HB1234: HB1234 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

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 covered member dies, the insurance benefit goes to the named beneficiary, who must separately arrange to pay for funeral services. This bill adds a new section to Georgia law (O.C.G.A. Chapter 19 of Title 47) letting a named beneficiary assign part of that life 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 must then pay the assigned amount according to the funeral contract, but only up to what is actually owed. The bill also defines 'funeral services' to include transportation, embalming, cremation, and burial of a body.

• Creates a new Georgia law (O.C.G.A. § 47-19-11) letting beneficiaries of certain state group life insurance benefits assign part of the payout to a licensed funeral director or embalmer.
• Limits this assignment option to benefits tied to deceased members of the Employees' Retirement System, Georgia Legislative Retirement System, or Georgia Judicial Retirement System.
• Requires the beneficiary to submit a written, board-prescribed form along with a notarized funeral services contract and a copy of the death certificate to make the assignment.
• Requires the State Employees' Assurance Department to pay the assigned funds according to the funeral contract, capped at what is actually owed to the funeral provider.
• Defines 'funeral services' to cover transportation, embalming, cremation, and interment of a deceased person's body.
• Repeals any existing Georgia laws that conflict with this new provision.

This affects named beneficiaries of group term life insurance for members of Georgia's Employees' Retirement System, Legislative Retirement System, and Judicial Retirement System, as well as licensed funeral directors and embalmers who provide services to those beneficiaries, and the State Employees' Assurance Department, which administers the payments.

Beneficiaries who inherit life insurance payouts after a retiree's death often face immediate funeral bills before the full insurance payment arrives. This bill lets them direct part of that payment straight to the funeral home, potentially easing the burden of covering funeral costs out of pocket while waiting on the full benefit.

• Section 1 adds new Code Section 47-19-11, defining 'funeral services' to include transportation, embalming, cremation, and interment of a body.
• Subsection (b) allows a named beneficiary to assign group term life insurance benefits from the retired and vested inactive members trust fund or active members fund to a licensed funeral director or embalmer.
• Subsection (c) requires a written, board-prescribed authorization form, a notarized copy of the funeral services contract, and a copy of the death certificate to complete the assignment.
• Subsection (d) requires the State Employees' Assurance Department to pay the assigned sum per the funeral contract, limited to amounts actually owed.
• Section 2 repeals conflicting laws.

1. 2026-05-12Effective Date 2026-07-01
2. 2026-05-12Act 631
3. 2026-05-12House Date Signed by Governor (House)
4. 2026-04-06House Sent to Governor (House)
5. 2026-03-19Senate Passed/Adopted (Senate)
6. 2026-03-19Senate Third Read (Senate)
7. 2026-03-16Senate Read Second Time (Senate)
8. 2026-03-12Senate Committee Favorably Reported (Senate)

• Darlene Taylor (R, HD-173)Primary sponsor
• 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)

1. PassedHouse voteMarch 4, 2026

   166 yea, 2 nay (6 not voting, 3 absent)

   Passage: House Vote #625

2. PassedSenate voteMarch 19, 2026

   46 yea, 0 nay (3 not voting, 5 absent)

   Passage: Senate Vote #755

• state employee benefits
• life insurance
• funeral services
• retirement systems
• funeral directors