SB198: SB198 Georgia Legislative Retirement System; board of trustees of the system to increase benefit multipliers for members; provide

26 LC 56 0312 Senate Bill 198 By: Senators Albers of the 56th, Kirkpatrick of the 32nd, Williams of the 25th, Summers of the 13th, Cowsert of the 46th and others AS PASSED SENATE A BILL TO BE ENTITLED AN ACT To amend Chapter 6 of Title 47 of the Official Code of Georgia Annotated, relating to the1 Georgia Legislative Retirement System, so as to provide for the board of trustees of the2 system to increase benefit multipliers for members; to provide for the system to maintain a3 minimum 120 percent funded ratio; to provide for conditions for such benefit multiplier4 increases; to provide for automatic increases in employee contr ibutions proportional to5 benefit multiplier increases; to allow for members who joined after 2009 to receive benefit6 multiplier increases; to provide for definitions; to provide for conforming changes; to provide7 conditions for an effective date and automatic repeal; to provide for related matters; to repeal8 conflicting laws; and for other purposes.9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10 SECTION 1.11 Chapter 6 of Title 47 of the Official Code of Georgia Annotated , relating to the Georgia12 Legislative Retirement System, is amended in Code Section 47-6-1, relating to definitions,13 by adding new paragraphs to read as follows:14 S. B. 198 - 1 - 26 LC 56 0312 "(2.1) 'Benefit multiplier' means the amount of money that is multiplied by a member's15 creditable service or presiding creditable service in order to calculate such member's16 monthly service retirement allowance."17 "(5.1) 'Funded ratio' means actuarial value of plan assets divided by the actuarial accrued18 liability of such plan as of the most recent actuarial valuation approved by the board."19 SECTION 2.20 Said chapter is further amended in Code Section 47-6-80, relati ng to eligibility and21 application for a retirement allowance, early retirement, month ly retirement allowance,22 amount of retirement allowance, compliance with federal tax law s, and increases in23 retirement allowance, by repealing subsection (f) in its entirety and by revising subsection24 (g) as follows:25 "(g)(f) Notwithstanding any other provision of this Code section Except as provided in26 Code Section 47-6-86, no member who becomes a member of this retirement system on27 or after July 1, 2009, shall be entitled to receive any postretirement benefit adjustment."28 SECTION 3.29 Said chapter is further amended by adding a new Code section to read as follows:30 "47-6-86.31 (a) Notwithstanding any other provision of this Code section, the provisions of this Code32 section shall not apply while the funded ratio of the system is below 120 percent.33 (b) The board shall be required to provide benefit increases in order to maintain the system34 as close to a 120 percent funded ratio as is practicable.35 (c) The board is authorized to increase the benefit multiplier s provided for in Code36 Section 47-6-80 for persons retiring under this chapter. Such an increase shall:37 S. B. 198 - 2 - 26 LC 56 0312 (1) Not lower the funded ratio of the system below 120 percent , based on the38 recommendation of the actuary of the board;39 (2) Be provided exclusively to all members receiving a benefit calculated under40 subsection (d) of Code Section 47-6-80, so long as the benefit multipliers for creditable41 service and presiding creditable service, respectively, are less than the benefit multipliers42 for creditable service and presiding creditable service, respec tively, provided for in43 subsection (c.1) of Code Section 47-6-80;44 (3) Be provided to all members receiving a benefit calculated under subsection (c.1)45 or (d) of Code Section 47-6-80, so long as the benefit multipliers for creditable service46 and presiding creditable service, respectively, are equal betwe en the two groups of47 members; or48 (4) Provide for an increase in a benefit multiplier for credit able service of not less49 than $1.00.50 (d) For each increase in the benefit multiplier for creditable service pursuant to this Code51 section, the benefit multiplier for presiding creditable service and the member contribution52 provided for in subsection (a.1) of Code Section 47-6-60 shall be increased by an amount53 proportional to any increase in the multiplier."54 SECTION 4.55 This Act shall become effective on July 1, 2026, only if it is determined to have been56 concurrently funded as provided in Chapter 20 of Title 47 of the Official Code of Georgia57 Annotated, the "Public Retirement Systems Standards Law"; other wise, this Act shall not58 become effective and shall be automatically repealed in its ent irety on July 1, 2026, as59 required by subsection (a) of Code Section 47-20-50.60 SECTION 5.61 All laws and parts of laws in conflict with this Act are repealed.62 S. B. 198 - 3 -