DEPARTMENT
OF
AUDITS
AND
ACCOUNTS
270 Washington Street, S.W., Suite 1-156
Atlanta, Georgia 30334-8400
270 Washington Street, S.W., Suite 1-156
Atlanta, Georgia 30334-8400
Russell W.
Hinton
State Auditor
(404) 656-2174
State Auditor
(404) 656-2174
April
2, 2008
The
Honorable David Shafer
State Senator
State Capitol, Room 421-F
Atlanta, Georgia 30334
State Senator
State Capitol, Room 421-F
Atlanta, Georgia 30334
SUBJECT: State
Auditor’s
Certification
Substitute to HB 373 (LC 21 9760S) As Amended (AM 21 3610)
Substitute to HB 373 (LC 21 9760S) As Amended (AM 21 3610)
Dear
Senator Shafer:
As
amended, this bill would revise provisions relating to retirement benefits for
certain members of the Employees’ Retirement System. Specifically, this
bill would affect members who are in service in the Uniform Division of the
Department of Public Safety. Under the provisions of this bill, such members
would be eligible to retain their retirement benefits if they return to
full-time service within the Uniform Division of the Department of Public
Safety, provided they do not return to work within the first 12 months of their
retirement. Such persons would not be considered active members of the
Employees’ Retirement System, and would not accrue any additional benefits
or creditable service. The employer would be required to pay the employee and
employer contributions that would be applicable to the employee. This
substitute bill also specifies that the salary and rank of any person who
returns to work under this Code Section shall be subject to negotiation.
However, no person shall be re-employed at a higher salary or rank than he or
she held at the time of retirement. Additionally, no person currently employed
can be denied a promotion to a higher rank for which he or she would be eligible
because of the operation of this Code Section. It should be noted that the
Department of Public Safety would have the sole discretion to permit any person
to return to work under the provisions of this
legislation.
The amendment offered by (AM 21 3610) would revise provisions related to creditable service for members of the Employees’ Retirement System. Specifically, this bill would allow any member who was previously a member of the Judicial Retirement System but did not vest for a benefit under such system, to obtain creditable service in the Employees’ Retirement System for such prior service. Any member wishing to obtain such creditable service must notify the board of trustees of the Employees’ Retirement System by December 31, 2008. Upon notification, the board of trustees of the Georgia Judicial Retirement System shall transfer to the Employees’ Retirement System all applicable employee and employer contributions paid by or on behalf of the employee, with regular interest, less an amount to ensure no increase in the unfunded actuarial accrued liability occurs. This bill also allows the member to supplement the contributions made by the Judicial Retirement System with any amount that he or she desires. Upon receipt of the funds, the Employees’ Retirement System will credit the member for the amount of service funded by the contributions, but not more than the actual number of years for which he or she was credited with under the Judicial Retirement System. Under this amendment, members of the Employees’ Retirement System who were previously non-vested members of the District Attorney’s Retirement System may obtain creditable service for service covered under the District Attorney’s Retirement System.
The amendment offered by (AM 21 3610) would revise provisions related to creditable service for members of the Employees’ Retirement System. Specifically, this bill would allow any member who was previously a member of the Judicial Retirement System but did not vest for a benefit under such system, to obtain creditable service in the Employees’ Retirement System for such prior service. Any member wishing to obtain such creditable service must notify the board of trustees of the Employees’ Retirement System by December 31, 2008. Upon notification, the board of trustees of the Georgia Judicial Retirement System shall transfer to the Employees’ Retirement System all applicable employee and employer contributions paid by or on behalf of the employee, with regular interest, less an amount to ensure no increase in the unfunded actuarial accrued liability occurs. This bill also allows the member to supplement the contributions made by the Judicial Retirement System with any amount that he or she desires. Upon receipt of the funds, the Employees’ Retirement System will credit the member for the amount of service funded by the contributions, but not more than the actual number of years for which he or she was credited with under the Judicial Retirement System. Under this amendment, members of the Employees’ Retirement System who were previously non-vested members of the District Attorney’s Retirement System may obtain creditable service for service covered under the District Attorney’s Retirement System.
This
is to certify that the changes made in this substitute bill are nonfiscal
amendments as defined in the Public Retirement Systems Standards Law.
Therefore, the actuarial investigation and State Auditor’s Summary
prepared for House Bill 373 (LC 21 9725S) would apply to this substitute bill
(LC 21 9760S). A copy of the actuarial investigation and State Auditor’s
Summary for HB 373 (LC 21 9725S) is attached.
Respectfully,
/s/
Russell W. Hinton
State Auditor
State Auditor
RWH/cs