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

25 LC 56 0413 House Bill 891 By: Representatives Williams of the 148th, Hatchett of the 155th, Carson of the 46th, Meeks of the 178th, Rhodes of the 124th, and others A BILL TO BE ENTITLED AN ACT To amend Article 10 of Chapter 2 of Title 47 of the Official Co de of Georgia Annotated,1 relating to the Georgia State Employees' Pension and Savings Pl an, so as to increase the2 benefits payable for service after July 1, 2026; to provide for an increase to employee3 contributions; to provide for related matters; to provide conditions for an effective date and4 automatic repeal; to repeal conflicting laws; and for other purposes.5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6 SECTION 1.7 Article 10 of Chapter 2 of Title 47 of the Official Code of Georgia Annotated, relating to the8 Georgia State Employees' Pension and Savings Plan, is amended by revising Code Section9 47-2-352, relating to employee and employer contributions, as follows:10 "47-2-352.11 (a) Every member subject to this article shall contribute empl oyee membership12 contributions in an amount equal to 1 1/4 percent of earnable c ompensation for service13 prior to July 1, 2026, and 3 percent of earnable compensation for service on or after July14 1, 2026; provided, however, that the board of trustees is authorized to set the contribution15 rate at a level not less than 3 percent of earnable compensation nor more than 4 percent of16 H. B. 891 - 1 - 25 LC 56 0413 earnable compensation for service on or after July 1, 2026, which shall be deducted by each17 employer from the earnable compensation of each member for each and every payroll18 period and paid monthly to the board of trustees. Such amount shall be credited to the19 individual accounts of the members in the annuity savings fund.20 (b) From and after January 1, 2009, each employer shall pay mo nthly to the board of21 trustees, on behalf of each member subject to this article, the aggregate of employer and22 employee contributions required by this chapter. With respect to members subject to this23 article, no employer contributions shall be considered as accumulated contributions of the24 member and none shall be eligible for withdrawal by the member upon cessation of state25 service. Such amount shall be credited to the pension accumulation fund."26 SECTION 2.27 Said article is further amended by revising Code Section 47-2-3 53, relating to service28 retirement allowance, as follows:29 "47-2-353.30 Every member subject to this article shall, upon becoming eligible under the provisions of31 this chapter, be entitled to a service retirement allowance, which shall consist of:32 (1) An annuity which shall be the actuarial equivalent of the member's accumulated33 contributions at the time of retirement; and34 (2) A monthly pension which, together with the annuity, shall provide a total retirement35 allowance equal to the sum of 1 percent, or such future amount up to 2 percent to be set36 by the board of trustees in direct relation to any increased appropriations provided by the37 General Assembly expressly for such increase, of the member's highest average monthly38 earnable compensation during a period of 24 consecutive calenda r months while a39 member of the retirement system, multiplied by the number for each of the member's40 years of creditable service earned before July 1, 2026, of the member's highest average41 monthly earnable compensation during a period of 24 consecutive calendar months while42 H. B. 891 - 2 - 25 LC 56 0413 a member of the retirement system, and 1 1/2 percent for each of the member's years of43 creditable service earned on or after July 1, 2026, of the memb er's highest average44 monthly earnable compensation during a period of 24 consecutive calendar months while45 a member of the retirement system; provided, however, that for members employed on46 or after July 1, 2009, no salary increase by adjustment in comp ensation in any manner47 during the last 12 months, which increase is in excess of 5 percent, shall be included in48 such computation."49 SECTION 3.50 This Act shall become effective on July 1, 2026, only if it is determined to have been51 concurrently funded as provided in Chapter 20 of Title 47 of the Official Code of Georgia52 Annotated, the "Public Retirement Systems Standards Law"; other wise, this Act shall not53 become effective and shall be automatically repealed in its ent irety on July 1, 2026, as54 required by subsection (a) of Code Section 47-20-50.55 SECTION 4.56 All laws and parts of laws in conflict with this Act are repealed.57 H. B. 891 - 3 -