GA Code § 47-3-120 (2021)
2021 Georgia Code|Title 47 - Retirement and Pensions|Chapter 3 - Teachers Retirement System of Georgia|Article 7 - Retirement Allowances, Disability Benefits, and Spouses' Benefits|§ 47-3-120. Allowance on Service Retirement; Minimum Retirement Allowance; Reduced Allowance; Increase; Computation of Average Compensation

  Upon service retirement, a member shall receive an allowance which shall consist of:   An annuity which shall be the actuarial equivalent of the member's accumulated contributions at the time of retirement; and   An annual pension which, together with the annuity set forth in paragraph (1) of this subsection, shall provide a total allowance equal to 2 percent of the member's average compensation over the two consecutive years of membership service producing the highest such average, multiplied by the number of the member's years of creditable service, not to exceed 40. The computation of average compensation for the purposes of this paragraph shall be subject to the requirements of subsection (d) of this Code section.     In the case of any member who has less than 30 years of creditable service and if such member has not reached the age of 60 years upon retirement, the service allowance set forth in subsection (a) of this Code section shall be reduced by the lesser of one-twelfth of 7 percent for each month by which his age at the time of retirement is below 60 years or by 7 percent for each year or fraction of a year by which the member has less than 30 years of creditable service at the time of retirement. This reduction shall not apply in calculating the service allowance for disability retirement or death.Any member who retired with 30 or more years of creditable service and whose retirement benefits were reduced because such member retired at an age below the normal retirement age in effect at the time such member retired shall be entitled to an adjusted retirement benefit based upon a calculation made without the application of the age reduction factor. Any member retiring with less than 30 years of creditable service or who has not obtained the age of 60 at the time of retirement shall not become eligible for postretirement benefit adjustments as provided in Code Section 47-3-126 until such time as the member reaches the age of 60 or would have obtained 30 years of creditable service, whichever occurs earlier.   To the extent that the necessary funds are appropriated for such purpose by the General Assembly, the board of trustees shall increase the retirement benefits of beneficiaries under this chapter when the retirement benefit formula provided for in paragraph (2) of subsection (a) of this Code section is changed to result in an increase in retirement benefits. The basis for such increase shall be the average percentage of increase in retirement benefits which results from the change in the retirement benefit formula. This subsection shall apply to all changes in the retirement benefit formula which have become effective since June 30, 1975, and those which may become effective at any time after June 30, 1977, for all beneficiaries under this chapter who retired on or before June 30, 1977. Any member who retires at any time after June 30, 1977, shall receive the benefit adjustment provided for in this subsection only for those changes in the retirement benefit formula which become effective after his retirement. If the General Assembly at any time appropriates some but not all of the funds necessary to fund the benefit adjustments provided for in this subsection, then the benefit adjustment otherwise payable under this subsection shall be reduced pro rata by the board of trustees in accordance with the funds actually appropriated by the General Assembly for such purpose.   No more than two increases in compensation granted during the two consecutive years on which average compensation is based under paragraph (2) of subsection (a) of this Code section shall be considered in the computation of such average compensation. For those members who are not employees of the Board of Regents of the University System of Georgia, that part of any such increase in compensation which exceeds a percentage equal to the average annual increase in compensation granted to classroom teachers by appropriations of the General Assembly, plus 2 1/2 percent of compensation received at the time the annual increase granted by appropriations becomes effective, shall not be considered in the computation of average compensation. For those members who are employees of the Board of Regents of the University System of Georgia, that part of any such increase in compensation which exceeds a percentage equal to the average annual increase in compensation granted to academic personnel employed by said board of regents by appropriations of the General Assembly, plus 2 1/2 percent of compensation received at the time the annual increase granted by appropriations becomes effective, shall not be considered in the computation of average compensation.    (a.1)The minimum allowance to be received by any member upon retirement shall not be less than $17.00 per month for each year of creditable service, not to exceed 40 years of creditable service.   (Ga. L. 1943, p. 640, § 5; Ga. L. 1950, p. 261, § 4; Ga. L. 1961, p. 392, § 2; Ga. L. 1965, p. 208, § 1; Ga. L. 1966, p. 513, § 2; Ga. L. 1966, p. 562, § 1; Ga. L. 1969, p. 384, § 2; Ga. L. 1971, p. 620, § 1; Ga. L. 1972, p. 140, § 2; Ga. L. 1972, p. 896, § 2; Ga. L. 1973, p. 895, § 1; Ga. L. 1974, p. 1141, § 2; Ga. L. 1975, p. 357, §§ 2, 3; Ga. L. 1975, p. 1328, § 1; Ga. L. 1977, p. 599, § 1; Ga. L. 1978, p. 1913, § 1; Ga. L. 1979, p. 1004, § 1; Ga. L. 1980, p. 1562, § 1; Ga. L. 1981, p. 1892, § 1; Ga. L. 1981, p. 1894, § 3; Ga. L. 1982, p. 3, § 47; Ga. L. 1984, p. 1314, §§ 2, 3; Ga. L. 1985, p. 209, § 1; Ga. L. 1986, p. 620, § 1; Ga. L. 1986, p. 1262, § 1; Ga. L. 1989, p. 249, § 1; Ga. L. 1992, p. 2476, § 2; Ga. L. 1993, p. 86, § 1.)   OPINIONS OF THE ATTORNEY GENERAL   Accrued terminal annual leave not included within computation.   - Accrued terminal annual leave paid a teacher following the teacher's last day of service should not be included as salary within the teacher's highest five-year compensation computation for retirement allowance purposes. 1973 Op. Att'y Gen. No. 73-173.   Maximum allowance used in calculating whether retirement benefit greater than disability benefit.    - When a disabled member of the retirement system qualifies for either a service retirement or a disability retirement, the maximum allowance should be used in calculating whether the service retirement benefit is greater than the disability retirement benefit and, then, whichever retirement the member is entitled to, the member may subsequently elect any of the optional plans specified in Ga. L. 1943, p. 640, § 5 (see O.C.G.A. § 47-3-121). 1975 Op. Att'y Gen. No. 75-86.    Meaning of average compensation over two consecutive years  in the statutory formula for computing a retirement allowance is intended to include only compensation received for service within two consecutive years which have been credited to the member as service years towards the member's retirement. 1984 Op. Att'y Gen. No. 84-49.   Teacher not allowed pension based on local retirement fund years.   - If a teacher has 13 years of accrued creditable service under the retirement system acquired before July 1, 1943 (now July 1, 1945), immediately prior to joining a local system, and that teacher applies ten of those years toward a local retirement fund, that retired teacher would have to serve five years of membership service under the retirement system at some time to be eligible for the normal retirement benefits payable on the three years not applied to the local system; also, if this teacher acquires the necessary five years of membership service in order to qualify for the creditation of prior service as a "regular member" of the retirement system, the teacher would be entitled to a benefit based on what would have been the annuity contributions during the ten transferred years had that teacher actually been paying contributions during that period; this teacher, however, would not be entitled to the pension amounts on these ten years applied to the local fund because those amounts must be paid to the local fund. 1950-51 Op. Att'y Gen. No. 75-113.    Former provision providing for minimum "floor" benefits,  see 1975 Op. Att'y Gen. No. 75-27; 1975 Op. Att'y Gen. No. 75-113.