From: "Mike Digby" <mike.digby@gcsu.edu>
To: SoLAS Faculty
Subject: FW: FW: ORP Update
Date: Tue, 16 Oct 2007 11:42:14 -0400
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Fyi.
md
From: Craig Turner [mailto:craig.turner@gcsu.edu]
Sent: Tuesday, October 16, 2007 11:40 AM
To: Mike Digby
Subject: Re: FW: ORP Update
Mike
Thanks for the ORP Update, a couple of observations:
* Another bullet point for HB 815 is the striking of the mandated legislative minimum of 4% on the employer contribution.
* Another piece of legislation HB 865 seems to allow the possibility of an ORP participant (in State of Georgia legislativease,
the ORP (Optional Retirement Plan) is called the Regent's Retirement Plan) to "buy in" to the TRS plan.. This piece of
legislation (HB 865) has the same status (Second House Reading) as HB 815
HB 865 is available here: http://www.legis.ga.gov/legis/2007_08/fulltext/hb865.htm
* An archive (including the update below) providing a history of the recent ORP discussions (the University System Committee
as well as previously received information on legislation pertaining to retirment plans) is accessible at
http://info.gcsu.edu/intranet/univ_senate/ORP/
Please feel free to distribute this information more widely.
-craig
At 07:58 AM 10/16/2007, you wrote:
FYI.
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 formembership in the ORP would change from "faculty and principaladministrators" in the current law to "faculty members" and "exemptemployees within the meaning of the Fair Labor Standards Act of1938..." in the proposed legislation. This represents a broadening ofthe pool of eligible employees for those hired on or after July 1,2008.
Effective January 1, 2009, the authority and responsibility forsetting the employer contribution rate for the ORP would shift to theBoard of Regents. (As you are aware, the employer contribution rate iscurrently set by law as a mathematical calculation that is pegged tothe "normal" contribution rate for the Teachers Retirement System ofGeorgia.) With this change, the Board of Regents can better ensure thecompetitiveness of the ORP, within the limits of funding available tothe 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.