HB 1347: Public Retirement Systems Investment Authority Law; provide certain retirement systems the option to invest in real estate

Georgia law limits how public pension funds can invest, but carves out exceptions letting certain systems put money into real estate and alternative investments beyond normal limits. Currently only the Georgia Municipal Employees Benefit System, similar municipal pooled funds, and the Georgia Firefighters' Pension Fund can invest up to 10 percent of their assets in real estate. This bill extends that same 10 percent real estate option to any other 'large retirement system' as defined in Georgia law, except the Employees' Retirement System of Georgia and the Teachers Retirement System of Georgia. It also raises the general cap on alternative investments (assets other than stocks and bonds) for eligible large retirement systems from 10 percent to 15 percent of total assets, while keeping the Georgia Firefighters' Pension Fund at 20 percent and the Teachers Retirement System at 5 percent. It adds a new 10 percent cap specifically for the Employees' Retirement System of Georgia. The bill also clarifies that a system, not just an association, keeps real estate it already owned if fund assets later lose value.

• Allows any large retirement system covered by Georgia's alternative investment law, except the state Employees' and Teachers' retirement systems, to invest up to 10 percent of its assets in real estate.
• Raises the general cap on alternative investments (non-stock, non-bond assets) for eligible large retirement systems from 10 percent to 15 percent of total assets.
• Adds a new rule capping alternative investments by the Employees' Retirement System of Georgia at 10 percent of its assets.
• Clarifies that a retirement system itself, not only an association of municipalities, can keep real estate it already owned if its fund's total assets later drop in value.
• Leaves the existing 20 percent alternative investment cap for the Georgia Firefighters' Pension Fund and the 5 percent cap for the Teachers Retirement System of Georgia unchanged.

This bill affects large Georgia public pension funds, including municipal employee benefit systems, the Georgia Firefighters' Pension Fund, the Peace Officers' Annuity and Benefit Fund, the Employees' Retirement System of Georgia, and other large retirement systems, along with the public employees and retirees whose benefits depend on those funds' investment performance.

By letting more pension systems invest in real estate and allowing larger investments in alternative assets, the bill could change how public employee retirement funds grow or lose value over time, affecting the financial security of the government workers and retirees who rely on those funds for pensions.

• Section 1 amends O.C.G.A. § 47-20-83(b) to add a new paragraph (3) letting large retirement systems, other than the Employees' and Teachers' retirement systems, invest up to 10 percent of their assets in real estate.
• Section 1 also clarifies that a retirement system or association keeps real estate it owned before a decline in fund value, not just associations as under prior law.
• 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 adds a new subparagraph (D) capping alternative investments by the Employees' Retirement System of Georgia at 10 percent of its assets.
• Section 2 leaves in place the existing 20 percent cap for the Georgia Firefighters' Pension Fund, the 15 percent cap for the Peace Officers' Annuity and Benefit Fund, and the 5 percent cap for the Teachers Retirement System of Georgia.
• Section 3 repeals any conflicting laws.

1. 2026-03-06House Committee Favorably Reported (House)
2. 2026-02-19House Second Readers (House)
3. 2026-02-18House First Readers (House)
4. 2026-02-17House Hopper (House)

• Brad Thomas (R, HD-021)Primary sponsor
• John Carson (R, HD-046)
• Chris Erwin (R, HD-032)
• Lehman Franklin (R, HD-160)

• public pensions
• retirement systems
• state investment law
• real estate investment
• government employee benefits