed country is defined as the Islamic Republic of Iran, Syrian Arab Republic, the Republic of Cuba and the Republic of Sudan.
The State Treasurer is required to annually prepare and make publicly available a consolidated list of scrutinized companies. Public funds must use this list to identify any holdings, direct or indirect, in scrutinized companies, and notify the company of such status, encourage company to cease such activities and divest securities from said companies. If these companies do not cease these activities then the public funds must divest in any holdings. Forwarded for an Actuarial Study z

Working After Retirement
Once you are a retired member of TRS, you may be re-employed in a TRS covered position on either a full or part-time basis, under certain terms and conditions, and continue to receive your TRS pension.
In order to ensure a TRS retiree working in a TRS covered position is in compliance with Georgia law, TRS must approve the employment prior to the retiree starting the job. It is your responsibility to inform the employer that you are a TRS retiree, and it is the employer's responsibility to report your employment to TRS. If you do return to work, you MUST have a break-in-service of at least one month.
Salary and Service Limitations
All employment in a TRS covered position, whether directly or indirectly (i.e. independent contractor, private temporary company, etc.) with a TRS employer, is subject to salary and service limitations as outlined in Georgia law and TRS policy.
No Pre-Existing Agreement
Georgia law requires employers to certify to the TRS Board of Trustees the date on which the employee's employment is or will be severed and that no agreement exists to allow the employee to return to service. This includes service as an independent contractor. Any return to employment or rendering of any paid service, including service for an independent contractor, for any TRS employer during the calendar month of the effective date of retirement shall render the retirement invalid and void the application for retirement.

To learn more, please visit our website or read our Member's Guide.

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Your Monthly Benefit Check
Are you are a retiree who is currently receiving a paper monthly check delivered to you by the United States Postal Service (USPS)? Don't forget, you can take advantage of having your benefit deposited directly into your bank account each month through Electronic Funds Transfer (EFT).
The option to have your check delivered to you electronically has many benefits, including knowing when you will receive your check and a safer delivery. When you sign up for EFT, your money is deposited into your account on the first business day of the month. This helps you avoid payment delays due to holidays. It will also prevent your check from becoming lost or stolen in the mail.
To sign up to receive payment through EFT, you just need to log in to your TRS account.
1. Go to www.trsga.com and click on the Account Login button.
2. Click the Retiree link. 3. Sign in to your existing TRS account by providing
your User ID and Password. If you do not have a TRS online account, you will need to create one. Simply click on the Click to Register link under the Sign Up-New Account Registration box on the left of your screen. You will then be asked to provide information to validate your identity and create an account 4. Once you have signed in, click on the Update My EFT Information on the right side of the screen. 5. Complete the online form. You will receive a confirmation letter in the mail after you submit your information. By signing up for EFT you will be joining over 90,000 TRS retirees who know when their check will be directly deposited to their bank accounts. TRS has no control over the USPS and its delivery time, so please take a moment and enroll in EFT. If you have any questions please call (404) 352-6500 or (800) 352-0650. z

2015 EFT BENEFIT PAYMENT SCHEDULE

MONTH

PAYMENT DATE

January........................................... 2nd February......................................... 2nd March ............................................ 2nd April................................................ 1st May ................................................ 1st June................................................. 1st July.................................................. 1st August ............................................3rd September ...................................... 1st October ........................................... 1st November ...................................... 2nd December ....................................... 1st

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