ERSGA and the Current Economic Situation
Many members are concerned about whether the retirement fund of the state of Georgia plans is in danger. The short answer is that the fund is not in danger. The fund is a defined benefit plan, which provides a set benefit regardless what the securities markets do. Georgia’s Constitution requires the state to fund the retirement fund to keep it actuarially sound so that retiree’s benefits will be paid.
The market turbulence over the past year is troubling, but we have endured similar periods in the past. It is important to recognize and remember that the time horizon of the fund’s investment portfolio can be measured in decades, not days, weeks or months. Much attention is paid to what is happening at the current time, but the goal is to use periods of market fear and exuberance to the fund’s long-term advantage.
For more information, please see your Plan's Actuarial Report* (located in your Plan's section of the web site) and our 2012 Comprehensive Annual Financial Report*.
NEW! 2013 COLA Information
During the annual board meetings held on April 18, 2013, all boards voted against providing a COLA for fiscal year 2014 to retirees of ERS, PSERS, LRS and JRS. The Board made the decision after reviewing the current and future financial status of the plans, active employee raise amounts and equality within the plans under their control.
Recent History of COLAs ERS FY13 No COLAs granted FY12 No COLAs granted FY11 No COLAs granted FY10 A bonus of 1.5% of their annual benefit payable October 2009 – this was a one-time check not compounded on the monthly benefit FY09 A total of 2% was granted (1% payable July 2008 and 1% January 2009) FY08 A total of 2% was granted (1.5% payable July 2007 and .5% January 2008) FY07 A total of 3% was granted (1.5% payable July 2006 and 1.5% January 2007) LRS FY13 No COLAs granted FY12 No COLAs granted FY11 No COLAs granted FY10 A total of 3% was granted (1.5% payable July 2009 and 1.5% January 2010) FY09 A total of 3% was granted (1.5% payable July 2008 and 1.5% January 2009) FY08 A total of 3% was granted (1.5% payable July 2007 and 1.5% January 2008) FY07 A total of 3% was granted (1.5% payable July 2006 and 1.5% January 2007) PSERS FY13 No COLAs granted FY12 No COLAs granted FY11 No COLAs granted FY10 A total of 3% was granted (1.5% payable July 2009 and 1.5% January 2010) FY09 A total of 3%was granted (1.5% payable July 2008 and January 2009) FY08 A total of 3% was granted (1.5% payable July 2007 and 1.5% January 2008) FY07 A total of 3% was granted (1.5% payable July 2006 and 1.5% January 2007) JRS FY13 No COLAs granted FY12 No COLAs granted FY11 No COLAs granted FY10 A bonus of 1.5% of their annual benefit payable October 2009 – this was a one-time check not compounded on the monthly benefit FY09 FY09 – A total of 1.5% effective July 1, 2008 for the fiscal year FY08 A total of 3% was granted (1.5% payable July 2007 and 1.5% January 2008) FY17 A total of 3% was granted (1.5% payable July 2006 and 1.5% January 2007) COLA EligibilityYou must be retired for at least seven months before you are eligible to receive a COLA or one-time bonus. If you retired early - under age 60 and with more than 25 years of service but less than 30 years - you are not eligible to receive a COLA until you either turn 60 years old or would have 30 years service had you continued working, whichever is earlier.PSERS retirees must be retired for one month to be eligible for COLAs. PSERS beneficiaries must be at least age 45 to receive COLAs. Other retirement plan retirees must be at least age 45 and retired for seven months to be eligible for COLAs. There is no age requirement for disability retirees. *These documents require Adobe Reader software. Click the icon below to download this free software. The files are large and may take some time to download.