07 LC 21
9358
Senate
Bill 240
By:
Senators Heath of the 31st and Hill of the 32nd
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
make certain findings of fact and a statement of intent; to amend Article 1 of
Chapter 1 of Title 47 of the Official Code of Georgia Annotated, relating to
general provisions relating to retirement and pensions, so as to provide that
any member of certain retirement systems shall be entitled to direct that all
employer and employee contributions made by or on behalf of him or her, together
with earnings thereon, be transferred to an account of his or her choosing so
that he or she may manage the investment of such funds without the expertise or
intervention of such retirement systems and that his or her membership and
participation in any public retirement system be terminated; to provide that
such persons shall thereafter be ineligible to participate in a public
retirement system; to provide for an application; to provide for procedures; 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.
Whereas,
the state maintains two large retirement systems, the Employees´ Retirement
System of Georgia and the Teachers Retirement System of Georgia, at great public
expense to provide a generous retirement allowance for state employees and
teachers who have dedicated their careers to public service;
and
Whereas, the professional managers investing the funds of such retirement systems have consistently provided outstanding returns on the investments, and the combined funds of such retirement systems now constitute the fourteenth largest investment fund in the country; and
Whereas, the General Assembly, and in particular the Senate and House Retirement Committees, have been steadfast in protecting the fiscal soundness of all public retirement systems and have without fail acted in the best interests of the retirement systems and their members; and
Whereas, thanks to such professional management and the dedication of Georgia´s legislators, Georgia´s retirement systems are among the strongest in the nation, and none of the questionable practices disclosed in other states has been replicated in Georgia; and
Whereas, while most of Georgia´s state employees and teachers are justifiably confident in their retirement systems, certain elements have questioned the integrity of the General Assembly and the qualifications of the professional managers in directing the investments of retirement system funds to obtain the highest yield at a reasonable risk; and
Whereas, the General Assembly desires to give such persons the opportunity to invest their own funds and guide their own financial future without the interference of the legislature or the professional fund managers.
Whereas, the professional managers investing the funds of such retirement systems have consistently provided outstanding returns on the investments, and the combined funds of such retirement systems now constitute the fourteenth largest investment fund in the country; and
Whereas, the General Assembly, and in particular the Senate and House Retirement Committees, have been steadfast in protecting the fiscal soundness of all public retirement systems and have without fail acted in the best interests of the retirement systems and their members; and
Whereas, thanks to such professional management and the dedication of Georgia´s legislators, Georgia´s retirement systems are among the strongest in the nation, and none of the questionable practices disclosed in other states has been replicated in Georgia; and
Whereas, while most of Georgia´s state employees and teachers are justifiably confident in their retirement systems, certain elements have questioned the integrity of the General Assembly and the qualifications of the professional managers in directing the investments of retirement system funds to obtain the highest yield at a reasonable risk; and
Whereas, the General Assembly desires to give such persons the opportunity to invest their own funds and guide their own financial future without the interference of the legislature or the professional fund managers.
SECTION
2.
Article
1 of Chapter 1 of Title 47 of the Official Code of Georgia Annotated, relating
to general provisions relating to retirement and pensions, is amended by adding
a new Code section to read as follows:
"47-1-16.
(a)
Any other provision of law to the contrary notwithstanding, any member of the
Employees´ Retirement System of Georgia created by Chapter 2 of this title
or the Teachers Retirement System of Georgia created by Chapter 3 of this title,
or of any retirement system or pension fund whose funds are managed by either
such retirement system, who is vested for a benefit in such system or fund may
elect to terminate his or her membership and participation in such system or
fund and have all employer and employee contributions with regular interest
thereon be deposited in such account as the member designates.
(b)
Any person desiring to terminate his or her participation in a retirement system
or pension fund as provided in subsection (a) of this Code section shall notify
the board of trustees of the appropriate system or fund in writing, providing
such information as the respective board of trustees deems appropriate.
Thereafter, such person shall forever be ineligible to participate in any public
retirement system.
(c)
The board of trustees of each retirement system and pension fund identified in
subsection (a) of this Code section shall, within 30 days after a member has
completed all requirements of this Code section and rules and regulations
promulgated pursuant to this Code section, transfer all employer and employee
contributions made by or on behalf or the requesting member, together with
regular interest thereon, in such manner as the member directs.
(d)
The board of trustees of each retirement system or pension fund subject to this
Code section is authorized and directed to make the option provided in this Code
section known to any member who expresses an unhappiness with the manner in
which retirement funds are managed."
SECTION
3.
This
Act shall become effective on July 1, 2008, 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, 2008, 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.