SB 23: Retirement; total percentage of funds that the Employees' Retirement System of Georgia may invest in alternative investments; raise the limit

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.

• 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.

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.

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.

• 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.

1. 2026-05-12Veto V8
2. 2026-05-12Senate Date Vetoed by Governor (Senado)
3. 2026-04-10Senate Sent to Governor (Senado)
4. 2026-04-02Senate Agreed House Amend or Sub (Senado)
5. 2026-03-31House Passed/Adopted By Substitute (Cámara de Representantes)
6. 2026-03-31House Third Readers (Cámara de Representantes)
7. 2026-03-27House Withdrawn, Recommitted (Cámara de Representantes)
8. 2026-03-25House Postponed (Cámara de Representantes)

• John Albers (R, SD-056)Patrocinador principal
• Matt Brass (R, SD-006)
• Randy Robertson (R, SD-029)
• Bo Hatchett (R, SD-050)
• Shawn Still (R, SD-048)
• Mike Hodges (R, SD-003)
• Greg Dolezal (R, SD-027)
• Sam Watson (R, SD-011)
• Brian Strickland (R, SD-042)
• Blake Tillery (R, SD-019)
• Larry Walker (R, SD-020)
• Brad Thomas (R, HD-021)

1. AprobadaVotación: Senado10 de febrero de 2025

   47 a favor, 8 en contra (0 sin votar, 1 ausentes)

   Passage: Senate Vote #29

2. AprobadaVotación: Cámara de Representantes31 de marzo de 2026

   166 a favor, 0 en contra (2 sin votar, 8 ausentes)

   Passage: House Vote #823

3. AprobadaVotación: Senado2 de abril de 2026

   49 a favor, 1 en contra (3 sin votar, 1 ausentes)

   Agree To House Substitute: Senate Vote #960

• public pensions
• retirement system investments
• state employee benefits
• real estate investment rules