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, relating to retirement and
pensions, so as to permit certain persons who would otherwise be required to be members
of the Public School Employees Retirement System to make an irrevocable election to
become members of the Teachers Retirement System of Georgia; to provide for certain
employers to elect to offer such benefit to certain employees; to provide for conditions; to
prohibit transfers of creditable service; to provide for notification; to provide for related
matters; to provide conditions for an effective date and automatic repeal; to repeal conflicting
laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Title 47 of the Official Code of Georgia Annotated, relating to retirement and pensions, is
amended in Chapter 3, relating to the Teachers Retirement System of Georgia, by revising
paragraph (28) of Code Section 47-3-1, relating to definitions, as follows:
"(28) 'Teacher' means a permanent status employee employed not less than half time as
follows:
(A) Employees of a public school or a local board of education with the exception of
those employees required to be members of the Public School Employees Retirement
System as governed by Chapter 4 of this title;
(B) Public school lunchroom managers or supervisors, maintenance managers or
supervisors, transportation managers or supervisors, and warehouse managers or
supervisors who elect to participate in the retirement system pursuant to Code Section
47-3-63;
(C) Employees of the Board of Regents of the University System of Georgia with the
exception of those employees who elect to participate in the Regents Retirement Plan
as governed by Chapter 21 of this title and maintenance and custodial employees
employed prior to July 1, 1978, who elected to forgo membership;
(D) Employees of any regional educational service agency created pursuant to Part 11
of Article 6 of Chapter 2 of Title 20;
(E) Certified professional personnel employed for the first time by the Department of
Education on and after July 1, 1983, unless such personnel elect membership in the
Employees' Retirement System of Georgia pursuant to subsection (h) of Code Section
47-3-60, and any employee of the Department of Education employed in a teaching,
supervisory, or clerical capacity;
(F) Certified professional personnel employed by the Department of Education and
who become members of this retirement system pursuant to the authority of subsection
(i) of Code Section 47-3-60;
(G) Professional personnel employed for the first time by the Technical College
System of Georgia on and after July 1, 1985, and all nonprofessional personnel
employed for the first time after July 1, 1987, by postsecondary vocational-technical
schools governed by the Technical College System of Georgia if otherwise eligible
under laws, rules, and regulations, unless such personnel elect membership in the
Employees' Retirement System of Georgia pursuant to subsection (j) of Code Section
47-3-60;
(H) Personnel employed by the Department of Education who are authorized to elect
and elect to become or remain members of the retirement system pursuant to the
applicable provisions of Code Section 47-3-60;
(I) Employees of any school operated by the Department of Education; <del>and
</del> (J) Librarians and clerical personnel employed by regional and county libraries. Any
of such librarians and clerical personnel who were members of a local retirement
system on January 1, 1977, and who elected to remain members of such local
retirement system shall not be required to become members of this retirement system,
or if they were members of this retirement system on that date, they may withdraw from
such membership. This election must have been made, in writing, to the board of
trustees by not later than January 1, 1978. Any of such librarians and clerical personnel
failing to so notify the board of trustees by that date shall be members of this retirement
system; <ins>and
(K) Any person who would have been a member of the Public School Employees
Retirement System established under Chapter 4 of this title, except that he or she made
an irrevocable election to participate in this retirement system pursuant to the
provisions of Code Section 47-3-69 and subsection (f), (g), or (h) of Code
Section 47-4-40.
</ins> The term 'teacher' shall not be deemed to include any emergency or temporary employee.
The term 'teacher' shall not include an individual classified by an employer as an
independent contractor or a leased employee within the meaning of Section 414(n) of the
federal Internal Revenue Code, even if such individual is later reclassified by the Internal
Revenue Service as a common law employee. The board of trustees shall determine in
doubtful cases whether any person is included within the definition set forth in this
paragraph."
SECTION 2.
Said title is further amended in said chapter by adding a new Code section to read as follows:
<ins>"47-3-69.
(a) Each eligible person who makes an irrevocable election to become a member of this
retirement system pursuant to subsection (f), (g), or (h) of Code Section 47-4-40 shall
become a member of this retirement system subject to the provisions of this chapter at such
time except as provided otherwise in this Code section or subsection (f), (g), or (h) of Code
Section 47-4-40. Upon becoming a member, he or she shall begin making the employee
contributions required by Code Section 47-3-40, his or her employer shall begin making
the employer contributions required by paragraph (1) of Code Section 47-3-43, and the
state shall pay its share as required by paragraph (2) of Code Section 47-3-43.
(b) No person who becomes a member of this retirement system pursuant to
subsection (f), (g), or (h) of Code Section 47-4-40 shall be eligible for any creditable
service in this retirement system other than actual membership service and military
creditable service pursuant to Code Section 47-1-62."
</ins> SECTION 3.
Said title is further amended in Chapter 4, relating to the Public School Employees
Retirement System, by revising paragraph (20) of Code Section 47-4-2, relating to
definitions, as follows:
"(20) 'Public school employee' or 'employee' means:
<ins>(A) All</ins> <del>all</del> those employees of public schools including postsecondary
vocational-technical schools governed by the Technical College System of Georgia
who are not eligible for membership in the Teachers Retirement System of Georgia or
the Employees' Retirement System of Georgia. The term specifically includes, but is
not limited to, school bus drivers, school lunchroom personnel, school maintenance
personnel, and school custodial personnel.
<ins>(B)</ins> The term does not include teachers or any school personnel who are now, or may
hereafter become, covered by the Teachers Retirement System of Georgia or the
Employees' Retirement System of Georgia, any person on the payroll of a third party
with whom an employer has contracted for the provision of such person's services, or
any person classified by an employer as other than a common law employee for federal
tax purposes, even if a court or administrative agency determines that such person is a
common law employee and not an independent contractor for federal tax purposes.
<ins>(C)</ins> Certain public school employees, as defined in subparagraph (A) of this
paragraph, shall have the option to become members of the Teachers Retirement
System of Georgia in accordance with subsection (d), (f), (g), or (h) of Code Section
47-4-40 or to become members of the Employees' Retirement System of Georgia in
accordance with subsection (e) of Code Section 47-4-40, and except as provided by
such subsections, any public school employee becoming a member of the Teachers
Retirement System of Georgia or the Employees' Retirement System of Georgia shall
cease to be a member of the retirement system created by this chapter."
SECTION 4.
Said title is further amend in said chapter by adding new subsections to Code Section
47-4-40, relating to eligibility, leaves of absence, termination, and transfer of service credits,
to read as follows:
<ins>"(f)(1) Any person who, on or after January 2, 2027, becomes a permanent status
employee employed not less than half time by a participating employer and subject to the
provisions of subsection (a) of this Code section may make a one-time irrevocable
election to become a member of the Teachers Retirement System of Georgia in
accordance with the provisions of this subsection and Code Section 47-3-69. Such
election shall be made within 30 days after becoming so employed and shall be exercised
by notification, in writing, to the respective boards of trustees of such retirement systems.
</ins>
<ins>(2) No person who makes the election allowed by paragraph (1) of this subsection shall:
(A) Become a member of this retirement system; or
(B) Be eligible to transfer any creditable service to the Teachers Retirement System of
Georgia.
(3) It shall be the duty and responsibility of local units of administration and
postsecondary vocational-technical schools governed by the Technical College System
of Georgia to notify persons who become employed and are eligible to make an election
pursuant to paragraph (1) of this subsection of such option and to furnish such employees
appropriate forms for the exercise of such option.
(g)(1) Each contributing member of this retirement system who is a permanent status
employee employed not less than half time by a participating employer on January 1,
2027, shall have the option to make an irrevocable election to become a member of the
Teachers Retirement System of Georgia in accordance with the provisions of this
subsection and Code Section 47-3-69. Such election shall be made within 30 days after
January 1, 2027, and shall be exercised by notification, in writing, to the respective
boards of trustees of such retirement systems.
(2) No person who makes the election allowed by paragraph (1) of this subsection shall:
(A) Become a member of this retirement system; or
(B) Be eligible to transfer any creditable service to the Teachers Retirement System of
Georgia.
(3) Any person who makes the election allowed by paragraph (1) of this subsection who
has ten or more years of creditable service under this chapter may:
(A) Withdraw their accumulated contributions from the fund, and upon withdrawing
such contributions such personnel shall cease to be members of the retirement system;
or
(B) Elect to allow their accumulated contributions to remain in the fund, and such
personnel shall retain the vested rights established by Code Section 47-4-100. Upon
</ins>
<ins>exercising such option, however, any such personnel shall cease making contributions
to the retirement system, and no additional creditable service shall be allowed under the
retirement system.
(4) For any person who makes the election allowed by paragraph (1) of this subsection
with less than ten years of creditable service under this chapter, such person shall
withdraw his or her accumulated contributions from the fund and thereupon cease to be
a member of the retirement system.
(5) It shall be the duty and responsibility of local units of administration and
postsecondary vocational-technical schools governed by the Technical College System
of Georgia to notify their employees who are eligible to make an election pursuant to
paragraph (1) of this subsection of such option and to furnish such employees appropriate
forms for the exercise of such option.
(h)(1) After January 1, 2027, each contributing member of this retirement system who
is a permanent status employee employed not less than half time by an employer other
than a participating employer on the date that such employer makes the election to
become a participating employer, shall have the option to make an irrevocable election
to become a member of the Teachers Retirement System of Georgia in accordance with
the provisions of this subsection and Code Section 47-3-69. Such election shall be made
within 30 days after notification that the member's employer has elected to become a
participating employer and shall be exercised by notification, in writing, to the respective
boards of trustees of such retirement systems.
(2) No person who makes the election allowed by paragraph (1) of this subsection shall:
(A) Become a member of this retirement system; or
(B) Be eligible to transfer any creditable service to the Teachers Retirement System of
Georgia.
(3) Any person who makes the election allowed by paragraph (1) of this subsection who
has ten or more years of creditable service under this chapter may:
</ins>
<ins>(A) Withdraw their accumulated contributions from the fund, and upon withdrawing
such contributions such personnel shall cease to be members of the retirement system;
or
(B) Elect to allow their accumulated contributions to remain in the fund, and such
personnel shall retain the vested rights established by Code Section 47-4-100. Upon
exercising such option, however, any such personnel shall cease making contributions
to the retirement system, and no additional creditable service shall be allowed under the
retirement system.
(4) For any person who makes the election allowed by paragraph (1) of this subsection
with less than ten years of creditable service under this chapter, such person shall
withdraw his or her accumulated contributions from the fund and thereupon cease to be
a member of the retirement system.
(5) It shall be the duty and responsibility of local units of administration and
postsecondary vocational-technical schools governed by the Technical College System
of Georgia to notify their employees who are eligible to make an election pursuant to
paragraph (1) of this subsection of such option and to furnish such employees appropriate
forms for the exercise of such option.
(i)(1) For the purpose of this Code section, the term 'participating employer' means a
local unit of administration or postsecondary vocational-technical schools governed by
the Technical College System of Georgia that has elected to allow for the employee
election into the Teachers Retirement System of Georgia pursuant to subsections (f), (g),
and (h) of this Code section.
(2) The election made by a local unit of administration or postsecondary
vocational-technical schools governed by the Technical College System of Georgia to
become a participating employer may not be revoked once made.
(3) A local unit of administration or postsecondary vocational-technical school governed
by the Technical College System of Georgia electing to be a participating employer shall
</ins>
<ins>forward notice of such election along with the date on which notice of such election was
sent to members employed by the participating employer to the Teachers Retirement
System of Georgia and the Public School Employees Retirement System."
</ins> SECTION 5.
This Act shall become effective on July 1, 2026, only if it is determined to have been
concurrently funded as provided in Chapter 20 of Title 47 of the Official Code of Georgia
Annotated, the "Public Retirement Systems Standards Law"; otherwise, this Act shall not
become effective and shall be automatically repealed in its entirety on July 1, 2026, as
required by subsection (a) of Code Section 47-20-50.
SECTION 6.
All laws and parts of laws in conflict with this Act are repealed.