From: Dorothy Leland [mailto:dorothy.leland@gcsu.edu]
Sent: Tuesday, October 16, 2007 12:13 AM
To: Anne Gormly; Faye Gilbert; Linda Irwin-DeVitis; Mike Digby; Sandra K. Gangstead
Subject: FW: ORP Update
 
Please pass this on to your faculty.  Thank you!

Subject: ORP Update

USG Presidents,

Chancellor Davis has heard continuing concern from some campuses over the Optional Retirement Plan (ORP) issue.  We would appreciate your passing along the information below to members of your campus community who may be interested in this matter.

House Bill 815 was introduced during the 2007 session of the General Assembly.  A copy of the proposed legislation can be found at the following site: http://www.legis.ga.gov/legis/2007_08/fulltext/hb815.htm

House Bill 815 proposes two changes to the current ORP law:

• Effective July 1, 2008, the definition of employees eligible for membership in the ORP would change from "faculty and principal administrators" in the current law to "faculty members" and "exempt employees within the meaning of the Fair Labor Standards Act of1938..." in the proposed legislation.  This represents a broadening of the pool of eligible employees for those hired on or after July 1,2008.

• Effective January 1, 2009, the authority and responsibility for setting the employer contribution rate for the ORP would shift to the Board of Regents.  (As you are aware, the employer contribution rate is currently set by law as a mathematical calculation that is pegged to the "normal" contribution rate for the Teachers Retirement System of Georgia.)  With this change, the Board of Regents can better ensure the competitiveness of the ORP, within the limits of funding available to the University System.

Under Georgia law, retirement bills that are judged to have a fiscal impact cannot be acted upon in the first session of the two-year legislative term.  They must receive an actuarial study and be held over until the second year for action.  The House and Senate Retirement Committees voted to do the actuarial study of House Bill 815.  House Bill 815 will, therefore, be eligible for action in the 2008 legislative session.

The bill has the support of the Governor's Office and a number of key legislative leaders.  We are actively educating legislators about the importance of this legislation and will keep you informed of developments as the legislative process proceeds.