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Committee advances bill moving tax-tribunal judge's retirement coverage from ERS to JRS
Summary
The Senate retirement committee voted to advance House Bill 818 (LC 560391), which moves the retirement coverage of a tax-tribunal judge from the Employees' Retirement System to the Judicial Retirement System; the committee was told the fiscal impact is about $498,000 in present value and the annual effect is negligible.
A Georgia State Senate retirement committee on March 24 voted to advance House Bill 818 (LC 560391), which moves the retirement coverage of a tax-tribunal judge who now sits in the judicial branch from the Employees' Retirement System (ERS) into the Judicial Retirement System (JRS).
The bill completes a multi-session process that began with a constitutional amendment (HR 598) approving the transfer of the tax tribunal to the judicial branch and subsequent implementing legislation (HB 1267). The committee was told the judge recently sworn in would be covered by JRS under the new provision, while staff who support the position would remain in ERS.
Committee members focused on the fiscal effect. An ERS executive director identified in the record as Mr. Potam clarified that the figure in the bill paperwork—"498" on an exhibit—represents $498,000 when the back page note that "all amounts are in the thousands of dollars" is applied. "I believe the 498 is 498,000," he said, explaining the number represents the present value of transferred contributions plus expected future earnings, and that the liability is advertised over a period of years.
Senator Huffetler pressed for clarity, saying, "I'm trying to wrap my brain around that," and committee discussion established that the change shifts both assets and liabilities: the individual's ERS contributions would move to JRS, reducing ERS assets while removing the corresponding liability. Staff told the committee that, on an annual basis, the advertised amount spreads over roughly 20 years and is negligible to ERS's overall actuarial funded percentage.
The bill also includes a requirement that the individual pay any actuarial costs necessary "to bring them up to that level" when entering JRS, according to committee discussion.
A motion to "do pass" was made by Senator McLaren and seconded by Senator Goodman; the committee approved the motion by voice vote. Senator Sean Steel was named to carry the House bill in the Senate.
The committee record shows the legislation moves retirement coverage for current and future tax-tribunal judges into JRS; staff, funding-ratio impacts and the precise actuarial calculations were described in the bill exhibits and by ERS staff during questioning. The committee adjourned with the bill advanced to the next stage.
