Title 47, Chapter 20, Section 3
As used in this chapter, the term:
(1) "Accumulated retirement system benefits" means benefits that
are attributable under the provisions of a retirement system to
employees' service rendered to a specific valuation date.
(2) "Actuarial accrued liability" means that portion, as
determined by a particular actuarial cost method, of the actuarial
present value of retirement system benefits and expenses which is
not provided for by future normal costs.
(3) "Actuarial assumptions" means assumptions as to the occurrence
of future events affecting retirement system costs such as:
mortality, withdrawal, disability, and retirement; changes in
compensation and national pension benefits; rates of investment
earnings and asset appreciation or depreciation; procedures used
to determine the actuarial value of assets; and other relevant
(4) "Actuarial cost method" means a procedure for determining the
actuarial present value of retirement system benefits and expenses
and for developing an actuarially equivalent allocation of such
value to time periods, usually in the form of a normal cost and an
actuarial accrued liability. Acceptable actuarial cost methods are
the aggregate, attained age, entry age, frozen attained age,
frozen entry age, and unit credit methods.
(5) "Actuarial present value" means the value of an amount or
series of amounts payable or receivable at various times from a
retirement system, determined as of a given date by the
application of a particular set of actuarial assumptions.
(6) "Actuarial present value of accumulated retirement system
benefits" means the amount as of a valuation date that results
from applying actuarial assumptions to the accumulated retirement
system benefits, with the actuarial assumptions being used to
adjust those benefits to reflect the time value of money, through
discounts for interest, and the probability of payment, by means
of decrements such as for death, disability, withdrawal, or
retirement, between the valuation date and the expected date of
(7) "Actuarial valuation" means the determination, as of a
valuation date, of the normal cost, actuarial accrued liability,
actuarial value of assets, and related actuarial present values
for a retirement system.
(8) "Actuarial value of assets" means the value of cash,
investments, and other property belonging to a retirement system,
as used by the actuary for the purpose of an actuarial valuation.
(9) "Actuary" means an actuary who is enrolled under Subtitle C of
Title III of the federal Employee Retirement Income Security Act
of 1974, P.L. 93-406.
(10) "Amortization contribution" means the excess in total
employer and employee contributions over normal cost.
(10.1) "Annual required contribution" means the annual required
contribution determined in accordance with the requirements of
Governmental Accounting Standards Board Statements No. 25 and No.
27 or any subsequent applicable Governmental Accounting Standards
(11) "Beneficiary" means a person receiving or entitled to receive
a benefit pursuant to a retirement system.
(12) "Benefit" means any benefit, including disability benefits,
which is paid or payable to a beneficiary under a retirement
(13) "Benefit increase" means a change in or amendment to a
retirement system which results or will result in an increase in
the benefits being paid or which will be paid to a beneficiary or
potential beneficiary under a retirement system and includes any
change in a retirement system which decreases the requirements for
becoming eligible to receive a benefit and any change which grants
or authorizes a member or members of a retirement system to obtain
additional creditable service under the retirement system for
service rendered in a capacity other than as a member of the
(14) "Employee" means officials and employees of the state or of
any department, board, bureau, commission, authority, or other
agency thereof and the officials and employees of a political
subdivision or any agency thereof who are or who become members of
a retirement system.
(15) "Employee contribution" means that part of the compensation
of an employee which is paid by or on behalf of an employee as a
contribution to a retirement system.
(16) "Employer" means the State of Georgia for any retirement
system financially supported in whole or in part by appropriations
made by the General Assembly, by the proceeds of a tax levied by
law enacted by the General Assembly, or by fines and forfeitures
or portions of fines and designated by law as a source of funding
for a retirement system; and, for any retirement system supported
in whole or in part by the funds of a political subdivision,
"employer" means the local governing authority authorizing or
providing for the local retirement system.
(17) "Employer contribution" means:
(A) Funds paid by an employer to support financially a
(B) Public funds, whether by taxes, fines and forfeitures, or
other sources, devoted to the financial support of a retirement
(C) Any other funds, other than employee contributions, used to
support financially a retirement system.
(18) "Legislatively controlled retirement system" means a
retirement system in existence on January 1, 1984, which was
created by an Act of the General Assembly and which may be amended
only by an Act of the General Assembly.
(19) "Local governing authority" means the council, board of
aldermen, board of commissioners, commissioner, local board of
education, or other person or body of persons entrusted by law
with the administration, management, and control of the fiscal
affairs of a political subdivision.
(19.1) "Negative unfunded actuarial accrued liability" means for
any actuarial valuation the excess of actuarial value of assets
over the actual accrued liability of a retirement system under an
actuarial cost method utilized by the retirement system for
(20) "Normal cost" means that portion of the actuarial present
value of a retirement system benefits and expenses which is
allocated to a valuation year by the actuarial cost method used
for the retirement system.
(21) "Political subdivision" means any county, municipality, or
local school district of this state or any authority created for
or on behalf of any such political subdivision or created for or
on behalf of any combination of such political subdivisions.
(22) "Retirement bill" means any bill or resolution introduced
into the General Assembly which creates or affects a retirement
(23) "Retirement system" means any retirement or pension plan or
any other plan or program which exists on January 1, 1984, or
which is created or established on or after that date, and which
is maintained by an employer or maintained pursuant to law or
other authority of an employer for the purpose of paying benefits
to employees or their beneficiaries after employees cease active
employment by retirement, disability, death, or other termination.
The term "retirement system" shall include any plan or program
which creates a retired position, commonly referred to as
"emeritus," and provides a salary for the retired position in lieu
of a retirement benefit. The term "retirement system" shall not
include an individual retirement account or other plan which
provides for an individual account for each participant and for
benefits based solely upon the amount contributed to the
participant's account and any income, expenses, gains, and losses
and any forfeitures of accounts of other participants which may be
allocated to a participant's account.
(24) "Retirement system administrator" means the board of trustees
or other body or individual having responsibility, either by law
or by other authority of an employer, for the management and
administration of a retirement system.
(25) "Unfunded actuarial accrued liability" means for any
actuarial valuation the excess of the actuarial accrued liability
over the actuarial value of the assets of a retirement system
under an actuarial cost method utilized by the retirement system
for funding purposes.