(a) As used in this Code section, the term:

(1) "Continuous service" means active continuous employment in the county school system interrupted only by a leave duly authorized and granted by the county school system.

(2) "County" means any county of this state having a population of 550,000 or more according to the United States decennial census of 1980 or any future such census.

(3) "County school system" means the local school system of a county.

(4) "Local retirement fund" means a local retirement fund covering teachers employed by a county school system.

(5) "Teacher" means any teacher as defined by paragraph (28) of Code Section 47-3-1 who is employed by a county school system.

(6) "Transferred teacher" means a teacher who is transferred from membership in a local retirement fund to membership in the Teachers Retirement System of Georgia by subsection (c) of this Code section.

(b) Any teacher who becomes employed by a county school system on or after July 1, 1988, shall become a member of the retirement system as a condition of employment, and such teacher shall not be eligible for membership in a local retirement fund.

(c) Effective on July 1, 1988, all teachers who are actively employed by a county school system on that date and who were so employed prior to that date and who are enrolled on that date under the local retirement fund in a retirement plan with an effective date on or after April 1, 1962, shall be transferred to and become members of the Teachers Retirement System of Georgia and, subject to the provisions of subsection (d) of this Code section, shall cease to be members of the local retirement fund, except that any such teacher who has previously retired from the Teachers Retirement System of Georgia shall be excluded from such transfer. Each such transferred teacher shall receive creditable service under the Teachers Retirement System of Georgia equivalent to the creditable service the teacher had under the local retirement fund as of July 1, 1988, provided that creditable service shall not be granted for service which would not be allowable as creditable service under the Teachers Retirement System of Georgia.

(d) If the benefit which becomes payable to a transferred teacher upon the teacher's retirement or to another beneficiary of a transferred teacher is less under this retirement system than it would have been under the local retirement fund had membership in the local retirement fund continued, then the fiscal authority or other governing body, by whatever name designated, of the local retirement fund shall pay to the retired transferred teacher or to the other beneficiary of such a teacher an additional benefit equal to the amount by which the benefit which would be payable under the local retirement fund exceeds the benefit which becomes payable under this retirement system, with the benefit under this retirement system being computed for purposes of this Code section as if the teacher had retired with a retirement allowance determined under Code Section 47-3-120. The calculation of the additional benefit, if any, which is to be paid by the local retirement fund under this subsection shall be based on the rights that a transferred teacher had under the local retirement fund on June 30, 1988, plus rights which would have accrued under the local retirement fund after that date only for continuous service as a teacher in the employ of the county school system; provided, however, that any change made in the local retirement fund after that date shall not be considered in the determination of such rights; provided, further, that any amendment to any such local retirement fund made after June 30, 1988, which provides for the calculation of benefits on a nine-month basis, provides for optional spouses' benefits, or provides for the continuation of spouses' benefits after remarriage shall be considered in the determination of such rights. The benefits payable under this subsection shall be made only if the transferred teacher shall have timely paid to the local retirement fund all amounts which such teacher would have paid to such fund, had he or she continued to be a member of such fund, less such amounts as were actually paid to the Teachers Retirement System of Georgia by or on behalf of such teacher.

(d.1) Until such time as the rate of employee contribution required of all members of the Teachers Retirement System of Georgia shall be increased, no transferred teacher who remains in the employ of the county school system shall be required to pay any greater percentage of the teacher's salary to the Teachers Retirement System of Georgia than such transferred teacher would have been required to pay to the local retirement fund had such teacher remained a member of the local retirement fund. In the event that a contribution in excess of such amount shall be required by the Teachers Retirement System of Georgia, such excess contribution shall be made by the county school system; provided, however, that any increase in the rate of employee contribution required of all members of the Teachers Retirement System of Georgia after July 1, 1988, shall be paid for by the transferred teacher.

(e)(1) For each transferred teacher, the fiscal authority or other governing body, by whatever name designated, of the local retirement fund shall pay to the board of trustees the amount of employee contributions which would have been paid by the teacher to the retirement system had the teacher been a member of the retirement system during the period of creditable service established pursuant to subsection (c) of this Code section, plus applicable accrued regular interest thereon, as determined by the board of trustees, to the date of payment.

(2) The board of trustees shall make the determination of the amount to be paid to the board under paragraph (1) of this subsection and the fiscal authority or other governing body, by whatever name designated, of the local retirement fund shall pay the amount so determined to the board of trustees by not later than August 1, 1988.

(e.1)(1) Any excess employee contributions paid to the Teachers Retirement System of Georgia pursuant to the provisions of subsection (d.1) of this Code section shall be paid into the pension accumulation fund and shall not constitute "accumulated contributions" within the meaning of paragraph (1) of Code Section 47-3-1 or for the purposes of Code Section 47-3-128. (2) From the funds paid to the board of trustees pursuant to the provisions of subsection (e) of this Code section, that portion thereof representing employee contributions paid to the local retirement fund by the transferred teacher shall be paid into the annuity savings fund and shall constitute "accumulated contributions" within the meaning of paragraph (1) of Code Section 47-3-1 and for the purposes of Code Section 47-3-128; and the remaining portion shall be paid into the pension accumulation fund and shall have the same status as excess employee contributions described in paragraph (1) of this subsection.

(3) The board of trustees shall keep appropriate records to identify the funds paid into the pension accumulation fund pursuant to paragraphs (1) and (2) of this subsection. In the event a transferred teacher ceases to be a member of the Teachers Retirement System of Georgia and withdraws accumulated contributions pursuant to the provisions of Code Section 47-3-128, the board of trustees shall refund to the county school system an amount equal to the funds paid into the pension accumulation fund pursuant to paragraphs (1) and (2) of this subsection plus regular interest on that amount.

(e.2)(1) If a transferred teacher who has maintained continuous service with the county school system or a beneficiary of such a transferred teacher does not qualify to receive a monthly benefit under this retirement system but would be qualified to receive a monthly benefit under the local retirement fund if the transferred teacher's membership in the local retirement fund had continued, such transferred teacher or the beneficiary of such transferred teacher may elect to receive a monthly benefit under the provisions of subsection (d) of this Code section. If such transferred teacher or a beneficiary of such transferred teacher thereafter qualifies to receive a monthly benefit under this retirement system, the amount payable to the transferred teacher or beneficiary under subsection (d) of this Code section shall be reduced accordingly.

(2) A transferred teacher or a beneficiary of a transferred teacher who makes the election provided for in paragraph (1) of this subsection shall not be entitled to a refund of the accumulated contributions which have been credited to the transferred teacher's account at the time of said election. If such a transferred teacher subsequently returns to active service, this paragraph shall not apply to accumulated contributions credited to the transferred teacher's account after returning to active service.

(3) If a transferred teacher who makes the election provided for in paragraph (1) of this subsection does not at any time thereafter qualify to receive a monthly benefit under this retirement system and if no beneficiary of the transferred teacher is qualified to receive a monthly benefit under this retirement system upon the death of the transferred teacher, then upon the death of such transferred teacher, the board of trustees shall pay to the county school system an amount equal to the accumulated contributions of the deceased transferred teacher and an amount equal to the funds paid into the pension accumulation fund pursuant to paragraphs (1) and (2) of subsection (e.1) of this Code section, plus regular interest on that amount. The board of trustees shall maintain such records as may be necessary to comply with the provisions of this paragraph.

(f) The fiscal authority or other governing body, by whatever name designated, of the local retirement fund or the county school system, or both, or their successors in interest, shall be empowered and shall have the duty to pay to the board of trustees an amount of employer contributions for transferred teachers (not less than zero) actuarially determined by the board of trustees under the following formula:

A = B - ((C / D) x E)

A = Amount of employer contributions payable to the board of trustees under this subsection.

B = Unfunded accrued liability, determined as of June 30, 1988, of transferred teachers and determined on the basis of the same methods and assumptions used in preparing the regular annual actuarial evaluation, except that the value of the assets of the retirement system shall be determined on the greater of market value or book value of such assets, as if such transferred teachers had been members of the retirement system on June 30, 1988, less the payment made to the board of trustees pursuant to subsection (e) of this Code section.

C = Unfunded accrued liability, determined as of June 30, 1988, with the value of assets being determined on the greater of market value or book value of such assets, of the retirement system, determined without regard to any teacher in the employ of a county school system as defined in subsection (a) of this Code section.

D = The total annual earnable compensation for the fiscal year ending June 30, 1988, of members of the retirement system, plus the annual state compensation for the fiscal year ending June 30, 1988, of members of local retirement funds other than a local retirement fund as defined in subsection (a) of this Code section.

E = The total earnable compensation for the fiscal year ending June 30, 1988, of transferred teachers.

(g) The amount determined under subsection (f) of this Code section shall be reduced by a 1986-87 retirement system funding allowance determined as follows:

(1) Determine the total amount which was intended to be withheld from the county school system for the 1986-87 fiscal year pursuant to the provisions of the "Quality Basic Education Act" which was to be withheld for the purpose of paying the employer's portion of the cost of membership in the Teachers Retirement System of Georgia for teacher members of the local retirement fund;

(2) Subtract from the total amount determined under paragraph (1) of this subsection that portion of such amount which was actually paid to the county school system for the 1986-87 fiscal year; and

(3) The amount resulting from the calculations under paragraphs (1) and (2) of this subsection shall be the 1986-87 retirement system funding allowance. (h) Payment of the amount determined under subsections (f) and (g) of this Code section shall be made to the board of trustees in not more than 39 equal annual installments to be paid by June 30 of each year beginning on June 30, 1990, in the manner prescribed by the board of trustees; provided, however, an interest payment must be paid by June 30, 1989, and the amount of such interest payment shall be determined by the board of trustees as provided in this subsection. In addition to payment of the installments of the amount determined under subsections (f) and (g) of this Code section, annual interest shall be added to each payment computed on the unpaid balance of such amount at a rate equal to the average rate of return, as determined by the board of trustees, on fixed income investments made by the retirement system during the preceding calendar year but not to exceed 9 percent per annum. The rate of interest for the interest payment to be paid by June 30, 1989, shall be determined in the same manner and shall accrue from July 1, 1988, until the date of payment on the amount determined under subsections (f) and (g) of this Code section. Beginning in 1989 for the interest payment, by May 1 of each year, the board of trustees shall notify the fiscal authority or other governing body, by whatever name designated, of the local retirement fund or the county school system, or both, or their successors in interest, as to the amount due by the following June 30. The amount in the notification will include the interest as computed pursuant to this subsection and shall and must be paid by the following June 30. The fiscal authority or other governing body, by whatever name designated, of the local retirement fund or the county school system, or both, or their successors in interest, shall be empowered and shall have the duty to pay this interest. The fiscal authority or other governing body, by whatever name designated, of the local retirement fund or the county school system, or both, or their successors in interest, shall have the right at any time to pay the full amount of the balance then remaining under the provisions of this subsection, and, in that event, there shall be no prepayment penalty of any kind.

(i) The employer of any teachers who become members of this retirement system under this Code section and any such teachers shall have all the rights, obligations, and duties under this Code section and as provided by any other provisions of this chapter.

(j) If the fiscal authority or other governing body, by whatever name designated, of the local retirement fund or the county school system, or both, or their successors in interest, refuse or fail to make any payment required by this Code section, it shall be the duty of the board of trustees to notify the Office of Treasury and Fiscal Services and the State Board of Education of such refusal or failure; and thereupon it shall be the duty of the Office of Treasury and Fiscal Services and the State Board of Education to withhold from such fiscal authority or other governing body any state appropriations or any other funds which would be allocated or allocable for educational purposes to such fiscal authority or other governing body until the Office of Treasury and Fiscal Services and the State Board of Education receives authorization from the board of trustees to release such funds. The Office of Treasury and Fiscal Services and the State Board of Education are authorized and directed, upon certified request of the board of trustees, to remit to the board of trustees from such withheld funds the amount necessary to cover the amount which the fiscal authority or other governing body has refused or failed to pay to the board of trustees under this Code section. It shall be illegal for the Office of Treasury and Fiscal Services and the State Board of Education to pay out or release such funds, after notice from the board of trustees, until and unless compliance with this Code section is achieved. The Office of Treasury and Fiscal Services and the State Board of Education are authorized to release the remainder of all such withheld funds upon authorization from the board of trustees.

(k) The fiscal authority or other governing body, by whatever name designated, of the local retirement fund or the county school system, or both, or their successors in interest, shall make such certifications as are requested by the board of trustees to implement and effectuate this Code section.

(l) No provision of this Code section shall be construed to result in any increase in the rate of employer contributions paid by employers based on the part of the earnable compensation of members not payable from state teachers' salary funds or from other funds of the state.

(m) Any full-time public school lunchroom managers or supervisors, full-time public school maintenance managers or supervisors, full-time public school transportation managers or supervisors, or full-time public school warehouse managers or supervisors who become members of this retirement system pursuant to the provisions of this Code section or Code Section 47-3-66 shall have the right to obtain creditable service under this retirement system pursuant to the provisions of subsection (b) of Code Section 47-3-63 on the same basis that other members of this retirement system who are subject to the provisions of Code Section 47-3-63 obtain creditable service.