HB37: HB37 Education; require local school systems to notify employees regarding social security withholdings and eligibility for certain benefits

Many Georgia school employees are not covered by Social Security in the same way as workers in other jobs, depending on their local school system's retirement plan. This bill requires local school systems, starting July 1, 2025, to tell every new hire whether Social Security taxes will come out of their paycheck, whether they qualify for Social Security benefits under Title II of the Social Security Act, and whether they qualify for any other pension or retirement plan. Current employees must get this same notice by December 31, 2025, and then again at least once every five years. When an employee leaves, the school system must also tell them whether Social Security taxes were withheld at any point during their employment. Separately, the bill changes how local school board members pay for family health coverage: board members, not the school board, must cover all costs of insuring their family members. The law takes effect July 1, 2025.

• Requires local school systems to notify new employees, starting July 1, 2025, whether Social Security taxes will be withheld from their pay.
• Requires notice to new hires about eligibility for Social Security benefits under Title II of the Social Security Act and any other pension or retirement plan.
• Requires local school systems to give this same notice to current employees by December 31, 2025, and at least once every five years after that.
• Requires local school systems to tell departing employees whether Social Security taxes were withheld at any point during their employment.
• Requires local board of education members, rather than the school board, to pay all costs of health insurance coverage for their family members.

New and current employees of Georgia's local public school systems, local boards of education, and local board members who choose family health coverage. School district administrators who manage payroll and benefits notices will also need to comply with the new notice requirements.

School employees will get clearer, recurring information about whether they are paying into Social Security and what retirement benefits they can expect, which can affect financial planning for retirement. Local school board members would also see a shift in who pays for their family's health coverage.

• Section 1 revises O.C.G.A. § 20-2-55 so that local board of education members must personally pay the full cost of health insurance coverage for their family members.
• Section 2 adds new O.C.G.A. § 20-2-219.1, requiring notice to new hires about Social Security withholding and retirement plan eligibility starting July 1, 2025.
• Section 2 also requires notice to current employees by December 31, 2025, repeated at least every five years, and a separation notice about Social Security withholding history.
• Section 3 sets the effective date as July 1, 2025.
• Section 4 repeals any conflicting laws.

1. 2025-05-13Effective Date 2025-07-01
2. 2025-05-13Act 170
3. 2025-05-13House Date Signed by Governor (House)
4. 2025-04-09House Sent to Governor (House)
5. 2025-04-04House Agreed Senate Amend or Sub (House)
6. 2025-04-02Senate Passed/Adopted By Substitute (Senate)
7. 2025-04-02Senate Third Read (Senate)
8. 2025-03-27Senate Read Second Time (Senate)

• Rob Leverett (R, HD-123)Primary sponsor
• Bethany Ballard (R, HD-147)
• Scott Hilton (R, HD-048)
• Ed Setzler (R, SD-037)

1. PassedHouse voteMarch 4, 2025

   169 yea, 2 nay (3 not voting, 6 absent)

   Passage: House Vote #162

2. PassedSenate voteApril 2, 2025

   52 yea, 1 nay (1 not voting, 2 absent)

   Passage By Substitute: Senate Vote #385

3. PassedHouse voteApril 4, 2025

   163 yea, 0 nay (8 not voting, 9 absent)

   Agree To Senate Substitute: House Vote #408

• school employee benefits
• Social Security
• teacher retirement
• local school boards
• public education policy