GA
Georgia Senate Bill SB240

Georgia 2023-2024 Regular Session

Georgia Senate Bill SB240 Compare Versions

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1-24 LC 56 0205S
2-COMMITTEE OF CONFERENCE SUBSTITUTE TO SB 240
1+LC 43 2861S
2+- 1 -
3+The House Committee on Rules offers the following substitute to SB 240:
34 A BILL TO BE ENTITLED
45 AN ACT
56 To amend Chapter 3 of Title 47 of the Official Code of Georgia Annotated, relating to the1
67 Teachers' Retirement System of Georgia, so as to provide that certain employees of charter2
78 schools who may be eligible for membership in the retirement system as a result of such3
89 employment shall continue to be eligible unless the nonprofit governing board of the charter4
910 school elects to provide such employees with an alternative retirement plan; to provide for5
10-conditions and limitations; to provide for construction; to amend Article 7 of Chapter 20 of6
11-Title 47 of the Official Code of Georgia Annotated, the "Public Retirement Systems7
12-Investment Authority Law," so as to raise the limit for the total percentage of funds that the8
13-Employees' Retirement System of Georgia may invest in alternative investments; to provide9
14-for related matters; to repeal conflicting laws; and for other purposes.10
15-BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:11
16-SECTION 1.12
17-Chapter 3 of Title 47 of the Official Code of Georgia Annotated, relating to the Teachers'13
18-Retirement System of Georgia, is amended by adding a new Code section to read as follows:14
19-- 1 - 24 LC 56 0205S
20-"47-3-69.15
21-(a) Individuals hired on or after June 1, 2024, who may be eligible for membership in this16
22-retirement system as a result of employment by a charter school established pursuant to17
23-Article 31 or 31A of Chapter 2 of Title 20, shall not become members of this retirement18
24-system as a result of such employment if the nonprofit governing board of the charter19
25-school that employs them elects to provide such individuals with an alternative retirement20
26-plan.21
27-(b) The provisions of this Code section shall not affect any employee of a charter school22
28-established pursuant to Article 31 or 31A of Chapter 2 of Title 20, who, prior to June 1,23
29-2024, was a member of this retirement system as a result of such employment.24
30-(c) The provisions of this Code section shall not be construed to support eligibility for or25
31-allow membership in this retirement system to any person or class of persons not otherwise26
32-eligible for membership in this retirement system."27
33-SECTION 2.28
34-Article 7 of Chapter 20 of Title 47 of the Official Code of Georgia Annotated, the "Public29
35-Retirement Systems Investment Authority Law," is amended by revising paragraph (1) of30
36-subsection (d) of Code Section 47-20-87, relating to eligible large retirement systems31
37-authorized to invest in certain alternative investments, as follows:32
38-"(d)(1)(A) Alternative investments by an eligible large retirement system shall not in33
39-the aggregate exceed 10 percent of the eligible large retirement system's assets at any34
40-time.35
41-(B) Notwithstanding subparagraph (A) of this paragraph, alternative investments by36
42-the Georgia Firefighters' Pension Fund shall not in the aggregate exceed 15 percent of37
43-its assets at any time.38
44-- 2 - 24 LC 56 0205S
45-(B.1) Notwithstanding subparagraph (A) of this paragraph, alternative investments by39
46-the Peace Officers' Annuity and Benefit Fund shall not in the aggregate exceed 1540
47-percent of its assets at any time.41
48-(C) Notwithstanding subparagraph (A) of this paragraph, the Teachers' Retirement42
49-System of Georgia shall not in the aggregate exceed 5 percent of such system's assets43
50-at any time.44
51-(D) Notwithstanding subparagraph (A) of this paragraph, the Employees' Retirement45
52-System of Georgia shall not in the aggregate exceed 5 percent of such system's assets46
53-at any time."47
54-SECTION 3.48
55-All laws and parts of laws in conflict with this Act are repealed.49
11+conditions and limitations; to provide for construction; to amend Chapter 18 of Title 47 of6
12+the Official Code of Georgia Annotated, relating to social security coverage for employees7
13+of the state and its political subdivisions, so as to determine eligibility for social security8
14+coverage for all employees and positions eligible for membership in the Public School9
15+Employees Retirement System; to provide for reporting of such information; to prohibit the10
16+future approval of certain plans; to amend Article 7 of Chapter 20 of Title 47 of the Official11
17+Code of Georgia Annotated, the "Public Retirement Systems Investment Authority Law," so12
18+as to raise the limit for the total percentage of funds that the Employees' Retirement System13
19+of Georgia may invest in alternative investments; to provide for related matters; to repeal14
20+conflicting laws; and for other purposes.15
21+BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:16 LC 43 2861S
22+- 2 -
23+SECTION 1.17
24+Chapter 3 of Title 47 of the Official Code of Georgia Annotated, relating to the Teachers'18
25+Retirement System of Georgia, is amended by adding a new Code section to read as follows:19
26+"47-3-69.20
27+(a) Individuals hired on or after June 1, 2023, who may be eligible for membership in this21
28+retirement system as a result of employment by a charter school established pursuant to22
29+Article 31 or 31A of Chapter 2 of Title 20, shall not become members of this retirement23
30+system as a result of such employment if the nonprofit governing board of the charter24
31+school that employs them elects to provide such individuals with an alternative retirement25
32+plan.26
33+(b) The provisions of this Code section shall not affect any employee of a charter school27
34+established pursuant to Article 31 or 31A of Chapter 2 of Title 20, who, prior to June 1,28
35+2023, was a member of this retirement system as a result of such employment.29
36+(c) The provisions of this Code section shall not be construed to support eligibility for or30
37+allow membership in this retirement system to any person or class of persons not otherwise31
38+eligible for membership in this retirement system."32
39+SECTION 2.33
40+Chapter 18 of Title 47 of the Official Code of Georgia Annotated, relating to social security34
41+coverage for employees of the state and its political subdivisions, is amended by revising35
42+Code Section 47-18-41, relating to plans for old-age, survivors, and disability insurance36
43+coverage submitted by state political subdivisions, contents, approval, and contributions37
44+required, as follows:38
45+"47-18-41.39
46+(a) Each political subdivision of the state is authorized to submit for approval by the state40
47+agency a plan for extending the benefits of Title II of the Social Security Act to employees41
48+of such political subdivision. The adjutant general, acting on behalf of the state, is42 LC 43 2861S
5649 - 3 -
50+authorized to submit and enter into a similar plan with the state agency for extending such43
51+benefits to the civilian employees of the National Guard units of this state, who are, for the44
52+purposes of this chapter, deemed to be a separate coverage group as provided for in the45
53+federal Social Security Act; provided, however, that nothing contained in this chapter shall46
54+be construed to deem or designate the civilian employees of the National Guard units of47
55+this state to be employees of this state. Each such plan and any amendments thereof shall48
56+be approved by the state agency if it finds that such plan, as amended, is in conformity with49
57+such requirements as are provided in regulations of the state agency, except that no such50
58+plan shall be approved unless:51
59+(1) It is in conformity with the requirements of the Social Security Act and with the52
60+agreement entered into under Code Section 47-18-40;53
61+(2) It provides that all services which constitute employment and are performed in the54
62+employ of a political subdivision by employees thereof shall be covered by the plan55
63+except that it may exclude services performed by individuals to whom Section56
64+218(c)(3)(C) of the Social Security Act is applicable;57
65+(3) It specifies the sources from which the funds necessary to make the payments58
66+required by paragraph (1) of subsection (c) of this Code section and by subsection (d) of59
67+this Code section are expected to be derived and contains reasonable assurance that such60
68+sources will be adequate for such purpose;61
69+(4) It provides for such methods of administration of the plan by the political subdivision62
70+as are found by the state agency to be necessary for the proper and efficient63
71+administration of the plan;64
72+(5) It provides that the political subdivision will make such reports in such form and65
73+containing such information as the state agency may from time to time require and will66
74+comply with such provisions as the state agency or the secretary of health and human67
75+services may from time to time find necessary in order to assure the correctness and68
76+verification of such reports; and69 LC 43 2861S
77+- 4 -
78+(6) It authorizes the state agency to terminate the plan in its entirety, in the discretion of70
79+the state agency, if it finds that there has been a failure to comply with any provision71
80+contained in such plan, such termination to take effect at the expiration of such notice and72
81+on such conditions as may be provided by regulations of the state agency and which are73
82+consistent with the Social Security Act,; provided, however, that such conditions as may74
83+be provided by the regulations of the state agency for such termination shall assure that75
84+the state shall not incur any debt or loss in relation to any amounts due the state from76
85+other provisions of the Social Security Act, including grants in aid for public assistance77
86+and for maternal and child welfare.78
87+(b) The state agency shall not finally refuse to approve a plan submitted by a political79
88+subdivision under subsection (a) of this Code section and shall not terminate an approved80
89+plan without reasonable notice and opportunity for hearings to the such political81
90+subdivision affected thereby.82
91+(c) Each political subdivision as to which a that has a plan has been approved under this83
92+Code section shall pay to the federal Social Security Administration contributions in the84
93+amounts and at the rates specified in the applicable agreement entered into by the state85
94+agency under Code Section 47-18-40.86
95+(d) By September 1, 2023, the state agency shall identify each political subdivision of this87
96+state that does not extend coverage for the benefits of Title II of the Social Security Act to88
97+its employees or positions which are eligible for membership in the Public School89
98+Employees Retirement System established under Chapter 4 of this title. The state agency90
99+shall issue a report to the chairpersons of the House Retirement Committee and the Senate91
100+Committee on Retirement that contains the names of all such political subdivisions and92
101+shall provide the total number of employees per political subdivision who do not have such93
102+coverage, as well as information regarding the retirement plan, if any, under which such94
103+employees are covered as an alternative to Social Security.95 LC 43 2861S
104+- 5 -
105+(e) On and after September 1, 2023, to the full extent allowed under federal law, the state96
106+agency shall not approve any political subdivision's plan that does not extend coverage for97
107+the benefits of Title II of the Social Security Act to its employees or positions which are98
108+eligible for membership in the Public School Employees Retirement System established99
109+under Chapter 4 of this title."100
110+SECTION 3.101
111+Article 7 of Chapter 20 of Title 47 of the Official Code of Georgia Annotated, the "Public102
112+Retirement Systems Investment Authority Law," is amended by revising paragraph (1) of103
113+subsection (d) of Code Section 47-20-87, relating to eligible large retirement systems104
114+authorized to invest in certain alternative investments, as follows:105
115+"(d)(1)(A) Alternative investments by an eligible large retirement system shall not in106
116+the aggregate exceed 10 percent of the eligible large retirement system's assets at any107
117+time.108
118+(B) Notwithstanding subparagraph (A) of this paragraph, alternative investments by109
119+the Georgia Firefighters' Pension Fund shall not in the aggregate exceed 15 percent of110
120+its assets at any time.111
121+(C) Notwithstanding subparagraph (A) of this paragraph, the Teachers' Retirement112
122+System of Georgia shall not in the aggregate exceed 5 percent of such system's assets113
123+at any time.114
124+(D) Notwithstanding subparagraph (A) of this paragraph, the Employees' Retirement115
125+System of Georgia shall not in the aggregate exceed 5 percent of such system's assets116
126+at any time."117
127+SECTION 4.118
128+All laws and parts of laws in conflict with this Act are repealed.119