SB339: SB339 Employees' Retirement System of Georgia; semiannual postretirement benefit adjustments for all beneficiaries; provide

Georgia law currently lets the board of trustees of the Employees' Retirement System of Georgia adopt postretirement benefit adjustments to help retirees keep pace with the cost of living, but the amount and timing are not fixed in statute. This bill rewrites that section (O.C.G.A. § 47-2-29) to require a specific, automatic increase: starting July 1, 2026, and every six months after that, every beneficiary would get a 1.5 percent increase to their retirement allowance. The bill also lets the Governor temporarily suspend the next two scheduled increases by executive order if state revenue drops 3 percent or more below projections for the year, or if revenue declines for three straight months. That suspension power is limited: it cannot be used in more than two consecutive years or more than three times in any ten-year span, and the General Assembly can revoke, revise, or extend any such executive order within a year. The whole Act only takes effect if it is certified as funded under Georgia's Public Retirement Systems Standards Law; otherwise it is automatically repealed on July 1, 2026.

• Rewrites O.C.G.A. § 47-2-29 to require a guaranteed 1.5 percent postretirement benefit increase for all beneficiaries every six months, starting July 1, 2026.
• Extends eligibility for postretirement benefit adjustments to members who joined on or after July 1, 2009, once the increases granted on or after July 1, 2026 begin.
• Gives the Governor authority to suspend, by executive order, up to two upcoming benefit increases if state revenue falls sharply or declines for three straight months.
• Limits how often the Governor can use that suspension power: no more than two consecutive years or three times in any ten-year period.
• Allows the General Assembly to revoke, revise, or extend any such executive order within one calendar year through a joint resolution.
• Makes the entire Act contingent on certification that it is funded under the Public Retirement Systems Standards Law (O.C.G.A. Chapter 20 of Title 47), with automatic repeal on July 1, 2026 if not funded.

Retired members of the Employees' Retirement System of Georgia, including those who joined on or after July 1, 2009 and were previously excluded from earlier adjustments, plus the state agencies and the Governor's office involved in certifying funding and issuing any suspension orders.

Retirees covered by this state pension system would see a predictable, twice-a-year increase in their retirement checks rather than adjustments left to board discretion, which could help their income keep up with rising costs, though the increases could be paused during state revenue downturns.

• Section 1 rewrites O.C.G.A. § 47-2-29(c) to require each beneficiary to receive a 1.5 percent postretirement benefit increase every six months starting July 1, 2026.
• Subsection (b) allows members who joined the system on or after July 1, 2009 to become eligible for adjustments granted on or after July 1, 2026.
• Subsection (c)(2) lets the Governor suspend up to two upcoming increases by executive order if revenue drops 3 percent or more below estimates or declines for three consecutive months.
• Subsection (c)(2) caps the Governor's suspension power at two consecutive calendar years or three uses in any ten-year period.
• Subsection (c)(3) lets the General Assembly revoke, revise, or extend a suspension executive order within one calendar year via joint resolution.
• Section 2 makes the Act effective July 1, 2026 only if funding is certified under the Public Retirement Systems Standards Law, and repeals it automatically on that date otherwise.

1. 2026-02-26Senate Read Second Time (Senate)
2. 2026-02-25Senate Committee Favorably Reported (Senate)
3. 2025-03-18Senate Read and Referred (Senate)
4. 2025-03-13Senate Hopper (Senate)

• Nan Orrock (D, SD-036)Primary sponsor
• Chuck Hufstetler (R, SD-052)
• Sam Watson (R, SD-011)
• Clint Dixon (R, SD-045)
• Billy Hickman (R, SD-004)
• Carden Summers (R, SD-013)
• Derek Mallow (D, SD-002)
• Sally Harrell (D, SD-040)
• Jason Esteves (D, SD-035)
• Kim Jackson (D, SD-041)
• Josh McLaurin (D, SD-014)
• Kenya Wicks (D, SD-034)
• Gail Davenport (D, SD-017)
• Tonya Anderson (D, SD-043)
• RaShaun Kemp (D, SD-038)
• Donzella James (D, SD-028)
• Randal Mangham (D, SD-055)
• Russ Goodman (R, SD-008)
• Sheikh Rahman (D, SD-005)
• Nabilah Islam Parkes (D, SD-007)
• Ed Harbison (D, SD-015)
• David Lucas (D, SD-026)
• Michael Rhett (D, SD-033)
• Elena Parent (D, SD-044)

• public pensions
• state retirees
• Employees' Retirement System of Georgia
• state budget