SB452: SB452 Retirement and Pension; maximum employer contribution to a 401(k) for certain state law enforcement officers; increase

26 LC 56 0504-EC 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 to1 withdrawal, employer contributions, vesting, and date of electi on, so as to increase the2 maximum employer contribution to a 401(k) for certain state law enforcement officers; to3 provide for definitions; to provide for an effective date; to p rovide for related matters; to4 repeal conflicting laws; and for other purposes.5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6 SECTION 1.7 Code Section 47-2-357 of the Official Code of Georgia Annotated, relating to withdrawal,8 employer contributions, vesting, and date of election, is amended as follows:9 "47-2-357.10 (a) As used in this Code section, the term:11 (1) '401(k)' means the deferred compensation plan offered by t he state for public12 employees pursuant to Article 3 of Chapter 18 of Title 45 utilizing Section 401(k) of the13 federal Internal Revenue Code.14 (2) 'Plan' means the employee savings plan created by this article.15 (3) 'State law enforcement officer' means:16 S. B. 452 - 1 - 26 LC 56 0504-EC (A) A peace officer, as such term is defined in Code Section 35-8-2, employed by the17 Department of Community Supervision; or18 (B) A sworn law enforcement officer certified by the Georgia Peace Officer Standards19 and Training Council who, by virtue of his or her office or public employment giving20 rise to his or her membership under this article, is vested by law with the duties of a21 peace officer, as such term is defined in Code Section 16-1-3.22 (b) Each member shall, at the time of becoming a member, be au tomatically enrolled in23 the plan; provided, however, that the member shall have a period of 90 days from the date24 of enrollment to withdraw from the plan. Such withdrawal shall be made in writing to the25 board of trustees in such form as the board prescribes and any employee account balance26 shall be returned to the member. Thereafter, participation in the plan shall be voluntary. 27 The member may not withdraw from the plan so long as he or she remains eligible to28 participate in the 401(k) plan offered by the state.29 (c)(1) This paragraph shall apply to persons who became members prior to July 1, 2014. 30 Unless the participating member elects otherwise, the member shall, for each pay period,31 contribute 1 percent of his or her compensation into his or her 401(k) account. The32 member may change such level of participation at any time.33 (2) This paragraph shall apply to persons who become members on or after July 1, 2014. 34 Unless the participating member elects otherwise, the member shall, for each pay period,35 contribute 5 percent of his or her compensation into his or her 401(k) account. The36 member may change such level of participation at any time.37 (d)(1) On and after July 1, 2022, for any participating member who contributes a38 percentage of his or her salary into the 401(k) plan for a pay period, the employer shall39 contribute an equal amount into his or her 401(k) account up to a maximum of 5 percent40 except as otherwise provided in paragraph (2) of this subsection.41 (2) On and after July 1, 2022 2026 , in addition to the amounts provided for in42 paragraph (1) of this subsection, for any participating member, other than a state law43 S. B. 452 - 2 - 26 LC 56 0504-EC enforcement officer, who has attained five years or more of creditable service in the plan44 and contributes at least 5 percent of his or her salary into his or her 401(k) account, such45 member's employer shall contribute an additional amount equal t o 0.5 percent of the46 member's compensation for each year of such member's creditable service that exceeds47 five years; provided, however, that the total rate of any employer's contribution pursuant48 to this subsection shall not exceed 9 percent of the member's compensation.49 (3) On and after July 1, 2026, in addition to the amounts provided for in paragraph (1)50 of this subsection, for any participating member who is a state law enforcement officer51 who has attained five years or more of creditable service in the plan and who contributes52 at least 5 percent of his or her salary into his or her 401(k) account, such member's53 employer shall contribute an additional amount equal to 2 perce nt of the member's54 compensation for each year of such member's creditable service that exceeds five years;55 provided, however, that the total rate of any employer's contri bution pursuant to this56 subsection shall not exceed 15 percent of the member's compensation.57 (3)(4)(A) Notwithstanding the provisions of this subsection, employe r contributions58 shall be subject to the limitations imposed by federal law.59 (B) The member may make such additional contributions as he or she desires, subject60 to limitations imposed by federal law.61 (e) The board of trustees shall apportion the costs of adminis tering the plan among the62 employers and members on the basis of the normal costs of admin istration against any63 special services requested by any member.64 (f) All contributions by participating members are 100 percent vested and shall be65 maintained in an account and invested based on the participant' s investment allocation66 choices. All employer contributed amounts credited to a member 's account shall be67 maintained as a matching contribution subaccount and invested based on the participant's68 investment allocation choices. Any and all amounts credited to a member's matching69 contribution subaccount, including applicable earnings and inve stment appreciation or70 S. B. 452 - 3 - 26 LC 56 0504-EC depreciation, shall become vested and nonforfeitable based on the number of employment71 service years completed and in accordance with the vesting schedule set forth below:72 Years of Service73 74 Employer Nonforfeitable Vested Percentage 175 20 276 40 377 60 478 80 579 100 Upon separation from service for greater than 31 days, the port ion of such matching80 contribution subaccount not so vested shall be transferred from the member's account into81 a temporary plan forfeiture accumulation account for future disposition as determined by82 the board of trustees. A break in service less than 32 days shall not affect vesting rights.83 (g) Members electing to be governed by the provisions of this article pursuant to84 subsection (b) of Code Section 47-2-351 shall use their date of election as the beginning85 date for purposes of calculating their vesting service for the employer contribution as86 provided in subsection (f) of this Code section used to calculate the vesting requirements87 of subsection (f) of this Code section, except that service as provided under Code88 Section 47-2-91 shall not constitute creditable service for this purpose."89 SECTION 2.90 This Act shall become effective on July 1, 2026.91 SECTION 3.92 All laws and parts of laws in conflict with this Act are repealed.93 S. B. 452 - 4 -