Georgia CommonsHB 1234: State Employees' Assurance Department; assignment of certain group term life insurance benefits to pay for funeral services of a deceased individual who was a member of certain retirement systems; provisions
Last action May 12, 2026 · Effective Date 2026-07-01
House Bill 1234 lets the beneficiary of a deceased state employee's group term life insurance benefit assign part of that payout directly to a funeral home to cover funeral costs.
The summaries below were written by an AI model (claude-sonnet-5) from the text of the bill and are not part of it. Quote the text, not the summary. The stored text is the Enrolled version, the latest LegiScan holds.
In plain language
Georgia's State Employees' Assurance Department manages group term life insurance for members of the Employees' Retirement System of Georgia, the Georgia Legislative Retirement System, and the Georgia Judicial Retirement System. Currently, when a member dies, the insurance benefit goes to the named beneficiary, who is then responsible for paying any funeral home out of pocket or through other arrangements. This bill adds a new Code section (O.C.G.A. § 47-19-11) letting a named beneficiary assign part of that insurance payout directly to a licensed funeral director or embalmer to cover funeral costs. To do this, the beneficiary must fill out a form set by the department's board of directors, attach a notarized copy of their contract with the funeral provider, and include a copy of the deceased member's death certificate. The department will then pay the assigned amount according to the funeral contract, but only up to what is actually owed to the funeral provider.
What the bill does
- Creates a new legal option letting a life insurance beneficiary assign part of the payout straight to a funeral home instead of paying out of pocket first.
- Defines 'funeral services' to cover transportation, embalming, cremation, and burial arrangements for the deceased.
- Requires the beneficiary to submit a notarized funeral contract copy and the deceased's death certificate along with a state-prescribed assignment form.
- Limits the department's payment to funeral providers to only the amount actually owed under the funeral contract, not the full insurance benefit.
- Applies specifically to insurance funds tied to the Employees' Retirement System, Georgia Legislative Retirement System, and Georgia Judicial Retirement System.
Who it affects
This affects beneficiaries of deceased members of Georgia's Employees' Retirement System, Legislative Retirement System, and Judicial Retirement System, along with licensed funeral directors and embalmers who could receive direct payment, and the State Employees' Assurance Department, which administers the process.
Why it matters
Families dealing with a state employee's or retiree's death would gain a way to pay for funeral services directly from the life insurance payout, potentially avoiding upfront costs or delays while waiting for the full benefit to be processed and distributed.
Key provisions
- Section 1 adds new O.C.G.A. § 47-19-11 to Chapter 19 of Title 47, covering the State Employees' Assurance Department.
- Subsection (a) defines 'funeral services' to include transportation, embalming, cremation, and interment of a deceased person's body.
- Subsection (b) allows a named beneficiary to assign group term life insurance benefits from the retired and vested inactive members trust fund or the active members fund to a licensed funeral director or embalmer.
- Subsection (c) requires a written, board-prescribed assignment form, a notarized copy of the funeral services contract, and a copy of the deceased member's death certificate.
- Subsection (d) limits the department's payment to the amount owed under the funeral contract, paid according to the contract's specified method.
- Section 2 repeals any conflicting laws.
From the bill
“Group term life insurance benefit payments due from the retired and vested inactive members trust fund or the active members fund established by subsection (b) of Code Section 47-19-10 to a named beneficiary shall be assignable by such named beneficiary to a person licensed by the State Board of Funeral Service to practice embalming or funeral directing solely in order to pay the cost of funeral services for the deceased individual who granted such right or benefit to such named beneficiary.”
“The State Employees' Assurance Department shall pay or cause to be paid any sum assigned in accordance with this Code section in the method or manner provided for in the contract for funeral services but only to the extent that such sums are owed to the person who completed the assignment.”
Status timeline
- Effective Date 2026-07-01
- Act 631
- House Date Signed by Governor (House)
- House Sent to Governor (House)
- Senate Passed/Adopted (Senate)
- Senate Third Read (Senate)
- Senate Read Second Time (Senate)
- Senate Committee Favorably Reported (Senate)
Show full history (15 actions)
- Senate Read and Referred (Senate)
- House Passed/Adopted (House)
- House Third Readers (House)
- House Committee Favorably Reported (House)
- House Second Readers (House)
- House First Readers (House)
- House Hopper (House)
Sponsors
- Darlene Taylor (R, HD-173)
- Lauren McDonald (R, HD-026)
- Danny Mathis (R, HD-133)
- Mary Ann Santos (D, HD-117)
- Patty Stinson (D, HD-150)
- Ricky Williams (R, SD-025)
Votes
- House voteMarch 4, 2026
166 yea, 2 nay (6 not voting, 3 absent)
- Senate voteMarch 19, 2026
46 yea, 0 nay (3 not voting, 5 absent)
Topics
- state employee benefits
- life insurance
- funeral services
- retirement systems
- insurance law