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The following is a synopsis of legislation enacted
during the 2007 session of the General Assembly having an effect on the
Employees’ Retirement System (ERS) and/or its members. The laws were
effective July 1, 2007.
Act No. 23
(Senate Bill 156) – All Systems – LC 21 9499S – Balfour, Cowsert,
Hawkins, et al – Non-fiscal - Amends 47-20-10 by adding 47-20-10.1 to
authorize political subdivisions to create retiree health benefit plans
to provide for payment of covered post-employment health care expenses
for eligible present and future retirees and other related expenses for
compliance to Governmental Accounting Standards Board Statements (GASB)
43 and 45.
Act No. 24
(Senate Bill 162) – ERS – LC 21 9238 – Heath, Tate, et al –
Non-fiscal - Amends 47-2-123(c) for those persons
first or again becoming a member of ERS on or after July 1, 2007,
removing the projected service and compensation calculation to age 60 or
65. The disability retirement allowance will be calculated on the
actual years of creditable service at the effective date of retirement.
A member who is eligible for an equivalent service retirement shall not
be eligible to apply for disability retirement. The projected
disability retirement allowance calculation is still applicable to any
person who maintains a current ERS membership date before July 1,
2007.
Act No. 26
(Senate Bill 172) – SB172/SFA/1 – Goggans - Non-Fiscal – Amends code
sections 20-2 and 45-18 to provide that the previously created Georgia
Retiree Health Benefit Fund is a fund available and dedicated for all
funds relating to the coverage of health care expenses and
administrative costs and to further Georgia’s compliance with GASB
Statements 43 and 45.
Act No. 58 (House
Bill 213) – State Agencies – LC 21 9056 – Bridges – Non-Fiscal –
Amends 45-18-2 by repealing in its entirety 45-18-37, relating to
special pay plan for deferred payment of special compensation to reduce
federal tax burden for state employees. According to IRS the payment
of annual leave pay at termination of State employment is not eligible
for rollover and thus the original enacted law was invalid based on
federal statutes. This is housekeeping legislation.
Act No. 43 (House
Bill 318) – Large Systems – HB318/RCSFA – Benton, Coleman, Bridges,
et al –Non-Fiscal -Amends 47-20 83 to allow a large retirement system to
invest 15% of the retirement system assets in corporations or in
obligations of corporations organized in a country other than the United
States or Canada subject to the provisions of paragraph (1) of
subsection (a) of 47-20-83. This is retirement system investment
legislation.
Act No. 61 (House
Bill 448) – ERS/LRS/GJRS – LC 21 9502S – Bridges, Maxwell –
Non-fiscal – Amends 47-2-54, 47-2-334, 47-19-10, and 47-23-29 and 30 in
compliance with GASB Statements 43 and 45 requiring two separate trust
funds be maintained by the retirement system for the group term life
insurance for eligible members of ERS, LRS, and GJRS. Effective June
30, 2007, the trust funds shall be known as the (1) “the retired and
vested inactive members trust fund” and (2) “the active members fund”.
This compliance legislation does not impact the amount of coverage for
members/retirees, such coverage being provided through contract with the
State Employees Assurance Department. | 
