SB261: SB261 Magistrates Retirement Fund; early retirement benefit; provide

26 LC 56 0697S Senate Bill 261 By: Senators Harbin of the 16th, Strickland of the 42nd, Gooch of the 51st, Hickman of the 4th, Williams of the 25th and others AS PASSED A BILL TO BE ENTITLED AN ACT To amend Chapter 25 of Title 47 of the Official Code of Georgia Annotated, relating to the1 magistrates retirement fund, so as to change the makeup of the Board of Commissioners of2 the Magistrates Retirement Fund of Georgia; to provide for an e mployee contribution3 increase; to increase the maximum number of years of service used to calculate a benefit; to4 provide for related matters; to provide conditions for an effective date and automatic repeal;5 to repeal conflicting laws; and for other purposes.6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:7 SECTION 1.8 Chapter 25 of Title 47 of the Official Code of Georgia Annotated, relating to the magistrates9 retirement fund, is amended by revising Code Section 47-25-20, relating to Board of10 Commissioners created, members, and term of office, as follows:11 "47-25-20.12 (a) There is created the Board of Commissioners of the Magistrates Retirement Fund of13 Georgia.14 (1) Prior to July 1, 2026, the The board shall consist of seven members as follows:15 (1)(A) The Governor or the Governor's designee;16 S. B. 261 - 1 - 26 LC 56 0697S (2)(B) An appointee of the Governor who is not the Attorney General; and17 (3)(C) Five chief magistrates who are members of the fund.18 (2) On and after July 1, 2026, the board shall consist of seven members as follows:19 (A) The Governor or the Governor's designee;20 (B) An appointee of the Governor who is not the Attorney General;21 (C) Four chief magistrates who are members of the fund; and22 (D) One retired chief magistrate who is a member of the fund.23 (b) The members of the board provided for by paragraph (3) of subsection (a) of this Code24 section shall be appointed by the Governor. The first such members shall be appointed by25 the Governor to take office on July 1, 2006, for initial terms as follows: one such member26 shall be appointed for one year; two such members shall be appo inted for terms of two27 years; and two such members shall be appointed for terms of three years. Thereafter, the28 Governor shall appoint successors upon the expiration of the respective terms of office for29 terms of three years. All such members shall serve until their successors are appointed and30 qualified. Such members shall be eligible for reappointment to successive terms of office31 as members of the board.32 (c) The board shall elect a chairperson from among its own membership to serve for a term33 as established by rules of the board. Four members of the board shall constitute a quorum34 for the transaction of business. All members of the board shall serve without compensation35 but may be reimbursed for travel and other expenses incurred by them in carrying out their36 duties as members of the board.37 (d) In the event of a vacancy in the membership of the board, the remaining members of38 the board shall appoint a chief magistrate who is a member of the fund to fill such vacancy39 for the unexpired term.40 (e) The Council of Magistrate Court Judges shall be authorized to submit the names of41 nominees for each position on the board appointed by the Governor pursuant to this Code42 section. The Governor may consider such nominees in making such appointments, but it43 S. B. 261 - 2 - 26 LC 56 0697S is specifically provided that all such appointments shall be at the sole discretion of the44 Governor, and the Governor shall not be required to make any ap pointments from45 nominees made by the Council of Magistrate Court Judges."46 SECTION 2.47 Said chapter is further amended by revising Code Section 47-25-41, relating to member dues,48 as follows:49 "47-25-41.50 Each member shall pay into the fund as dues a sum equal to 3.42 4.0 percent of the51 member's maximum average final monthly compensation established by subsection (a) of52 Code Section 47-25-81 per month. Each month's dues shall be paid not later than the tenth53 day of that month."54 SECTION 3.55 Said chapter is further amended by revising Code Section 47-25-81, relating to the amount56 of benefits, as follows:57 "47-25-81.58 (a) Any member who is approved for retirement benefits as prov ided in Code59 Section 47-25-80 shall be paid a monthly sum equal to 4 5 percent of his or her average60 final monthly compensation for each year served by the member up to, but not exceeding,61 a total of 20 28 years; provided, however, that the final annual compensation u sed for62 calculating a benefit under this Code section shall not exceed $42,781.22 or the amount63 fixed in the following schedule according to county population, whichever amount is64 higher:65 S. B. 261 - 3 - 26 LC 56 0697S Population66 Maximum Average Final Monthly Compensation 500,000 or more .............................................. $ 7,247.8767 400,000 - 499,999 .............................................. 6,975.7068 300,000 - 399,999 .............................................. 6,703.5369 250,000 - 299,999 .............................................. 6,072.6570 200,000 - 249,999 .............................................. 5,594.1771 150,000 - 199,999 .............................................. 5,132.4972 100,000 - 149,999 .............................................. 4,797.7073 75,000 - 99,999 ............................................... 4,490.7674 50,000 - 74,999 ............................................... 4,183.4775 39,000 - 49,999 ............................................... 3,732.5376 29,000 - 38,999 ............................................... 3,512.8077 20,000 - 28,999 ............................................... 3,293.3478 11,890 - 19,999 ............................................... 3,073.8879 6,000 - 11,889 ............................................... 2,713.5380 0 - 5,999 ................................................ 1,975.9881 (b) The board of commissioners is authorized to adopt from tim e to time a method or82 methods of providing for increases in the maximum final monthly compensation used for83 calculating a benefit as provided in this Code section. Such m ethod or methods shall be84 based upon:85 (1) The recommendation of the actuary of the board of commissioners;86 (2) The maintenance of the actuarial soundness of the fund in accordance with the87 standards provided in Code Section 47-20-10 or such higher standards as may be adopted88 by the board; and89 S. B. 261 - 4 - 26 LC 56 0697S (3) Such other factors as the board deems relevant; provided, however, that any such90 increase shall be uniform and shall apply equally to all member s of this retirement91 system.92 (c) No time for which dues have not been paid in accordance with Code Section 47-25-4193 shall be considered in determining the number of years of service."94 SECTION 4.95 This Act shall become effective on July 1, 2026, only if it is determined to have been96 concurrently funded as provided in Chapter 20 of Title 47 of the Official Code of Georgia97 Annotated, the "Public Retirement Systems Standards Law"; other wise, this Act shall not98 become effective and shall be automatically repealed in its ent irety on July 1, 2026, as99 required by subsection (a) of Code Section 47-20-50.100 SECTION 5.101 All laws and parts of laws in conflict with this Act are repealed.102 S. B. 261 - 5 -