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HB 1234

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

2025-2026 Regular Session Introduced by Danny Mathis and 4 co-sponsors

Georgia bill allows state retirees to assign group term life insurance benefits toward funeral costs, easing end-of-life expense burdens for beneficiaries.

Act 631
#retirementandpensions
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Bill Summary · HB 1234

Legislative bill overview

HB 1234 allows certain retired state employees and members of Georgia's retirement systems to assign their group term life insurance benefits to cover funeral and related end-of-life expenses. The bill modifies how death benefits from the State Employees' Assurance Department can be allocated, streamlining the process for paying burial costs without requiring families to navigate separate claims procedures.

Why is this important

For retirees and their families, funeral costs can represent a significant unexpected financial burden, often exceeding $7,000-$10,000. This bill addresses a practical problem by allowing beneficiaries to directly apply existing death benefits toward these expenses, reducing financial strain during an emotionally difficult time and potentially preventing families from entering debt.

Potential points of contention

  • Benefit reduction: Assigning life insurance proceeds to funeral costs reduces the remaining death benefit available to designated beneficiaries for other needs, creating a trade-off between immediate burial expenses and longer-term family financial security
  • Equity concerns: The bill may only apply to certain retirement system members, potentially creating disparities between different classes of state employees regarding access to this benefit restructuring option
  • Administrative complexity: Implementation requires the State Employees' Assurance Department to establish new assignment procedures, verification processes, and accounting mechanisms that could create delays or bureaucratic barriers

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

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