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Committee backs bill letting former legislators buy back service for legislative retirement
Summary
The Senate Retirement Committee voted to advance SB157, which would allow current and former General Assembly members to purchase prior service credit and join the Legislative Retirement System; supporters said an actuarial review found no net fiscal impact to the fund.
The Senate Retirement Committee voted unanimously to advance Senate Bill 157, a measure that would allow current and former members of the General Assembly to become members of the Legislative Retirement System (LRS) by buying back prior service credit.
The committee chair introduced the bill, saying it "allows current and former members of the General Assembly to become a member of the Georgia legislative retirement system and obtain credible service," and that an actuarial study showed the proposal "has no effect" on the system's net fiscal position. He told the committee the buy-back option is aimed at members who served earlier in their careers but did not enroll in the legislative retirement system at the time.
Committee members asked how the provision could be fiscally neutral if participants later draw benefits. One committee member explained the actuarial approach: contributions paid to buy back service are calculated to cover the actuarial cost, using net-present-value discounts so the aggregate effect on the fund can be neutral even while individuals receive the benefit. The chair and members noted that vesting in the LRS occurs at eight years of total service; the bill allows buyback after a shorter prior-service minimum (four years), enabling some returning members to re-enter the system and later become vested.
Supporters pointed to system participation: "222 of the 236 active members of the General Assembly are currently members of the Legislative Retirement System," a presenter said, underscoring that the bill affects a small group of former or returning members who previously opted out. The committee debated the incentives for an individual to buy back service if the buyback cost approximates the actuarial liability, but members concluded the option could still be worthwhile for some individuals.
Senator Davenport moved to report the bill favorably from committee; the motion was seconded and the committee approved the measure by voice vote with no recorded opposition. The chair then moved the agenda to the next item.
