Senate Bill 452
By: Senators Hatchett of the 50th, Robertson of the 29th, Strickland of the 42nd, Tillery of
the 19th, Albers of the 56th and others
AS PASSED
A BILL TO BE ENTITLED
AN ACT
To amend Code Section 47-2-357 of the Official Code of Georgia Annotated, relating to
withdrawal, employer contributions, vesting, and date of election, so as to increase the
maximum employer contribution to a 401(k) for certain state law enforcement officers; to
provide for definitions; to provide for an effective date; to provide for related matters; to
repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Code Section 47-2-357 of the Official Code of Georgia Annotated, relating to withdrawal,
employer contributions, vesting, and date of election, is amended as follows:
"47-2-357.
(a) As used in this Code section, the term:
(1) '401(k)' means the deferred compensation plan offered by the state for public
employees pursuant to Article 3 of Chapter 18 of Title 45 utilizing Section 401(k) of the
federal Internal Revenue Code.
(2) 'Plan' means the employee savings plan created by this article.
<ins>(3) 'State law enforcement officer' means:
</ins>
<ins>(A) A peace officer, as such term is defined in Code Section 35-8-2, employed by the
Department of Community Supervision; or
(B) A sworn law enforcement officer certified by the Georgia Peace Officer Standards
and Training Council who, by virtue of his or her office or public employment giving
rise to his or her membership under this article, is vested by law with the duties of a
peace officer, as such term is defined in Code Section 16-1-3.
</ins> (b) Each member shall, at the time of becoming a member, be automatically enrolled in
the plan; provided, however, that the member shall have a period of 90 days from the date
of enrollment to withdraw from the plan. Such withdrawal shall be made in writing to the
board of trustees in such form as the board prescribes and any employee account balance
shall be returned to the member. Thereafter, participation in the plan shall be voluntary.
The member may not withdraw from the plan so long as he or she remains eligible to
participate in the 401(k) plan offered by the state.
(c)(1) This paragraph shall apply to persons who became members prior to July 1, 2014.
Unless the participating member elects otherwise, the member shall, for each pay period,
contribute 1 percent of his or her compensation into his or her 401(k) account. The
member may change such level of participation at any time.
(2) This paragraph shall apply to persons who become members on or after July 1, 2014.
Unless the participating member elects otherwise, the member shall, for each pay period,
contribute 5 percent of his or her compensation into his or her 401(k) account. The
member may change such level of participation at any time.
(d)(1) On and after July 1, 2022, for any participating member who contributes a
percentage of his or her salary into the 401(k) plan for a pay period, the employer shall
contribute an equal amount into his or her 401(k) account up to a maximum of 5 percent
except as otherwise provided in paragraph (2) of this subsection.
(2) On and after July 1, <del>2022</del> <ins>2026,</ins> in addition to the amounts provided for in
paragraph (1) of this subsection, for any participating member, <ins>other than a state law
</ins>
<ins>enforcement officer,</ins> who has attained five years or more of creditable service in the plan
and contributes at least 5 percent of his or her salary into his or her 401(k) account, such
member's employer shall contribute an additional amount equal to 0.5 percent of the
member's compensation for each year of such member's creditable service that exceeds
five years; provided, however, that the total rate of any employer's contribution pursuant
to this subsection shall not exceed 9 percent of the member's compensation.
<ins>(3) On and after July 1, 2026, in addition to the amounts provided for in paragraph (1)
of this subsection, for any participating member who is a state law enforcement officer
who has attained five years or more of creditable service in the plan and who contributes
at least 5 percent of his or her salary into his or her 401(k) account, such member's
employer shall contribute an additional amount equal to 2 percent of the member's
compensation for each year of such member's creditable service that exceeds five years;
provided, however, that the total rate of any employer's contribution pursuant to this
subsection shall not exceed 15 percent of the member's compensation.
</ins> (3)(4)(A) Notwithstanding the provisions of this subsection, employer contributions
shall be subject to the limitations imposed by federal law.
(B) The member may make such additional contributions as he or she desires, subject
to limitations imposed by federal law.
(e) The board of trustees shall apportion the costs of administering the plan among the
employers and members on the basis of the normal costs of administration against any
special services requested by any member.
(f) All contributions by participating members are 100 percent vested and shall be
maintained in an account and invested based on the participant's investment allocation
choices. All employer contributed amounts credited to a member's account shall be
maintained as a matching contribution subaccount and invested based on the participant's
investment allocation choices. Any and all amounts credited to a member's matching
contribution subaccount, including applicable earnings and investment appreciation or
depreciation, shall become vested and nonforfeitable based on the number of employment
service years completed and in accordance with the vesting schedule set forth below:
Years of Service Employer Nonforfeitable
Vested Percentage
1 20
2 40
3 60
4 80
5 100
Upon separation from service for greater than 31 days, the portion of such matching
contribution subaccount not so vested shall be transferred from the member's account into
a temporary plan forfeiture accumulation account for future disposition as determined by
the board of trustees. A break in service less than 32 days shall not affect vesting rights.
(g) Members electing to be governed by the provisions of this article pursuant to
subsection (b) of Code Section 47-2-351 shall use their date of election as the beginning
date for purposes of calculating their vesting service for the employer contribution as
provided in subsection (f) of this Code section used to calculate the vesting requirements
of subsection (f) of this Code section, except that service as provided under Code
Section 47-2-91 shall not constitute creditable service for this purpose."
SECTION 2.
This Act shall become effective on July 1, 2026.
SECTION 3.
All laws and parts of laws in conflict with this Act are repealed.