HB1347: HB1347 Public Retirement Systems Investment Authority Law; provide certain retirement systems the option to invest in real estate

26 LC 56 0549 House Bill 1347 By: Representatives Thomas of the 21st, Carson of the 46th, Erwin of the 32nd, and Franklin of the 160th A BILL TO BE ENTITLED AN ACT To amend Article 7 of Chapter 20 of Title 47 of the Official Code of Georgia Annotated, the1 "Public Retirement Systems Investment Authority Law," so as to provide certain retirement2 systems the option to invest in real estate; to provide for an increase in certain retirement3 systems allowable alternative investments; to provide for relat ed matters; to repeal4 conflicting laws; and for other purposes.5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6 SECTION 1.7 Article 7 of Chapter 20 of Title 47 of the Official Code of Geo rgia Annotated, the "Public8 Retirement Systems Investment Authority Law," is amended by revising subsection (b) of9 Code Section 47-20-83, relating to certified or uncertified forms of investment and real estate10 investments, as follows:11 "(b)(1) Notwithstanding the provisions of subsection (a) of this Code section, the Georgia12 Municipal Employees Benefit System and any association of like political subdivisions13 which contracts with its members for the pooling of assets may invest up to 10 percent14 of the total assets of its fund in real estate; provided, however, that in the event the fund's15 assets decrease in value, the such system or association shall be entitled to retain all real16 H. B. 1347 - 1 - 26 LC 56 0549 estate investments if owned prior to the reduction in value of assets; and provided,17 further, that any such system or association shall be entitled to retain all real estate assets18 it owned on July 1, 1999, without regard to the limitation imposed by this subsection.19 (2) Notwithstanding the provisions of subsection (a) of this Code section, the Georgia20 Firefighters' Pension Fund may invest up to 10 percent of the t otal assets of its fund in21 real estate; provided, however, that in the event the fund's as sets decrease in value, the22 fund shall be entitled to retain all real estate investments if owned prior to the reduction23 in value of assets.24 (3) Notwithstanding the provisions of subsection (a) of this C ode section, a large25 retirement system, as defined in Code Section 47-20-84, not otherwise described in this26 subsection, and excluding the Employees' Retirement System of G eorgia and the27 Teachers Retirement System of Georgia, may invest up to 10 percent of the total assets28 of its fund in real estate; provided, however, that, in the event the fund's assets decrease29 in value, the fund shall be entitled to retain all real estate investments if owned prior to30 the reduction in value of assets."31 SECTION 2.32 Said article is further amended by revising paragraph (1) of subsection (d) of Code Section33 47-20-87, relating to eligible large retirement systems authori zed to invest in certain34 alternative investments, as follows:35 "(d)(1)(A) Alternative investments by an eligible large retirement system shall not in36 the aggregate exceed 10 15 percent of the eligible large retirement system's assets at37 any time.38 (B) Notwithstanding subparagraph (A) of this paragraph, altern ative investments by39 the Georgia Firefighters' Pension Fund shall not in the aggregate exceed 20 percent of40 its assets at any time.41 H. B. 1347 - 2 - 26 LC 56 0549 (B.1) Notwithstanding subparagraph (A) of this paragraph, alternative investments by42 the Peace Officers' Annuity and Benefit Fund shall not in the a ggregate exceed 1543 percent of its assets at any time.44 (C) Notwithstanding subparagraph (A) of this paragraph, the Te achers Retirement45 System of Georgia shall not in the aggregate exceed 5 percent of such system's assets46 at any time.47 (D) Notwithstanding subparagraph (A) of this paragraph, the Employees' Retirement48 System of Georgia shall not in the aggregate exceed 10 percent of such system's assets49 at any time."50 SECTION 3.51 All laws and parts of laws in conflict with this Act are repealed.52 H. B. 1347 - 3 -