HB 640 - Municipal Employees Benefit; contributions

Georgia House of Representatives - 1995/1996 Sessions

HB 640 - Municipal Employees Benefit; contributions

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House Comm: Ret / Senate Comm: Ret / House Vote: Yeas 161 Nays 0 Senate Vote: Yeas 54 Nays 0 ---------------------------------------- House Action Senate ---------------------------------------- 2/8/95 Read 1st Time 2/20/95 2/9/95 Read 2nd Time 2/28/95 2/14/95 Favorably Reported 2/27/95 2/17/95 Read 3rd Time 3/8/95 2/17/95 Passed/Adopted 3/8/95 4/3/95 Sent to Governor 4/20/95 Signed by Governor 465 Act/Veto Number 7/1/95 Effective Date ---------------------------------------- Code Sections amended: 47-5-40, 47-5-4l
HB 640 LC 21 3158 A BILL TO BE ENTITLED AN ACT 1- 1 To amend Article 3 of Chapter 5 of Title 47 of the Official 1- 2 Code of Georgia Annotated, relating to retirement plans 1- 3 under the Georgia Municipal Employees Benefit System, so as 1- 4 to provide a limitation on employee contributions; to repeal 1- 5 conflicting laws; and for other purposes. 1- 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: SECTION 1. 1- 7 Article 3 of Chapter 5 of Title 47 of the Official Code of 1- 8 Georgia Annotated, relating to retirement plans under the 1- 9 Georgia Municipal Employees Benefit System, is amended by 1-10 striking in its entirety subsection (d) of Code Section 1-11 47-5-40, relating to the power of certain employers to 1-12 establish retirement plans, and inserting in lieu thereof 1-13 the following: 1-14 "(d) Each employer is authorized to appropriate funds to 1-15 provide the benefits under such plan and to pay its 1-16 respective portion of the administrative costs of the 1-17 board of trustees in administering the system. Each 1-18 employer is further authorized to pay the total 1-19 contribution on behalf of its employees or to provide that 1-20 a portion, not to exceed 50 percent of the contribution, 1-21 be deducted from the salaries of participating employees. 1-22 In no event shall an employee's contribution exceed 50 1-23 percent of the value of such employee's benefit payable 1-24 from the plan at the earlier of termination of employment 1-25 or commencement of benefits. The valuation of benefits 1-26 shall be made in accordance with the actuarial assumptions 1-27 used to determine employer contributions in effect at the 1-28 time of the determination." SECTION 2. 1-29 Said article is further amended by striking in its entirety 1-30 subsection (d) of Code Section 47-5-41, relating to the 1-31 establishment and use of master retirement plans under the -1- (Index) LC 21 3158 2- 1 Georgia Municipal Employees Benefit System, and inserting in 2- 2 lieu thereof the following: 2- 3 "(d) Employers are authorized to appropriate funds to 2- 4 provide the benefits specified in such master plan and to 2- 5 pay their portion of the administrative costs of the board 2- 6 of trustees in administering the system. Each employer is 2- 7 authorized to pay the total contribution on behalf of its 2- 8 employees or to provide that a portion, not to exceed 50 2- 9 percent of such contribution, be deducted from the 2-10 salaries of participating employees. In no event shall an 2-11 employee's contribution exceed 50 percent of the value of 2-12 such employee's benefit payable from the plan at the 2-13 earlier of termination of employment or commencement of 2-14 benefits. The valuation of benefits shall be made in 2-15 accordance with the actuarial assumptions used to 2-16 determine employer contributions in effect at the time of 2-17 the determination." SECTION 3. 2-18 All laws and parts of laws in conflict with this Act are 2-19 repealed. -2- (Index)

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