(a)As used in this Code section, the term "large retirement system" means:
(1)Any retirement system created by this title which has an accumulated unfunded actuarial accrued liability not greater than 25 percent of the total of its assets;
(2)The Georgia Municipal Employees Benefit System created by Chapter 5 of this title;
(3)Any association of like political subdivisions which, on, before, or after July 1, 1999, contracts with its members for the pooling of assets;
(4)Any public retirement system other than a retirement system defined in paragraphs (1), (2), and (3) of this subsection which meets the following criteria:
(A)The retirement system has:
(i)An accumulated unfunded actuarial liability not greater than 25 percent of the total of its assets; or (ii) Assets in excess of $5
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(a) As used in this Code section, the term "large retirement system" means: (1) Any retirement system created by this title which has an accumulated unfunded actuarial accrued liability not greater than 25 percent of the total of its assets; (2) The Georgia Municipal Employees Benefit System created by Chapter 5 of this title; (3) Any association of like political subdivisions which, on, before, or after July 1, 1999, contracts with its members for the pooling of assets; (4) Any public retirement system other than a retirement system defined in paragraphs (1), (2), and (3) of this subsection which meets the following criteria: (A) The retirement system has: (i) An accumulated unfunded actuarial liability not greater than 25 percent of the total of its assets; or (ii) Assets in excess of $50 million and an accumulated unfunded actuarial liability not greater than 30 percent of the total of its assets; (B) The retirement system provides a defined benefit plan; (C) The retirement system investments are managed by one or more independent professional investment managers recognized by the National Association of Securities Dealers and the United States Securities and Exchange Commission and which adhere to the code of ethical standards and conduct of the Association for Investment Management and Research; and (D) The retirement system investments are limited to those equities of investment grade quality or better, provided that leverage techniques, option techniques, futures, commodities, private placements, and direct participation plans may not be used in making equity investments; and (5) Any public retirement system which has more than $200 million in assets. (b) A large retirement system may invest in corporations or in obligations of corporations organized in a country other than the United States or Canada subject to the provisions of paragraph (1) of subsection (a) of Code Section 47-20-83 . (c) A fund shall not invest more than 55 percent of retirement system assets in equities; provided, however, that prior to July 1, 2010, a large retirement system shall invest not more than 65 percent of its assets in equities; on and after July 1, 2010, a large retirement system shall invest not more than 70 percent of its assets in equities; and on and after July 1, 2011, a large retirement system shall invest not more than 75 percent of its assets in equities; provided, further, that no fund shall increase its assets in equities through purchase by more than 20 percent in any fiscal year. Any fund which is not in compliance with the limitations imposed by this subsection shall be granted a two-year period to come into compliance; provided, however, that during such two-year period, the fund shall not increase the percentage of its assets invested in equities. (d) Subject to all other limitations in this chapter, a large retirement system may invest in securities issued by a unit investment trust or an open-end company: (1) That is listed on a securities exchange; (2) The assets of which consist of securities managed so that the fund replicates a listed index or specific market sector; (3) In which continuous markets are quoted by market makers in the applicable unit investment trust or open-end company; and (4) That has the capability of creating or redeeming shares as necessary to reflect demand. (e) A large retirement system may enter into contracts, agreements, and other instruments designed to manage risk exposure.