SB23: SB23 Retirement; total percentage of funds that the Employees' Retirement System of Georgia may invest in alternative investments; raise the limit

Georgia law limits how much of a large public pension fund's money can go into alternative investments, a category that includes things like private equity and hedge funds rather than traditional stocks and bonds. Under current law, most of these large systems, defined in O.C.G.A. section 47-20-84, are capped at 10 percent of their assets, with separate caps already set for the Georgia Firefighters' Pension Fund (20 percent), the Peace Officers' Annuity and Benefit Fund (15 percent), and the Teachers Retirement System of Georgia (5 percent). This bill would raise the general cap for other large retirement systems from 10 percent to 15 percent, while explicitly holding the Employees' Retirement System of Georgia's cap at 10 percent. It also lets large retirement systems (other than the Employees' and Teachers' systems) invest up to 10 percent of their assets in real estate, but bars them from putting real estate money into investment vehicles that primarily buy, rent, or manage single-family homes. The bill passed the General Assembly but was vetoed by the Governor, so it has not become law.

• Raises the overall cap on alternative investments (private equity, hedge funds, and similar assets) for most large Georgia public pension systems from 10 percent to 15 percent of fund assets.
• Keeps the Employees' Retirement System of Georgia's alternative investment cap at 10 percent even as other large systems' cap rises.
• Leaves the Teachers Retirement System of Georgia at a 5 percent cap, the Peace Officers' Annuity and Benefit Fund at 15 percent, and the Georgia Firefighters' Pension Fund at 20 percent.
• Allows large retirement systems other than the Employees' and Teachers' systems to invest up to 10 percent of fund assets in real estate.
• Prohibits those systems from using real estate investments to buy, rent, manage, or hold single-family homes as a major part of the investment.
• Was vetoed by the Governor after passing both chambers, so none of these changes are currently in effect.

Georgia's large public pension systems and the government employees, teachers, firefighters, and police officers who rely on them for retirement benefits, including the Employees' Retirement System of Georgia, the Teachers Retirement System of Georgia, the Georgia Firefighters' Pension Fund, and the Peace Officers' Annuity and Benefit Fund.

How pension funds invest affects the risk and potential returns behind the retirement benefits of thousands of Georgia public employees. Raising the cap on alternative investments could let funds pursue higher potential returns but also higher risk, while the real estate restriction on single-family homes limits one specific investment strategy. Because the bill was vetoed, these changes have not taken effect.

• Section 1 amends O.C.G.A. § 47-20-83(b) to let large retirement systems, other than the Employees' and Teachers' systems, invest up to 10 percent of fund assets in real estate.
• Section 1 bars those real estate investments from being used mainly for single-family home investment vehicles.
• Section 2 amends O.C.G.A. § 47-20-87(d)(1)(A) to raise the general alternative investment cap for eligible large retirement systems from 10 percent to 15 percent of assets.
• Section 2 keeps separate, unchanged caps for the Firefighters' Pension Fund (20 percent), the Peace Officers' Annuity and Benefit Fund (15 percent), and the Teachers Retirement System (5 percent).
• Section 2 sets a specific 10 percent cap on alternative investments for the Employees' Retirement System of Georgia, distinct from the new general 15 percent cap.
• Section 3 repeals any conflicting laws.

1. 2026-05-12Veto V8
2. 2026-05-12Senate Date Vetoed by Governor (Senate)
3. 2026-04-10Senate Sent to Governor (Senate)
4. 2026-04-02Senate Agreed House Amend or Sub (Senate)
5. 2026-03-31House Passed/Adopted By Substitute (House)
6. 2026-03-31House Third Readers (House)
7. 2026-03-27House Withdrawn, Recommitted (House)
8. 2026-03-25House Postponed (House)

• John Albers (R, SD-056)Primary sponsor
• Matt Brass (R, SD-006)
• Randy Robertson (R, SD-029)
• Bo Hatchett (R, SD-050)
• Shawn Still (R, SD-048)
• Mike Hodges (R, SD-003)
• Greg Dolezal (R, SD-027)
• Sam Watson (R, SD-011)
• Brian Strickland (R, SD-042)
• Blake Tillery (R, SD-019)
• Larry Walker (R, SD-020)
• Brad Thomas (R, HD-021)

1. PassedSenate voteFebruary 10, 2025

   47 yea, 8 nay (0 not voting, 1 absent)

   Passage: Senate Vote #29

2. PassedHouse voteMarch 31, 2026

   166 yea, 0 nay (2 not voting, 8 absent)

   Passage: House Vote #823

3. PassedSenate voteApril 2, 2026

   49 yea, 1 nay (3 not voting, 1 absent)

   Agree To House Substitute: Senate Vote #960

• public pensions
• retirement systems
• investment rules
• state employee benefits
• real estate investment