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
11, 2008
The
Honorable Mitch SeabaughState
Senator
State Capitol, Room 421-D
Atlanta, Georgia 30334
State Capitol, Room 421-D
Atlanta, Georgia 30334
SUBJECT:
State Auditor’s
Certification
Amendment to SB 328 (LC 21 9867S)
As Amended (AM 21 3579)
Amendment to SB 328 (LC 21 9867S)
As Amended (AM 21 3579)
Dear
Senator Seabaugh:
As
amended, this bill would create the “Georgia State Employees’
Pension and Savings Plan” and would affect persons who first or again
become members of the Employees’ Retirement System on or after January 1,
2009. Under the provisions of this 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. Benefits paid to persons who are
already members on December 31, 2008 would continue to be calculated based on 2
percent of their compensation.
This
bill also provides for an additional benefit through optional participation in a
deferred compensation plan offered by the State for public employees. Members
covered by this proposed plan could also receive up to 3% contribution from the
State, provided the employee contributes 5% of his or her compensation into the
plan. Members would be authorized to make contributions greater than 5%.
Members who participate in this plan would be vested at a rate of 20% per year,
and be fully vested after five years of service.
This
bill also includes provisions to allow existing members to elect participation
in this proposed plan. Members who make this election would have their
retirement benefits computed on a prorated basis. Furthermore, this substitute
bill includes provisions relating to disability benefits for persons covered
under the “Georgia State Employees’ Pension and Savings Fund”
and specifies that members covered by this proposed plan would not be entitled
to group term life insurance coverage under the Employees’ Retirement
System.
The
proposed amendment (AM 21 3579) would revise provisions relating to the State
Employees’ Assurance Department. Specifically, this amendment would
specify that no moneys in either the retired and vested inactive members trust
fund or the active members fund which include assets relating to group term life
insurance shall be transferred or be expended for any purpose other than the
prepayment of benefits and expenses necessary for maintaining survivors benefit
coverage prior to July 1, 2009, without express legislative
enactment.
This
is to certify that this amendment 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 3579). 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
WH/cs
State Auditor
WH/cs