hb1348.html

06 LC 21 8773/AP

House Bill 1348 (AS PASSED HOUSE AND SENATE)

By: Representatives Lucas of the 139th, Randall of the 138th, Graves of the 137th, Freeman of the 140th, and Cole of the 125th

A BILL TO BE ENTITLED
AN ACT

To amend an Act entitled "Macon Water Commissioners Pension Plan," approved December 20, 1953 (Ga. L. 1953 November-December Session, p. 2831), as amended, particularly by an Act approved March 24, 1994 (Ga. L. 1994, p. 3946), so as to provide a severance option for persons who terminate membership in such plan; to provide for related matters; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

An Act entitled "Macon Water Commissioners Pension Plan," approved December 20, 1953 (Ga. L. 1953 November-December Session, p. 2831), as amended, particularly by an Act approved March 24, 1994 (Ga. L. 1994, p. 3946), is amended by striking in its entirety paragraphs 7 and 8 of subsection (a) of Section 6 and inserting in lieu thereof the following:

"(7)(A) In the event a member terminates his or her service, or such service is terminated for any reason other than death or cause, for which the member receives benefit payments elsewhere under this Act, the member may elect to:

(i) Receive a severance benefit equal to the full amount of his or her total contributions to the Pension Fund, as calculated in subsection (a) of Section 4 of this Act, together with simple interest thereon at the rate of 75 percent of the actuarial interest assumption figures in effect during such membeŕs time of service. Such interest shall be calculated on contributions made through the end of the year preceding the year of the membeŕs termination; or

(ii) Roll such distribution over into an eligible retirement plan specified by the member.

(B) If a member fails to provide written consent and direction for distribution as provided in subparagraph (A) of this paragraph, the provisions of this subparagraph shall apply. If the amount of the membeŕs benefit is less than $1,000.00, the member shall automatically receive a distribution of the benefit in a lump sum. If the amount of the membeŕs benefit is $1,000.00 or more, the plan administrator shall pay such benefit in a direct rollover to an individual retirement plan designated by the plan administrator.

(8)(A) In the event a member with at least five yearś service credit terminates his or her service, or such service is terminated for any reason other than death or cause, for which service such member is not entitled to receive benefits elsewhere under this Pension Plan, such membeŕs benefits shall be vested. The member may elect an option under this paragraph. A member shall be notified of his or her option to leave his or her contributions in the plan by certified mail, return receipt requested, and shall have 12 months in which to make an election to remain in the plan or withdraw his or her contributions.

(B) If a member subject to this paragraph elects not to withdraw his or her contributions from the fund, he or she may either:

(i) Defer receiving a benefit until he or she reaches age 63; or

(ii) If his or her service would have totaled 25 years at age 63 if he or she had remained in the service of the authority, begin receiving an actuarially reduced benefit prior to age 63.

(C) If a member subject to this paragraph elects to withdraw his or her contributions from the plan, the member may either:

(i) Receive such distributions directly; or

(ii) Roll such distribution over into an eligible retirement plan specified by the member.

(D) If a member fails to make an election under this paragraph within 12 months of termination of service, the provisions of this subparagraph shall apply. If the amount of the membeŕs benefit is less than $1,000.00, the member shall automatically receive a distribution of the benefit in a lump sum. If the amount of the membeŕs benefit is $1,000.00 or more, the plan administrator shall pay such benefit in a direct rollover to an individual retirement plan designated by the plan administrator."

SECTION 2.

All laws and parts of laws in conflict with this Act are repealed.