Georgia State Employees' Pension and Savings Plan
ERS members hired on and after January 1, 2009 will be automatically enrolled in the new GSEPS Plan. Employees hired prior to January 1, 2009 maintain their membership in either the ERS New or Old plan.
What is GSEPS?
GSEPS is a combination Defined Benefit/ 401(k) plan.
GSEPS is a combination of a defined benefit (DB) and defined contribution (401K) plan. Contributions are as follows:
GSEPS members are required to contribute 1.25% of their earnable compensation to the plan.
- All contributions are deposited to the member’s annuity savings plan.
- GSEPS members are not eligible for Group Term Life Insurance.
Currently, new members are automatically enrolled at a 5% contribution rate, allowing for the maximum employer match to be contributed to the member’s account. How much you contribute to your 401(k) determines how much your employer contributes on your behalf.
- You may increase or decrease your 401(k) contribution rate at any time.
- The 401(k) employer contribution is subject to a 5-year vesting schedule, vesting 20% for each completed year of service in a GSEPS eligible position.
Provides State matching up to 3% with member contributing 5%, utilizing the Peach State Reserves 401(k) Plan.
- Member contributes 1% of compensation and receives 1% salary match from State (100% match on the first 1% of compensation contributed)
- For each additional percent contributed by member (up to 4%), the State will match 50% of that amount (up to 2% of compensation)
- The 401(k) employer contribution is subject to a 5-year vesting schedule, vesting 20% for each completed year of service in a GSEPS-eligible position
DB/401(k) Plans combined
30 years = approximately 59% of salary** (annuitized). With Social Security benefits, total benefit could provide 90% or more of final salary.
Current employees who are ERS members as of December 31, 2008 may opt-in to GSEPS at any time on or after January 1, 2009. View the for more information.*Assumes annual salary increase of 3.75% and retirement at age 60 with 30 years of service. **Assumes annual employee 401(k) contribution of 5%, average annual 401(k) investment return of 6% over 30 years, annual salary increase of 3.75% and retirement at age 60 with 30 years of service.
During the 2008 Georgia Legislative Session, the legislature passed Senate Bill 328, which provides for a new retirement plan for state employees hired on and after January 1, 2009.