Rep. Lehman Franklin’s Legislation Increasing Funds for State’s Public Retirement Systems Signed into Law

State Representative Lehman Franklin (R-Statesboro) recently joined Governor Brian Kemp as he signed House Bill 78, the Public Retirement Systems Investment Authority Law, a measure that raises the limit for the total percentage of funds that the Employees’ Retirement System of Georgia (ERS) and other state retirement systems may invest in alternative investments.

“House Bill 78 represents a significant step forward in strengthening the financial future of Georgia’s public servants,” said Rep. Franklin. “I am grateful to Governor Kemp for his support and for signing this measure into law. HB 78 allows our state’s public retirement systems to raise the cap on the percentage of public retirement system assets that can be invested in alternative investments. Ultimately, this legislation allows the retirement systems to increase their return on investments, raising the amount of money state employees will receive in retirement. Currently, to increase retirement funds, employees must pay more into the system in order for the state to contribute. This bill means greater financial security for retirees without placing an additional financial burden on our state or active employees.”

House Bill 78 increases the cap for the ERS, permitting up to 10 percent of its assets to be invested in alternative investments and the Firefighters’ Pension Fund up to 20 percent.

Additionally, HB 78 allows the Peace Officers’ Annuity and Benefit Funs to invest up to 15 percent and the Teachers Retirement System of Georgia to invest up to five percent of their assets into alternative investments.

The full text of HB 78 may be found here.