Bill Text: GA HB1223 | 2009-2010 | Regular Session | Introduced

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Bill Title: State Employees' Assurance Department; group term life insurance; provisions

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2010-03-08 - House Second Readers [HB1223 Detail]

Download: Georgia-2009-HB1223-Introduced.html

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10 LC 21 0589

House Bill 1223

By: Representative Maxwell of the 17th

A BILL TO BE ENTITLED
AN ACT

To amend Title 47 of the Official Code of Georgia Annotated, relating to retirement and pensions, so as to provide that the State Employees' Assurance Department may insure, reinsure, or otherwise contract for assumption of liabilities in regard to its undertakings to provide group term life insurance for members of the Employees' Retirement System of Georgia, the Georgia Legislative Retirement System, and the Georgia Judicial Retirement System; to provide for obligations of the department; to provide for the return of funds to such retirement systems; to provide that the boards of trustees of such retirement systems shall dispose of such funds in a certain manner; to provide for related matters; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

Title 47 of the Official Code of Georgia Annotated, relating to retirement and pensions, is amended by revising Code Section 47-2-129, relating to group term life insurance protection as part of survivors benefits program, as follows:

"47-2-129.

(a) The board of trustees may provide group term life insurance protection for the members of the retirement system as the survivors benefits program provided for in Code Section 47-2-128 by contracting for such service with the State Employees' Assurance Department or any insurance company licensed to operate in Georgia, which company has experience in the underwriting of groups similar in size and type of coverage. Such contract must provide benefits to those persons entitled to benefits under Code Section 47-2-128. All or any part of funds and other assets previously accumulated for the purposes of Code Section 47-2-128 may be used by the board of trustees in the execution of this contract. Contributions for such coverage shall be provided for and collected as set forth in subsection (d) of Code Section 47-2-128.

(b) In the event the State Employees' Assurance Department transfers funds to this retirement system as provided in Code Section 47-19-10, the board of trustees shall ensure that sufficient funds are retained to satisfy all remaining liabilities relating to the survivors benefit program not otherwise accounted for; then, upon the advice of the actuary for the fund the board of trustees may deposit such funds in the pension accumulation fund or provide such discretionary benefit to members as allowed by law, within the sole discretion of the board of trustees; provided, however, that in the event federal cost accounting principles, some other requirement of federal financial assistance, or some other controlling law requires a different disposition of funds, the board of trustees shall provide for disposition in compliance with such requirement."

SECTION 2.

Said title is further amended by adding a new Code section to read as follows:

"47-6-26.

In the event the State Employees' Assurance Department transfers funds to this retirement system as provided in Code Section 47-19-10, the board of trustees shall ensure that sufficient funds are retained to satisfy all remaining liabilities relating to the survivors benefit program not otherwise accounted for; then, upon the advice of the actuary for the fund the board of trustees may deposit such funds in the pension accumulation fund or provide such discretionary benefit to members as allowed by law, within the sole discretion of the board of trustees; provided, however, that in the event federal cost accounting principles, some other requirement of federal financial assistance, or some other controlling law requires a different disposition of funds, the board of trustees shall provide for disposition in compliance with such requirement."

SECTION 3.

Said title is further amended by adding a new Code section to read as follows:

"47-19-11.

(a) As used in this Code section, the term:

(1) 'Board' means the board of trustees of the department.

(2) 'Department' means the State Employees' Assurance Department.

(3) 'Participating retirement system' means the Employees' Retirement System of Georgia, the Georgia Legislative Retirement System, and the Georgia Judicial Retirement System.

(b) Upon the approval of the board of trustees of each participating retirement system, the department may insure, reinsure, or otherwise contract for assumption of liabilities in regard to its undertakings to provide group term life insurance. The department shall provide for active members separately from retired and vested inactive members and may provide for one group by this method and not the other. The department may negotiate or competitively procure any such contract or contracts under such procedures and under terms and conditions as it determines appropriate without necessity of compliance with Article 3 of Chapter 5 of Title 50; provided, however, that the terms of any such contract shall be approved by the board of trustees of each participating retirement system. The board shall establish procedures for determining and qualifying the financial soundness and reliability of vendors.

(c)(1) The department may pay for the assumption of liabilities in regard to active members from the active members fund provided for in paragraph (2) of subsection (b) of Code Section 47-19-10 and from funds received from the participating retirement systems.

(2) The department may pay for the assumption of liabilities in regard to retired and vested inactive members from the retired and vested inactive members trust fund provided for in paragraph (1) of subsection (b) of Code Section 47-19-10 and from funds made available by the board of trustees of the participating retirement systems.

(d) The department shall establish such reserves in the active members fund and in the retired and vested inactive members trust fund as it deems necessary for its obligations on the advice of its actuaries and the approval of the boards of trustees of each of the retirement systems whose members participate in the group term life insurance program. The department shall transfer any funds in excess of reserves to the board of trustees of the participating retirement systems on a per capita basis."

SECTION 4.

Said title is further amended by revising Code Section 47-23-29, relating to survivors benefits under the Georgia Judicial Retirement System, by adding a new subsection to read as follows:

"(g) In the event the State Employees' Assurance Department transfers funds to this retirement system as provided in Code Section 47-19-10, the board of trustees shall ensure that sufficient funds are retained to satisfy all remaining liabilities relating to the survivors benefit program not otherwise accounted for; then, upon the advice of the actuary for the fund the board of trustees may deposit such funds in the pension accumulation fund or provide such discretionary benefit to members as allowed by law, within the sole discretion of the board of trustees; provided, however, that in the event federal cost accounting principles, some other requirement of federal financial assistance, or some other controlling law requires a different disposition of funds, the board of trustees shall provide for disposition in compliance with such requirement."

SECTION 5.

All laws and parts of laws in conflict with this Act are repealed.