Committee backs changes to Magistrate Retirement Fund: multiplier raised to 5% and service cap extended to 28 years

The committee unanimously recommended a 'do pass' for LC560697s (Senate Bill 261), which would adjust several internal elements of the Magistrate Retirement Fund, including raising the benefit multiplier from 4% to 5% and extending service accruals from 20 to 28 years.

Norman, a presenter for the fund, told the committee the fund covers roughly 200 members with about $55 million in assets and a funding ratio he described as about 140%. He said the fund is fully funded, receives no state appropriation, and is supported by its members and board. "They're not asking us for any state money," Norman said, arguing that the bill makes administrative changes requested by members.

Bridal Murphy, who identified himself as chief magistrate judge in Cobb County and vice chair of the retirement fund board, explained the fund's conservative founding and the rationale for the changes: allowing elected magistrates who have reached 20 years to continue accruing up to 28 years and increasing the multiplier to align magistrate benefits more closely with probate judges.

A committee member raised concern that, on paper, a 5% multiplier could appear to allow a retiree to receive a pension greater than current salary. Bridal Murphy responded that the pay chart used to calculate benefits is based on state mandatory minimums from 20 years ago, and current salaries are higher; therefore it is unlikely that actual benefits would exceed current pay. Committee staff described estimated funded ratios before and after the substitute as approximately 147% and 128%, respectively.

Vice Chair (S5) moved the bill for a do-pass recommendation and the committee approved it by voice vote with unanimous assent from members present and online.

The committee agreed to advance the bill to the next procedural step toward the floor.