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Bill Summary · SB 452

Overview

Senate Bill 452 (SB 452) from the 2025-26 Georgia session amends the retirement and pension provisions for state law enforcement officers who participate in the state's 401(k)-style defined plan. The bill aims to increase the maximum employer contribution rate to the 401(k) plan for eligible officers, expanding ongoing and future employer matches and additional contributions based on years of service and meeting certain contribution thresholds. The act becomes effective July 1, 2026.

Main purpose and intent

  • To raise the maximum employer contribution that can be credited to a participating member’s 401(k) account for certain state law enforcement officers.
  • To provide a structured schedule of vesting and to clarify definitions and applicability for affected personnel.
  • To align employer contributions with service credit and employer/employee contribution levels, subject to overall statutory and federal limits.

Key provisions and changes

  • Definitions (Section 1):

    • Clarifies terms: “401(k)” (state plan under the federal IRS code), “Plan” (the state employee savings plan), and “State law enforcement officer” (either a peace officer as defined in statute or an sworn law enforcement officer certified by the Georgia Peace Officer Standards and Training Council who has duties giving rise to membership in this plan).

  • Automatic enrollment and withdrawal (Section 1, subsections b):

    • New members are automatically enrolled, with a 90-day window to withdraw and receive a full return of any account balance. After withdrawal window, participation is voluntary.

  • Employee contribution requirements (Section 1, subsections c):

    • Members who joined before July 1, 2014: default 1% annual employee contribution per pay period (can be changed).
    • Members who joined on or after July 1, 2014: default 5% per pay period (can be changed).

  • Employer contributions and caps (Section 1, subsection d):

    • Starting July 1, 2022: Employers must match employee contributions up to 5% of compensation (subject to exceptions in subsection (d)(2)).
    • Subsection (d)(2) (conforming to amended timelines: “on and after July 1, 2022 2026”):
    • For eligible participating members (state law enforcement officers with at least 5 years of creditable service who contribute at least 5%): Employer must contribute an additional amount equal to 0.5% of compensation for each year of service beyond five years.
    • The total employer contribution rate under this subsection cannot exceed 9% of compensation.
    • Subsection (d)(3) (timing update): Beginning July 1, 2026, for eligible members with at least 5 years of service who contribute at least 5%, the employer must contribute an additional 2% of compensation for each year of service beyond five years.
    • The total employer contribution rate under this subsection cannot exceed 15% of compensation.
    • Subsection (d)(3)(4): Federal-law limits apply to employer contributions; members may contribute additional amounts subject to federal limits.

  • Vesting (Section 1, subsections f):

    • Employer contributions vest according to years of service: 1 year = 20% vesting, 2 years = 40%, 3 years = 60%, 4 years = 80%, 5+ years = 100%.
    • Unvested portions of matching contributions are transferred to a temporary forfeiture account upon separation; a short break in service (<32 days) does not affect vesting.

  • Election timing (Section 1, subsection g):

    • Members electing coverage under this article use their date of election as the vesting start date for vesting calculations, with specific caveats for service counted toward creditable service.

  • Administrative and vesting governance (Section 1, sections e and f):

    • The board of trustees allocates plan administration costs among employers and members.
    • All member contributions are 100% vested; employer contributions are tracked in a matching-contribution subaccount and vest per the schedule.

  • Effective date (Section 2):

    • Effective July 1, 2026.

Who would be affected

  • State law enforcement officers who are participants in the Georgia state 401(k)-style plan under Code Section 47-2-357.
  • Employers (state entities contributing to these officers’ 401(k) accounts) responsible for funding the increased employer contributions.
  • Plan administration and the Board of Trustees responsible for implementing vesting rules, cost apportionment, and investment administration.

Procedural and timeline aspects

  • Effective date: July 1, 2026.
  • The bill increases the total potential employer contribution cap from 9% to 15% of compensation for eligible officers starting July 1, 2026, with a measured ramp from 2022 (5% employer match) to the higher levels.
  • Repeals or conflicts with existing laws are addressed by Section 3, ensuring repealed provisions do not conflict with the act.

Potential impact

  • Financial: Higher potential employer contributions (up to 15% of compensation for certain veterans with five or more years of service) could significantly enhance retirement benefits for longer-serving officers.
  • Eligibility focus: The enhanced employer contribution tiers apply specifically to state law enforcement officers who have five or more years of service and who contribute at least 5% of salary.
  • Vesting: Accelerated vesting improves portability and security of the employer contributions for long-serving officers.
  • Plan administration: Increased complexity in administration and cost-sharing among employers and members; the board will allocate costs and manage vesting and forfeiture provisions accordingly.

Note: Federal law limits on contributions remain in effect, and member contributions are subject to applicable federal restrictions.

Compiled from official sources — confirm details with the bill’s official record.

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