HB891: HB891 Georgia State Employees' Pension and Savings; increase the benefits payable for service after July 1, 2026

Georgia state employees covered by the Georgia State Employees' Pension and Savings Plan (O.C.G.A. § 47-2-352 and § 47-2-353) currently contribute 1.25% of their pay toward the pension and earn a 1% benefit multiplier per year of service, calculated on their highest average pay over 24 months. This bill raises the employee contribution rate to 3% of pay for service performed on or after July 1, 2026, and lets the pension board's trustees set that rate anywhere between 3% and 4%. In exchange, employees would earn a higher pension benefit, 1.5% per year of creditable service instead of 1%, for service performed on or after that date. Service performed before July 1, 2026 keeps the old 1.25% contribution rate and 1% multiplier (with room to grow to 2% if the legislature adds funding). The change only takes effect if state actuaries certify it is 'concurrently funded' under Georgia's Public Retirement Systems Standards Law (O.C.G.A. Chapter 20 of Title 47); if not, the bill automatically repeals itself on July 1, 2026.

• Raises the employee contribution rate for the Georgia State Employees' Pension and Savings Plan from 1.25% to 3% of pay for service on or after July 1, 2026.
• Lets the pension board of trustees set the contribution rate anywhere from 3% to 4% of pay for service after that date.
• Increases the pension benefit multiplier used to calculate retirement pay from 1% to 1.5% per year of creditable service earned on or after July 1, 2026.
• Keeps the older, lower 1.25% contribution rate and 1% benefit multiplier in place for service performed before July 1, 2026.
• Makes the whole Act contingent on state actuaries certifying the change is 'concurrently funded' under the Public Retirement Systems Standards Law, with automatic repeal if it is not.

Georgia state government employees enrolled in the Georgia State Employees' Pension and Savings Plan, their state employers who deduct and remit contributions, and the plan's board of trustees, which gains authority to set the exact contribution rate within a set range.

State employees would see a bigger chunk of their paycheck go toward retirement starting in mid-2026, but would build a larger pension for that later service. Whether any of this happens depends on a funding certification, so employees and agencies will not know the final outcome until that determination is made.

• Section 1 rewrites O.C.G.A. § 47-2-352 to raise employee contributions from 1.25% to 3% of earnable compensation for service on or after July 1, 2026, and authorizes the board of trustees to set the rate between 3% and 4%.
• Section 2 rewrites O.C.G.A. § 47-2-353 to raise the pension benefit multiplier from 1% to 1.5% per year of creditable service earned on or after July 1, 2026, while keeping the 1% (up to 2%) multiplier for earlier service.
• Section 3 makes the Act effective July 1, 2026 only if certified as 'concurrently funded' under the Public Retirement Systems Standards Law (O.C.G.A. Chapter 20 of Title 47); otherwise it is automatically repealed that same date.
• Section 4 repeals any conflicting laws.

1. 2025-04-04House Second Readers (House)
2. 2025-04-02House First Readers (House)
3. 2025-03-31House Hopper (House)

• Noel Williams (R, HD-148)Primary sponsor
• James Hatchett (R, HD-155)
• John Carson (R, HD-046)
• Steven Meeks (R, HD-178)
• Trey Rhodes (R, HD-124)
• Lehman Franklin (R, HD-160)

• state employee pensions
• retirement benefits
• public employee contributions
• Georgia state government workforce