HB 891: 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) currently contribute 1 1/4 percent of their pay toward their pension. This bill would keep that rate for service performed before July 1, 2026, but raise it to 3 percent for service on or after that date, with the plan's board of trustees allowed to set the rate anywhere between 3 and 4 percent going forward. The bill also changes how retirement benefits are calculated. For years worked before July 1, 2026, the pension formula stays at 1 percent of a member's highest average monthly pay. For years worked on or after that date, the formula rises to 1 1/2 percent. The change would only take effect if the state's actuaries certify it is "concurrently funded" under Georgia's Public Retirement Systems Standards Law (O.C.G.A. Chapter 20 of Title 47). If that funding certification does not happen, the bill would automatically repeal itself on July 1, 2026, and never take effect.

• Raises the employee contribution rate for the Georgia State Employees' Pension and Savings Plan from 1 1/4 percent to 3 percent of pay for service performed on or after July 1, 2026.
• Lets the plan's board of trustees set the contribution rate anywhere between 3 percent and 4 percent for service after July 1, 2026.
• Increases the pension benefit formula from 1 percent to 1 1/2 percent of a member's highest average pay for each year of service earned on or after July 1, 2026.
• Keeps the old 1 percent formula and 1 1/4 percent contribution rate for service performed before July 1, 2026.
• Ties the whole law's survival to a funding certification: if the plan is not certified as concurrently funded under the Public Retirement Systems Standards Law, the Act repeals itself automatically on July 1, 2026.

State employees who participate in the Georgia State Employees' Pension and Savings Plan, along with their state agency employers, who must adjust payroll deductions and contributions. The plan's board of trustees also gains new authority to set contribution rates within a specified range.

State employees would see higher pension deductions from their paychecks starting in 2026 but would build a larger pension benefit for years worked afterward. Whether any of this happens at all depends on an actuarial funding certification, so employees will not know for certain until closer to the effective date.

• Section 1 amends O.C.G.A. § 47-2-352 to raise employee contributions from 1 1/4 percent to 3 percent of pay for service on or after July 1, 2026, with board authority to set it up to 4 percent.
• Section 2 amends O.C.G.A. § 47-2-353 to change the pension formula to 1 percent per year of service before July 1, 2026, and 1 1/2 percent per year of service on or after that date.
• Section 3 makes the Act's effective date July 1, 2026, contingent on certification of concurrent funding under the Public Retirement Systems Standards Law (O.C.G.A. Chapter 20 of Title 47); otherwise the Act is automatically repealed that same day.
• Section 4 repeals any conflicting state laws.

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

• Noel Williams, Jr. (R, HD-148)Primary sponsor
• Matt Hatchett (R, HD-155)
• John Carson (R, HD-46)
• Steven Meeks (R, HD-178)
• Trey Rhodes (R, HD-124)
• Lehman Franklin (R, HD-160)

• state employee pensions
• retirement benefits
• public employee contributions
• Georgia retirement law