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
March
10, 2008
The
Honorable Bill Heath, Chairman
Senate Retirement Committee
State Capitol, Room 109
Atlanta, Georgia 30334
Senate Retirement Committee
State Capitol, Room 109
Atlanta, Georgia 30334
SUBJECT:
State Auditor’s
Certification
Amendment to SB 328 (LC 21 9867S)
As Amended (AM 21 3575)
Amendment to SB 328 (LC 21 9867S)
As Amended (AM 21 3575)
Dear
Chairman Heath:
As
amended, this bill would create the “Georgia State Employees’
Pension and Savings Plan” under the Employees’ Retirement System of
Georgia. Specifically, this bill would apply to persons who first or again
become members of the Employees’ Retirement System on or after January 1,
2009. Under the provisions of the legislation, such members would receive
retirement benefits equal to 1 percent of their highest average monthly
compensation during a period of 24 consecutive calendar months multiplied by the
member’s years of creditable service. This amendment clarifies that law
enforcement personnel covered under O.C.G.A. 47-2-223 and O.C.G.A. 47-2-224, who
are hired on or after January 1, 2009, would continue to be eligible to retire
in accordance with such provisions. However, such members would receive
benefits based on 1 percent of their highest average monthly
compensation.
As
amended, this bill also provides for an additional benefit through optional
participation in a deferred compensation plan offered by the State for public
employees. The amendment specifies that all members would automatically be
enrolled in the plan, but would have 90 days from the date of enrollment to
withdraw from the plan. Members who withdraw from the plan during the first 90
days would be paid for any balance in the account. This amended bill also
specifies that participation in the plan is voluntary. However, once the member
has been enrolled beyond 90 days, the member may not terminate his or her
membership in the plan and may not withdraw the contributions and earnings in
the account. This amended bill also outlines the contributions that may be
made by the employee and the level of matching funds provided by the employer.
This
is to certify that this amendment (AM 21 3575) is a nonfiscal amendment as
defined in the Public Retirement Systems Standards Law. Therefore, the
actuarial investigation and State Auditor’s Summary for Senate Bill 328
(LC 21 9867S) would apply to this amendment (AM 21 3575). A copy of the
actuarial investigation and State Auditor’s Summary for Senate Bill 328
(LC 21 9867S) is attached.
Respectfully,
/s/
Russell W. Hinton
State Auditor
State Auditor
RWH/cs