SB 339: Employees' Retirement System of Georgia; semiannual postretirement benefit adjustments for all beneficiaries; provide

Under current law, the board of trustees of the Employees' Retirement System of Georgia has discretion to adopt postretirement benefit adjustments (cost-of-living increases) for retirees, and members who joined on or after July 1, 2009 have been excluded from receiving them. This bill rewrites that law (O.C.G.A. § 47-2-29) to make these adjustments automatic and semiannual for all beneficiaries, including those who joined after July 1, 2009, who would become eligible for adjustments granted on or after July 1, 2026. Starting July 1, 2026, and every six months after that, each beneficiary would get a 1.5 percent increase to their retirement allowance. If state revenue drops sharply, either falling 3 percent or more below estimates for the past fiscal year or declining for three straight months in the current year, the Governor could suspend the next two scheduled increases by executive order, but not more than two years in a row or three times in any ten-year span. The General Assembly could revoke or revise any such executive order within a year. The law only takes effect if state actuaries certify it is properly funded under the Public Retirement Systems Standards Law; otherwise it repeals itself automatically on July 1, 2026.

• Rewrites Georgia's retirement law (O.C.G.A. § 47-2-29) to require automatic postretirement benefit adjustments instead of leaving them to the board of trustees' discretion.
• Extends eligibility for these adjustments to members who joined the Employees' Retirement System on or after July 1, 2009, starting with adjustments granted on or after July 1, 2026.
• Sets a fixed 1.5 percent increase to retirement allowances every six months beginning July 1, 2026.
• Gives the Governor limited authority to suspend up to two upcoming increases by executive order if state revenue drops significantly, with restrictions on how often this can happen.
• Allows the General Assembly to revoke, revise, or extend any such suspension order within one year through a joint resolution.
• Makes the entire Act contingent on certification that it is funded under the Public Retirement Systems Standards Law, with automatic repeal on July 1, 2026 if not certified.

Retired members and beneficiaries of the Employees' Retirement System of Georgia, including those who joined on or after July 1, 2009 who currently cannot receive these adjustments, the Governor's office, the General Assembly, and the system's board of trustees and actuaries.

Retirees would get a predictable, guaranteed raise twice a year instead of relying on the board's discretion, which could help their benefits keep pace with living costs. The bill's actual start depends on funding certification, and a revenue downturn could delay increases for some retirees.

• Section 1 revises O.C.G.A. § 47-2-29 to replace discretionary postretirement adjustments with a required semiannual 1.5 percent increase for all beneficiaries starting July 1, 2026.
• Subsection (b) removes the prior exclusion for members who joined on or after July 1, 2009, making them eligible for adjustments granted starting July 1, 2026.
• Subsection (c)(2) lets the Governor suspend up to two upcoming adjustments by executive order during significant revenue declines, capped at two consecutive years or three times in ten years.
• Subsection (c)(3) allows the General Assembly to revoke, revise, or extend a suspension executive order within one calendar year.
• Section 2 makes the Act's effective date, July 1, 2026, contingent on funding certification under the Public Retirement Systems Standards Law (Chapter 20 of Title 47), with automatic repeal if not certified.

1. 2026-02-26Senate Read Second Time (Senado)
2. 2026-02-25Senate Committee Favorably Reported (Senado)
3. 2025-03-18Senate Read and Referred (Senado)
4. 2025-03-13Senate Hopper (Senado)

• Nan Orrock (D, SD-036)Patrocinador principal
• Chuck Hufstetler (R, SD-052)
• Sam Watson (R, SD-011)
• Clint Dixon (R, SD-045)
• Billy Hickman (R, SD-004)
• Carden Summers (R, SD-013)
• Derek Mallow (D, SD-002)
• Sally Harrell (D, SD-040)
• Jason Esteves (D, SD-035)
• Kim Jackson (D, SD-041)
• Josh McLaurin (D, SD-014)
• Kenya Wicks (D, SD-034)
• Gail Davenport (D, SD-017)
• Tonya Anderson (D, SD-043)
• RaShaun Kemp (D, SD-038)
• Donzella James (D, SD-028)
• Randal Mangham (D, SD-055)
• Russ Goodman (R, SD-008)
• Sheikh Rahman (D, SD-005)
• Nabilah Islam Parkes (D, SD-007)
• Ed Harbison (D, SD-015)
• David Lucas (D, SD-026)
• Michael Rhett (D, SD-033)
• Elena Parent (D, SD-044)

• public pensions
• retirement benefits
• state employees
• cost of living adjustments
• state budget