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S. B. 240 (SUB)
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The House Committee on Retirement offers the following substitute to SB 240:
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 3 of Title 47 of the Official Code of Georgia Annotated, relating to the1
Teachers' Retirement System of Georgia, so as to provide that new employees of charter2
schools are ineligible for membership in the retirement system; to provide for conditions and3
limitations; to provide for construction; to amend Chapter 18 of Title 47 of the Official Code4
of Georgia Annotated, relating to social security coverage for employees of the state and its5
political subdivisions, so as to determine eligibility for social security coverage for all6
employees and positions eligible for membership in the Public School Employees Retirement7
System; to provide for reporting of such information; to prohibit the future approval of8
certain plans; to provide for related matters; to repeal conflicting laws; and for other9
purposes.10
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:11
SECTION 1.12
Chapter 3 of Title 47 of the Official Code of Georgia Annotated, relating to the Teachers'13
Retirement System of Georgia, is amended by adding a new Code section to read as follows:14 23 LC 43 2817S
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"47-3-69.15
(a) No person hired on or after June 1, 2023, who would otherwise become a member of16
this retirement system as an employee of a charter school established pursuant to Article17
31 or 31A of Chapter 2 of Title 20, shall become a member of this retirement system as a18
result of such employment, provided that the operator or management company of such19
charter school offers an alternative retirement plan to such employee.20
(b) The provisions of this Code section shall not affect any employee of a charter school21
established pursuant to Article 31 or 31A of Chapter 2 of Title 20, who, prior to June 1,22
2023, was a member of this retirement system as a result of such employment.23
(c) The provisions of this Code section shall not be construed to support eligibility for or24
allow membership in this retirement system to any person or class of persons not otherwise25
eligible for membership in this retirement system."26
SECTION 2.27
Chapter 18 of Title 47 of the Official Code of Georgia Annotated, relating to social security28
coverage for employees of the state and its political subdivisions, is amended by revising29
Code Section 47-18-41, relating to plans for old-age, survivors, and disability insurance30
coverage submitted by state political subdivisions, contents, approval, and contributions31
required, as follows:32
"47-18-41.33
(a) Each political subdivision of the state is authorized to submit for approval by the state34
agency a plan for extending the benefits of Title II of the Social Security Act to employees35
of such political subdivision. The adjutant general, acting on behalf of the state, is36
authorized to submit and enter into a similar plan with the state agency for extending such37
benefits to the civilian employees of the National Guard units of this state, who are, for the38
purposes of this chapter, deemed to be a separate coverage group as provided for in the39
federal Social Security Act; provided, however, that nothing contained in this chapter shall40 23 LC 43 2817S
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be construed to deem or designate the civilian employees of the National Guard units of41
this state to be employees of this state. Each such plan and any amendments thereof shall42
be approved by the state agency if it finds that such plan, as amended, is in conformity with43
such requirements as are provided in regulations of the state agency, except that no such44
plan shall be approved unless:45
(1) It is in conformity with the requirements of the Social Security Act and with the46
agreement entered into under Code Section 47-18-40;47
(2) It provides that all services which constitute employment and are performed in the48
employ of a political subdivision by employees thereof shall be covered by the plan49
except that it may exclude services performed by individuals to whom Section50
218(c)(3)(C) of the Social Security Act is applicable;51
(3) It specifies the sources from which the funds necessary to make the payments52
required by paragraph (1) of subsection (c) of this Code section and by subsection (d) of53
this Code section are expected to be derived and contains reasonable assurance that such54
sources will be adequate for such purpose;55
(4) It provides for such methods of administration of the plan by the political subdivision56
as are found by the state agency to be necessary for the proper and efficient57
administration of the plan;58
(5) It provides that the political subdivision will make such reports in such form and59
containing such information as the state agency may from time to time require and will60
comply with such provisions as the state agency or the secretary of health and human61
services may from time to time find necessary in order to assure the correctness and62
verification of such reports; and63
(6) It authorizes the state agency to terminate the plan in its entirety, in the discretion of64
the state agency, if it finds that there has been a failure to comply with any provision65
contained in such plan, such termination to take effect at the expiration of such notice and66
on such conditions as may be provided by regulations of the state agency and which are67 23 LC 43 2817S
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consistent with the Social Security Act,; provided, however, that such conditions as may68
be provided by the regulations of the state agency for such termination shall assure that69
the state shall not incur any debt or loss in relation to any amounts due the state from70
other provisions of the Social Security Act, including grants in aid for public assistance71
and for maternal and child welfare.72
(b) The state agency shall not finally refuse to approve a plan submitted by a political73
subdivision under subsection (a) of this Code section and shall not terminate an approved74
plan without reasonable notice and opportunity for hearings to the such political75
subdivision affected thereby.76
(c) Each political subdivision as to which a that has a plan has been approved under this77
Code section shall pay to the federal Social Security Administration contributions in the78
amounts and at the rates specified in the applicable agreement entered into by the state79
agency under Code Section 47-18-40.80
(d) By September 1, 2023, the state agency shall identify each political subdivision of this81
state that does not extend coverage for the benefits of Title II of the Social Security Act to82
its employees or positions which are eligible for membership in the Public School83
Employees Retirement System established under Chapter 4 of this title. The state agency84
shall issue a report to the chairpersons of the House Retirement Committee and the Senate85
Committee on Retirement that contains the names of all such political subdivisions and86
shall provide the total number of employees per political subdivision who do not have such87
coverage, as well as information regarding the retirement plan, if any, under which such88
employees are covered as an alternative to Social Security.89
(e) On and after September 1, 2023, to the full extent allowed under federal law, the state90
agency shall not approve any political subdivision's plan that does not extend coverage for91
the benefits of Title II of the Social Security Act to its employees or positions which are92
eligible for membership in the Public School Employees Retirement System established93
under Chapter 4 of this title."94 23 LC 43 2817S
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SECTION 3.95
All laws and parts of laws in conflict with this Act are repealed.96