23 LC 43 2724
S. B. 266
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Senate Bill 266
By: Senators Harbin of the 16th, Dixon of the 45th, Setzler of the 37th, Goodman of the 8th,
Williams of the 25th and others
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 provide for a fiduciary duty to invest retirement assets solely in the2
financial interests of participants and their beneficiaries; to provide for duties; to provide for3
delegation of duties; to provide for objectives; to provide for proxy voting; to provide for4
conformance; to provide for a definition; to revise the minimum and maximum allowable5
benefit multiplier for current and future retirees of the Public School Employees Retirement6
System; to provide for related matters; to provide conditions for an effective date and7
automatic repeal; to repeal conflicting laws; and for other purposes.8
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9
SECTION 1.10
Title 47 of the Official Code of Georgia Annotated, relating to retirement and pensions, is11
amended in Article 7 of Chapter 20, relating to the "Public Retirement Systems Investment12
Authority Law," by adding a new Code section to read as follows:13 23 LC 43 2724
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"47-20-88.14
(a) As used in this Code section, the term 'fiduciary' means any retirement system15
administration or any person that with respect to any retirement system subject to the16
provisions of this chapter:17
(1) Exercises any discretionary authority or control relative to the management or18
disposition of a retirement system's assets;19
(2) Renders investment advice for a fee or other compensation, whether directly or20
indirectly, with respect to any moneys or other property of a retirement system, or has21
any authority or responsibility to do so; or22
(3) Has any discretionary authority or control in the management or administration of the23
retirement system.24
(b) With regard to the investments and assets of a retirement system, each fiduciary:25
(1) Shall discharge its duties:26
(A) Solely in the interests of plan participants and their beneficiaries;27
(B) For the exclusive purpose of providing benefits to plan participants and their28
beneficiaries; and29
(C) In accordance with this Code section first and with the laws, resolutions,30
ordinances, and plan documents appurtenant to such retirement system second;31
(2) Shall only make investments with care, skill, prudence, and diligence under the32
circumstances then prevailing that a prudent expert acting in like capacity and familiar33
with such matters would use in the conduct of an enterprise of a like character and with34
like aims;35
(3) Shall diversify the investments of the plan so as to minimize the risk of large losses,36
unless doing so is clearly not prudent under the circumstances; and37
(4) Shall not subordinate the interests of the participants and their beneficiaries or38
sacrifice investment returns or accept increased investment risks in the promotion of any39 23 LC 43 2724
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nonpecuniary interests. Such nonpecuniary interests shall include, but shall not be40
limited to, the furtherance of any social, political, or ideological interests.41
(c) A fiduciary may delegate investment management responsibilities to qualified42
professional investment personnel; provided, however, that the fiduciary or fiduciaries43
making such delegation shall still be liable for a breach of its fiduciary duty if such44
delegation is shown to have been based upon influences other than the belief that the plan45
was best served by such delegation.46
(d) The investment objectives of a retirement system shall be to provide the greatest47
possible long-term benefits to members of the retirement system by maximizing the total48
rate of return on investment within prudent limits of risk for a retirement fund of its type49
and consistent with any investment return requirement assumed by the actuaries in50
determining the present and future soundness of the fund.51
(e) Each fiduciary shall vote and execute all voting proxies:52
(1) Solely and exclusively in the best economic interests or rights of the retirement53
system;54
(2) In favor of confidential proxy balloting; and55
(3) In support of management unless, in the opinion of the fiduciary, such a vote would56
be detrimental to the best economic interests or rights of the retirement system.57
(f) By November 1, 2023, any retirement system subject to the provisions of this chapter58
shall fully adhere to this Code section and conform, as necessary, any plan documents or59
contracts or local laws, ordinances, or resolutions that are not in compliance with this Code60
section."61
SECTION 2.62
Said title is further amended by revising subsection (b) of Code Section 47-4-101, relating63
to retirement benefits payable upon normal, early, or delayed retirement in the Public School64
Employees Retirement System, as follows:65 23 LC 43 2724
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"(b)(1)(A) Upon retirement on the normal retirement date, a member shall receive a66
monthly retirement benefit, payment of which shall commence on the effective date of67
retirement and which shall be payable on the first day of each month thereafter during68
the member's lifetime. The minimum amount of each monthly retirement payment shall69
be $16.50 $17.00 multiplied by the number of the member's years of creditable service.70
(B) The retirement benefit provided under this subsection shall be payable to those71
members who have already retired under this chapter as well as those members who72
retire in the future; provided, however, that no benefit increase above $15.00 per month73
shall be applied to the benefit of persons who were retired on the effective date of this74
Act.75
(C) If the General Assembly at any time appropriates funds expressly intended to fund76
the benefits provided in this subsection and such amount so appropriated is not77
sufficient to fund the maximum amount allowable, then the retirement benefit otherwise78
payable under this subsection shall be reduced pro rata by the board in accordance with79
a permanent or one-time increase to the benefit amount payable under this paragraph,80
the board shall make a determination of the amount that such benefit amount may be81
increased based upon the funds actually appropriated by the General Assembly for such82
purpose, but in no event shall the retirement benefit be less than $14.75 $17.0083
multiplied by the member's years of creditable service.84
(2) Subject to the terms and limitations of this subsection, the board of trustees is85
authorized to adopt from time to time a method or methods of providing for increases in86
the retirement allowance paid up to the maximum benefit provided in pursuant to87
paragraph (1) of this subsection. Such method shall be based upon:88
(A) The recommendation of the actuary of the board of trustees;89
(B) The maintenance of the actuarial soundness of the fund in accordance with the90
standards provided in Code Section 47-20-10 or such higher standards as may be91
adopted by the board; and92 23 LC 43 2724
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(C) Such other factors as the board deems relevant."
93
SECTION 3.94
This Act shall become effective on July 1, 2024, only if it is determined to have been95
concurrently funded as provided in Chapter 20 of Title 47 of the Official Code of Georgia96
Annotated, the "Public Retirement Systems Standards Law"; otherwise, this Act shall not97
become effective and shall be automatically repealed in its entirety on July 1, 2024, as98
required by subsection (a) of Code Section 47-20-50.99
SECTION 4.100
All laws and parts of laws in conflict with this Act are repealed.101