Georgia 2023-2024 Regular Session

Georgia House Bill HB1212 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	24 LC 36 5610
2	2	House Bill 1212
3	3	By: Representatives Glaize of the 67
4	4	th
5	5	, Mitchell of the 88
6	6	th
7	7	, New of the 64
8	8	th
9	9	, Gladney of the
10	10	130
11	11	th
12	12	, and Roberts of the 52
13	13	nd
14	14
15	15	A BILL TO BE ENTITLED
16	16	AN ACT
17	17	To amend Article 10 of Chapter 2 of Title 47 of the Official Code of Georgia Annotated,
18	18	1
19	19	relating to the Georgia State Employees' Pension and Savings, so as to provide for the2
20	20	calculation of the years of vesting service for certain elected officials; to provide for related3
21	21	matters; to provide for an effective date; to repeal conflicting laws; and for other purposes.4
22	22	BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:5
23	23	SECTION 1.6
24	24	Article 10 of Chapter 2 of Title 47 of the Official Code of Georgia Annotated, relating to the7
25	25	Georgia State Employees' Pension and Savings, is amended by adding a new subsection to8
26	26	Code Section 47-2-357, relating to withdrawal, employer, contributions, vesting, and date9
27	27	of election, to read as follows:10
28	28	"47-2-357.11
29	29	(a) As used in this Code section, the term:12
30	30	(1) '401(k)' means the deferred compensation plan offered by the state for public13
31	31	employees pursuant to Article 3 of Chapter 18 of Title 45 utilizing Section 401(k) of the14
32	32	federal Internal Revenue Code.15
33	33	(2) 'Plan' means the employee savings plan created by this article.16
34	34	H. B. 1212
35	35	- 1 - 24 LC 36 5610
36	36	(b) Each member shall, at the time of becoming a member, be automatically enrolled in
37	37	17
38	38	the plan; provided, however, that the member shall have a period of 90 days from the date18
39	39	of enrollment to withdraw from the plan. Such withdrawal shall be made in writing to the19
40	40	board of trustees in such form as the board prescribes and any employee account balance20
41	41	shall be returned to the member. Thereafter, participation in the plan shall be voluntary. 21
42	42	The member may not withdraw from the plan so long as he or she remains eligible to22
43	43	participate in the 401(k) plan offered by the state.23
44	44	(c)(1) This paragraph shall apply to persons who became members prior to July 1, 2014. 24
45	45	Unless the participating member elects otherwise, the member shall, for each pay period,25
46	46	contribute 1 percent of his or her compensation into his or her 401(k) account. The26
47	47	member may change such level of participation at any time.27
48	48	(2) This paragraph shall apply to persons who become members on or after July 1, 2014. 28
49	49	Unless the participating member elects otherwise, the member shall, for each pay period,29
50	50	contribute 5 percent of his or her compensation into his or her 401(k) account. The30
51	51	member may change such level of participation at any time.31
52	52	(d)(1) On and after July 1, 2022, for any participating member who contributes a32
53	53	percentage of his or her salary into the 401(k) plan for a pay period, the employer shall33
54	54	contribute an equal amount into his or her 401(k) account up to a maximum of 5 percent34
55	55	except as otherwise provided in paragraph (2) of this subsection.35
56	56	(2) On and after July 1, 2022, in addition to the amounts provided for in paragraph (1)36
57	57	of this subsection, for any participating member who has attained five years or more of37
58	58	creditable service in the plan and contributes at least 5 percent of his or her salary into his38
59	59	or her 401(k) account, such member's employer shall contribute an additional amount39
60	60	equal to 0.5 percent of the member's compensation for each year of such member's40
61	61	creditable service that exceeds five years; provided, however, that the total rate of any41
62	62	employer's contribution pursuant to this subsection shall not exceed 9 percent of the42
63	63	member's compensation.43
64	64	H. B. 1212
65	65	- 2 - 24 LC 36 5610
66	66	(3)(A) Notwithstanding the provisions of this subsection, employer contributions shall44
67	67	be subject to the limitations imposed by federal law.45
68	68	(B) The member may make such additional contributions as he or she desires, subject46
69	69	to limitations imposed by federal law.47
70	70	(e) The board of trustees shall apportion the costs of administering the plan among the48
71	71	employers and members on the basis of the normal costs of administration against any49
72	72	special services requested by any member.50
73	73	(f) All contributions by participating members are 100 percent vested and shall be51
74	74	maintained in an account and invested based on the participant's investment allocation52
75	75	choices. All employer contributed amounts credited to a member's account shall be53
76	76	maintained as a matching contribution subaccount and invested based on the participant's54
77	77	investment allocation choices. Any and all amounts credited to a member's matching55
78	78	contribution subaccount, including applicable earnings and investment appreciation or56
79	79	depreciation, shall become vested and nonforfeitable based on the number of employment57
80	80	service years completed and in accordance with the vesting schedule set forth below:58
81	81	Years of Service59
82	82	60
83	83	Employer Nonforfeitable
84	84	Vested Percentage
85	85	1
86	86	61 20
87	87	2
88	88	62 40
89	89	3
90	90	63 60
91	91	4
92	92	64 80
93	93	5
94	94	65 100
95	95	Upon separation from service for greater than 31 days, the portion of such matching
96	96	66
97	97	contribution subaccount not so vested shall be transferred from the member's account into67
98	98	a temporary plan forfeiture accumulation account for future disposition as determined by68
99	99	the board of trustees. A break in service less than 32 days shall not affect vesting rights.69
100	100	H. B. 1212
101	101	- 3 - 24 LC 36 5610
102	102	(g) Members electing to be governed by the provisions of this article pursuant to
103	103	70
104	104	subsection (b) of Code Section 47-2-351 shall use their date of election as the beginning71
105	105	date for purposes of calculating their vesting service for the employer contribution as72
106	106	provided in subsection (f) of this Code section used to calculate the vesting requirements73
107	107	of subsection (f) of this Code section, except that service as provided under Code Section74
108	108	47-2-91 shall not constitute creditable service for this purpose.75
109	109	(h) Members who are elected to a four-year term of office and serve out such full term
110	110	76
111	111	shall, for purposes of calculating their vesting service for the employer contribution as77
112	112	provided in subsection (f) of this Code section, use the years of such full term as their years78
113	113	of service."79
114	114	SECTION 2.80
115	115	This Act shall become effective upon its approval by the Governor or upon its becoming law81
116	116	without such approval.82
117	117	SECTION 3.83
118	118	All laws and parts of laws in conflict with this Act are repealed.84
119	119	H. B. 1212
120	120	- 4 -