---
title: O.C.G.A. § 47-3-41.1. Payment of employee contributions by employers; mandatory nature; vesting.
collection: code
id: 47-3-41.1
cite_as: O.C.G.A. § 47-3-41.1 (2025)
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md_url: https://georgiacommons.org/code/47-3-41.1.md
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source_url: https://www.legis.ga.gov/api/document/docs/default-source/joint-features-document-library/t47-(v35)-2010-pdf.pdf?sfvrsn=7d4bbd90_0#page=272
date: 2025
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current_through: Including Acts of the 2025 Regular Session of the General Assembly
heading_path: RETIREMENT AND PENSIONS / TEACHERS RETIREMENT SYSTEM OF GEORGIA / EMPLOYEE AND EMPLOYER CONTRIBUTIONS; CREATION OF FUNDS FOR CONTRIBUTIONS, BENEFITS, AND ADMINISTRATIVE EXPENSES
---

# O.C.G.A. § 47-3-41.1. Payment of employee contributions by employers; mandatory nature; vesting.

(a) Beginning on July 1, 1987, each employer shall pay to the board of trustees on behalf and to the credit of each member required to make employee contributions under subsection (a) of Code Section 47-3-41, on each and every payroll period, the employee membership contributions specified by said subsection (a) of Code Section 47-3-41 for membership service acquired after June 30, 1987.

(b) Employee contributions made by employers on behalf of members as provided in subsection (a) of this Code section shall be treated as employer contributions in determining federal tax treatment under the United States Internal Revenue Code; provided, however, employers shall continue to withhold federal income taxes on the basis of such contributions until the Internal Revenue Service or the federal courts rule that, pursuant to Section 414(h) of the United States Internal Revenue Code, these contributions shall not be included as gross income of the employee until such time as they are distributed or made available.

(c) Each employer may reduce the compensation payable to a member in an amount not exceeding the amount of the employee contribution paid by the employer on behalf of the member as provided in subsection (a) of this Code section. Such reduction in compensation may be made, notwithstanding the fact that the compensation provided by or pursuant to law for the member may be reduced thereby.

(d) Employee contributions made by employers on behalf of members as provided in subsection (a) of this Code section shall be included in the earnable compensation of members in the computation of retirement benefits, and, except for the purposes of subsection (b) of this Code section, such contributions shall continue to be employee contributions for all purposes under this chapter.

(e) The employee contributions provided for in this Code section are mandatory, and no member is entitled under any circumstances to receive such contributions in cash in lieu of having them contributed to the retirement system. Such contributions shall be 100 percent vested for all purposes under the retirement system.

(f) All members shall retain, have, and be subject to all other rights, privileges, obligations, and duties provided for by other provisions of this chapter and such other provisions shall remain of full force and effect with respect to any matter not specifically provided for in this Code section.

## History

Code 1981, § 47-3-41.1, enacted by Ga. L. 1987, p. 959, § 3; Ga. L. 1990, p. 536, § 2; Ga. L. 2010, p. 427, § 6/HB 969.

## Other Notes

The 2010 amendment, effective May 24, 2010, substituted the present provisions of subsection (e) for the former provisions, which read: ‘‘Reserved.’’.

## U.s. Code.

The United States Internal Revenue Code Section 414(h), referred to in subsection (b), is codified in Title 26, U.S.C. (26 U.S.C. § 1 et seq.).