---
title: SB 23. Retirement; total percentage of funds that the Employees' Retirement System of Georgia may invest in alternative investments; raise the limit
collection: bills
id: 2025-2026/sb23
cite_as: SB 23, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/sb23
md_url: https://georgiacommons.org/bills/2025-2026/sb23.md
text_url: https://georgiacommons.org/bills/2025-2026/sb23/text
source_url: https://www.legis.ga.gov/legislation/69480
date: 2026-05-12
status: vetoed
corpus_version: bills-2026-09-13
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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omitted: votes and history
omitted_chars: 1442
omitted_url: https://georgiacommons.org/bills/2025-2026/sb23.md?full=1
bill_number: SB 23
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: Senate
bill_type: bill
status_date: 2026-05-12
last_action: Veto V8
sponsors:
- John Albers
- Matt Brass
- Randy Robertson
- Bo Hatchett
- Shawn Still
- Mike Hodges
- Greg Dolezal
- Sam Watson
- Brian Strickland
- Blake Tillery
- Larry Walker
- Brad Thomas
text_version: Enrolled
has_text: true
legiscan_url: https://legiscan.com/GA/bill/SB23/2025
upstream_id: 1929493
summaries_model: claude-sonnet-5
topic_tags:
- public pensions
- retirement system investments
- state employee benefits
- real estate investment rules
---
# SB 23. Retirement; total percentage of funds that the Employees' Retirement System of Georgia may invest in alternative investments; raise the limit
## Text
Senate Bill 23
By: Senators Albers of the 56th, Brass of the 6th, Robertson of the 29th, Hatchett of the 50th,
Still of the 48th and others
AS PASSED
A BILL TO BE ENTITLED
AN ACT
To amend Article 7 of Chapter 20 of Title 47 of the Official Code of Georgia Annotated, the
"Public Retirement Systems Investment Authority Law," so as to provide certain retirement
systems the option to invest in real estate; to provide for an increase in certain retirement
systems allowable alternative investments; to provide for restrictions on certain investments;
to provide for related matters; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Article 7 of Chapter 20 of Title 47 of the Official Code of Georgia Annotated, the "Public
Retirement Systems Investment Authority Law," is amended by revising subsection (b) of
Code Section 47-20-83, relating to certified or uncertified forms of investment and real estate
investments, as follows:
"(b)(1) Notwithstanding the provisions of subsection (a) of this Code section, the Georgia
Municipal Employees Benefit System and any association of like political subdivisions
which contracts with its members for the pooling of assets may invest up to 10 percent
of the total assets of its fund in real estate; provided, however, that in the event the fund's
assets decrease in value, the such system or association shall be entitled to retain all real
estate investments if owned prior to the reduction in value of assets; and provided,
further, that any such system or association shall be entitled to retain all real estate assets
it owned on July 1, 1999, without regard to the limitation imposed by this subsection.
(2) Notwithstanding the provisions of subsection (a) of this Code section, the Georgia
Firefighters' Pension Fund may invest up to 10 percent of the total assets of its fund in
real estate; provided, however, that in the event the fund's assets decrease in value, the
fund shall be entitled to retain all real estate investments if owned prior to the reduction
in value of assets.
(3) Notwithstanding the provisions of subsection (a) of this Code section, a large
retirement system, as defined in Code Section 47-20-84, not otherwise described in this
subsection, and excluding the Employees' Retirement System of Georgia and the
Teachers Retirement System of Georgia, may invest up to 10 percent of the total assets
of its fund in real estate; provided, however, that, in the event the fund's assets decrease
in value, the fund shall be entitled to retain all real estate investments if owned prior to
the reduction in value of assets; provided, further, that no such investment shall be made
in any investment vehicle investing in, acquiring, purchasing, owning, renting, managing,
or holding single-family homes or residences as a material component of such
investment."
SECTION 2.
Said article is further amended by revising paragraph (1) of subsection (d) of Code Section
47-20-87, relating to eligible large retirement systems authorized to invest in certain
alternative investments, as follows:
"(d)(1)(A) Alternative investments by an eligible large retirement system shall not in
the aggregate exceed 10 15 percent of the eligible large retirement system's assets at
any time.
(B) Notwithstanding subparagraph (A) of this paragraph, alternative investments by
the Georgia Firefighters' Pension Fund shall not in the aggregate exceed 20 percent of
its assets at any time.
(B.1) Notwithstanding subparagraph (A) of this paragraph, alternative investments by
the Peace Officers' Annuity and Benefit Fund shall not in the aggregate exceed 15
percent of its assets at any time.
(C) Notwithstanding subparagraph (A) of this paragraph, the Teachers Retirement
System of Georgia shall not in the aggregate exceed 5 percent of such system's assets
at any time.
(D) Notwithstanding subparagraph (A) of this paragraph, the Employees' Retirement
System of Georgia shall not in the aggregate exceed 10 percent of such system's assets
at any time."
SECTION 3.
All laws and parts of laws in conflict with this Act are repealed.
## Summaries written by Georgia Commons
The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.
Senate Bill 23 would raise the cap on how much of certain Georgia public pension funds can be invested in alternative investments and real estate, while setting a lower, separate limit for the Employees' Retirement System of Georgia.
### Plain-language summary
Georgia law limits how much of a public pension fund's assets can go into real estate and other 'alternative investments' like private equity or hedge funds, rather than traditional stocks and bonds. This bill changes those limits under the Public Retirement Systems Investment Authority Law (O.C.G.A. Title 47, Chapter 20, Article 7).
It raises the general cap on alternative investments for eligible large retirement systems from 10 percent to 15 percent of assets. It creates a separate, lower 10 percent cap specifically for the Employees' Retirement System of Georgia, keeping it below the new general limit. It also lets other large retirement systems (excluding the Employees' Retirement System and the Teachers Retirement System) invest up to 10 percent of their assets in real estate, but bars them from using that real estate allowance to invest in single-family homes as a major part of the investment. The bill was passed by the General Assembly but has been vetoed as of May 12, 2026.
### What it does
- Raises the overall cap on alternative investments (like private equity or hedge funds) for eligible large retirement systems from 10 percent to 15 percent of fund assets.
- Sets a separate, specific 10 percent alternative investment cap for the Employees' Retirement System of Georgia, distinct from the new general 15 percent limit.
- Allows other large retirement systems, aside from the Employees' Retirement System and Teachers Retirement System, to invest up to 10 percent of their assets in real estate.
- Prohibits those newly authorized real estate investments from being used to buy, own, rent, or manage single-family homes as a major part of the investment.
- Clarifies that the Georgia Municipal Employees Benefit System or an associated pooling entity keeps its existing real estate holdings even if fund assets later drop in value.
### Who it affects
Public employee retirement systems in Georgia, including the Employees' Retirement System of Georgia, the Teachers Retirement System of Georgia, the Georgia Firefighters' Pension Fund, the Peace Officers' Annuity and Benefit Fund, and the Georgia Municipal Employees Benefit System. State and local government retirees and current employees whose pensions rely on these funds are indirectly affected.
### Why it matters
These changes affect how much retirement fund money can be placed in riskier, less liquid investments like private equity or real estate versus traditional stocks and bonds. Higher alternative investment limits could change the risk and potential returns of the pension funds that pay benefits to Georgia's public employees and retirees.
### Key provisions
- Section 1 amends O.C.G.A. § 47-20-83(b) to let large retirement systems other than the Employees' Retirement System and Teachers Retirement System invest up to 10 percent of assets in real estate, while barring investment vehicles focused on single-family homes.
- Section 1 also clarifies that the Georgia Municipal Employees Benefit System or an associated pooling entity, not just 'the association,' retains real estate investments if fund assets decrease in value.
- Section 2 amends O.C.G.A. § 47-20-87(d)(1) 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 the Employees' Retirement System of Georgia's alternative investments at 10 percent of its assets, separate from the new general 15 percent cap.
- Section 3 repeals any conflicting laws.
## Status
- Status: Vetoed (2026-05-12)
- Last action: Veto V8 (2026-05-12)
- Sponsors: John Albers, Matt Brass, Randy Robertson, Bo Hatchett, Shawn Still, Mike Hodges, Greg Dolezal, Sam Watson, Brian Strickland, Blake Tillery, Larry Walker, Brad Thomas
- Official page: https://www.legis.ga.gov/legislation/69480
> The history, votes, and amendments (1,442 characters) are at https://georgiacommons.org/bills/2025-2026/sb23.md?full=1