Definitions

As used in this part, the term: (1) ‘‘Actuarial accrued liability’’ means that portion, as determined by a particular actuarial cost method, of the actuarial present value of fund obligations and administrative expenses which is not provided for by future normal costs. (2) ‘‘Actuarial assumptions’’ means assumptions regarding the occurrence of future events affecting costs of the fund such as mortality, withdrawal, disability, and retirement; changes in compensation and offered post-employment benefits; rates of investment earnings and asset appreciation or depreciation; procedures used to determine the actuarial value of assets; and other such relevant items. (3) ‘‘Actuarial cost method’’ means a method for determining the actuarial present value of the obligations and administrative expenses of the fund 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 methods are the aggregate, attained age, entry age, frozen attained age, frozen entry age, and projected unit credit methods. (4) ‘‘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 the fund. (5) ‘‘Actuarially sound’’ means that calculated contributions to the fund are sufficient to pay the full actuarial cost of the fund. The full actuarial cost includes both the normal cost of providing for fund obligations as they accrue in the future and the cost of amortizing the unfunded actuarial accrued liability over a period of no more than 30 years. (6) ‘‘Administrative expenses’’ means all expenses incurred in the operation of the fund, including all investment expenses. (7) ‘‘Annual required contribution’’ means the amount determined in accordance with requirements of Governmental Accounting Standards Board Statement No. 43 or any subsequent Governmental Accounting Standards Board statements that may be applicable to the fund. (8) ‘‘Board’’ means the Board of Community Health. 529 45-18-24 PUBLIC OFFICERS & EMPLOYEES 45-18-24 (9) ‘‘Commissioner’’ means the commissioner of community health. (10) ‘‘Covered health care expenses’’ means all actual health care expenses incurred by the health plan on behalf of fund beneficiaries. Actual health care expenses include claims incurred by fund beneficiaries and providers and premiums incurred by intermediary entities and health care providers by the health plan. (11) ‘‘Department’’ means the Department of Community Health. (12) ‘‘Eligible to participate’’ means employees of employers who are participating in the health plan and those employees of employers who qualify to participate in the health plan but choose not to do so. (13) ‘‘Employer’’ means the entity with which the fund beneficiary had the direct, in the case of employees, or indirect, in the case of dependents, employment relationship that gave rise to the fund beneficiary’s eligibility for post-employment health benefits under the health plan. (14) ‘‘Fund’’ means the Georgia State Employees Post-employment Health Benefit Fund established under this part. (15) ‘‘Fund beneficiaries’’ means all persons receiving post-employment health care benefits as retirees or derivatively through retirees through the health plan. (16) ‘‘Health plan’’ means the state employees’ health insurance plan established under Part 1 of this article. (17) ‘‘Normal cost’’ means that portion of the actuarial present value of the fund obligations and expenses which is allocated to a valuation year by the actuarial cost method used for the fund. (18) ‘‘Obligations’’ means the administrative expenses of the fund and the cost of covered health care expenses incurred on behalf of fund beneficiaries less any amounts received by or on behalf of fund beneficiaries. (19) ‘‘State plan for other post-employment benefits’’ means the State of Georgia fiscal funding plan for retiree post-employment health care benefits as it relates to Governmental Accounting Standards Board Statement No. 43 or any subsequent Governmental Accounting Standards Board statements that may be applicable to the fund. (20) ‘‘Unfunded actuarial accrued liability’’ means for any actuarial valuation the excess of the actuarial accrued liability over the actuarial value of the assets of the fund under an actuarial cost method utilized by the fund for funding purposes. (Code 1981, § 45-18-24, enacted by Ga. L. 2009, p. 49, § 2/SB 122.) 530 45-18-25 EMPLOYEES’ INSUR. & BENEFITS PLANS 45-18-25.1 45-18-25. Creation of Georgia State Employees Post-employment Health Benefit Fund; identification and transfer of funds from Georgia Retiree Health Benefit Fund; how funds used. (a) There is created the Georgia State Employees Post-employment Health Benefit Fund to provide for the costs of post-employment health insurance benefits. The fund shall be a trust fund of public funds; the board in its official capacity shall be the fund’s trustee; and the commissioner in his or her official capacity shall be its administrator. (b) On August 31, 2009, the board shall identify the funds held in the Georgia Retiree Health Benefit Fund created by Article 6 of this chapter for the payment of postretirement health benefits for state employees and shall on that date transfer such funds to the fund created by subsection (a) of this Code section. (c) The fund shall be available and dedicated without fiscal year limitations for covered health care expenses and administration costs. All employer and fund beneficiary contributions, appropriations, earnings, and reserves for the payment of obligations under this part shall be irrevocably credited to the fund. The amounts remaining in the fund, if any, after such health care expenses and administration costs have been paid shall be retained in the fund as a special reserve for covered health care expenses and administration costs. The board shall determine the time and amounts of distributions from the special reserve for covered health care expenses and administration costs. All assets of the fund shall be used solely for the payment of fund obligations and for no other purpose and shall be protected from creditors of the state and the employers. (Code 1981, § 45-18-25, enacted by Ga. L. 2009, p. 49, § 2/SB 122.) 45-18-25.1. Responsibilities and procedures for fund operation; rules and regulations; employment of personnel and professionals; maintenance of records; collection of moneys; report. (a) Responsibility for the proper operation of the fund is vested in the department. (b) The board shall adopt actuarial assumptions as it deems necessary and prudent. (c) The board may adopt any rules and regulations that it finds necessary to properly administer the fund. (d) The board shall adopt rules and regulations to account for employer contributions and other assets separately. 531 45-18-25.1 PUBLIC OFFICERS & EMPLOYEES 45-18-26 (e) The commissioner, as executive officer of the board, shall employ such personnel as may be needed to carry out the provisions of this part and such personnel shall be employees of the department. The pro rata share of the costs of operating the department in the manner prescribed by law shall be a part of the administrative costs of the fund. (f ) The department may employ or contract for the services of actuaries and other professionals as required to carry out the duties established by this part. (g) The department shall contract with the Division of Investment Services of the Employees’ Retirement System of Georgia for any necessary services with respect to fund investments. (h) The department shall maintain all necessary records regarding the fund in accordance with generally accepted accounting principles, as applicable to the fund. (i) The department shall collect all moneys due to the fund and shall pay any administrative expenses necessary and appropriate for the operation of the fund from the fund. (j) The department shall prepare an annual report of fund activities for the board, the House Committee on Appropriations, and the Senate Appropriations Committee. Such reports shall include, but not be limited to, audited financial statements. The reports shall contain the most recent information reasonably available to the department reflecting the obligations of the fund, earnings on investments, and such other information as the board deems necessary and appropriate. This report is due September 30 and shall reflect activity on a state fiscal year basis. (k) Notwithstanding any other provision of law to the contrary, the department shall be entitled to any information that it deems necessary and appropriate from a retirement system in order that the provisions of Code Section 45-18-26 may be carried out. (Code 1981, § 45-18-25.1, enacted by Ga. L. 2009, p. 49, § 2/SB 122.)