Georgia Governor Brian Kemp has signed House Bill 78 into law, marking a significant advancement in the investment framework for the state’s public retirement systems. Pushed forward by State Representative Lehman Franklin, the measure, known as the Public Retirement Systems Investment Authority Law, is set to optimize financial stability for these systems. The bill raises the cap on the percentage of assets that public retirement systems can allocate to alternative investments, a move believed to enhance future retirement security.
Under HB 78, the Employees’ Retirement System of Georgia may now channel up to 10% of its assets into alternative investments, while the Firefighters’ Pension Fund is allowed up to 20%. The Peace Officers’ Annuity and Benefit Fund can invest as much as 15%, and the Teachers Retirement System of Georgia has a cap set at 5%. This strategic adjustment aims to improve investment returns, thereby increasing available funds for retirees, without imposing additional financial obligations on state employees or the government itself.
Representative Franklin, who represents District 160, underscores this legislative effort as aligned with ensuring robust financial futures for public servants within his constituency. The passage of HB 78 also reflects broader national trends toward adopting more flexible investment strategies in public retirement systems. By aligning asset management strategies with broader markets, Georgia is poised to better sustain and potentially enhance benefits for its retirees, underscoring the state’s commitment to safeguarding public sector retirement funds.
