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05 LC 21 8211S

House Bill 460 (COMMITTEE SUBSTITUTE)

By: Representative Bridges of the 10th

A BILL TO BE ENTITLED
AN ACT

To amend Title 47 of the Official Code of Georgia Annotated, relating to retirement and pensions, so as to make numerous changes throughout said title to ensure that Georgiás public retirement systems are in compliance with the federal Internal Revenue Code and regulations promulgated thereunder; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

Title 47 of the Official Code of Georgia Annotated, relating to retirement and pensions, is amended by striking in its entirety Code Section 47-1-61, relating to eligibility of a veteran to establish creditable service and period of qualified service, and inserting in lieu thereof the following:

"47-1-61.

Any qualified returning veteran shall be eligible to establish creditable service with his or her retirement system or fund for not more than five years of qualified service by complying with the provisions of this article; provided, however, that such five-year period shall be extended by any period of mandatory service imposed by the uniformed service recognized by paragraph (4) of subsection (C) of Section 4312 of federal Public Law 103-353, the Uniformed Service Employment and Reemployment Rights Act of 1994. Notwithstanding any provisions of the law to the contrary, contributions, benefits, and service credits with respect to qualified uniformed service will be provided under each retirement or pension system in accordance with Section 414(u) of the federal Internal Revenue Code."

SECTION 2.

Said title is further amended by inserting at the end of Chapter 1, relating to general provisions, a new article to read as follows:

"ARTICLE 6

47-1-80.

Notwithstanding any other provision of this title to the contrary, distributions from any public retirement or pension system shall conform to the regulations issued under Section 401(a)(9) of the federal Internal Revenue Code as applicable to a governmental plan within the meaning of Section 414(d) of the federal Internal Revenue Code and shall be implemented in accordance with the grandfathering provisions of such regulations applicable to annuity option distributions in effect on April 17, 2001.

47-1-81.

Notwithstanding any other provisions of this title to the contrary that would otherwise limit a persońs election under this Code section, a member of a retirement or pension system subject to this title may elect, at the time and in the manner prescribed by the board of trustees of such system, to have any portion of an eligible rollover distribution, as such term is defined in Section 402(c) of the federal Internal Revenue Code, paid directly to an eligible retirement plan, as such term is defined in Section 402(c) of the federal Internal Revenue Code, specified by the person in a direct rollover.

47-1-82.

Notwithstanding any other provisions of this title to the contrary, the maximum benefit payable to any active or retired member or beneficiary of a retirement or pension system subject to this title shall be limited to such extent as may be necessary to conform to the requirements of Section 415 of the federal Internal Revenue Code for a qualified retirement plan."

SECTION 3.

Said title is further amended by striking in its entirety paragraph (13) of Code Section 47-2-1, relating to definitions relative to the Employeeś Retirement System of Georgia, and inserting in lieu thereof the following:

"(13) 'Creditable service' means prior service plus membership service and any other service recognized as creditable service under this chapter."

SECTION 4.

Said title is further amended by striking in its entirety paragraph (16) of said Code Section 47-2-1 and inserting in lieu thereof the following:

"(16) 'Employee' means:

(A) Any regularly classified worker, elected or appointed officer, or employee of a state agency or any employee of a county, city-county, or city board, which agency or board is under a state merit system of personnel administration, including a merit system for employees of the Department of Public Safety;

(B) Any employee or officer of any other department, bureau, board, institution, or commission of the state:

(i) Which department, bureau, board, or commission operates under a merit system of personnel administration;

(ii) Which department operates under a tenure system as established by law; or

(iii) Which department, bureau, board, or commission becomes eligible for inclusion in the retirement system by Act of the General Assembly;

who receives payment for performance of personal services from the state or any department, bureau, institution, board, or commission of the state or from a county, city-county, or city board and who is employed in a position normally requiring actual performance of duty during not less than nine months of the year. 'Employee' shall not include members of the Teachers Retirement System of Georgia, or members of the Public School Employees Retirement System, any person on the payroll of a third party with whom an employer has contracted for the provision of such persońs services, or any person classified by an employer as other than a common law employee for federal tax purposes, even if a court, tribunal, or administrative agency determines that such person is a common law employee and not an independent contractor for federal tax purposes;

(C) Any other provisions of law to the contrary notwithstanding, any and all civilians who are employed in or with the Army National Guard of Georgia and the Air National Guard of Georgia shall, upon establishment of a merit system for such civilian employees and upon the approval of the adjutant general, be entitled to the retirement allowances, benefits, and privileges provided by this chapter, notwithstanding that such employees may be paid by federal funds. No credit shall accrue to such civilian employees for any service rendered prior to the effective date of coverage under the retirement system. The adjutant general is authorized to make such arrangements and agreements as may be necessary or proper in order to effect deductions from the salaries or wages of such civilian employees as may be necessary or proper in the administration of the retirement system as to such civilian employees. It is the intent of the General Assembly that such persons be included in this definition only if federal funds are available for payment of employer contributions for such employees and other expenses of participation."

SECTION 5.

Said title is further amended by inserting at the end of Code Section 47-2-28, relating to tables, calculations, and schedules for operation of the retirement system, simplified tables for estimation of retirement allowances, and effect on existing rights and benefits, a new subsection to read as follows:

"(c) The regular service retirement allowance payable to a member pursuant to the provisions of this chapter, prior to the application of any minimum benefit formula otherwise provided under this chapter, shall be determined pursuant to the formula adopted from time to time by the board of trustees for such purpose. Such formula shall be uniformly applicable to all members similarly situated. The board of trustees may establish rules and administrative procedures uniformly applicable to all members similarly situated relating to the calculation of such service retirement allowance."

SECTION 6.

Said title is further amended by striking in its entirety subsection (a) of Code Section 47-2-31, relating to investment powers and power to employ agents as investment advisors and to make investments, and inserting in lieu thereof the following:

"(a) The board of trustees shall be the trustees of the funds and shall have full power to invest and reinvest the assets of the retirement system and to purchase, hold, sell, assign, transfer, and dispose of any securities and other investments in which assets of the retirement system have been invested, any proceeds of any investments, and any money belonging to the retirement system; provided, however, that such power shall be subject to all terms, conditions, limitations, and restrictions imposed by Article 7 of Chapter 20 of this title, the 'Public Retirement Systems Investment Authority Law.'"

SECTION 7.

Said title is further amended by striking in its entirety Code Section 47-2-55, relating to pension accumulation fund, purposes, employer contributions, normal and accrued liability contribution rates, and crediting of interest and dividends earned on funds of the retirement system, and inserting in lieu thereof the following:

"47-2-55.

(a) The pension accumulation fund shall be the fund in which shall be held the reserves for all annuities in force and from which shall be paid all annuities and all benefits in lieu of annuities under this chapter. If a beneficiary is restored to membership, his annuity reserve shall be transferred from the pension accumulation fund to his individual account in the annuity savings fund. The pension accumulation fund shall also be the fund in which are accumulated all reserves for the payment of all pensions and other benefits payable from contributions made by employers and from which are paid all such pensions and other benefits, as follows:.

(1) Employer contributions shall consist of a percentage of the earnable compensation of members, to be known as the 'normal cost contribution,' and an additional percentage of such earnable compensation, to be known as the 'unfunded accrued liability contribution.' These contributions shall be borne by appropriations from state and federal funds. The percentage rate of each portion of the employer contribution shall be fixed on the basis of the liabilities of the retirement system, as shown by actuarial valuation, as provided for in subsection (b) of Code Section 47-2-26;, subject to the provisions of Code Section 47-20-10.

(2) The normal contribution rate shall be determined after each actuarial valuation. Until all accrued liability contributions have been completed, the normal contribution rate shall be based on a uniform and constant percentage of the earnable compensation of the average new entrant member, which percentage, if contributed on the basis of his prospective earnable compensation throughout his entire period of active service, would be sufficient to pay any pension payable on his account. For purposes of computing the normal contribution rate any appropriate tables last adopted by the board of trustees shall be used, and interest shall be computed at the regular rate. After all accrued liability contributions have been completed, the normal contribution rate shall be the rate of the earnable compensation of all members, which rate shall be obtained by deducting from the total liabilities of the pension accumulation fund the amount of the funds in hand standing to the credit of the pension accumulation fund and dividing the difference by an amount equal to 1 percent of the present value of the prospective future earnable compensation of all members;

(3) Immediately following the first actuarial valuation, the accrued liability contribution rate shall be computed as the percentage rate of the total earnable compensation of all members, which rate is equivalent to 4 percent of the total liability of the pension accumulation fund in excess of the funds in hand standing to the credit of the pension accumulation fund, which excess liability would not be discharged by the normal contributions payable with respect to members during the remainder of their active service. The amount placed to the credit of each annual accrued liability contribution account shall be at least 3 percent greater than the amount placed to the credit of each such account in the previous year; and in no event shall all the accrued liability contributions in any year be less than the amount which, when combined with all the normal contributions and the amount of funds in hand standing to the credit of the pension accumulation fund, will provide all payments and transfers from the pension accumulation fund as required by this subsection during the year then current. The accrued liability contribution shall be discontinued as soon as the amount of the funds standing to the credit of the pension accumulation fund equals the present value, as actuarially computed and approved by the board of trustees, of the total liabilities of the pension accumulation fund less the present value of the normal contributions to be made at the normal contribution rate then in force with respect to all persons who are at that time members.

(b) All interest and dividends earned on the funds of the retirement system shall be credited to the pension accumulation fund. Once each year the board of trustees shall transfer from the pension accumulation fund to the annuity savings fund such amounts as are sufficient to allow regular interest on the balances of the individual accounts of members in the annuity savings fund."

SECTION 8.

Said title is further amended by striking in its entirety Code Section 47-2-57, relating to certification of normal and unfunded accrued liability contribution rates to employers and provision in employeŕs budget for employer contributions, and inserting in lieu thereof the following:

"47-2-57.

On or before June 1 of each year, the normal cost and unfunded accrued liability contribution rates, as determined on the basis of the last actuarial valuation, shall be certified by the board of trustees to the director or chief administrative officer of each employer having members in its employ. Each such employer shall make provision in its annual budget for funds with which to pay to the board of trustees an amount equal to the normal cost contributions and the unfunded accrued liability contributions on the earnable compensation of all contributing members under their administration and for an additional amount as expense for the operation of the retirement system."

SECTION 9.

Said title is further amended by striking in its entirety paragraph (6) of Code Section 47-3-1, relating to definitions relative to the Teachers Retirement System of Georgia, and inserting in lieu thereof the following:

"(6) 'Average final compensation' means the average annual earnable compensation of a teacher during the last five years of creditable service or, if he has had less than five years of creditable service, his average annual earnable compensation during his total creditable service two consecutive years of membership service producing the highest such average."

SECTION 10.

Said title is further amended by striking in its entirety paragraph (10) of said Code Section 47-3-1 and inserting in lieu thereof the following:

"(10) 'Creditable service' means prior service plus membership service and any other service established under this chapter."

SECTION 11.

Said title is further amended by inserting immediately following paragraph (25) of said Code Section 47-3-1 the following:

"(25.1) 'Salary' shall have the same meaning as earnable compensation."

SECTION 12.

Said title is further amended by striking in its entirety subsection (a) of Code Section 47-3-41, relating to the annuity savings fund generally, and inserting in lieu thereof the following:

"(a) The annuity savings fund shall be the fund in which shall be accumulated the contributions deducted from the compensation of members to provide for their annuities. Contributions to and payments from the annuity savings fund shall be made as follows:

(1) After the commencement date, each employer shall cause to be deducted from the salary of each member for each and every payroll period a percentage of the membeŕs earnable compensation as determined by the board of trustees which shall be not less than 5 nor more than 6 percent; but no such deduction shall be made from the compensation of a member after the close of the school, fiscal, or contract year in which the member has attained age 65 and has completed 40 or more years of creditable service. In determining the amount earnable by a member in a payroll period, the employer may consider the annual rate of compensation payable to such member on the first day of the payroll period as continuing throughout such payroll period. The employer may omit the deduction from compensation for any period which is less than a full payroll period, if a teacher was not a member on the first day of the payroll period. In order to facilitate the making of deductions, the employer may modify the deductions required of any member by an amount not to exceed one-tenth of 1 percent of the annual compensation, on the basis of which such deductions are to be made. Each employer shall immediately pay the amount deducted to the board of trustees, in such manner as the board of trustees shall prescribe, which amount shall be credited by the board of trustees to the individual accounts in the annuity savings fund of the member from whose compensation the deductions were made. Beginning July 1, 1987, the employee contributions required under this paragraph shall be paid as provided in Code Section 47-3-41.1;

(2) Notwithstanding any other provisions of this subsection, at the close of any school, fiscal, or contract year in which a member has completed 40 or more years of creditable service, such member may elect in writing to cease making contributions to the retirement system. If such election is made, such teacher shall notify his employer and the board of trustees in such manner as the board of trustees shall prescribe. After giving the required notice, the employer shall not thereafter deduct, and the employee shall not thereafter be allowed to make, contributions to the retirement system from the salary or compensation of such member;

(3) Any other provision of this or any other law to the contrary notwithstanding, a member who has attained age 65 and who has completed 40 or more years of creditable service may elect to continue to make contributions to the retirement system during such continuous period of time as the member continues in service. He shall notify his employer and the board of trustees of such election in such manner as the board of trustees shall provide. Any member who has discontinued making contributions to the retirement system because he has attained age 65 and has 40 years of creditable service and who has continued in service may remit contributions to the board of trustees at the rate required by law and under terms and regulations prescribed by the board of trustees on all earnable compensation received by the member since deductions were discontinued. Contributions made under this paragraph shall entitle the member to creditable service for such period, but only for the purpose of determining average compensation over the highest consecutive years, used in the calculations of the retirement benefits of such member; and

(4) Employer deductions shall be made, notwithstanding that the minimum compensation provided for by law for any member shall be reduced thereby. Every member shall be deemed to consent and agree to the deductions and payment of salary or compensation, less such deductions, shall be a full and complete discharge and acquittance of all claims and demands whatsoever for the services rendered by such person during the period covered by such payment, except as to the benefits under this chapter;

(5) In addition to the contributions deducted from the compensation of members under paragraphs (1) and (3) of this subsection, any member, subject to the approval of the board of trustees and such conditions as the board of trustees may prescribe, (A) may redeposit in the annuity savings fund by means of a single payment or by an increased rate of contribution an amount equal to the total amount previously withdrawn from that fund or any part of such amount or (B) may deposit in that fund by means of a single payment or by an increased rate of contribution an amount computed to be sufficient to purchase an additional annuity which, together with his prospective retirement allowance, will provide for him a total retirement allowance of not more than one-half of his average final compensation at retirement, but not exceeding the retirement allowance otherwise payable to him on retirement at age 65. Such additional amounts so deposited shall become a part of his accumulated contributions, provided that upon retirement such amounts shall be treated as excess contributions returnable to the member as an annuity of equivalent actuarial value and shall not be considered in computing the pension."

SECTION 13.

Said title is further amended by striking in its entirety Code Section 47-3-43, relating to the pension accumulation fund generally, and inserting in lieu thereof the following:

"47-3-43.

The pension accumulation fund shall be the fund in which shall be held the reserves on all annuities in force and from which shall be paid all annuities and all benefits in lieu of annuities under this chapter. If a beneficiary is restored to membership, his annuity reserve shall be transferred from the pension accumulation fund to the annuity savings fund and credited to his individual account therein. The pension accumulation fund shall also be the fund in which shall be accumulated all reserves for the payment of all pensions and other benefits payable from contributions made by employers and from which shall be paid all such pensions and other benefits, as follows:

(1) The contribution of employers of members shall consist of a percentage of the earnable compensation of members to be known as the normal cost contribution and an additional percentage of such earnable compensation to be known as the unfunded accrued liability contribution. The rate of such contribution shall be fixed on the basis of the liabilities of the retirement system as shown by actuarial valuation, as provided for in Code Section 47-3-23, subject to the provisions of Code Section 47-20-10;

(2) The normal contribution rate shall be determined after each actuarial valuation. Until all accrued liability contributions have been completed, the normal contribution rate shall be determined on the basis of regular interest and the tables last adopted by the board of trustees, as the uniform and constant percentage of the earnable compensation of the average new entrant member which, if contributed on the basis of his prospective earnable compensation throughout his entire period of active service, would be sufficient to provide for the payment of any pension payable on his account. After all accrued liability contributions have been completed, the normal contribution rate shall be the rate of the earnable compensation of all members obtained by deducting from the total liabilities of the pension accumulation fund the amount of the funds in hand standing to the credit of the pension accumulation fund, and dividing the remainder by 1 percent of the present value of the prospective future earnable compensation of all members;

(3) Immediately following the actuarial valuation of June 30, 1961, the percentage accrued liability contribution rate shall be computed as the rate of the total earnable compensation of all members which is equivalent to 4 percent of the total liability of the pension accumulation fund in excess of the funds in hand standing to the credit of the pension accumulation fund and which is not dischargeable by the normal contributions payable in respect to members on that date, during the remainder of their active service. Thereafter, the amount of funds for the credit of each annual accrued liability contribution account shall be at least 3 percent greater than the amount placed to the credit of the accrued liability contribution account in the previous year, on the basis of the rate determined as of June 30, 1961; and in no event shall the accrued liability contribution in any year be less than the amount which, when combined with the normal contributions and the amount of funds in hand standing to the credit of the pension accumulation fund, will provide all payments and transfers from the pension accumulation fund as required by this Code section during the year then current. The accrued liability contribution shall be discontinued as soon as the amount of the funds standing to the credit of the pension accumulation fund equals the present value, as actuarially computed, and approved by the board of trustees, of the total liabilities of the pension accumulation fund less the present value of the normal contributions to be made at the normal contribution rate then in force in respect to all persons who are members at that time;

(4)(2) The statés share of employer contributions, which is to be borne by appropriation from the state, payable to the board of trustees, shall consist of the normal cost and unfunded accrued liability contributions based on the part of the earnable compensation of members payable from funds of the Board of Regents of the University System of Georgia or other funds of the state, but excluding any appropriations made to the State Board of Education, at the rates determined under this Code section. The balance of the cost for pensions, consisting of the normal cost and unfunded accrued liability contributions at the rates determined under this Code section, shall be borne by the employers having contributing members in their employ, including local units of administration for all members in their employ; and each such employer shall pay, from any funds available to such employer expressly including funds derived from the state under Article 6 of Chapter 2 of Title 20, the 'Quality Basic Education Act,' such contributions to the board of trustees, immediately upon coming due, which contributions shall be credited to the pension accumulation fund; and

(5)(3) The compensation of a member referred to in this Code section shall include any compensation derived from grants and contracts made by outside agencies with an employer. Such compensation is subject to the employer contribution rate. The outside agencies supplying the grants or entering into the contracts shall pay the applicable employer contributions rate to the employer, who shall pay such contribution to the board of trustees."

SECTION 14.

Said title is further amended by striking in its entirety Code Section 47-3-45, relating to obligations of the pension accumulation fund and permissible uses of the assets of the pension accumulation fund and of income, interest, and dividends, and inserting in lieu thereof the following:

"47-3-45.

The maintenance of annuity reserves and pension reserves of the retirement system, the crediting of regular interest to the annuity savings fund, and the payment of all pensions, annuities, retirement allowances, refunds, and other benefits granted under this chapter shall be obligations of the pension accumulation fund, provided the payments of such other benefit do not adversely affect the qualified status of the retirement system under Section 401(a) of the federal Internal Revenue Code. All assets of the pension accumulation fund and all income, interest, and dividends derived from deposits and investments shall be used for the payment of such obligations and for no other purpose."

SECTION 15.

Said title is further amended by striking in its entirety Code Section 47-3-128, relating to payment of accumulated contributions upon request after termination of membership and payment of taxable portion to eligible retirement plan, and inserting in lieu thereof the following:

"47-3-128.

If a persońs membership ceases other than by death or retirement from this retirement system, the amount of his or her accumulated contributions to this retirement system shall be payable to the member upon such persońs request after the date the person has terminated employment with a school system, institution of higher learning, or agency covered by this retirement system. The board of trustees may shall allow a person requesting such payment of accumulated contributions to elect to have the taxable portion of such payment made directly to an eligible retirement plan as defined in the federal Internal Revenue Code."

SECTION 16.

Said title is further amended by striking in its entirety paragraph (20) of Code Section 47-4-1, relating to definitions relative to the Public School Employees Retirement System, and inserting in lieu thereof the following:

"(20) 'Public school employee' or 'employee' means all those employees of public schools including postsecondary vocational-technical schools governed by the Department of Technical and Adult Education who are not eligible for membership in the Teachers Retirement System of Georgia or the Employeeś Retirement System of Georgia. The term specifically includes, but is not limited to, school bus drivers, school lunchroom personnel, school maintenance personnel, and school custodial personnel. The term does not include teachers or any school personnel who are now, or may hereafter become, covered by the Teachers Retirement System of Georgia or the Employeeś Retirement System of Georgia, any person on the payroll of a third party with whom an employer has contracted for the provision of such persońs services, or any person classified by an employer as other than a common law employee for federal tax purposes, even if a court or administrative agency determines that such person is a common law employee and not an independent contractor for federal tax purposes. Certain public school employees, as defined in this paragraph, shall have the option to become members of the Teachers Retirement System of Georgia in accordance with subsection (d) of Code Section 47-4-40 or to become members of the Employeeś Retirement System of Georgia in accordance with subsection (e) of Code Section 47-4-40, and except as provided by such subsections, any public school employee becoming a member of the Teachers Retirement System of Georgia or the Employeeś Retirement System of Georgia shall cease to be a member of the retirement system created by this chapter."

SECTION 17.

Said title is further amended by striking in its entirety subsection (a) of Code Section 47-4-26, relating to the power of the board of trustees of the Public School Employees Retirement System over funds, special account for deposit of funds and payment of benefits and expenses, investment powers, and power to employ agents, and inserting in lieu thereof the following:

"(a) The board shall be the trustees of the funds and shall have control of the funds provided for in this chapter and all funds received by the board shall be deposited in a special account to the credit of the Public School Employees Retirement Fund. The benefits under this chapter and all administrative expenses shall be paid from this special account. The board shall have authority to expend the funds in accordance with this chapter. "

SECTION 18.

Said title is further amended by striking in its entirety subsection (a) of Code Section 47-6-24, relating to memberś account, accumulation account, and crediting of interest and dividends, and inserting in lieu thereof the following:

"(a) All of the assets of the system shall be credited, according to the purpose for which they are held, to either the memberś account or the accumulation account. The benefits under this chapter and all administrative expenses shall be paid from such accounts."

SECTION 19.

Said title is further amended by striking in its entirety subsection (a) of Code Section 47-6-42, relating to election as to coverage, required coverage under the Georgia Legislative Retirement System, state contributions, and preservation of rights and privileges, and inserting in lieu thereof the following:

"(a) Any other provisions of this or any other law to the contrary notwithstanding, each member of the General Assembly serving as such on April 13, 1979, may elect to withdraw as a member of the Employeeś Retirement System of Georgia and become a member of the Georgia Legislative Retirement System or may elect not to be a member of either system. Such election must be made prior to January 12, 1981, and once made shall be irrevocable as long as such person is a member of the General Assembly. The Board of Trustees of the Employeeś Retirement System of Georgia is authorized to promulgate rules and regulations to carry out this Code section, including, but not limited to, providing for refunds for members who elect not to be members of either system and providing for the transferral transferal of legislatorś accounts from the Employeeś Retirement System of Georgia, the transferral transferal of service credits, and such other transferrals transferals as the Board of Trustees of the Employeeś Retirement System of Georgia shall deem necessary to carry out the intention and provisions of this Code section."

SECTION 20.

Said title is further amended by striking in its entirety subsection (b) of Code Section 47-6-81, relating to optional retirement allowances, and inserting in lieu thereof the following:

"(b) Any other provisions of this Code section or of this chapter to the contrary notwithstanding, the board of trustees may, by rule or regulation, require that when a member or a retired member dies and the beneficiary is a person other than the surviving spouse of the member, the benefits payable to the beneficiary shall be paid to the beneficiary within a definite time period immediately following the death of the member or retired member. For purposes of this Code section, the term 'equivalent actuarial value' means a benefit of equivalent value when computed upon the basis of the mortality tables and rates of interest adopted for such purpose by the board of trustees."

SECTION 21.

Said title is further amended by striking in its entirety Code Section 47-6-82, relating to the manner in which retirement allowances are to be paid and termination of payments upon death, and inserting in lieu thereof the following:

"47-6-82.

All retirement allowances shall be paid in monthly installments and shall cease with the month in which the death of the beneficiary occurs, except as otherwise provided in Code Section 47-6-81."

SECTION 22.

Said title is further amended by striking in its entirety paragraph (9) of Code Section 47-20-3, relating to definitions relative to public retirement systems standards, and inserting in lieu thereof the following:

"(9) 'Actuary' means an actuary who is enrolled under Subtitle C of Title III of the federal Employee Retirement Income Security Act of 1974, P.L. 93-406, or an associate of the Society of Actuaries."

SECTION 23.

Said title is further amended by striking in their entirety paragraphs (10) and (10.1) of said Code Section 47-20-3, and inserting in lieu thereof the following:

"(10) 'Amortization contribution' means the excess in total employer and employee contributions over normal cost.

(10.1) 'Annual required contribution' means the annual required contribution determined in accordance with the requirements of Governmental Accounting Standards Board Statements No. 25 and No. 27 or any subsequent applicable Governmental Accounting Standards Board statements."

SECTION 24.

Said title is further amended by striking in its entirety paragraph (19.1) of said Code Section 47-20-3 and inserting in lieu thereof the following:

"(19.1) 'Negative unfunded actuarial accrued liability' means for any actuarial valuation the excess of actuarial value of assets over the actual actuarial accrued liability of a retirement system under an actuarial cost method utilized by the retirement system for funding purposes."

SECTION 25.

Said title is further amended by inserting immediately following paragraph (20) of said Code Section 47-20-3 the following:

"(20.1) 'Normal cost contribution' means the contribution for the portion of the actuarial present value of a retirement systeḿs benefits and expenses which is allocated to a valuation year by the actuarial cost method used for the retirement system."

SECTION 26.

Said title is further amended by inserting immediately following paragraph (24) of said Code Section 47-20-3 a new paragraph to read as follows:

"(24.1) 'Unfunded accrued liability contribution' means the difference between the total employer and employee contribution and the normal cost contribution."

SECTION 27.

Said title is further amended by striking in its entirety subsection (b) of Code Section 47-20-10, relating to minimum annual employer contribution, and inserting in lieu thereof the following:

"(b) In the case of a retirement system which uses a formula related to the compensation of the members of the retirement system as a basis for the calculation of benefits under the retirement system, the amortization amounts required by subsection (a) of this Code section, except for the amount determined under paragraph (3) of subsection (a) of this Code section, may be determined as a level percentage of future compensation. If such level percentage amortization is used, the actuarial assumption for future annual payroll growth shall not exceed the actuarial assumed valuation interest rate of the retirement system less 2 ½ percent. The minimum standards provided by subsection (a) of this Code section are deemed to have been met if such level percentage amortization is used and the employer contribution is equal to or greater than the annual required contribution as is determined in accordance with the provisions of Governmental Accounting Standards Board Statements No. 25 and No. 27."

SECTION 28.

Said title is further amended by striking in its entirety Code Section 47-22-4, relating to administration and operation of the plan, actuarial and other services, rate of interest, adoption of plan document, records, payment of employees and expenses, and investment, and inserting in lieu thereof the following:

"47-22-4.

(a) The general administration and responsibility for the proper operation of the plan and for putting this chapter into effect are vested in the board.

(b) The board shall engage such actuarial and other services as shall be required to transact the business of the plan.

(c) The board shall designate an actuary who shall be the technical advisor adviser of the board on matters regarding the operation of the plan and shall perform such other duties as are required in connection therewith.

(d) At least once in each five-year period following the date of establishment, the actuary shall make an actuarial investigation into the mortality experience of the members and beneficiaries of the plan and shall make a valuation of the contingent assets and liabilities of the plan. The board, after taking into account the results of such investigation and valuation, shall adopt for the plan such mortality, service, and other tables as shall be deemed necessary.

(e) The board shall determine, from time to time, the rate of regular interest for use in all calculation of benefit payments made pursuant to Code Section 47-22-11.

(f)(d) Subject to the limitations of this chapter, the board shall, from time to time, adopt the plan document and establish rules and regulations for the administration of the plan and for the transaction of business.

(g)(e) The board shall keep a record of all of its proceedings under this chapter, which record shall be open to the public.

(h)(f) All persons employed by the board and the expenses of the board in furtherance of this chapter shall be paid from funds appropriated to the plan until such time as the board determines that the return on investments is sufficient to cover such costs.

(i)(g) The board may combine the moneys subject to this chapter with other moneys under the control of the board for purposes of investment, provided that a separate accounting is maintained for all moneys subject to this chapter."

SECTION 29.

Said title is further amended by striking in its entirety Code Section 47-22-11, relating to retirement and option to receive a periodic payment, and inserting in lieu thereof the following:

"47-22-11.

Any member shall be entitled to retire upon attaining the age of 65. Such member shall have the option to receive a periodic payment based upon mortality tables and interest assumptions as adopted as permitted by the board."

SECTION 30.

Said title is further amended by striking in its entirety Code Section 47-23-1, relating to definitions relative to the Georgia Judicial Retirement System, and inserting in lieu thereof the following:

"47-23-1.

As used in this chapter, the term:

(1) 'Average annual earnable monthly compensation' means the average annual earnable monthly compensation of a member during the 24 consecutive months of creditable service producing the highest such average.

(2) 'Beneficiary' means any person other than a retired member of a retirement system who is receiving a benefit from that retirement system.

(3) 'Board' means the Board of Trustees of the Georgia Judicial Retirement System.

(4) 'County pension or retirement fund' means only those certain pension and retirement funds provided for by local Acts applicable to certain named counties.

(5) 'Covered position' means an employment position eligible for membership under this chapter.

(6) 'Creditable service' means prior service and membership service for which credit is allowable under this chapter, but in no case shall more than one year of service be creditable for all service in one calendar year, nor shall it include any service which has been or may be credited to a member by any other public retirement system of this state.

(6)(7) 'District attorney' means any district attorney holding office on July 1, 1998, and any district attorney taking office on or after July 1, 1998, except that the term district attorney shall not include any district attorney:

(A) Who was serving as a district attorney on June 30, 1998, and who was not a member of the District Attorneyś Retirement System; or

(B) Who is a member of any other publicly supported retirement or pension system or fund created by any law of this state, if the retirement or pension benefits under such other publicly supported retirement or pension system or fund are based wholly or partially on the compensation payable to the district attorney from state funds.

(7)(8) 'District Attorneyś Retirement System' means that retirement system created by Chapter 13 of this title as such chapter existed prior to July 1, 1998.

(8)(9) 'Earnable monthly compensation' means the full rate of regular monthly compensation payable to a member employee for his or her full working time, excluding any local supplements.

(10) 'Fund' means the Georgia Judicial Retirement System Fund provided for by Code Section 47-23-22. The fund shall include, but is not limited to, a pension accumulation fund in which the benefits described in Article 6 of this chapter will be held and an employee contribution accumulation fund in which the contributions described in Article 5 of this chapter will be held.

(9)(11) 'Judge, solicitor, or solicitor-general of a state court' means a person elected or appointed to such office for a specific term. Such term shall not include any person acting as a judge or solicitor of a state court on a temporary basis or serving as judge or solicitor-general pro tempore of a state court.

(10)(12) 'Juvenile court judge' means a juvenile court judge now or hereafter appointed or otherwise holding office pursuant to Code Section 15-11-18 relative to the creation of juvenile courts, except judges of the superior courts sitting as juvenile court judges and juvenile court judges who are members of local retirement or pension systems created by local law.

(11)(13) 'Predecessor retirement system' means the District Attorneyś Retirement System, the Superior Court Judges Retirement System, and the Trial Judges and Solicitors Retirement Fund, collectively or individually.

(12)(14) 'Regular interest' means interest at such rate as shall be determined by the board of trustees, which interest shall be compounded annually.

(13)(15) 'Retirement system' means the Georgia Judicial Retirement System.

(14)(16) 'State court' means any court created pursuant to the provisions of Chapter 7 of Title 15 or any court continued as a state court by Article VI, Section X of the Constitution of the State of Georgia; provided, however, that such term shall include the State Court of Fulton County subject to the provisions of Code Section 47-23-50.

(15)(17) 'Superior Court Judges Retirement System' means that retirement system created by Chapter 9 of this title as such chapter existed prior to July 1, 1998.

(16)(18) 'Trial Judges and Solicitors Retirement Fund' means that retirement fund created by Chapter 10 of this title as such chapter existed prior to July 1, 1998."

SECTION 31.

Said title is further amended by striking in its entirety subsection (a) of Code Section 47-23-22, relating to control of funds and investment, and inserting in lieu thereof the following:

"(a) The board shall be the trustees of the funds and shall have control of the funds provided for in this chapter and all funds received by the board shall be deposited into the Georgia Judicial Retirement System Fund. The benefits provided for in this chapter and all administrative expenses shall be paid from such fund. The board shall have authority to expend the funds in accordance with this chapter."

SECTION 32.

Said title is further amended by striking in its entirety subsection (d) of Code Section 47-23-29, relating to survivors benefits and group term life insurance, and inserting in lieu thereof the following:

"(d) Contributions for survivors benefits shall be provided for and administered in the following manner:

(1) After notice from the board of trustees, each employer shall cause to be deducted from the earnable monthly compensation of each member during every payroll period the additional amount established by the board of trustees, but such amount shall not exceed one-half of 1 percent of the membeŕs earnable monthly compensation. Such deductions shall be made under the same conditions as set forth in paragraph (2) of subsection (a) of Code Section 47-3-41; and

(2) There is authorized an employer payment to the fund which shall be a percentage of the earnable monthly compensation of the members of the retirement system. The board of trustees shall establish the rate of such payment, but in no case shall such rate, when added to the memberś contributions, exceed 1 percent. Funds for employer payment shall be requested in the same manner as provided in Article 5 of this chapter."

SECTION 33.

Said title is further amended by striking in its entirety Code Section 47-23-80, relating to contributions by superior court judges and district attorneys and employer contributions, and inserting in lieu thereof the following:

"47-23-80.

(a) The provisions of this Code section shall be applicable to judges of the superior courts and district attorneys. The amount of employee contributions to the fund by superior court judges shall be 7 ½ percent of the salaries earnable monthly compensation from state funds provided by law for judges of the superior courts. The amount of employee contributions to the fund by district attorneys shall be 7 ½ percent of the salaries earnable monthly compensation from state funds provided by law for district attorneys. The Department of Administrative Services is authorized to deduct 7 ½ percent monthly from the salary earnable monthly compensation of each judge of the superior courts and each district attorney who is a member of the retirement system to cover the employee contributions to the fund. The Department of Administrative Services is also authorized to make an additional deduction from such salaries earnable monthly compensation to cover any required employee tax for social security coverage. The Department of Administrative Services is authorized and directed to pay, from the funds appropriated or otherwise available for the operation of the superior courts of the state, any required employer contribution for social security coverage on such judges and district attorneys. From funds appropriated or otherwise available for the operation of superior courts, the Department of Administrative Services is authorized and directed to pay into the fund the employer contributions, including contributions to fund any creditable service authorized by this chapter, which, together with employee contributions and the earnings of the fund, shall be an amount sufficient to fund the service and disability retirement benefits and the spouseś benefits under this chapter.

(b) The deductions from state salaries earnable monthly compensation and allowances payable to judges of the superior courts and district attorneys shall be made, notwithstanding that the compensation and allowances fixed by law for such judges and district attorneys shall be reduced thereby. Such judges and district attorneys shall be deemed to consent and agree to the deductions made; and payment of the salary and compensation earnable monthly compensation and allowances, less such deductions, shall be a full and complete discharge of all claims and demands whatsoever for the services rendered by such judges and district attorneys during the period covered by such payment.

(c) The employer shall pay to the retirement system on each and every payroll period employee contributions on behalf of and to the credit of each judge and district attorney in an amount equal to the amount which would be paid to the annuity savings fund pursuant to Code Section 47-2-54 if the judge or district attorney were a member of the Employeeś Retirement System of Georgia. Such members shall continue to have deducted from their state salaries earnable monthly compensation the additional amount of employee contributions required by this chapter. Such monthly contributions made by the employer on behalf of a member shall be included in the computation of the membeŕs state salary earnable monthly compensation for purposes of computing retirement benefits.

(d) All members shall retain, have, and be subject to all other rights, privileges, obligations, and duties otherwise provided for in this chapter; and all such other provisions shall remain of full force and effect with respect to any matter not specifically provided for in subsection (c) of this Code section."

SECTION 34.

Said title is further amended by striking in its entirety Code Section 47-23-81, relating to contributions by judges and solicitors-general of the state courts, employer contributions, and required reports, and inserting in lieu thereof the following:

"47-23-81.

(a) The provisions of this Code section shall be applicable to judges and solicitors-general of state courts. The basis for employer and employee contributions to the fund with respect to a judge or solicitor-general of a state court shall be the actual salary earnable monthly compensation received as such judge or solicitor-general; provided, however, that for members who become members after July 1, 1998, such amount shall not exceed the salary earnable monthly compensation from state funds provided by law for superior court judges.

(b)(1) The employee contributions with respect to judges and solicitors-general of state courts who are compensated by salaries earnable monthly compensation paid by the employing units which pay the costs of the operation of such courts shall be 7 ½ percent of the amount of such salaries earnable monthly compensation. A person to be designated by each such employing unit shall report the amount of such salaries earnable monthly compensation to the board by not later than the fifteenth day of each calendar month. The employing units are authorized to pay any portion of the employee contribution and to deduct employee contributions from the salaries earnable monthly compensation of such judges and solicitors-general and to pay the contributions into the fund. An employing unit which so elects to pay any portion of the employee contribution shall apply such provisions on behalf of all state court judges and solicitors-general employed by such employing unit now or in the future, and such provisions shall apply only to the earnable monthly compensation earned by the employing unit́s state court judges and solicitors-general after the effective date of the election by such employing unit to pay such membeŕs employee contributions. Such contributions shall be forwarded to the board at the same time the report of the salaries earnable monthly compensation of such judges and solicitors-general is forwarded. The employing units are also authorized to make an additional deduction from such salaries earnable monthly compensation to cover any required employer employee tax for social security coverage. The deduction from the salaries earnable monthly compensation payable to such judges and solicitors-general of state courts shall be made, notwithstanding that such salaries earnable monthly compensation fixed by law for such judges and solicitors-general are is reduced thereby. Such judges and solicitors-general shall be deemed to consent and agree to the deductions made; and payment of such salaries earnable monthly compensation, less such deductions, shall be a full and complete discharge of all claims and demands whatsoever for the services rendered by such judges and solicitors-general during the period covered by such payment.

(2) From funds appropriated or otherwise available for the operation of superior courts, the Department of Administrative Services is authorized and directed to pay into the fund provided for by this chapter monthly employer contributions, including contributions to fund any creditable service authorized by this chapter. Such amounts are to be determined by the board and, together with employee contributions and the earnings of the fund, shall be an amount sufficient to fund the service and disability retirement benefits under this chapter. The Department of Administrative Services is authorized and directed to pay from the funds appropriated or otherwise available for the operation of the superior courts of the state any required employer contribution for social security coverage on such members.

(c) It shall be the duty of each employing unit affected by this chapter to designate a responsible person to submit the reports and forward the employee contributions set forth in this Code section. It shall be the duty of the person so designated to comply with this Code section. If the required reports and employee contributions are not forwarded to the board or if duplicate copies of the reports are not directed to the Office of Treasury and Fiscal Services, in accordance with this Code section, as appropriate, the Office of Treasury and Fiscal Services is authorized to withhold any state payments payable to the governmental unit failing to forward such reports and employee contributions until such time as such reports and contributions have been received.

SECTION 35.

Said title is further amended by striking in its entirety Code Section 47-23-82, relating to contributions by juvenile court judges, employer contributions, and required reports, and inserting in lieu thereof the following:

"47-23-82.

(a) The provisions of this Code section shall be applicable to juvenile court judges. The basis for employer and employee contributions to the fund with respect to juvenile court judges shall be the salary earnable monthly compensation paid to such judges by the employing units paying the cost of the operation of the juvenile courts, unless such salary earnable monthly compensation exceeds the state salary earnable monthly compensation paid to superior court judges, as now or hereafter fixed by law, in which event the basis for such employer and employee contributions shall be the same as the state earnable monthly compensation paid to judges of the superior courts.

(b)(1) The employee contributions with respect to juvenile court judges who are compensated by salaries earnable monthly compensation paid by the employing units which pay the costs of the operation of such courts shall be 7 ½ percent of the amount of such salaries earnable monthly compensation. A person to be designated by each such employing unit shall report the amount of such salaries earnable monthly compensation to the board by not later than the fifteenth day of each calendar month. The employing units are authorized, but not required, to pay any portion of the employee contribution on behalf of the member and to deduct such employee contributions from the salaries earnable monthly compensation of such juvenile court judges and to pay the contributions into the fund. An employing unit which so elects to pay any portion of the employee contribution shall apply such provisions on behalf of all juvenile court judges employed by such employing unit now or in the future, and such provisions shall apply only to the earnable monthly compensation earned by the employing unit́s juvenile court judges after the effective date of the election by such employing unit to pay such membeŕs employee contributions. Such contributions shall be forwarded to the board at the same time the report of the salaries earnable monthly compensation of such juvenile court judges is forwarded. The employing unit is also authorized to make an additional deduction from such salaries earnable monthly compensation to cover any required employee tax for social security coverage. The deduction from the salaries earnable monthly compensation payable to such juvenile court judges shall be made, notwithstanding that such salaries earnable monthly compensation fixed by law for such juvenile court judges are is reduced thereby. Such juvenile court judges shall be deemed to consent and agree to the deductions made; and payment of such salaries earnable monthly compensation, less such deductions, shall be a full and complete discharge of all claims and demands whatsoever for the services rendered by such juvenile court judges during the period covered by such payment.

SECTION 36.

Said title is further amended by striking in its entirety Code Section 47-23-100, relating to a definition of salary, and inserting in lieu thereof the following:

"47-23-100.

(a) As used in this article, the term 'salary' means:

(1) For superior court judges, the salaries earnable monthly compensation from state funds provided by law for judges of the superior courts on the date the member begins receiving a retirement benefit;

(2) For district attorneys, the salaries earnable monthly compensation from state funds provided by law for district attorneys on the date the member begins receiving a retirement benefit;

(3) For judges and solicitors-general of state courts, the average annual earnable monthly compensation received as such judge or solicitor-general; provided, however, that for members who become members after July 1, 1998, such amount shall not exceed the salary from state funds provided by law for superior court judges; and

(4) For juvenile court judges, the average earnable monthly compensation received as such juvenile judge; provided, however, that for members who become members after July 1, 1998, such amount shall not exceed the salary from state funds provided by law for superior court judges.

(b) The monthly employee contributions made by the employer on behalf of the member under Code Sections 47-23-80, 47-23-81, and 47-23-82 shall be used in the computation of the membeŕs salary for the computation of the membeŕs retirement benefits.

(c) Notwithstanding any provision of this chapter to the contrary, a membeŕs salary shall be subject to limitations set forth in Code Section 47-1-13."

SECTION 37.

Said title is further amended by striking in its entirety subsection (a) of Code Section 47-23-103, relating to retirement based on age and application to retire, and inserting in lieu thereof the following:

"(a) In lieu of retirement at the benefit level provided by Code Section 47-23-102, a member may retire at any time after attaining the age of 60 years and after obtaining a minimum of ten years of creditable service. The monthly retirement benefit for such early retirement shall be a percentage of the benefit under Code Section 47-23-100 47-23-102, and such percentage shall be the proportion which the number of years of creditable service the member has in the retirement system bears to 16."

SECTION 38.

Said title is further amended by striking in its entirety subsection (f) of Code Section 47-23-105, relating to spouseś benefits, ceasing spouseś benefits, vesting, and designation of survivors benefits, and inserting in lieu thereof the following:

"(f) Any member at the time of retirement who has met the conditions of subsection (e) of this Code section may designate a natural person other than his or her spouse to receive a survivors benefit in the same manner and under the same conditions as provided for spouseś benefits; provided, however, that any person so designated shall receive a benefit equal to the normal spousés benefit actuarially reduced in accordance to such persońs and the membeŕs projected life span spans. Such actuarial adjustment shall be computed at regular interest upon the basis of the mortality tables and rates of interest last adopted by the board of trustees. Such benefit shall not exceed 50 percent of the membeŕs monthly retirement benefit."

SECTION 39.

Said title is further amended by striking in its entirety Code Section 47-23-108, relating to withdrawal of funds, and inserting in lieu thereof the following:

"47-23-108.

Except as otherwise expressly provided in this chapter, if a member ceases to be employed in a covered position, he or she may withdraw the total sum, with 6 percent interest, which he or she has paid into the fund. The member shall not be eligible at any time after such withdrawal to become a member of the fund, unless at a later date he or she becomes employed in a covered position, in which event he or she shall be reinstated into the fund as if he or she had never before been a member. Any such reinstated member shall have the privilege of reestablishing any prior creditable service, provided that the member repays into the retirement system an amount equal to the amount withdrawn, which shall be placed in the employee contribution accumulation fund, together with 6 percent interest from the date of withdrawal to the date of repayment, which interest shall be placed in the pension accumulation fund. The employee contributions paid by the employer as provided in subsection (c) of Code Section 47-23-80 shall be considered to be payments made by the member."

SECTION 40.

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