23 LC 43 2711
S. B. 240
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Senate Bill 240
By: Senators Walker III of the 20th, Robertson of the 29th and Tillery of the 19th
A BILL TO BE ENTITLED
AN ACT
To amend Title 47 of the Official Code of Georgia Annotated, relating to retirement and
1
pensions, so as to revise the minimum and maximum allowable benefit multiplier for current2
and future retirees; to require certain social security coverage for all employees of a political3
subdivision who are members of the Public School Employees Retirement System; to4
prohibit the approval of certain plans; to provide for reporting; to provide for related matters;5
to provide conditions for an effective date and automatic repeal; to repeal conflicting laws;6
and for other purposes.7
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:8
SECTION 1.9
Title 47 of the Official Code of Georgia Annotated, relating to retirement and pensions, is10
amended by revising subsection (b) of Code Section 47-4-101, relating to retirement benefits11
payable upon normal, early, or delayed retirement in the Public School Employees12
Retirement System, as follows:13
"(b)(1)(A)
Upon retirement on the normal retirement date, a member shall receive a14
monthly retirement benefit, payment of which shall commence on the effective date of15
retirement and which shall be payable on the first day of each month thereafter during16 23 LC 43 2711
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the member's lifetime. The minimum amount of each monthly retirement payment shall17
be $16.50 $17.00 multiplied by the number of the member's years of creditable service.18
(B) The retirement benefit provided under this subsection shall be payable to those19
members who have already retired under this chapter as well as those members who20
retire in the future; provided, however, that no benefit increase above $15.00 per month21
shall be applied to the benefit of persons who were retired on the effective date of this22
Act.23
(C) If the General Assembly at any time appropriates funds expressly intended to fund24
the benefits provided in this subsection and such amount so appropriated is not25
sufficient to fund the maximum amount allowable, then the retirement benefit otherwise26
payable under this subsection shall be reduced pro rata by the board in accordance with27
a permanent or one-time increase to the benefit amount payable under this paragraph,28
the board shall make a determination of the amount that such benefit amount may be29
increased based upon the funds actually appropriated by the General Assembly for such30
purpose, but in no event shall the retirement benefit be less than $14.75 $17.0031
multiplied by the member's years of creditable service.32
(2) Subject to the terms and limitations of this subsection, the board of trustees is33
authorized to adopt from time to time a method or methods of providing for increases in34
the retirement allowance paid up to the maximum benefit provided in pursuant to35
paragraph (1) of this subsection. Such method shall be based upon:36
(A) The recommendation of the actuary of the board of trustees;37
(B) The maintenance of the actuarial soundness of the fund in accordance with the38
standards provided in Code Section 47-20-10 or such higher standards as may be39
adopted by the board; and40
(C) Such other factors as the board deems relevant."41 23 LC 43 2711
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SECTION 2.
42
Said title is further amended in Chapter 18, relating to social security coverage for employees43
of the state and its political subdivisions, by revising Code Section 47-18-41, relating to plans44
for old-age, survivors, and disability insurance coverage submitted by state political45
subdivisions, contents, approval, and contributions required, as follows:46
"47-18-41.47
(a) Each political subdivision of the state is authorized to submit for approval by the state48
agency a plan for extending the benefits of Title II of the Social Security Act to employees49
of such political subdivision. The adjutant general, acting on behalf of the state, is50
authorized to submit and enter into a similar plan with the state agency for extending such51
benefits to the civilian employees of the National Guard units of this state, who are, for the52
purposes of this chapter, deemed to be a separate coverage group as provided for in the53
federal Social Security Act; provided, however, that nothing contained in this chapter shall54
be construed to deem or designate the civilian employees of the National Guard units of55
this state to be employees of this state. Each such plan and any amendments thereof shall56
be approved by the state agency if it finds that such plan, as amended, is in conformity with57
such requirements as are provided in regulations of the state agency, except that no such58
plan shall be approved unless:59
(1) It is in conformity with the requirements of the Social Security Act and with the60
agreement entered into under Code Section 47-18-40;61
(2) It provides that all services which constitute employment and are performed in the62
employ of a political subdivision by employees thereof shall be covered by the plan63
except that it may exclude services performed by individuals to whom Section64
218(c)(3)(C) of the Social Security Act is applicable;65
(3) It specifies the sources from which the funds necessary to make the payments66
required by paragraph (1) of
subsection (c) of this Code section and by subsection (d) of67 23 LC 43 2711
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this Code section are expected to be derived and contains reasonable assurance that such68
sources will be adequate for such purpose;69
(4) It provides for such methods of administration of the plan by the political subdivision70
as are found by the state agency to be necessary for the proper and efficient71
administration of the plan;72
(5) It provides that the political subdivision will make such reports in such form and73
containing such information as the state agency may from time to time require and will74
comply with such provisions as the state agency or the secretary of health and human75
services may from time to time find necessary in order to assure the correctness and76
verification of such reports; and77
(6) It authorizes the state agency to terminate the plan in its entirety, in the discretion of78
the state agency, if it finds that there has been a failure to comply with any provision79
contained in such plan, such termination to take effect at the expiration of such notice and80
on such conditions as may be provided by regulations of the state agency and which are81
consistent with the Social Security Act,; provided, however, that such conditions as may82
be provided by the regulations of the state agency for such termination shall assure that83
the state shall not incur any debt or loss in relation to any amounts due the state from84
other provisions of the Social Security Act, including grants in aid for public assistance85
and for maternal and child welfare.86
(b) The state agency shall not finally refuse to approve a plan submitted by a political87
subdivision under subsection (a) of this Code section and shall not terminate an approved88
plan without reasonable notice and opportunity for hearings to the such political89
subdivision affected thereby.90
(c) Each political subdivision as to which a that has a plan has been approved under this91
Code section shall pay to the federal Social Security Administration contributions in the92
amounts and at the rates specified in the applicable agreement entered into by the state93
agency under Code Section 47-18-40.94 23 LC 43 2711
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(d)(1) By July 1, 2023, the state agency shall identify each political subdivision of this95
state that does not extend coverage for the benefits of Title II of the Social Security Act to96
those employees of such political subdivision who are members of the Public School97
Employees Retirement System established under Chapter 4 of this title. The state agency98
shall issue a report to the chairpersons of the House Retirement Committee and the Senate99
Committee on Retirement that contains the names of all such political subdivisions and100
shall provide the total number of employees per political subdivision who do not have such101
coverage.102
(2) By October 1, 2023, the plan for each political subdivision that does not extend103
coverage for the benefits of Title II of the Social Security Act to its employees who are104
members of the Public School Employees Retirement System established under Chapter105
4 of this title shall be amended to provide such coverage for such current and future106
employees of such political subdivision.107
(e) On and after July 1, 2023, the state agency shall not approve any political subdivision's108
plan that does not extend coverage for the benefits of Title II of the Social Security Act to109
its employees who are members of the Public School Employees Retirement System110
established under Chapter 4 of this title."111
SECTION 3.112
This Act shall become effective on July 1, 2024, only if it is determined to have been113
concurrently funded as provided in Chapter 20 of Title 47 of the Official Code of Georgia114
Annotated, the "Public Retirement Systems Standards Law"; otherwise, this Act shall not115
become effective and shall be automatically repealed in its entirety on July 1, 2024, as116
required by subsection (a) of Code Section 47-20-50.117
SECTION 4.118
All laws and parts of laws in conflict with this Act are repealed.119