05 LC 21
7998
Senate
Bill 177
By:
Senators Tate of the 38th and Fort of the 39th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Chapter 3 of Title 47 of the Official Code of Georgia Annotated, relating
to the Teachers Retirement System of Georgia, so as to change the benefit
formula for the Teachers Retirement System of Georgia from 2 percent to 2.5
percent; to provide a postretirement benefit adjustment; to provide conditions
for an effective date and automatic repeal; to repeal conflicting laws; and for
other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Chapter
3 of Title 47 of the Official Code of Georgia Annotated, relating to the
Teachers Retirement System of Georgia, is amended by striking in its entirety
subsection (a) of Code Section 47-3-120, relating to allowance on a service
retirement, minimum retirement allowance, reduced allowance, increase, and
computation of average compensation, and inserting in lieu thereof the
following:
"(a)
Upon service retirement, a member shall receive an allowance which shall consist
of:
(1)
An annuity which shall be the actuarial equivalent of the member´s
accumulated contributions at the time of retirement; and
(2)
An annual pension which, together with the annuity set forth in paragraph (1) of
this subsection, shall provide a total allowance equal to
2
2.5
percent of the member´s average compensation over the two consecutive years
of membership service producing the highest such average, multiplied by the
number of the member´s years of creditable service, not to exceed 40. The
computation of average compensation for the purposes of this paragraph shall be
subject to the requirements of subsection (d) of this Code
section."
SECTION
2.
Said
chapter is further amended by inserting immediately following Code Section
47-3-126.3 a new Code section to read as follows:
"47-3-126.4.
(a)
As used in this Code section, the term 'beneficiary' shall have the meaning
specified in paragraph (7) of Code Section 47-3-1.
(b)
Effective July 1, 2006, the monthly retirement benefit of each beneficiary who
began receiving a benefit prior to July 1, 2006, shall be recalculated as if the
benefit had originally been calculated on the formula provided in subsection (a)
of Code Section 47-3-120 or such derivative formula as is appropriate to the
beneficiary. The board shall apply the same percentage of increase to the amount
of increase as has been applied to the benefit from the time the benefit was
first paid, but no such increase shall be paid for any period prior to July 1,
2006."
SECTION
3.
This
Act shall become effective on July 1, 2006, only if it is determined to have
been concurrently funded as provided in Chapter 20 of Title 47 of the Official
Code of Georgia Annotated, the "Public Retirement Systems Standards Law";
otherwise, this Act shall not become effective and shall be automatically
repealed in its entirety on July 1, 2006, as required by subsection (a) of Code
Section 47-20-50.
SECTION
4.
All
laws and parts of laws in conflict with this Act are repealed.