Senators Bill Heath (R-Bremen) and Judson Hill (R-Marietta) are two primary sponsors of retirement bills that PAGE is opposing.

The first, SB 80, would permit millions of dollars in ERS retirement funds to be invested in risky venture capital plans.  The ERS retirement fund includes school support personnel such as custodians, food service staff and paraprofessionals. These �investments� include leveraged buyout funds, mezzanine funds, workout funds, debt funds, funds of funds and secondary funds, recapitalizations, privatizations, and distressed debt.

We are opposing SB 80 because we do not believe anyone�s retirement funds should be placed in such risky investments. We also believe that investing ERS funds is the first step toward investing TRS funds.

SB 240 would ultimately replace the existing TRS system with a voluntary privatized system similar to a 401K plan. Contributions would go into the plan of the member�s choice to be invested by the educator. Educators who opted to leave the TRS system would never again be permitted to rejoin it.  The bill contains no provisions to study in advance the feasibility or even the advisability of privatizing one of the nation�s strongest retirement systems.

We encourage you to contact Senator Heath and Senator Hill to share your views on these two bills:

Senator Bill Heath                                    

Phone: (404) 651-7738

billheath@billheath.net

Senator Judson Hill

Phone: (404) 656-0150

judson.hill@senate.ga.gov

PAGE is also opposing SB 160 which would eliminate the 3% income tax offset for educators who retire before age 62 after July 1, 2007.