08 LC 21
9867S
The
Senate Retirement Committee offered the following substitute to SB
328:
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 for
retirement provisions applicable to persons who first or again become members on
or after January 1, 2009; to provide a short title; to provide for a service
retirement allowance; to provide for employee and employer contributions; to
provide for an option of coverage for current members; to provide for a
calculation of benefits; to provide for the applicability of certain provisions;
to provide that only membership service shall constitute creditable service
except in certain circumstances; to provide for the calculation of disability
and death benefits; to provide for the examination and reexamination of
disability beneficiaries; to create a defined contribution plan available to
such members; to define certain terms; to provide for employer and employee
contributions; to provide for vesting; to provide for forfeiture; to provide for
administration; to provide for related matters; 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 a new article
to read as follows:
"ARTICLE
10
47-2-350.
This
article shall be known and may be cited as the 'Georgia State Employees´
Pension and Savings Plan.'
47-2-351.
(a)
Except where indicated clearly to the contrary by the context, the word 'member'
as used in this article shall mean any employee who first or again becomes a
member of the Employees´ Retirement System of Georgia on or after January
1, 2009. From and after January 1, 2009, every person first or again becoming
an employee entitled to a new membership in the Employees´ Retirement
System of Georgia shall become a member subject to this article. Any provision
of this chapter providing that a class of employees shall be subject to Code
Section 47-2-334 shall be deemed to have been amended by this
subsection.
(b)
Membership under this article shall be optional for any persons who are within
the membership of the Employees´ Retirement System of Georgia on December
31, 2008. Any such persons may elect in writing on a form to be provided by the
board of trustees to become a member subject to this article at any time on or
after January 1, 2009. This written election shall become effective upon the
approval of the application by the board of trustees as provided in rules and
regulations promulgated by the board of trustees and shall be final and cannot
be later changed or rescinded. Upon such election, a member shall be subject to
all the provisions, terms, and conditions of this article; provided, however,
that the calculation to determine retirement allowances for any person
exercising such option shall be made as follows:
(1)
The retirement allowance shall be computed fully as if all creditable service of
the member were acquired and calculated under the provisions of this
article;
(2)
Then the retirement allowance shall also be computed fully as if all creditable
service of the member were acquired and calculated under the provisions of this
chapter contained other than in this article and the rules and regulations of
the board of trustees;
(3)
Then a benefit amount shall be determined based upon a fractional part of each
retirement allowance computed in paragraphs (1) and (2) of this subsection,
which fractional part shall be computed by using the actual years of creditable
service established under either this article, for paragraph (1) of this
subsection, or the provisions of this chapter contained other than in this
article, for paragraph (2) of this subsection, which number of years shall be
the numerator of the fraction, over the total actual years of creditable service
established under both this article and the provisions of this chapter contained
other than in this article, which number shall be the denominator of the
fraction;
(4)
The two benefit amounts so determined shall then be added together to produce
the actual retirement allowance; and
(5)
Projected years of service shall not be used in the computation of the
retirement allowances under this subsection.
47-2-352.
(a)
Every member subject to this article shall contribute employee membership
contributions in an amount equal to 1 1/4 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. Such amount shall be credited to the individual accounts of the
members in the annuity savings fund.
(b)
From and after January 1, 2009, each employer shall pay monthly to the board of
trustees, on behalf of each member subject to this article, the aggregate of
employer and employee contributions required by this chapter. With respect to
members subject to this article, no employer contributions shall be considered
as accumulated contributions of the member and none shall be eligible for
withdrawal by the member upon cessation of state service. Such amount shall be
credited to the pension accumulation fund.
47-2-353.
Every
member subject to this article shall, upon becoming eligible under the
provisions of this chapter, be entitled to a service retirement allowance, which
shall consist of:
(1)
An annuity which shall be the actuarial equivalent of the member´s
accumulated contributions at the time of retirement; and
(2)
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.
47-2-354.
(a)
Members subject to this article shall be subject to the following
conditions:
(1)
The following provisions shall not be applicable to members subject to this
article:
(A)
Subsection (d) of Code Section 47-2-120;
(B)
Paragraph (1) of subsection (c) of Code Section 47-2-123;
(C)
Code Section 47-2-124; and
(D)
Code Section 47-2-334;
(2)
Except as provided in Chapter 1 of this title and in Code Sections 47-2-99 and
47-2-100, no service shall constitute creditable service except membership
service for which the full rate of employee membership contributions and
employer contributions is made pursuant to Code Section 47-2-352. The
provisions of this paragraph shall not affect the transfer of creditable service
between public retirement systems created by this title under such conditions as
are now or may hereafter be provided by law;
(3)
The provisions of Code Section 47-2-91 shall be applicable to members subject to
this article; provided, however, that such benefits shall be subject to
reduction or repeal by subsequent legislation and shall not be considered an
element of any contract of employment;
(4)
Disability benefits shall be calculated as provided in paragraph (2) of
subsection (c) of Code Section 47-2-123; provided, however, that the disability
benefits of persons entitled to the provisions of Code Section 47-2-221 shall be
calculated as provided in such Code section but with the benefit computed on 1
percent of the member´s monthly earnable compensation;
(5)
Members subject to the provisions of this article shall not be entitled to group
term life insurance coverage pursuant to Code Section 47-2-128 or 47-2-129;
and
(6)
Members subject to Code Section 47-2-244 shall be entitled to the provisions of
such Code section.
(b)
All members subject to this article shall have and be subject to all other
rights, privileges, obligations, and duties specified by other provisions of
this chapter, and all such other provisions shall be of full force and effect
with respect to any matter not specifically provided for in this
article.
47-2-355.
(a)(1)
Subject to the provisions of paragraphs (2) through (5) of this subsection, any
member in service who has at least 15 years of creditable service who become
disabled in service before becoming eligible to receive a service retirement
allowance may be retired on a disability allowance by the board of trustees,
upon written application to the board of trustees by the member or his or her
employer and upon certification by the medical board that he or she is medically
or physically incapable of further performance of his or her duties in the
position he or she held at the time his or her disability originated, that
incapacity is likely to be permanent, and that he or she should be retired;
provided, however, that the medical board shall not consider any evidence of
such disability which is not submitted within 12 months after the date the
member submits his or her first application for a disability retirement. The
board of trustees may retire such member not less than 30 days nor more than 90
days after execution and filing of the written application.
(2)
A member making application for a disability retirement pursuant to paragraph
(1) of this subsection shall at the same time submit a copy of such application
together with any supporting documentation accompanying such application to his
or her employing agency. The member shall thereafter provide the employing
agency with any additional information or documentation which he or she submits
to the board of trustees in conjunction with such application.
(3)
After receipt of the notice provided for in paragraph (2) of this subsection,
the head of the member´s agency or his or her designee shall conduct an
interview with the member applying for disability retirement; provided, however,
that any designee of the head of an agency shall be an official at such agency
who is above the level of the applicant´s immediate supervisor and who has
the authority to make job assignment decisions. The interview shall be held
within ten business days after receipt of such notice. Based on the interview
and information received by the agency pursuant to paragraph (2) of this
subsection, the agency head or his or her designee shall determine if an
alternative position is available for the member which meets the following
requirements:
(A)
The physical requirements for such position are compatible with the
member´s physical limitations;
(B)
The annual compensation and possibility for future advancement for such position
shall be the same as or greater than that of the current position of the
member;
(C)
The duties for such position shall be reasonably compatible with the experience
and educational qualifications of the member;
(D)
The position shall be one which includes the holder thereof as a member of the
retirement system provided for by this chapter; and
(E)
The position must be available for acceptance by the member and an offer of the
position to the official or member must be made, in writing, by not later than
45 days after the member submitted his or her application for a disability
retirement.
An
agency making an offer of alternative employment as provided in this paragraph
shall so notify the board of trustees within 45 days after the member submitted
his or her application for a disability retirement. After receipt of such
notice, the board of trustees shall not approve a disability retirement until
the procedures of paragraph (4) of this subsection are resolved.
(4)
Any member applying for a disability retirement who is offered a position of
employment in conformity with the requirements of paragraph (3) of this
subsection shall accept the offer or dispute his or her ability to perform the
tasks required by the position offered by submitting a written appeal to the
agency and to the board of trustees within 30 days after receiving the offer.
In the event of an appeal, the agency shall promptly submit to the medical board
a detailed description of the requirements of the position offered and the
medical board shall determine, based upon all information available to it,
whether the member is reasonably capable of performing such tasks. The decision
of the medical board shall be final. If the medical board determines that the
member is unable to perform the tasks required either by the position held at
the time of the application for a disability retirement or the position offered,
the member shall be placed on disability retirement immediately.
(5)
A member who refuses to accept a position offered or file an appeal in a timely
manner or who refuses to accept a position which the medical board has
determined on appeal that he or she is capable of performing shall not be
eligible to receive a disability retirement under this subsection.
(b)
Any member who has at least 15 years of creditable service and who becomes
disabled in service before becoming eligible to receive a service retirement
allowance shall be eligible to retire forthwith without regard to age and to
receive the equivalent of a service retirement allowance calculated upon the
number of years of creditable service attained to the date of retirement and
based upon his or her highest average monthly compensation during a period of 24
consecutive calendar months while a member of the retirement system. No member
who is eligible to receive a service retirement benefit shall be eligible to
apply for or receive a disability benefit.
(c)(1)
Once each year during the first five years following the retirement of a member
on a disability retirement allowance and once in every three-year period
thereafter, the board of trustees may require a disability beneficiary who has
not yet attained retirement age as specified in subsection (a) of Code Section
47-2-110 to undergo a medical examination, such examination to be made at a
place designated by the board, by physicians designated by the medical board.
The disability beneficiary may request such an examination. Should any
disability beneficiary who has not yet attained retirement age refuse to submit
to such medical examination, the pension of such disability beneficiary may be
discontinued by the board of trustees until the withdrawal of such refusal; and
should the refusal continue for one year, all rights of the disability
beneficiary in and to a pension may be revoked by the board of trustees. Should
the medical board report and certify to the board of trustees that a disability
beneficiary is engaged in or is able to engage in a gainful occupation paying
more than the difference between the disability beneficiary´s retirement
allowance and the earnable compensation used to calculate the disability
retirement allowance at the time of retirement, the board of trustees may reduce
the disability beneficiary´s pension to an amount which, together with the
disability beneficiary´s annuity and the amount earnable by the disability
beneficiary, equals the earnable compensation used to calculate the disability
retirement allowance at the time of retirement. Should the disability
beneficiary´s earning capacity be later changed, the amount of the pension
may be further modified, provided that the modified pension shall not exceed an
amount which, together with the disability beneficiary´s annuity and the
amount earnable by the disability beneficiary, equals the earnable compensation
used to calculate the disability retirement allowance at the time of
retirement.
(2)
The board of trustees may require a disability beneficiary who has not yet
attained retirement age as specified in subsection (a) of Code Section 47-2-110
to provide information relevant to any provision of this chapter relating to his
or her entitlement to receive a disability retirement. Should any disability
beneficiary who has not yet attained retirement age refuse to submit any such
information so requested, the board of trustees may suspend the retirement
allowance of such disability beneficiary until such information is provided.
Should the board of trustees receive information from any source that a
disability beneficiary is engaged in an occupation paying more than the
difference between the disability beneficiary´s retirement allowance and
the earnable compensation used to calculate the disability retirement allowance
at the time of retirement, the board of trustees may reduce the disability
beneficiary´s pension to an amount which, together with the disability
beneficiary´s annuity and the amount earnable by the disability
beneficiary, equals the earnable compensation used to calculate the disability
retirement allowance at the time of retirement. Should the disability
beneficiary´s earnings later be changed, the amount of the pension may be
further modified, provided that the modified pension shall not exceed an amount
which, together with the disability beneficiary´s annuity and the amount
earnable by the disability beneficiary, equals the earnable compensation used to
calculate the disability retirement allowance at the time of
retirement.
47-2-356.
(a)
Any member who has at least 15 years of creditable service and who dies in
service before becoming eligible for a service retirement shall be eligible to
retire forthwith without regard to age and to receive the equivalent of a
service retirement allowance calculated upon the number of years of creditable
service attained to the date of retirement and based upon his or her highest
average monthly compensation during a period of 24 consecutive calendar months
while a member of the retirement system. Any member who dies in service after
becoming eligible for a service retirement shall be eligible to retire forthwith
to receive a service retirement allowance.
(b)
In the application of this subsection to death allowances, computations of
retirement allowances shall be made on the same basis as though option two had
been in effect. In lieu of the amount of death allowance otherwise payable to
the beneficiary under option two, the member, upon written request, may at any
time elect a reduced level death allowance of equivalent actuarial value, which
allowance is payable to the beneficiary during a period of years certain or to
the estate of the beneficiary and during the lifetime of such named beneficiary
thereafter. At the election of the member, in case of death of the beneficiary
during a term of years certain, the balance of the years certain payments may be
paid to the estate of the member; but if such beneficiary predeceases the
member, the total amount of the member´s contributions to the date of his
or her death shall be payable to the member´s estate. The method of
determining the equivalent actuarial value shall be consistent with the
actuarial method of determining the beneficiary´s death allowance under
option two.
47-2-357.
(a)
As used in this Code section, the term:
(1)
'401(k)' means the deferred compensation plan offered by the state for public
employees pursuant to Article 3 of Chapter 18 of Title 45 utilizing Section
401(k) of the federal Internal Revenue Code.
(2)
'Plan' means the employee savings plan created by this article.
(b)
Except as provided in paragraph (1) of this subsection, participation in the
plan shall be voluntary and shall be available only to members subject to this
article. Members who elect to participate in the plan shall be entitled to an
employer contribution as follows:
(1)
For each pay period, the employer shall contribute to the member´s 401(k)
account an amount equal to the amount the member contributes, up to 1 percent of
the member´s gross salary. Such member contribution shall be mandatory
unless prohibited by federal law;
(2)
After the 1 percent level provided for in paragraph (1) of this subsection has
been met, the employer shall contribute an amount equal to 50 percent of such
amount as the member contributes, up to an additional 2 percent of the
member´s gross salary; and
(3)
The member may make such additional contributions as he or she wishes, subject
to limitations imposed by federal law.
(4)
The board of trustees shall apportion the costs of administering the plan among
the employers and members on the basis of the normal costs of administration
against any special services requested by any member.
(c)
All contributions by participating members are 100 percent vested and shall be
maintained in an account and invested based on the participant´s investment
allocation choices. All employer contributed amounts credited to a
member´s account shall be maintained as a matching contribution subaccount
and invested based on the participant´s investment allocation choices. Any
and all amounts credited to a member´s matching contribution subaccount,
including applicable earnings and investment appreciation or depreciation, shall
become vested and nonforfeitable based on the number of employment service years
completed and in accordance with the vesting schedule set forth
below:
|
Years
of Service
|
Employer
Nonforfeitable
Vested
Percentage
|
|
1
|
20
|
|
2
|
40
|
|
3
|
60
|
|
4
|
80
|
|
5
|
100
|
Upon
separation from service for greater than 31 days, the portion of such matching
contribution subaccount not so vested shall be transferred from the
member´s account into a temporary plan forfeiture accumulation account for
future disposition as determined by the board of trustees. A break in service
less than 32 days shall not affect vesting rights.
(d)
Members electing to be governed by the provisions of this article pursuant to
subsection (b) of Code Section 47-2-351 shall use their date of election as the
beginning date for purposes of calculating their vesting service for the
employer contribution as provided in subsection (c) of this Code section used to
calculate the vesting requirements of subsection (c) of this Code section,
except that service as provided under Code Section 47-2-91 shall not constitute
creditable service for this purpose.
47-2-358.
This
article shall not be construed and is not intended to have any effect whatsoever
on persons within the membership of the Employees´ Retirement System of
Georgia on December 31, 2008, who do not elect in writing to become members
subject to this article.
47-2-359.
The
provisions of this article shall control over conflicting or inconsistent
provisions of this chapter or any other law of this state. It is the intention
of the General Assembly that this article has not been and may not be repealed,
superseded, or modified by implication through the enactment of any other law or
through the amendment of any other provision of this chapter or any other
existing law, and any modification or repeal of any provision of this article
may be accomplished only by reference or amendment to or repeal of this specific
article.
47-2-360.
The
board of trustees shall have the responsibility of administering the provisions
of this article and shall promulgate such rules and regulations as are necessary
to carry out the provisions of this article."
SECTION
2.
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
3.
All
laws and parts of laws in conflict with this Act are repealed.