| 1 | 1 | | 25 LC 56 0297 |
|---|
| 2 | 2 | | Senate Bill 143 |
|---|
| 3 | 3 | | By: Senators Albers of the 56th, Payne of the 54th, Kirkpatrick of the 32nd, Still of the 48th, |
|---|
| 4 | 4 | | Robertson of the 29th and others |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | To amend Article 6 of Chapter 7 of Title 47 of the Official Code of Georgia Annotated, |
|---|
| 8 | 8 | | 1 |
|---|
| 9 | 9 | | relating to retirement, retirement allowances, disability benefits, and death benefits relative2 |
|---|
| 10 | 10 | | to the Georgia Firefighter's Pension Fund, so as to provide for certain members to retire at3 |
|---|
| 11 | 11 | | age 50; to provide for certain members to continue working while receiving retirement4 |
|---|
| 12 | 12 | | benefits; to provide for certain members who have retired and reentered employment to5 |
|---|
| 13 | 13 | | accrue creditable service without a seven-year minimum; to amend Article 7 of Chapter 206 |
|---|
| 14 | 14 | | of Title 47 of the Official Code of Georgia Annotated, the "Public Retirement Systems7 |
|---|
| 15 | 15 | | Investment Authority Law," so as to provide for an exception for the Georgia Firefighters'8 |
|---|
| 16 | 16 | | Pension Fund to invest in assets rated below investment grade; to provide for a maximum9 |
|---|
| 17 | 17 | | percentage of assets to be invested in such assets; to raise the limit for the total percentage10 |
|---|
| 18 | 18 | | of funds that the Georgia Firefighter's Pension Fund may invest in alternative investments;11 |
|---|
| 19 | 19 | | to provide conforming changes; to provide for related matters; to provide conditions for an12 |
|---|
| 20 | 20 | | effective date and automatic repeal; to repeal conflicting laws; and for other purposes.13 |
|---|
| 21 | 21 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:14 |
|---|
| 22 | 22 | | S. B. 143 |
|---|
| 23 | 23 | | - 1 - 25 LC 56 0297 |
|---|
| 24 | 24 | | SECTION 1. |
|---|
| 25 | 25 | | 15 |
|---|
| 26 | 26 | | Article 6 of Chapter 7 of Title 47 of the Official Code of Georgia Annotated, relating to16 |
|---|
| 27 | 27 | | retirement, retirement allowances, disability benefits, and death benefits relative to the17 |
|---|
| 28 | 28 | | Georgia Firefighter's Pension Fund, is amended in Code Section 47-7-100, relating to18 |
|---|
| 29 | 29 | | eligibility for full pension benefits, eligibility for partial benefits, optional pension benefits,19 |
|---|
| 30 | 30 | | vesting of rights to pension benefits, and early retirement provisions, by revising20 |
|---|
| 31 | 31 | | subsections (b) through (f) as follows:21 |
|---|
| 32 | 32 | | "(b)(1) Any eligible member who has attained the age of 55 years and who terminates |
|---|
| 33 | 33 | | 22 |
|---|
| 34 | 34 | | service as a firefighter or volunteer firefighter after at least 25 years of service, upon23 |
|---|
| 35 | 35 | | application to and approval by the board, shall have a vested right in an amount equal to24 |
|---|
| 36 | 36 | | the maximum monthly retirement benefit in effect on the date the board approves such25 |
|---|
| 37 | 37 | | application. Such benefits shall commence on the date of the member's termination of26 |
|---|
| 38 | 38 | | service. Any eligible member who has attained the age of 50 and whose age in years and27 |
|---|
| 39 | 39 | | creditable service in years when combined equal at least 80, upon application to and28 |
|---|
| 40 | 40 | | approval by the board, shall be eligible for a monthly benefit equal to such member's29 |
|---|
| 41 | 41 | | vested monthly benefit pursuant to subsection (c) of this Code section in effect on the30 |
|---|
| 42 | 42 | | date the board approves such application, subject to the provisions of subsection (f) of31 |
|---|
| 43 | 43 | | this Code section. Such benefits shall commence on the date of approval by the board. 32 |
|---|
| 44 | 44 | | It shall not be a requirement that a retired member terminate his or her employment or33 |
|---|
| 45 | 45 | | volunteer service to receive retirement benefits under this paragraph. A member who34 |
|---|
| 46 | 46 | | retires under this paragraph and who chooses to remain employed or continue his or her35 |
|---|
| 47 | 47 | | volunteer service while receiving retirement benefits shall not pay monthly dues nor shall36 |
|---|
| 48 | 48 | | such member be eligible to earn or buy additional creditable service.37 |
|---|
| 49 | 49 | | (2) Any eligible member who terminates service as a firefighter or volunteer firefighter38 |
|---|
| 50 | 50 | | after 25 years of service, but before reaching the age of 55 years, may, upon filing an39 |
|---|
| 51 | 51 | | application with the board application to and approval by the board, cease payment of40 |
|---|
| 52 | 52 | | such member's monthly dues following such termination of service and, upon reaching41 |
|---|
| 53 | 53 | | S. B. 143 |
|---|
| 54 | 54 | | - 2 - 25 LC 56 0297 |
|---|
| 55 | 55 | | the age of 55 years and being otherwise eligible, shall be paid a monthly benefit equal to |
|---|
| 56 | 56 | | 42 |
|---|
| 57 | 57 | | the maximum monthly retirement benefit in effect on the date such member attains the43 |
|---|
| 58 | 58 | | age of 55 years.44 |
|---|
| 59 | 59 | | (3) Any eligible member who terminates service after at least 15 years of service, upon |
|---|
| 60 | 60 | | 45 |
|---|
| 61 | 61 | | application to and approval by the board, shall be eligible for a monthly benefit equal to46 |
|---|
| 62 | 62 | | such member's vested monthly benefit pursuant to subsection (c) of this Code section in47 |
|---|
| 63 | 63 | | effect on the date of such termination of service, subject to the provisions of48 |
|---|
| 64 | 64 | | subsection (f) of this Code section. Such benefits shall become payable when the49 |
|---|
| 65 | 65 | | member reaches 55 years of age or when such member terminates his or her employment,50 |
|---|
| 66 | 66 | | whichever is later.51 |
|---|
| 67 | 67 | | (c) Any eligible member who accrues at least 25 years of creditable service shall have a52 |
|---|
| 68 | 68 | | vested right in and to a monthly benefit equal to the maximum monthly retirement benefit53 |
|---|
| 69 | 69 | | in effect on the applicable date provided for in subsection (b) of this Code section. Any54 |
|---|
| 70 | 70 | | eligible member who terminates service has accrued at least 15 years of creditable service55 |
|---|
| 71 | 71 | | as a firefighter or volunteer firefighter after at least 15 years of service, upon application56 |
|---|
| 72 | 72 | | to and approval by the board, shall have a vested right in and to a monthly benefit payable57 |
|---|
| 73 | 73 | | for the member's lifetime equal to a pro rata amount of the maximum monthly retirement58 |
|---|
| 74 | 74 | | benefit provided in subsection (b) of this Code section in effect on the applicable date of59 |
|---|
| 75 | 75 | | such termination of service provided for in subsection (b) of this Code section, which60 |
|---|
| 76 | 76 | | amount shall be determined by the ratio of years served, being not less than 15 nor more61 |
|---|
| 77 | 77 | | than 25, to the full 25 year service retirement. Such benefits shall become payable when62 |
|---|
| 78 | 78 | | the member reaches 55 years of age or when he or she terminates employment as a63 |
|---|
| 79 | 79 | | firefighter or volunteer firefighter, whichever is later.64 |
|---|
| 80 | 80 | | (d) At any time prior to approval by the board of an application for retirement, a member65 |
|---|
| 81 | 81 | | may elect or may revoke a previous election and make a new election to have monthly66 |
|---|
| 82 | 82 | | benefits payable under one of the options set forth in this subsection, in lieu of the benefits67 |
|---|
| 83 | 83 | | payable under subsection (b) or (c) of this Code section. The benefits shall be paid in68 |
|---|
| 84 | 84 | | S. B. 143 |
|---|
| 85 | 85 | | - 3 - 25 LC 56 0297 |
|---|
| 86 | 86 | | accordance with the terms of the option elected. Election of any option shall be made by |
|---|
| 87 | 87 | | 69 |
|---|
| 88 | 88 | | the member on forms provided by the board and shall be subject to approval by the board,70 |
|---|
| 89 | 89 | | which approval shall not be unreasonably withheld. No optional election is available for71 |
|---|
| 90 | 90 | | payment of disability benefits.72 |
|---|
| 91 | 91 | | (1) Option A, the joint and survivor option, shall consist of a decreased retirement73 |
|---|
| 92 | 92 | | benefit which shall be payable during the joint lifetime of both the member and the74 |
|---|
| 93 | 93 | | member's spouse and which shall continue after the death of the member during the75 |
|---|
| 94 | 94 | | lifetime of the spouse in the amount chosen by the member, which amount shall be 10076 |
|---|
| 95 | 95 | | percent, 75 percent, 66 2/3 percent, or 50 percent of the member's benefits. Any member77 |
|---|
| 96 | 96 | | who has completed 15 years of creditable service may elect that, in the event of the78 |
|---|
| 97 | 97 | | member's death prior to receiving any retirement benefits under this chapter, the79 |
|---|
| 98 | 98 | | member's spouse shall receive decreased retirement benefits in the amount elected by the80 |
|---|
| 99 | 99 | | member, which amount shall be 100 percent, 75 percent, 66 2/3 percent, or 50 percent of81 |
|---|
| 100 | 100 | | the benefits to which the member would have been entitled based upon the member's82 |
|---|
| 101 | 101 | | creditable service as of the time of the member's death. The decreased retirement benefits83 |
|---|
| 102 | 102 | | payable to the spouse of a member who dies prior to receiving any retirement benefits84 |
|---|
| 103 | 103 | | under this chapter shall commence on the date the member would have become 55 years85 |
|---|
| 104 | 104 | | of age and shall not be payable unless, prior to the member's death, the member had86 |
|---|
| 105 | 105 | | elected such benefits in the form and manner prescribed by the board and had filed such87 |
|---|
| 106 | 106 | | election with the board.88 |
|---|
| 107 | 107 | | (2) Option B, the ten years' certain and life option, shall consist of a decreased retirement89 |
|---|
| 108 | 108 | | benefit payable to the member during the member's lifetime; and, in the event of the90 |
|---|
| 109 | 109 | | member's death within ten years after the member's retirement, the same monthly benefits91 |
|---|
| 110 | 110 | | shall be payable to the member's selected beneficiary, or, if the member so elects, the92 |
|---|
| 111 | 111 | | total monthly benefit may be divided equally among up to five selected beneficiaries, for93 |
|---|
| 112 | 112 | | the balance of such ten-year period.94 |
|---|
| 113 | 113 | | S. B. 143 |
|---|
| 114 | 114 | | - 4 - 25 LC 56 0297 |
|---|
| 115 | 115 | | (3) If a member selects Option A, then, after the approval of the application for |
|---|
| 116 | 116 | | 95 |
|---|
| 117 | 117 | | retirement, the following provisions apply:96 |
|---|
| 118 | 118 | | (A) If the member's spouse shall predecease the member, the member may, in writing97 |
|---|
| 119 | 119 | | on forms prescribed by the board and subject to approval by the board, revoke Option98 |
|---|
| 120 | 120 | | A and thereafter receive during the member's lifetime a monthly retirement benefit99 |
|---|
| 121 | 121 | | commencing on the date on which the board approves such revocation, but not for any100 |
|---|
| 122 | 122 | | period prior to such approval, equal to the maximum monthly benefit which would have101 |
|---|
| 123 | 123 | | been payable to him had such option not been exercised;102 |
|---|
| 124 | 124 | | (B) If there is entered a final judgment of complete divorce between the member and103 |
|---|
| 125 | 125 | | the member's spouse, the member may, in writing on forms prescribed by the board and104 |
|---|
| 126 | 126 | | subject to approval by the board, revoke Option A and thereafter receive during the105 |
|---|
| 127 | 127 | | member's lifetime a monthly retirement benefit commencing on the date on which the106 |
|---|
| 128 | 128 | | board approves such revocation, but not for any period prior to such approval, equal to107 |
|---|
| 129 | 129 | | the maximum monthly benefit which would have been payable had such option not108 |
|---|
| 130 | 130 | | been exercised; and109 |
|---|
| 131 | 131 | | (C) If, following the death of the member's spouse or the entry of a final judgment of110 |
|---|
| 132 | 132 | | divorce between the member and the member's spouse, the member remarries, the111 |
|---|
| 133 | 133 | | member may, in writing on forms prescribed by the board and subject to approval by112 |
|---|
| 134 | 134 | | the board, elect Option A with respect to the member's new spouse. The joint and113 |
|---|
| 135 | 135 | | survivor benefit shall be determined as of the date of the election.114 |
|---|
| 136 | 136 | | (4) The amount of any optional retirement benefit set forth in this subsection shall be the115 |
|---|
| 137 | 137 | | actuarial equivalent of the amount of the benefit that would otherwise be payable to the116 |
|---|
| 138 | 138 | | member under subsection (b) or (c) |
|---|
| 139 | 139 | | of this Code section based upon the interest rate and117 |
|---|
| 140 | 140 | | mortality basis approved from time to time by the board, the age of the member, and, if118 |
|---|
| 141 | 141 | | applicable, the age of his spouse as of the date benefits are to commence or as of the date119 |
|---|
| 142 | 142 | | benefits would have commenced if the member had retired after first becoming eligible120 |
|---|
| 143 | 143 | | S. B. 143 |
|---|
| 144 | 144 | | - 5 - 25 LC 56 0297 |
|---|
| 145 | 145 | | for full benefits, whichever is earlier, but the optional benefits available under Option A |
|---|
| 146 | 146 | | 121 |
|---|
| 147 | 147 | | shall be calculated without regard to the provisions of paragraph (3) of this subsection.122 |
|---|
| 148 | 148 | | (e)(1) Any eligible member who retires after July 1, 1984, shall be entitled to an increase123 |
|---|
| 149 | 149 | | in the maximum monthly retirement benefit in effect at the time of his or her retirement124 |
|---|
| 150 | 150 | | under this Code section equal to 1 percent of the monthly retirement benefit for which the125 |
|---|
| 151 | 151 | | member would have been otherwise eligible for each full year of creditable service while126 |
|---|
| 152 | 152 | | a member of the fund as a firefighter or volunteer firefighter |
|---|
| 153 | 153 | | in excess of 25 years of127 |
|---|
| 154 | 154 | | creditable service.128 |
|---|
| 155 | 155 | | (2) Any eligible member who retires after July 1, 2002, shall be entitled to an increase129 |
|---|
| 156 | 156 | | in the maximum monthly retirement benefit in effect at the time of his or her retirement130 |
|---|
| 157 | 157 | | under this Code section equal to 2 percent of the monthly retirement benefit for which the131 |
|---|
| 158 | 158 | | member would have been otherwise eligible for each full year of creditable service while132 |
|---|
| 159 | 159 | | a member of the fund as a firefighter or volunteer firefighter in excess of 25 years of133 |
|---|
| 160 | 160 | | creditable service. Such increase shall be the total increase allowed by this subsection.134 |
|---|
| 161 | 161 | | (f) Any eligible member who would be entitled to the commencement of retirement135 |
|---|
| 162 | 162 | | benefits upon reaching age 55 under subsection (b) or (c) of this Code section may elect136 |
|---|
| 163 | 163 | | to retire receive such benefit after reaching the age of 50 but before reaching the age of 55,137 |
|---|
| 164 | 164 | | and immediately commence the drawing of retirement benefits and in that such event the138 |
|---|
| 165 | 165 | | member shall be eligible immediately upon retirement for a reduced monthly pension139 |
|---|
| 166 | 166 | | benefit in an amount determined by multiplying the benefit for which the member would140 |
|---|
| 167 | 167 | | have been otherwise entitled under subsections (b), (c), and (e) of this Code section had the141 |
|---|
| 168 | 168 | | member delayed retirement or the commencement of benefits until the member reached age142 |
|---|
| 169 | 169 | | 55, such benefit to be determined as of the date of the member's actual retirement or first143 |
|---|
| 170 | 170 | | receipt of the monthly retirement benefit by the factor set forth below:144 |
|---|
| 171 | 171 | | S. B. 143 |
|---|
| 172 | 172 | | - 6 - 25 LC 56 0297 |
|---|
| 173 | 173 | | If the Member's Age At Retirement |
|---|
| 174 | 174 | | 145 |
|---|
| 175 | 175 | | (determined by the member's age at the146 |
|---|
| 176 | 176 | | member's immediately preceding147 |
|---|
| 177 | 177 | | birthday) Is:148 |
|---|
| 178 | 178 | | The Early Retirement |
|---|
| 179 | 179 | | Factor Is: |
|---|
| 180 | 180 | | 50 |
|---|
| 181 | 181 | | 149 .70 |
|---|
| 182 | 182 | | 51 |
|---|
| 183 | 183 | | 150 .76 |
|---|
| 184 | 184 | | 52 |
|---|
| 185 | 185 | | 151 .82 |
|---|
| 186 | 186 | | 53 |
|---|
| 187 | 187 | | 152 .88 |
|---|
| 188 | 188 | | 54 |
|---|
| 189 | 189 | | 153 .94 |
|---|
| 190 | 190 | | The option available under this subsection may also be exercised by a surviving spouse |
|---|
| 191 | 191 | | 154 |
|---|
| 192 | 192 | | who is the beneficiary of an Option A election with respect to the benefits payable to the155 |
|---|
| 193 | 193 | | spouse in the event the member dies prior to receiving any benefits and would have been156 |
|---|
| 194 | 194 | | able to exercise the option available under this subsection."157 |
|---|
| 195 | 195 | | SECTION 2.158 |
|---|
| 196 | 196 | | Said article is further amended in Code Section 47-7-101, relating to eligibility for retirement159 |
|---|
| 197 | 197 | | benefits, withdrawal of application for benefits before approval, and reemployment, by160 |
|---|
| 198 | 198 | | revising subsection (b) as follows:161 |
|---|
| 199 | 199 | | "(b) Any person who again becomes a paid employee of a fire department or of a volunteer162 |
|---|
| 200 | 200 | | fire department after having been placed on retirement or disability under Code Section163 |
|---|
| 201 | 201 | | 47-7-100 or 47-7-102 shall immediately notify the executive director of such164 |
|---|
| 202 | 202 | | reemployment. Except as provided in paragraph (1) of subsection (b) of Code Section |
|---|
| 203 | 203 | | 165 |
|---|
| 204 | 204 | | 47-7-100, retirement Retirement benefits being paid to such person shall be suspended as166 |
|---|
| 205 | 205 | | of the date of such reemployment and shall remain suspended until such reemployment167 |
|---|
| 206 | 206 | | terminates at which time the payment of retirement benefits shall be resumed in the amount168 |
|---|
| 207 | 207 | | to which the person was eligible at the time of reemployment. A retired member who has169 |
|---|
| 208 | 208 | | retired under paragraph (2) or (3) of subsection (b) of Code Section 47-7-100, may choose170 |
|---|
| 209 | 209 | | S. B. 143 |
|---|
| 210 | 210 | | - 7 - 25 LC 56 0297 |
|---|
| 211 | 211 | | to pay monthly dues and earn creditable service during the period of reemployment. 171 |
|---|
| 212 | 212 | | Disability benefits being paid to any such person shall be terminated as of the date of such172 |
|---|
| 213 | 213 | | reemployment. Within six months of the commencement of reemployment, any such173 |
|---|
| 214 | 214 | | person who at the time of application otherwise meets the requirements for membership174 |
|---|
| 215 | 215 | | may, by application in the manner provided by this chapter, become a member of the fund. 175 |
|---|
| 216 | 216 | | In the event the application is granted, such member, upon meeting the requirements176 |
|---|
| 217 | 217 | | provided by law, shall be entitled to all benefits provided for in Code Section 47-7-100, but177 |
|---|
| 218 | 218 | | the amount of monthly retirement or disability benefits payable to such member shall not178 |
|---|
| 219 | 219 | | exceed the amount of the monthly benefit which would be payable to such member had179 |
|---|
| 220 | 220 | | such subsequent retirement become effective at the time of the member's prior retirement,180 |
|---|
| 221 | 221 | | unless after such reemployment the member shall have acquired not less than seven years'181 |
|---|
| 222 | 222 | | creditable service as a member of the fund."182 |
|---|
| 223 | 223 | | SECTION 3.183 |
|---|
| 224 | 224 | | Article 7 of Chapter 20 of Title 47 of the Official Code of Georgia Annotated, relating to the184 |
|---|
| 225 | 225 | | "Public Retirement Systems Investment Authority Law," is amended in Code Section185 |
|---|
| 226 | 226 | | 47-20-83, relating to certificated or uncertificated forms of investment and real estate186 |
|---|
| 227 | 227 | | investments, by adding a new paragraph to subsection (b) to read as follows:187 |
|---|
| 228 | 228 | | "(3) Notwithstanding the provisions paragraphs (1), (7), and (9) of subsection (a) of this188 |
|---|
| 229 | 229 | | Code section, the Georgia Firefighters' Pension Fund may invest up to 10 percent of the189 |
|---|
| 230 | 230 | | total assets of its fund in investments in forms of assets rated below investment grade by190 |
|---|
| 231 | 231 | | nationally recognized rating agencies."191 |
|---|
| 232 | 232 | | SECTION 4.192 |
|---|
| 233 | 233 | | Said article is further amended in Code Section 47-20-87, relating to eligible large retirement193 |
|---|
| 234 | 234 | | systems authorized to invest in certain alternative investments, by revising paragraph (1) of194 |
|---|
| 235 | 235 | | subsection (d) as follows:195 |
|---|
| 236 | 236 | | S. B. 143 |
|---|
| 237 | 237 | | - 8 - 25 LC 56 0297 |
|---|
| 238 | 238 | | "(d)(1)(A) Alternative investments by an eligible large retirement system shall not in |
|---|
| 239 | 239 | | 196 |
|---|
| 240 | 240 | | the aggregate exceed 10 percent of the eligible large retirement system's assets at any197 |
|---|
| 241 | 241 | | time.198 |
|---|
| 242 | 242 | | (B) Notwithstanding subparagraph (A) of this paragraph, alternative investments by199 |
|---|
| 243 | 243 | | the Georgia Firefighters' Pension Fund shall not in the aggregate exceed 15 |
|---|
| 244 | 244 | | 20 percent200 |
|---|
| 245 | 245 | | of its assets at any time.201 |
|---|
| 246 | 246 | | (B.1) Notwithstanding subparagraph (A) of this paragraph, alternative investments by202 |
|---|
| 247 | 247 | | the Peace Officers' Annuity and Benefit Fund shall not in the aggregate exceed 15203 |
|---|
| 248 | 248 | | percent of its assets at any time.204 |
|---|
| 249 | 249 | | (C) Notwithstanding subparagraph (A) of this paragraph, the Teachers Retirement205 |
|---|
| 250 | 250 | | System of Georgia shall not in the aggregate exceed 5 percent of such system's assets206 |
|---|
| 251 | 251 | | at any time.207 |
|---|
| 252 | 252 | | (D) Notwithstanding subparagraph (A) of this paragraph, the Employees' Retirement208 |
|---|
| 253 | 253 | | System of Georgia shall not in the aggregate exceed 5 percent of such system's assets209 |
|---|
| 254 | 254 | | at any time."210 |
|---|
| 255 | 255 | | SECTION 5.211 |
|---|
| 256 | 256 | | This Act shall become effective on July 1, 2026, only if it is determined to have been212 |
|---|
| 257 | 257 | | concurrently funded as provided in Chapter 20 of Title 47 of the Official Code of Georgia213 |
|---|
| 258 | 258 | | Annotated, the "Public Retirement Systems Standards Law"; otherwise, this Act shall not214 |
|---|
| 259 | 259 | | become effective and shall be automatically repealed in its entirety on July 1, 2026, as215 |
|---|
| 260 | 260 | | required by subsection (a) of Code Section 47-20-50.216 |
|---|
| 261 | 261 | | SECTION 6.217 |
|---|
| 262 | 262 | | All laws and parts of laws in conflict with this Act are repealed.218 |
|---|
| 263 | 263 | | S. B. 143 |
|---|
| 264 | 264 | | - 9 - |
|---|