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