SB 226: Peach State Saves Programs; provide for creation

Georgia currently has no state-run retirement savings program for private-sector workers whose employers don't offer a 401(k) or similar plan. This bill adds a new chapter to Georgia's labor code creating the Peach State Saves program, a system of Roth or traditional individual retirement accounts (IRAs) funded through payroll deductions. A board of trustees, made up of the state Employees' Retirement System board plus three governor-appointed members with retirement or business expertise, would design, run, and invest the program's funds. Employers with at least five employees that have been in business over a year and don't already offer a retirement plan would have to automatically enroll workers, defaulting to a 5 percent contribution to a Roth IRA, unless the employee opts out or chooses different terms. Contributions are 100 percent vested, employers may not contribute money themselves, and account information stays confidential. Employers that fail to enroll workers face penalties starting at $250 per employee. The program must be substantially phased in by January 1, 2028.

• Creates the Peach State Saves program, a new state-administered retirement savings system offering Roth and traditional IRAs funded by employee payroll deductions.
• Requires covered employers (generally those with 5+ employees, in business over a year, without another retirement plan) to automatically enroll workers unless they opt out.
• Sets a default 5 percent automatic contribution rate, which the governing board can adjust or increase over time up to 10 percent, and prohibits employer contributions.
• Establishes a governing board combining the state retirement system's trustees with three governor-appointed members, giving it broad authority over investments, rules, contracts, and fees.
• Imposes financial penalties on employers that fail to enroll employees ($250 per employee the first year, $500 in later years) or that don't remit payroll deductions on time.
• Requires the program to be substantially implemented statewide by January 1, 2028, and keeps individual participant account information confidential and exempt from Georgia's open records law.

Private employers in Georgia with five or more employees that don't already offer a tax-favored retirement plan, their workers age 18 and older, self-employed people and independent contractors who choose to join voluntarily, and the state agency board (built around the Employees' Retirement System) that would design and run the program.

Workers at small and mid-size Georgia businesses without employer retirement plans would gain automatic access to a payroll-deduction IRA, with money defaulting into savings unless they opt out. Employers would face new administrative duties and penalties for noncompliance, while bearing no liability for investment outcomes or performance.

• Code Section 34-11-1 defines key terms, including which employers ('covered employers') and employees ('covered employees') are subject to the program, with exclusions for government employers and those already offering retirement plans.
• Code Section 34-11-3 creates the governing board, combining the Employees' Retirement System trustees with three governor-appointed members serving staggered terms.
• Code Section 34-11-4 gives the board broad powers to design the program, hire staff, set investment policy, collect fees, and set distribution rules for benefits.
• Code Section 34-11-9 requires automatic payroll-deduction enrollment into a Roth IRA at a 5 percent default contribution rate, adjustable up to 10 percent, with no employer contributions permitted.
• Code Section 34-11-13 sets penalties for employers that fail to enroll workers ($250 per employee the first noncompliant year, $500 per employee in later years) or that fail to remit contributions on time ($500 per violation).
• Code Section 34-11-14 and 34-11-15 shield employers and the state from liability for investment performance, benefit payments, or tax consequences related to the program.
• Code Section 34-11-16 makes individual participant account information confidential and exempt from Georgia's open records law (O.C.G.A. Article 4 of Chapter 18 of Title 50).
• Code Section 34-11-17 allows the board to phase in the program by employer size or type, provided implementation is substantially complete by January 1, 2028.

1. 2025-02-21Senate Read and Referred (Senate)
2. 2025-02-20Senate Hopper (Senate)

• Chuck Hufstetler (R, SD-052)Primary sponsor
• Ricky Williams (R, SD-025)
• Max Burns (R, SD-023)
• Carden Summers (R, SD-013)
• John Albers (R, SD-056)
• Randy Robertson (R, SD-029)
• Nan Orrock (D, SD-036)
• Brian Strickland (R, SD-042)
• Mike Hodges (R, SD-003)
• Chuck Payne (R, SD-054)
• Sam Watson (R, SD-011)
• Sonya Halpern (D, SD-039)
• Elena Parent (D, SD-044)

• retirement savings
• small business regulations
• payroll deductions
• state government programs
• worker benefits