25 LC 56 0297
Senate Bill 143
By: Senators Albers of the 56th, Payne of the 54th, Kirkpatrick of the 32nd, Still of the 48th,
Robertson of the 29th and others
A BILL TO BE ENTITLED
AN ACT
To amend Article 6 of Chapter 7 of Title 47 of the Official Code of Georgia Annotated,
1
relating to retirement, retirement allowances, disability benefits, and death benefits relative2
to the Georgia Firefighter's Pension Fund, so as to provide for certain members to retire at3
age 50; to provide for certain members to continue working while receiving retirement4
benefits; to provide for certain members who have retired and reentered employment to5
accrue creditable service without a seven-year minimum; to amend Article 7 of Chapter 206
of Title 47 of the Official Code of Georgia Annotated, the "Public Retirement Systems7
Investment Authority Law," so as to provide for an exception for the Georgia Firefighters'8
Pension Fund to invest in assets rated below investment grade; to provide for a maximum9
percentage of assets to be invested in such assets; to raise the limit for the total percentage10
of funds that the Georgia Firefighter's Pension Fund may invest in alternative investments;11
to provide conforming changes; to provide for related matters; to provide conditions for an12
effective date and automatic repeal; to repeal conflicting laws; and for other purposes.13
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:14
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SECTION 1.
15
Article 6 of Chapter 7 of Title 47 of the Official Code of Georgia Annotated, relating to16
retirement, retirement allowances, disability benefits, and death benefits relative to the17
Georgia Firefighter's Pension Fund, is amended in Code Section 47-7-100, relating to18
eligibility for full pension benefits, eligibility for partial benefits, optional pension benefits,19
vesting of rights to pension benefits, and early retirement provisions, by revising20
subsections (b) through (f) as follows:21
"(b)(1) Any eligible member who has attained the age of 55 years and who terminates
22
service as a firefighter or volunteer firefighter after at least 25 years of service, upon23
application to and approval by the board, shall have a vested right in an amount equal to24
the maximum monthly retirement benefit in effect on the date the board approves such25
application. Such benefits shall commence on the date of the member's termination of26
service. Any eligible member who has attained the age of 50 and whose age in years and27
creditable service in years when combined equal at least 80, upon application to and28
approval by the board, shall be eligible for a monthly benefit equal to such member's29
vested monthly benefit pursuant to subsection (c) of this Code section in effect on the30
date the board approves such application, subject to the provisions of subsection (f) of31
this Code section. Such benefits shall commence on the date of approval by the board. 32
It shall not be a requirement that a retired member terminate his or her employment or33
volunteer service to receive retirement benefits under this paragraph. A member who34
retires under this paragraph and who chooses to remain employed or continue his or her35
volunteer service while receiving retirement benefits shall not pay monthly dues nor shall36
such member be eligible to earn or buy additional creditable service.37
(2) Any eligible member who terminates service as a firefighter or volunteer firefighter38
after 25 years of service, but before reaching the age of 55 years, may, upon filing an39
application with the board application to and approval by the board, cease payment of40
such member's monthly dues following such termination of service and, upon reaching41
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the age of 55 years and being otherwise eligible, shall be paid a monthly benefit equal to
42
the maximum monthly retirement benefit in effect on the date such member attains the43
age of 55 years.44
(3) Any eligible member who terminates service after at least 15 years of service, upon
45
application to and approval by the board, shall be eligible for a monthly benefit equal to46
such member's vested monthly benefit pursuant to subsection (c) of this Code section in47
effect on the date of such termination of service, subject to the provisions of48
subsection (f) of this Code section. Such benefits shall become payable when the49
member reaches 55 years of age or when such member terminates his or her employment,50
whichever is later.51
(c) Any eligible member who accrues at least 25 years of creditable service shall have a52
vested right in and to a monthly benefit equal to the maximum monthly retirement benefit53
in effect on the applicable date provided for in subsection (b) of this Code section. Any54
eligible member who terminates service has accrued at least 15 years of creditable service55
as a firefighter or volunteer firefighter after at least 15 years of service, upon application56
to and approval by the board, shall have a vested right in and to a monthly benefit payable57
for the member's lifetime equal to a pro rata amount of the maximum monthly retirement58
benefit provided in subsection (b) of this Code section in effect on the applicable date of59
such termination of service provided for in subsection (b) of this Code section, which60
amount shall be determined by the ratio of years served, being not less than 15 nor more61
than 25, to the full 25 year service retirement. Such benefits shall become payable when62
the member reaches 55 years of age or when he or she terminates employment as a63
firefighter or volunteer firefighter, whichever is later.64
(d) At any time prior to approval by the board of an application for retirement, a member65
may elect or may revoke a previous election and make a new election to have monthly66
benefits payable under one of the options set forth in this subsection, in lieu of the benefits67
payable under subsection (b) or (c) of this Code section. The benefits shall be paid in68
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accordance with the terms of the option elected. Election of any option shall be made by
69
the member on forms provided by the board and shall be subject to approval by the board,70
which approval shall not be unreasonably withheld. No optional election is available for71
payment of disability benefits.72
(1) Option A, the joint and survivor option, shall consist of a decreased retirement73
benefit which shall be payable during the joint lifetime of both the member and the74
member's spouse and which shall continue after the death of the member during the75
lifetime of the spouse in the amount chosen by the member, which amount shall be 10076
percent, 75 percent, 66 2/3 percent, or 50 percent of the member's benefits. Any member77
who has completed 15 years of creditable service may elect that, in the event of the78
member's death prior to receiving any retirement benefits under this chapter, the79
member's spouse shall receive decreased retirement benefits in the amount elected by the80
member, which amount shall be 100 percent, 75 percent, 66 2/3 percent, or 50 percent of81
the benefits to which the member would have been entitled based upon the member's82
creditable service as of the time of the member's death. The decreased retirement benefits83
payable to the spouse of a member who dies prior to receiving any retirement benefits84
under this chapter shall commence on the date the member would have become 55 years85
of age and shall not be payable unless, prior to the member's death, the member had86
elected such benefits in the form and manner prescribed by the board and had filed such87
election with the board.88
(2) Option B, the ten years' certain and life option, shall consist of a decreased retirement89
benefit payable to the member during the member's lifetime; and, in the event of the90
member's death within ten years after the member's retirement, the same monthly benefits91
shall be payable to the member's selected beneficiary, or, if the member so elects, the92
total monthly benefit may be divided equally among up to five selected beneficiaries, for93
the balance of such ten-year period.94
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(3) If a member selects Option A, then, after the approval of the application for
95
retirement, the following provisions apply:96
(A) If the member's spouse shall predecease the member, the member may, in writing97
on forms prescribed by the board and subject to approval by the board, revoke Option98
A and thereafter receive during the member's lifetime a monthly retirement benefit99
commencing on the date on which the board approves such revocation, but not for any100
period prior to such approval, equal to the maximum monthly benefit which would have101
been payable to him had such option not been exercised;102
(B) If there is entered a final judgment of complete divorce between the member and103
the member's spouse, the member may, in writing on forms prescribed by the board and104
subject to approval by the board, revoke Option A and thereafter receive during the105
member's lifetime a monthly retirement benefit commencing on the date on which the106
board approves such revocation, but not for any period prior to such approval, equal to107
the maximum monthly benefit which would have been payable had such option not108
been exercised; and109
(C) If, following the death of the member's spouse or the entry of a final judgment of110
divorce between the member and the member's spouse, the member remarries, the111
member may, in writing on forms prescribed by the board and subject to approval by112
the board, elect Option A with respect to the member's new spouse. The joint and113
survivor benefit shall be determined as of the date of the election.114
(4) The amount of any optional retirement benefit set forth in this subsection shall be the115
actuarial equivalent of the amount of the benefit that would otherwise be payable to the116
member under subsection (b) or (c)
of this Code section based upon the interest rate and117
mortality basis approved from time to time by the board, the age of the member, and, if118
applicable, the age of his spouse as of the date benefits are to commence or as of the date119
benefits would have commenced if the member had retired after first becoming eligible120
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for full benefits, whichever is earlier, but the optional benefits available under Option A
121
shall be calculated without regard to the provisions of paragraph (3) of this subsection.122
(e)(1) Any eligible member who retires after July 1, 1984, shall be entitled to an increase123
in the maximum monthly retirement benefit in effect at the time of his or her retirement124
under this Code section equal to 1 percent of the monthly retirement benefit for which the125
member would have been otherwise eligible for each full year of creditable service while126
a member of the fund as a firefighter or volunteer firefighter
in excess of 25 years of127
creditable service.128
(2) Any eligible member who retires after July 1, 2002, shall be entitled to an increase129
in the maximum monthly retirement benefit in effect at the time of his or her retirement130
under this Code section equal to 2 percent of the monthly retirement benefit for which the131
member would have been otherwise eligible for each full year of creditable service while132
a member of the fund as a firefighter or volunteer firefighter in excess of 25 years of133
creditable service. Such increase shall be the total increase allowed by this subsection.134
(f) Any eligible member who would be entitled to the commencement of retirement135
benefits upon reaching age 55 under subsection (b) or (c) of this Code section may elect136
to retire receive such benefit after reaching the age of 50 but before reaching the age of 55,137
and immediately commence the drawing of retirement benefits and in that such event the138
member shall be eligible immediately upon retirement for a reduced monthly pension139
benefit in an amount determined by multiplying the benefit for which the member would140
have been otherwise entitled under subsections (b), (c), and (e) of this Code section had the141
member delayed retirement or the commencement of benefits until the member reached age142
55, such benefit to be determined as of the date of the member's actual retirement or first143
receipt of the monthly retirement benefit by the factor set forth below:144
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If the Member's Age At Retirement
145
(determined by the member's age at the146
member's immediately preceding147
birthday) Is:148
The Early Retirement
Factor Is:
50
149 .70
51
150 .76
52
151 .82
53
152 .88
54
153 .94
The option available under this subsection may also be exercised by a surviving spouse
154
who is the beneficiary of an Option A election with respect to the benefits payable to the155
spouse in the event the member dies prior to receiving any benefits and would have been156
able to exercise the option available under this subsection."157
SECTION 2.158
Said article is further amended in Code Section 47-7-101, relating to eligibility for retirement159
benefits, withdrawal of application for benefits before approval, and reemployment, by160
revising subsection (b) as follows:161
"(b) Any person who again becomes a paid employee of a fire department or of a volunteer162
fire department after having been placed on retirement or disability under Code Section163
47-7-100 or 47-7-102 shall immediately notify the executive director of such164
reemployment. Except as provided in paragraph (1) of subsection (b) of Code Section
165
47-7-100, retirement Retirement benefits being paid to such person shall be suspended as166
of the date of such reemployment and shall remain suspended until such reemployment167
terminates at which time the payment of retirement benefits shall be resumed in the amount168
to which the person was eligible at the time of reemployment. A retired member who has169
retired under paragraph (2) or (3) of subsection (b) of Code Section 47-7-100, may choose170
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to pay monthly dues and earn creditable service during the period of reemployment. 171
Disability benefits being paid to any such person shall be terminated as of the date of such172
reemployment. Within six months of the commencement of reemployment, any such173
person who at the time of application otherwise meets the requirements for membership174
may, by application in the manner provided by this chapter, become a member of the fund. 175
In the event the application is granted, such member, upon meeting the requirements176
provided by law, shall be entitled to all benefits provided for in Code Section 47-7-100, but177
the amount of monthly retirement or disability benefits payable to such member shall not178
exceed the amount of the monthly benefit which would be payable to such member had179
such subsequent retirement become effective at the time of the member's prior retirement,180
unless after such reemployment the member shall have acquired not less than seven years'181
creditable service as a member of the fund."182
SECTION 3.183
Article 7 of Chapter 20 of Title 47 of the Official Code of Georgia Annotated, relating to the184
"Public Retirement Systems Investment Authority Law," is amended in Code Section185
47-20-83, relating to certificated or uncertificated forms of investment and real estate186
investments, by adding a new paragraph to subsection (b) to read as follows:187
"(3) Notwithstanding the provisions paragraphs (1), (7), and (9) of subsection (a) of this188
Code section, the Georgia Firefighters' Pension Fund may invest up to 10 percent of the189
total assets of its fund in investments in forms of assets rated below investment grade by190
nationally recognized rating agencies."191
SECTION 4.192
Said article is further amended in Code Section 47-20-87, relating to eligible large retirement193
systems authorized to invest in certain alternative investments, by revising paragraph (1) of194
subsection (d) as follows:195
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"(d)(1)(A) Alternative investments by an eligible large retirement system shall not in
196
the aggregate exceed 10 percent of the eligible large retirement system's assets at any197
time.198
(B) Notwithstanding subparagraph (A) of this paragraph, alternative investments by199
the Georgia Firefighters' Pension Fund shall not in the aggregate exceed 15
20 percent200
of its assets at any time.201
(B.1) Notwithstanding subparagraph (A) of this paragraph, alternative investments by202
the Peace Officers' Annuity and Benefit Fund shall not in the aggregate exceed 15203
percent of its assets at any time.204
(C) Notwithstanding subparagraph (A) of this paragraph, the Teachers Retirement205
System of Georgia shall not in the aggregate exceed 5 percent of such system's assets206
at any time.207
(D) Notwithstanding subparagraph (A) of this paragraph, the Employees' Retirement208
System of Georgia shall not in the aggregate exceed 5 percent of such system's assets209
at any time."210
SECTION 5.211
This Act shall become effective on July 1, 2026, only if it is determined to have been212
concurrently funded as provided in Chapter 20 of Title 47 of the Official Code of Georgia213
Annotated, the "Public Retirement Systems Standards Law"; otherwise, this Act shall not214
become effective and shall be automatically repealed in its entirety on July 1, 2026, as215
required by subsection (a) of Code Section 47-20-50.216
SECTION 6.217
All laws and parts of laws in conflict with this Act are repealed.218
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