23 LC 43 2824
H. B. 835
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House Bill 835
By: Representatives Meeks of the 178
th
, Corbett of the 174
th
, Bentley of the 150
th
, Carpenter
of the 4
th
, and Scoggins of the 14
th
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 2 of Title 47 of the Official Code of Georgia Annotated, relating to the
1
Employees' Retirement System of Georgia, so as to create an option for the full-time2
employment of beneficiaries under certain circumstances; to provide for related matters; to3
provide conditions for an effective date and automatic repeal; to repeal conflicting laws; and4
for other purposes.5
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6
SECTION 1.7
Chapter 2 of Title 47 of the Official Code of Georgia Annotated, relating to the Employees'8
Retirement System of Georgia, is amended by revising Code Section 47-2-112, relating to9
reemployment of retired members, required contributions from employers, and suspension10
of retirement allowance, as follows:11
"47-2-112.12
(a) As used in this Code section, and in addition to the definition provided in Code Section13
47-2-1, the term 'employer' shall include a retired member's last employer which reported14
to the retirement system prior to the member's effective date of retirement. Such term shall15
also include the Board of Regents of the University System of Georgia.16 23 LC 43 2824
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(b) If a member who retired under this chapter accepts paid employment with or renders
17
services for pay to any employer, including, without limitation, services directly or18
indirectly as or for an independent contractor, after his or her retirement:19
(1) Such employer shall pay to the retirement system the employer and employee20
contributions required by this chapter for members; and21
(2) Except as provided in subsection
subsections (c) and (e) of this Code section,22
payment of such member's retirement allowance shall be suspended.23
Such member shall not receive creditable service as a result of such employment or24
rendering of services. Upon termination of such employment or rendering of services, all25
rights shall vest in such member as if he or she had continued his or her option to retire.26
(c) The retirement allowance of a retired member who accepts paid employment with or27
renders services for pay to any employer after his or her retirement shall not be suspended28
if the employee has attained normal retirement age or has not been employed by or29
rendered services for pay to any employer for at least two consecutive calendar months and30
performs no more than 1,040 hours of paid employment or paid service, including, without31
limitation, services directly or indirectly as or for an independent contractor, for the32
employer in any calendar year; provided, however, that return to service directly or33
indirectly as or for an independent contractor shall not result in the suspension of an34
employee's retirement allowance or the requirement of an employer to pay to the retirement35
system the employer and employee contributions required by this chapter if the employing36
agency certifies to the board of trustees that:37
(1) The contracting entity has multiple employees;38
(2) The contracting entity has multiple contracts, and the contracts are not limited to39
employers, as such term is defined in Code Section 47-2-1; and40
(3) The contractual relationship with the employer was not created to allow a retired41
employee to continue employment after retirement in a position similar to the one he or42
she held before retirement.43 23 LC 43 2824
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(d) Any employer that employs a retired plan member shall, within 30 days of the
44
employee accepting employment, notify the board of trustees in writing of the name of the45
plan member and the number of hours the employee is expected to work annually and shall46
provide such other information as the board of trustees may request. If the retired plan47
member performs more than 1,040 hours in any calendar year, such employer shall notify48
the board of trustees of such as soon as such information is available. Any employer that49
fails to notify the board of trustees as required by this subsection shall reimburse the50
retirement system for any benefits wrongfully paid. It shall be the duty of the retired plan51
member seeking employment with the employer to notify the employer of his or her52
retirement status prior to accepting such position. If a retired plan member fails to so notify53
the employer and such employer becomes liable to the retirement system, the plan member54
shall hold such employer harmless for all such liability.55
(e)(1) On and after July 1, 2024, to the extent and under the conditions provided for in
56
this subsection, an employer may employ a beneficiary of the retirement system in a57
full-time capacity, provided that such beneficiary retired after attaining normal retirement58
age and at least one year has expired from the effective date of such beneficiary's59
retirement and such beneficiary did not accept paid employment with or render service60
for pay to any employer, including, without limitation, services directly or indirectly as61
or for an independent contractor, during such year.62
(2) An individual employed as described in paragraph (1) of this subsection shall remain63
a beneficiary and shall continue to receive his or her retirement allowance and any64
postretirement benefit adjustments for which he or she is eligible; provided, however, that65
such service shall not constitute creditable service and shall not entitle such beneficiary66
to a recomputation of retirement benefits upon cessation of such service.67
(3) It shall be the duty of each beneficiary to notify an employer of his or her status as68
a beneficiary prior to accepting employment with such employer.69 23 LC 43 2824
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(4) Within 30 days of employing a beneficiary pursuant to paragraph (1) of this70
subsection, such employer shall notify the board of trustees of such beneficiary's name,71
the amount of his or her earnable compensation, a description of any other forms of72
remuneration to be made, the number of hours to be worked, job responsibilities, and73
other such information as the board of trustees may prescribe.74
(5) An employer that employs a beneficiary pursuant to paragraph (1) of this subsection75
shall pay to the retirement system an amount equal to the product of:76
(A) The combination of the rates required by this chapter for employer contributions77
and employee contributions; and78
(B) The earnable compensation of such beneficiary.79
(6) A beneficiary shall not receive creditable service from or access to contributions80
made as a result of payments required by paragraph (5) of this subsection, and he or she81
shall be considered by the retirement system solely as a beneficiary.82
(7) If an employer that is obligated to make contributions or reimbursements to the83
retirement system pursuant to this Code section fails to make such contributions, any84
unpaid amounts shall be deducted from any funds payable to such employer by the state,85
including without limitation the Department of Education and the Board of Regents of86
the University System of Georgia, and shall be paid to the retirement system."87
SECTION 2.88
This Act shall become effective on July 1, 2024, only if it is determined to have been89
concurrently funded as provided in Chapter 20 of Title 47 of the Official Code of Georgia90
Annotated, the "Public Retirement Systems Standards Law"; otherwise, this Act shall not91
become effective and shall be automatically repealed in its entirety on July 1, 2024, as92
required by subsection (a) of Code Section 47-20-50.93 23 LC 43 2824
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SECTION 3.
94
All laws and parts of laws in conflict with this Act are repealed.95