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
February
9, 2007
The Honorable Don
BalfourState Senator
State Capitol, Room 453
Atlanta, Georgia 30334
State Capitol, Room 453
Atlanta, Georgia 30334
SUBJECT: State
Auditor’s
Certification
Senate Bill 156 (LC 21 9263)
Senate Bill 156 (LC 21 9263)
Dear Senator
Balfour:
This
bill would amend provisions relating to minimum funding standards for public
retirement systems. Specifically, this bill would authorize political
subdivisions to create retiree health benefit plans for the purpose of providing
for the payment of covered post-employment health care expenses for eligible
present and future retirees. This bill would require that the plan and assets
of any trust or fund be under the governance and investment authority of a
retirement system maintained by the political subdivision or other board of
trustees established for such purpose. All employer contributions, employee
contributions, appropriations, earnings, and reserves for the payment of
obligations under the plan shall be credited to such trust or fund. Any funds
that remain after covered other post-employment benefit expenses and
administrative costs have been paid shall be retained in such trust or fund as a
special reserve for adverse fluctuation. This bill also provides that
prefunded assets of whatever kind or nature of any other post-employment benefit
plan or trust, and the earnings derived from such investments, must be used to
fund covered other post-employment benefit expenses. Such assets are declared
to be public property and are exempt from taxation, levy and sale, garnishment,
attachment, or any other process.
This
is to certify that this is a nonfiscal retirement bill as defined in the Public
Retirement Systems Standards Law.
Respectfully,
/s/ Russell W.
Hinton
State Auditor
State Auditor