Peach State to Harvest Retirement Coverage?

Georgia may join sister states in establishing a state-run retirement plan to provide coverage for private-sector employees whose employers do not, if a measure now before the Senate is enacted. 

Sen. Chuck Hufstetler (R-52) introduced SB 477 on Feb. 9, 2024. It calls for the creation of the Peach Save plan, a defined contribution retirement plan in which multiple employers may participate regardless of whether any relationship exists between and among them other than their participation in the plan. 

Employers 

Eligible employers would include a person or entity engaged in a business, industry, profession, trade, or other enterprise in Georgia, whether for profit or not for profit, and that employs no more than 100 employees. Eligible employers would not include:

• the federal government;  
• the state of Georgia;  
• any county, municipal corporation, or political subdivision of the state; or  
• any employer that has maintained a specified tax-favored retirement plan, other  
• than the Peach Save plan, for its employees at any time within the preceding two years.  

Employees

Eligible employees would include individuals who are employed by a participating  
employer, who have wages or other compensation that is taxable by the state, and who is  
18 years of age or older. Eligible employees would not include: 

• any employee covered under the federal Railway Labor Act;  
• any employee on whose behalf an employer makes contributions to a multiemployer pension trust fund; or  
• any individual who is an employee of:  
  • the federal government;  
  • any state government; or  
  • any county, municipal corporation, or political subdivision of this state or any other state of the United States. 

Contributions and Distributions

Participants would make contributions to their accounts through payroll deductions. 

Upon the written request of a participant, a lump sum amount would be paid to that individual that is equal to the total amount credited to his or her account at the time the request was received. If the participant ceases to be an eligible employee and does not provide the written request that individual’s account would continue to accrue earnings in the same manner as any participant's account. 

Peach Saves Board of Trustees

The bill calls for the creation of a Peach Saves Board of Trustees to run the program. The board would have the authority to administer the Peach Save expense fund. It also would have the authority to provide for one or more reasonably priced distribution options to furnish a source of fixed regular retirement income—including income for life or for the participant's life expectancy—or for joint lives and life expectancies.

The board also would establish rules and procedures that:

• promote portability of benefits, including the ability  
• to make rollovers or transfers to and from the plan that are exempt from federal income  
• tax, provided that any rollover is initiated by participants;  
• govern the distribution of funds from the plan; and 
• assist participants to effectively manage the decumulation of their savings and to  
• receive payment of their benefits under the plan. 

The board would consist of seven trustees, including:  

• the state auditor, ex officio;  
• the state treasurer, ex officio;  
• the commissioner of administrative services, ex officio;  
• one trustee appointed by the governor for a term of four years;  
• two trustees elected by the trustees; and  
• a citizen of Georgia who is neither a plan participant nor a holder of, or candidate for, public office during his or her term of office as a trustee; in addition, that person would have had at least 10 years of experience in the investment of money and would be elected by the remaining trustees for a term of four years.