SB209: SB209 Teachers Retirement System of Georgia; members of the Public School Employees Retirement System to make an irrevocable election to become members; permit certain persons

26 LC 56 0619S The Senate Committee on Retirement offered the following substitute to SB 209: A BILL TO BE ENTITLED AN ACT To amend Title 47 of the Official Code of Georgia Annotated, re lating to retirement and1 pensions, so as to permit certain persons who would otherwise b e required to be members2 of the Public School Employees Retirement System to make an irr evocable election to3 become members of the Teachers Retirement System of Georgia; to provide for certain4 employers to elect to offer such benefit to certain employees; to provide for conditions; to5 prohibit transfers of creditable service; to provide for notifi cation; to provide for related6 matters; to provide conditions for an effective date and automatic repeal; to repeal conflicting7 laws; and for other purposes.8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9 SECTION 1.10 Title 47 of the Official Code of Georgia Annotated, relating to retirement and pensions, is11 amended in Chapter 3, relating to the Teachers Retirement System of Georgia, by revising12 paragraph (28) of Code Section 47-3-1, relating to definitions, as follows:13 "(28) 'Teacher' means a permanent status employee employed not less than half time as14 follows:15 - 1 - 26 LC 56 0619S (A) Employees of a public school or a local board of education with the exception of16 those employees required to be members of the Public School Employees Retirement17 System as governed by Chapter 4 of this title; 18 (B) Public school lunchroom managers or supervisors, maintenan ce managers or19 supervisors, transportation managers or supervisors, and wareho use managers or20 supervisors who elect to participate in the retirement system pursuant to Code Section21 47-3-63;22 (C) Employees of the Board of Regents of the University System of Georgia with the23 exception of those employees who elect to participate in the Regents Retirement Plan24 as governed by Chapter 21 of this title and maintenance and cus todial employees25 employed prior to July 1, 1978, who elected to forgo membership;26 (D) Employees of any regional educational service agency created pursuant to Part 1127 of Article 6 of Chapter 2 of Title 20;28 (E) Certified professional personnel employed for the first time by the Department of29 Education on and after July 1, 1983, unless such personnel elec t membership in the30 Employees' Retirement System of Georgia pursuant to subsection (h) of Code Section31 47-3-60, and any employee of the Department of Education employ ed in a teaching,32 supervisory, or clerical capacity;33 (F) Certified professional personnel employed by the Departmen t of Education and34 who become members of this retirement system pursuant to the authority of subsection35 (i) of Code Section 47-3-60;36 (G) Professional personnel employed for the first time by the Technical College37 System of Georgia on and after July 1, 1985, and all nonprofess ional personnel38 employed for the first time after July 1, 1987, by postsecondar y vocational-technical39 schools governed by the Technical College System of Georgia if otherwise eligible40 under laws, rules, and regulations, unless such personnel elect membership in the41 - 2 - 26 LC 56 0619S Employees' Retirement System of Georgia pursuant to subsection (j) of Code Section42 47-3-60;43 (H) Personnel employed by the Department of Education who are authorized to elect44 and elect to become or remain members of the retirement system pursuant to the45 applicable provisions of Code Section 47-3-60;46 (I) Employees of any school operated by the Department of Education; and47 (J) Librarians and clerical personnel employed by regional and county libraries. Any48 of such librarians and clerical personnel who were members of a local retirement49 system on January 1, 1977, and who elected to remain members of such local50 retirement system shall not be required to become members of this retirement system,51 or if they were members of this retirement system on that date, they may withdraw from52 such membership. This election must have been made, in writing , to the board of53 trustees by not later than January 1, 1978. Any of such librarians and clerical personnel54 failing to so notify the board of trustees by that date shall be members of this retirement55 system; and56 (K) Any person who would have been a member of the Public Scho ol Employees57 Retirement System established under Chapter 4 of this title, except that he or she made58 an irrevocable election to participate in this retirement syste m pursuant to the59 provisions of Code Section 47-3-69 and subsection (f), (g), or (h) of Code60 Section 47-4-40.61 The term 'teacher' shall not be deemed to include any emergency or temporary employee. 62 The term 'teacher' shall not include an individual classified b y an employer as an63 independent contractor or a leased employee within the meaning of Section 414(n) of the64 federal Internal Revenue Code, even if such individual is later reclassified by the Internal65 Revenue Service as a common law employee. The board of trustees shall determine in66 doubtful cases whether any person is included within the defini tion set forth in this67 paragraph."68 - 3 - 26 LC 56 0619S SECTION 2.69 Said title is further amended in said chapter by adding a new Code section to read as follows:70 "47-3-69.71 (a) Each eligible person who makes an irrevocable election to become a member of this72 retirement system pursuant to subsection (f), (g), or (h) of Co de Section 47-4-40 shall73 become a member of this retirement system subject to the provisions of this chapter at such74 time except as provided otherwise in this Code section or subsection (f), (g), or (h) of Code75 Section 47-4-40. Upon becoming a member, he or she shall begin making the employee76 contributions required by Code Section 47-3-40, his or her employer shall begin making77 the employer contributions required by paragraph (1) of Code Se ction 47-3-43, and the78 state shall pay its share as required by paragraph (2) of Code Section 47-3-43.79 (b) No person who becomes a member of this retirement system p ursuant to80 subsection (f), (g), or (h) of Code Section 47-4-40 shall be el igible for any creditable81 service in this retirement system other than actual membership service and military82 creditable service pursuant to Code Section 47-1-62."83 SECTION 3.84 Said title is further amended in Chapter 4, relating to the Pub lic School Employees85 Retirement System, by revising paragraph (20) of Code Section 4 7-4-2, relating to86 definitions, as follows:87 "(20) 'Public school employee' or 'employee' means:88 (A) All a l l those employees of public schools including postsecondary89 vocational-technical schools governed by the Technical College System of Georgia90 who are not eligible for membership in the Teachers Retirement System of Georgia or91 the Employees' Retirement System of Georgia. The term specifically includes, but is92 not limited to, school bus drivers, school lunchroom personnel, school maintenance93 personnel, and school custodial personnel.94 - 4 - 26 LC 56 0619S (B) The term does not include teachers or any school personnel who are now, or may95 hereafter become, covered by the Teachers Retirement System of Georgia or the96 Employees' Retirement System of Georgia, any person on the payroll of a third party97 with whom an employer has contracted for the provision of such person's services, or98 any person classified by an employer as other than a common law employee for federal99 tax purposes, even if a court or administrative agency determines that such person is a100 common law employee and not an independent contractor for federal tax purposes.101 (C) C e r t a i n public school employees, as defined in subparagraph (A) of this102 paragraph, shall have the option to become members of the Teach ers Retirement103 System of Georgia in accordance with subsection (d), (f), (g), or (h) of Code Section104 47-4-40 or to become members of the Employees' Retirement Syste m of Georgia in105 accordance with subsection (e) of Code Section 47-4-40, and exc ept as provided by106 such subsections, any public school employee becoming a member of the Teachers107 Retirement System of Georgia or the Employees' Retirement System of Georgia shall108 cease to be a member of the retirement system created by this chapter."109 SECTION 4.110 Said title is further amend in said chapter by adding new subse ctions to Code Section111 47-4-40, relating to eligibility, leaves of absence, termination, and transfer of service credits,112 to read as follows:113 "(f)(1) Any person who, on or after January 2, 2027, becomes a permanent status114 employee employed not less than half time by a participating employer and subject to the115 provisions of subsection (a) of this Code section may make a on e-time irrevocable116 election to become a member of the Teachers Retirement System o f Georgia in117 accordance with the provisions of this subsection and Code Sect ion 47-3-69. Such118 election shall be made within 30 days after becoming so employed and shall be exercised119 by notification, in writing, to the respective boards of trustees of such retirement systems.120 - 5 - 26 LC 56 0619S (2) No person who makes the election allowed by paragraph (1) of this subsection shall:121 (A) Become a member of this retirement system; or122 (B) Be eligible to transfer any creditable service to the Teachers Retirement System of123 Georgia.124 (3) It shall be the duty and responsibility of local units of administration and125 postsecondary vocational-technical schools governed by the Technical College System126 of Georgia to notify persons who become employed and are eligible to make an election127 pursuant to paragraph (1) of this subsection of such option and to furnish such employees128 appropriate forms for the exercise of such option.129 (g)(1) Each contributing member of this retirement system who is a permanent status130 employee employed not less than half time by a participating em ployer on January 1,131 2027, shall have the option to make an irrevocable election to become a member of the132 Teachers Retirement System of Georgia in accordance with the pr ovisions of this133 subsection and Code Section 47-3-69. Such election shall be made within 30 days after 134 January 1, 2027, and shall be exercised by notification, in wri ting, to the respective135 boards of trustees of such retirement systems.136 (2) No person who makes the election allowed by paragraph (1) of this subsection shall:137 (A) Become a member of this retirement system; or138 (B) Be eligible to transfer any creditable service to the Teachers Retirement System of139 Georgia.140 (3) Any person who makes the election allowed by paragraph (1) of this subsection who141 has ten or more years of creditable service under this chapter may:142 (A) Withdraw their accumulated contributions from the fund, and upon withdrawing143 such contributions such personnel shall cease to be members of the retirement system;144 or145 (B) Elect to allow their accumulated contributions to remain i n the fund, and such146 personnel shall retain the vested rights established by Code Se ction 47-4-100. Upon147 - 6 - 26 LC 56 0619S exercising such option, however, any such personnel shall cease making contributions148 to the retirement system, and no additional creditable service shall be allowed under the149 retirement system.150 (4) For any person who makes the election allowed by paragraph (1) of this subsection151 with less than ten years of creditable service under this chapt er, such person shall152 withdraw his or her accumulated contributions from the fund and thereupon cease to be153 a member of the retirement system.154 (5) It shall be the duty and responsibility of local units of administration and155 postsecondary vocational-technical schools governed by the Technical College System156 of Georgia to notify their employees who are eligible to make a n election pursuant to157 paragraph (1) of this subsection of such option and to furnish such employees appropriate158 forms for the exercise of such option.159 (h)(1) After January 1, 2027, each contributing member of this retirement system who160 is a permanent status employee employed not less than half time by an employer other161 than a participating employer on the date that such employer ma kes the election to162 become a participating employer, shall have the option to make an irrevocable election163 to become a member of the Teachers Retirement System of Georgia in accordance with164 the provisions of this subsection and Code Section 47-3-69. Such election shall be made165 within 30 days after notification that the member's employer ha s elected to become a166 participating employer and shall be exercised by notification, in writing, to the respective167 boards of trustees of such retirement systems.168 (2) No person who makes the election allowed by paragraph (1) of this subsection shall:169 (A) Become a member of this retirement system; or170 (B) Be eligible to transfer any creditable service to the Teachers Retirement System of171 Georgia.172 (3) Any person who makes the election allowed by paragraph (1) of this subsection who173 has ten or more years of creditable service under this chapter may:174 - 7 - 26 LC 56 0619S (A) Withdraw their accumulated contributions from the fund, and upon withdrawing175 such contributions such personnel shall cease to be members of the retirement system;176 or177 (B) Elect to allow their accumulated contributions to remain i n the fund, and such178 personnel shall retain the vested rights established by Code Se ction 47-4-100. Upon179 exercising such option, however, any such personnel shall cease making contributions180 to the retirement system, and no additional creditable service shall be allowed under the181 retirement system.182 (4) For any person who makes the election allowed by paragraph (1) of this subsection183 with less than ten years of creditable service under this chapt er, such person shall184 withdraw his or her accumulated contributions from the fund and thereupon cease to be185 a member of the retirement system.186 (5) It shall be the duty and responsibility of local units of administration and187 postsecondary vocational-technical schools governed by the Technical College System188 of Georgia to notify their employees who are eligible to make a n election pursuant to189 paragraph (1) of this subsection of such option and to furnish such employees appropriate190 forms for the exercise of such option.191 (i)(1) For the purpose of this Code section, the term 'partici pating employer' means a192 local unit of administration or postsecondary vocational-technical schools governed by193 the Technical College System of Georgia that has elected to all ow for the employee194 election into the Teachers Retirement System of Georgia pursuant to subsections (f), (g),195 and (h) of this Code section.196 (2) The election made by a local unit of administration or pos tsecondary197 vocational-technical schools governed by the Technical College System of Georgia to198 become a participating employer may not be revoked once made.199 (3) A local unit of administration or postsecondary vocational-technical school governed200 by the Technical College System of Georgia electing to be a participating employer shall201 - 8 - 26 LC 56 0619S forward notice of such election along with the date on which notice of such election was202 sent to members employed by the participating employer to the T eachers Retirement203 System of Georgia and the Public School Employees Retirement System."204 SECTION 5.205 This Act shall become effective on July 1, 2026, only if it is determined to have been206 concurrently funded as provided in Chapter 20 of Title 47 of the Official Code of Georgia207 Annotated, the "Public Retirement Systems Standards Law"; other wise, this Act shall not208 become effective and shall be automatically repealed in its ent irety on July 1, 2026, as209 required by subsection (a) of Code Section 47-20-50.210 SECTION 6.211 All laws and parts of laws in conflict with this Act are repealed.212 - 9 -