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
10, 2007
The Honorable Bill
Heath
State Senator
State Capitol, Room 109
Atlanta, Georgia 30334
State Senator
State Capitol, Room 109
Atlanta, Georgia 30334
SUBJECT: State
Auditor’s
Certification
Substitute to House Bill 448
(LC 21 9502S)
Substitute to House Bill 448
(LC 21 9502S)
Dear Senator
Heath:
This
bill would amend general provisions relating to group term life insurance, which
is under the control and management of the State Employees’ Assurance
Department. Specifically, this bill would require the department to establish
two separate trust funds for group term life insurance. These two funds
are:
-
The Retired and Vested Inactive Members Trust Fund, and
- The Active Members Fund.
These
two funds would be established for eligible members of the Employees’
Retirement System, the Georgia Legislative Retirement System, and the Georgia
Judicial Retirement System. If this legislation is enacted, the provisions of
this bill would become effective on June 30, 2007.
Under
the provisions of this bill, the board of directors of the State
Employees’ Assurance Department would be authorized to contract with the
Employees’ Retirement System for the purpose of managing and investing of
all fund assets and for providing actuarial services. This bill would authorize
assets of these trust funds to be commingled with other assets under the control
of the Employees’ Retirement System. However, the assets of the trust
funds must be accounted for separately. This bill would also require the boards
of trustees from each contracting retirement system to collect the appropriate
employee and employer contributions and remit such funds to the board of
directors no later than June 1 of each year. All contributions to the trust
funds are irrevocable and are dedicated to providing benefits to active,
retired, and vested inactive members and their beneficiaries.
This
bill would also amend provisions relating to ‘survivors benefits’
under the Georgia Judicial Retirement System. Specifically, this bill would
delete references to a survivors’ benefits fund which was established for
this System. Under the provisions of the proposed legislation, members of the
Georgia Judicial Retirement System would be covered under the group term life
insurance trust funds managed and controlled by the State Employees’
Assurance Department.
This
is to certify that this substitute bill is a nonfiscal retirement bill as
defined in the Public Retirement Systems Standards Law.
Respectfully,
/s/ Russell W.
Hinton
State Auditor
State Auditor