07 HB 448/AP
House
Bill 448 (AS PASSED HOUSE AND SENATE)
By:
Representatives Bridges of the
10th
and Maxwell of the
17th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Title 47 of the Official Code of Georgia Annotated, relating to retirement
and pensions, so as to establish two funds for the provision of term life
insurance to certain eligible persons; to provide for a retired and vested
inactive members fund and an active members fund; to provide for fund assets; to
provide for contributions to the fund; to provide for the management and
investing of fund assets; to provide for related matters; to provide an
effective date; 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 revising subsection (c) of Code Section 47-2-54,
relating to payment of state employee contributions on behalf of employees,
inclusion if contributions in compensation for determining benefits, and
adjustment in compensation of state employees, as follows:
"(c)
Of the one-half of 1 percent deducted from the earnable compensation of members,
one-quarter of 1 percent shall be credited to each member´s account in the
annuity savings fund, and the remaining one-quarter of 1 percent shall be
credited to the group term life insurance
fund, as
provided in Code Section 47-19-10, in lieu
of the deduction required under Code Section 47-2-128. If a member is not
covered by group term life insurance, the entire one-half of 1 percent deducted
from his earnable compensation shall be credited to his individual account in
the annuity savings fund."
SECTION
2.
Said
title is further amended by revising subsection (c) of Code Section 47-2-334,
relating to service retirement allowance, calculation, employee membership
contributions, employer contributions, optional membership, conditions, and
construction of provision, as follows:
"(c)
From and after July 1, 1990, every member subject to this Code section shall
contribute employee membership contributions in an amount not less than 1
percent nor greater than 1 1/2 percent of earnable compensation, which shall be
deducted by each employer from the earnable compensation of each member for each
and every payroll period and paid monthly to the board of trustees; provided,
however, that any reduction in such percentage shall be based upon the
recommendation of the actuary of the board of trustees, the maintenance of the
actuarial soundness of the fund in accordance with the standards provided in
Code Section 47-20-10 or such higher standards as may be adopted by the board,
and such other factors as the board deems relevant. Of the percentage deducted
from the earnable compensation of members, one-fourth of 1 percent shall be
credited to the group term life insurance fund in lieu of any other deduction
therefor, as
provided in Code Section 47-19-10, and the
remaining portion shall be credited to the individual accounts of the members in
the annuity savings fund. In the event a member is not covered by group term
life insurance, the entire amount deducted from the member´s earnable
compensation shall be credited to the member´s individual account in the
annuity savings fund."
SECTION
3.
Said
title is further amended by revising Chapter 19, relating to the State
Employees´ Assurance Department, by adding a new Code section to read as
follows:
"47-19-10.
(a)
As used in this Code section, the term 'directors' means the board of directors
of the State Employees´ Assurance Department.
(b)
There shall be established two separate trust funds under the control and
management of the directors to be maintained for the provision of group term
life insurance for eligible members of the Employees´ Retirement System of
Georgia, the Georgia Legislative Retirement System, and the Georgia Judicial
Retirement System as follows:
(1)
One trust fund shall be known as the 'retired and vested inactive members trust
fund,' which shall be administered in the following manner:
(A)
There shall be accumulated in the fund the payments made to the trust fund as
premiums received from the Employees´ Retirement System of Georgia, the
Georgia Legislative Retirement System, and the Georgia Judicial Retirement
System as premiums for retired and vested inactive members of such retirement
funds, as provided in subsection (c) of this Code section, including interest
earned on deposits and investments of such payments; and
(B)
All assets of the trust fund and all income, interest, and dividends derived
from deposits and investments shall be used for the payments of benefits and
expenses necessary for the maintaining of survivors benefit coverage. Such
benefits and expenses shall in no manner become an obligation of the pension
accumulation fund; and
(2)
One trust fund shall be known as the 'active members fund' which shall be
administered in the following manner:
(A)
There shall be accumulated in the trust fund the payments made to the trust fund
as premiums received from the Employees´ Retirement System of Georgia, the
Georgia Legislative Retirement System, and the Georgia Judicial Retirement
System as premiums for active members of such retirement funds, as provided in
subsection (c) of this Code section, including interest earned on deposits and
investments of such payments; and
(B)
All assets of the trust fund and all income, interest, and dividends derived
from deposits and investments shall be used for the payments of benefits and
expenses necessary for the maintaining of survivors benefit coverage. Such
benefits and expenses shall in no manner become an obligation of the pension
accumulation fund.
(c)
On or before June 1 of every year, the boards of trustees of each contracting
retirement system shall collect contributions from employees and employers, in
accordance with the laws governing the individual retirement systems, and shall
transmit such funds to the directors. The directors shall deposit such funds in
the trust funds established by this Code section in such respective amounts as
directed by the actuary for the directors.
(d)
The directors shall be authorized to contract with the Employees´
Retirement System of Georgia for the management and investment of all fund
assets and for the provision of actuarial services. Such assets may be
commingled with other assets under the control of the Employees´ Retirement
System of Georgia, but shall be separately accounted for.
(e)
Any other provision of law to the contrary notwithstanding, employee and
employer contributions to the trust funds established by this Code section are
irrevocable. The assets of such trust funds are dedicated to providing benefits
to active, retired, and vested inactive members and their beneficiaries in
accordance with the terms of the plan for group term life insurance. All trust
fund assets are protected from creditors of any employer or of the
Employees´ Retirement System of Georgia, the Georgia Legislative Retirement
System, the Georgia Judicial Retirement System, or the State Employees´
Assurance Department."
SECTION
4.
Said
title is further amended by revising Code Section 47-23-29, relating to
survivors benefits, as follows:
"47-23-29.
(a)
Wherever the term 'survivors benefits' is used or referred to in this chapter,
it shall be construed to be group term life insurance. Whenever reference is
made in this Code section to members of this retirement system, such reference
shall include active superior court judges subject to Chapter 8 of this
title.
(b)
Pursuant to the provisions of this Code section and rules and regulations
adopted for such purpose, the board of trustees may provide for survivors
benefits for members, former members, and retired members of the retirement
system; provided, however, that the provisions of this Code section shall apply
only to persons who are active members of this retirement system on or after
July 1, 2002.
(c)
There shall be established an additional fund, to be known as the 'survivors
benefit fund,' which shall be administered in the following manner:
(1)
There shall be accumulated in the survivors benefit fund the payments made to
the fund as provided in subsection (d) of this Code section, including interest
earned on deposits and investments of such payments;
(2)
There shall also be accumulated in the survivors benefit fund the payments
required of retired members and vested former members covered for survivors
benefits as provided in subsections (g) and (h) of this Code section, together
with interest earned on such payments; and
(3)
All assets of the survivors benefit fund and all income, interest, and dividends
derived from deposits and investments shall be used for the payments of benefits
and expenses necessary for the maintaining of survivors benefit coverage. Such
benefits and expenses shall in no manner become an obligation of the pension
accumulation fund.
(d)(c)
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
the
an
additional amount established by the board of trustees, but such amount shall
not exceed one-half of 1 percent of the member´s 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
47-23-41. A
member´s payment for coverage shall vest in the member no rights other than
for the period for which the member has paid the required additional
contributions into the survivors benefit
fund; 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 members´ contributions, exceed 1
percent. Funds for employer payment shall be requested in the same manner as
provided in Article 5 of this chapter.
(e)(d)
The board of trustees may adopt any rules or regulations which are not in
conflict with this Code section and which it deems necessary in establishing and
maintaining the plan of operation, including benefit tables and other provisions
of coverage.
Such rules
and regulations shall include the following:
(1)
A member´s payment for coverage shall vest in the member no rights other
than for the period for which the member has paid the required additional
contributions into the survivors benefit fund;
(2)
A notice by the board of trustees to members that the additional contributions
provided for in this Code section will be credited in the future to the
individual member´s annuity savings account shall suspend any and all
survivors benefit coverage then in effect, provided that such action shall be
applicable to all members alike and without prejudice to any survivors benefits
pending in the case of a then-deceased member; and
(3)
Subsequent to any notice released under paragraph (2) of this subsection, any
additional notice made in the same manner and within 12 months of the original
notice to the effect that coverage is again available shall reestablish
survivors benefits to those members formerly covered and to all new members who
are otherwise eligible.
(f)
The board of trustees may determine the date on which the plan for survivors
benefit coverage shall be placed into operation. The board of trustees shall
notify all employers who, in turn, shall notify the members that additional
contributions will commence on the determined date.
(g)(e)
The survivors benefits program may provide for a reduction of benefits after the
attainment of a certain age and for a different or no contribution after
retirement based on such reduction in benefits. The board of trustees is
authorized to promulgate rules and regulations to carry out this
subsection.
(h)(f)
Any other provisions of this chapter or any rules or regulations to the contrary
notwithstanding, any member who withdraws from service before attaining age 60
but whose right to a service retirement allowance has vested under Code Section
47-23-102 may continue paying the amount under this Code section which the
member was paying at the time of withdrawing from service, together with the
amount of the employer contribution in effect at the time of such withdrawal, in
which case the benefits under this Code section shall remain fixed at the same
amount as they would have been had the member died on the day immediately
preceding the member´s withdrawal. Only those members with at least 18
years of creditable service at the time of withdrawal from service shall be
eligible under this subsection, subject to the provisions of subsection
(g)
(e)
of this Code section."
SECTION
5.
Said
title is further amended by revising Code Section 47-23-30, relating to contract
for group term life insurance protection, as follows:
"47-23-30.
The
board of trustees may provide group term life insurance protection for the
members of the retirement system as the survivors benefits program provided for
in Code Section 47-23-29 by contracting for such service with the board of
trustees of the Employees´ Retirement System of Georgia for the inclusion
of members of this retirement system in the program of group life insurance
protection conducted for the benefit of the members of such retirement system.
Such contract must provide benefits to those persons entitled to benefits under
Code Section 47-23-29.
All or any
part of funds and other assets previously accumulated for the purposes of Code
Section 47-23-29 may be used by the board of trustees in the execution of this
contract. Contributions for such coverage
shall be provided for and collected as set forth in subsection
(d)
(c)
of Code Section 47-23-29."
SECTION
6.
This
Act shall become effective on June 30, 2007.
SECTION
7.
All
laws and parts of laws in conflict with this Act are repealed.