Georgia Senate Bill SB198

Georgia 2025-2026 Regular Session

• Introduced: 2/19/25
• Refer: 2/20/25

Caption

Georgia Legislative Retirement System; board of trustees of the system to increase benefit multipliers for members; provide

Impact

If implemented, this bill would lead to significant alterations in how retirement benefits are calculated for members of the Georgia Legislative Retirement System. Members who joined after 2009 would also be eligible for these increases, which could be a point of contention for existing members who have been awaiting such adjustments. The requirement for the board to ensure a funded ratio of at least 120 percent aims to prevent future shortfalls and ensures the retirement benefits remain sustainable in the long term.

Summary

SB198 aims to amend the Georgia Legislative Retirement System by allowing the board of trustees to increase benefit multipliers for members, which directly affects the calculation of their monthly retirement allowances. The bill stipulates that the system must maintain a minimum funded ratio of 120 percent, ensuring its financial stability. It introduces conditions under which these increases can be made and places a proportional increase on employee contributions to maintain equilibrium within the system's funding framework.

Contention

Notably, there may be disagreement surrounding the automatic contribution increases tied to the benefit multiplier raises. Critics may argue that this added financial burden could deter new members or affect their retention. Additionally, some may question the rationale behind the 120 percent threshold for funding, as this could be viewed as a stringent requirement that complicates benefit management during times of economic downturn or market fluctuations. The reaction from different stakeholder groups, particularly concerning fairness and adequacy of funding, is likely to shape the ongoing discussions around this legislation.