HB 586 - Teachers Ret; creditable serv; former Employees' Ret member

Georgia House of Representatives - 1995/1996 Sessions

HB 586 - Teachers Ret; creditable serv; former Employees' Ret member

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House Comm: Ret / Senate Comm: Ret / House Vote: Yeas 153 Nays 0 Senate Vote: Yeas 45 Nays 0 ---------------------------------------- House Action Senate ---------------------------------------- 2/3/95 Read 1st Time 2/6/96 2/6/95 Read 2nd Time 2/12/96 1/26/96 Favorably Reported 2/9/96 Sub Committee Amend/Sub 2/5/96 Read 3rd Time 3/7/96 2/5/96 Passed/Adopted 3/7/96 CS Comm/Floor Amend/Sub 3/22/96 Sent to Governor 4/9/96 Signed by Governor 825 Act/Veto Number W/F Effective Date ---------------------------------------- Code Sections amended: 47-3-85
HB 586 LC 21 3745S A BILL TO BE ENTITLED AN ACT 1- 1 To amend Code Section 47-3-85 of the Official Code of 1- 2 Georgia Annotated, relating to credit for service under the 1- 3 Teachers Retirement System of Georgia by a former member of 1- 4 the Employees' Retirement System of Georgia who withdrew 1- 5 contributions from such system, so as to provide that such 1- 6 members who withdrew contributions more than three times may 1- 7 establish service under certain conditions; to provide 1- 8 conditions for an effective date and automatic repeal; to 1- 9 repeal conflicting laws; and for other purposes. 1-10 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: SECTION 1 . 1-11 Code Section 47-3-85 of the Official Code of Georgia 1-12 Annotated, relating to credit for service under the Teachers 1-13 Retirement System of Georgia by a former member of the 1-14 Employees' Retirement System of Georgia who withdrew 1-15 contributions from such system, is amended by redesignating 1-16 subsection (b) as subsection (e) and by striking in its 1-17 entirety subsection (a), which reads as follows: 1-18 "(a) Any current member who was previously a member of the 1-19 Employees' Retirement System of Georgia and who withdrew 1-20 employee contributions from that system not more than 1-21 three times after January 1, 1961, may establish the 1-22 service under that system as creditable service under this 1-23 retirement system, upon rendering at least three years of 1-24 service as a contributing member of this retirement 1-25 system, provided that such member pays into this 1-26 retirement system for all such service rendered while a 1-27 member of the Employees' Retirement System of Georgia an 1-28 amount equal to the minimum employee contributions 1-29 required for continuous members of this retirement system, 1-30 plus regular interest that would have accrued on such 1-31 amount from the date that contributions to the Employees' 1-32 Retirement System of Georgia stopped being credited with 1-33 interest. Upon receipt of notice from the Teachers 1-34 Retirement System of Georgia that a member has repaid to -1- (Index) LC 21 3745S 2- 1 it contributions previously withdrawn from the Employees' 2- 2 Retirement System of Georgia, the Employees' Retirement 2- 3 System of Georgia shall pay an employer contribution plus 2- 4 regular interest to the Teachers Retirement System of 2- 5 Georgia. The amount of such employer contributions shall 2- 6 be 6 percent of the reported compensation of the member 2- 7 while a member of said employees' retirement system. The 2- 8 employees' retirement system shall pay an additional 2- 9 amount of retirement contributions pursuant to Code 2-10 Section 47-2-51 for an employees' retirement system member 2-11 covered by Code Section 47-2-334. This payment shall be 2-12 placed in the pension accumulation fund and will adjust 2-13 the amount of employee retirement contributions required 2-14 for service credit.", 2-15 and inserting in lieu thereof the following: 2-16 "(a) Subject to the additional requirements of subsections 2-17 (b) and (c) of this Code section, any current member who 2-18 was previously a member of the Employees' Retirement 2-19 System of Georgia and who withdrew employee contributions 2-20 from that system may reestablish the creditable service 2-21 represented by the withdrawn contributions by paying to 2-22 the board of trustees the minimum employee contributions 2-23 required for continuous members of this retirement system, 2-24 plus regular interest that would have accrued on such 2-25 amount from the date that contributions to the Employees' 2-26 Retirement System of Georgia stopped being credited with 2-27 interest. Upon receipt of notice from the Teachers 2-28 Retirement System of Georgia that a member has repaid to 2-29 it contributions previously withdrawn from the Employees' 2-30 Retirement System of Georgia, the Employees' Retirement 2-31 System of Georgia shall pay an employer contribution plus 2-32 regular interest to the Teachers Retirement System of 2-33 Georgia. The amount of such employer contributions shall 2-34 be 6 percent of the reported compensation of the member 2-35 while a member of said employees' retirement system. The 2-36 employees' retirement system shall pay an additional 2-37 amount of retirement contributions pursuant to Code 2-38 Section 47-2-51 for an employees' retirement system member 2-39 covered by Code Section 47-2-334. This payment shall be 2-40 placed in the pension accumulation fund and will adjust 2-41 the amount of employee retirement contributions required 2-42 for service credit. 2-43 (b) A member must complete a minimum number of years of 2-44 service as a contributing member of the retirement system -2- (Index) LC 21 3745S 3- 1 before becoming eligible to reestablish creditable service 3- 2 under subsection (a) of this Code section as follows: 3- 3 (1) When accumulated contributions have been withdrawn 3- 4 not more than three times, the minimum shall be three 3- 5 years; 3- 6 (2) When accumulated contributions have been withdrawn 3- 7 not more than four times, the minimum shall be five 3- 8 years; and 3- 9 (3) When accumulated contributions have been withdrawn 3-10 five or more times, the minimum shall be ten years. 3-11 (c) The regular interest rate provided for in subsection 3-12 (a) of this Code section shall be increased 2 percent for 3-13 each withdrawal of accumulated contributions exceeding 3-14 three such withdrawals. 3-15 (d) A member may establish a portion of the creditable 3-16 service represented by all of the member's withdrawn 3-17 contributions by paying to the board of trustees a pro 3-18 rata amount based upon the total accumulated contributions 3-19 withdrawn plus interest in accordance with rules adopted 3-20 by the board of trustees and subject to the provisions of 3-21 subsections (a), (b), and (c) of this Code section." SECTION 2. 3-22 This Act shall become effective on July 1, 1996, only if it 3-23 is determined to have been concurrently funded as provided 3-24 in Chapter 20 of Title 47 of the Official Code of Georgia 3-25 Annotated, the "Public Retirement Systems Standards Law"; 3-26 otherwise, this Act shall not become effective and shall be 3-27 automatically repealed in its entirety on July 1, 1996, as 3-28 required by subsection (a) of Code Section 47-20-50. SECTION 3. 3-29 All laws and parts of laws in conflict with this Act are 3-30 repealed. -3- (Index)

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