07 LC 21
9447
Senate
Bill 328
By:
Senators Heath of the 31st, Schaefer of the 50th and Murphy of the 27th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Chapter 2 of Title 47 of the Official Code of Georgia Annotated, relating
to the Employees´ Retirement System of Georgia, so as to provide a short
title; to provide that persons who first or again become a member of such
retirement system on or after July 1, 2008, shall have accounts in the state
deferred compensation plan; to provide for an employer contribution; to provide
for rules and regulations; to reduce the percent of a member´s compensation
used to calculate a retirement benefit from 2 percent to 1 percent; to provide
for applicability; 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.
Chapter
2 of Title 47 of the Official Code of Georgia Annotated, relating to the
Employees´ Retirement System of Georgia, is amended by adding at the end
of Article 4 a new Code section as follows:
"47-2-74.
(a)
This Code section shall be known and may be cited as the 'Georgia State Employee
Savings Plan.'
(b)
As used in this Code section, the term 'deferred compensation plan' means the
deferred compensation plan offered by the state for public employees pursuant to
Article 2 of Chapter 18 of Title 45, as now or hereafter amended, utilizing
either Section 401(k) or Section 457(j) of the federal Internal Revenue Code or
a substantially similar plan.
(c)
The provisions of this Code section shall apply only to persons who first become
members on or after July 1, 2008, or who again become members on or after such
date and who do not have a vested right to be reinstated in this retirement
system.
(d)
The board of trustees shall ensure that each member subject to the provisions of
this Code section has an account in the deferred compensation plan. Each
employee shall be given the option of participating in the Section 401(k) plan
or the Section 457(j) plan or similar plan, but if no option is made the
employee shall be deemed to have selected the Section 401(k) plan.
(e)
Each employer shall deposit into the employee´s account an employer
contribution in an amount not greater than 9 percent of the employee´s
salary. Such amount shall be deposited on the last day of each month and shall
be calculated in the employee´s total compensation for the month in which
the contribution is made. Each participant shall have a vested right to employer
contributions immediately upon deposit.
(f)
The board of trustees shall have the responsibility of administering the
provisions of this Code section and shall promulgate such rules and regulations
as are necessary to carry out the provisions of this Code
section."
SECTION
2.
Said
chapter is further amended by revising subsection (b) of Code Section 47-2-334,
relating to service retirement allowance, calculation, employee membership
contributions, employer contributions, optional membership, conditions, and
construction of provisions, as follows:
"(b)(1)
Every member subject to this Code section shall, upon becoming eligible under
the provisions of this chapter, be entitled to a service retirement allowance,
which shall consist of:
(A)
An annuity which shall be the actuarial equivalent of the member´s
accumulated contributions at the time of retirement; and
(B)(i)
For members who are members on June 30, 2008, and persons who again become
members on or after such date and have a vested right to be reinstated in this
retirement system, a
A
monthly pension which, together with the annuity, shall provide a total
retirement allowance equal to more than 1.5 percent, but not greater than 2
percent, the actual percent to be set by the board of trustees in direct
relation to the amount of increased appropriations provided by the General
Assembly to fund the provisions of this paragraph, of the member´s highest
average monthly earnable compensation during a period of 24 consecutive calendar
months while a member of the retirement system, multiplied by the number of the
member´s years of creditable
service;
or
(ii)
For persons who first or again become members on or after July 1, 2008, and
persons who again become members on or after such date and do not have a vested
right to be reinstated in this retirement system, a monthly pension which,
together with the annuity, shall provide a total retirement allowance equal to 1
percent of the member´s highest average monthly earnable compensation
during a period of 24 consecutive calendar months while a member of the
retirement system, multiplied by the number of the member´s years of
creditable service.
(2)
For members subject to this Code section, the calculation of retirement benefits
or allowances for any other form or type of retirement shall also be based upon
the calculations provided for in paragraph (1) of this
subsection."
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.