07 LC 21
9056/AP
House
Bill 213 (AS PASSED HOUSE AND SENATE)
By:
Representative Bridges of the
10th
and Forster of the 3rd
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Article 2 of Chapter 18 of Title 45 of the Official Code of Georgia
Annotated, relating to deferred compensation plans, so as to repeal a special
pay plan for deferred payment of special compensation to reduce federal tax
burden for state employees; to repeal conflicting laws; and for other
purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Article
2 of Chapter 18 of Title 45 of the Official Code of Georgia Annotated, relating
to deferred compensation plans, is amended by repealing in its entirety Code
Section 45-18-37, relating to special pay plan for deferred payment of special
compensation to reduce federal tax burden for state employees, as
follows:
"45-18-37.
(a)
As used in this Code section, the term:
(1)
'Special compensation' means compensation for terminal leave and such other
compensation as the Board of Trustees of the Employees´ Retirement System
of Georgia deems appropriate under federal regulations.
(2)
'Special pay plan' means a qualified retirement plan under Section 401(a) of the
federal Internal Revenue Code, 26 U.S.C. Section 401(a), which reduces federal
tax obligations on special compensation.
(3)
'State employee' means any person, whether appointed or elected, who provides
services for the state, including any state authority authorized to participate
in the Employees´ Retirement System of Georgia under Chapter 2 of Title
47.
(4)
'Terminal leave' means accrued and unused annual leave which has not been
forfeited at the time of a state employee´s separation from service, not to
exceed 360 hours.
(b)
The Board of Trustees of the Employees´ Retirement System of Georgia shall
establish and administer a special pay plan for the deferred payment of special
compensation which reduces the federal tax obligation upon such payments. Such
plan shall become effective not later than July 1, 2005. Participation in such
plan shall be mandatory for all retiring and terminating state employees age 55
and older whose compensation for terminal leave equals $1,000.00 or more.
Payment options from the plan shall include, at a minimum, a lump sum payment to
the employee within seven days after payments are made into the plan on his or
her behalf in an amount equal to the entire amount of special compensation with
earnings thereon, less any mandatory income tax withholding. The board of
trustees may contract with any company qualified to do business in this state to
provide such benefits.
(c)
Nothing in this Code section shall be construed so as to affect benefits under
Chapter 2 of Title 47.
Reserved."
SECTION
2.
All
laws and parts of laws in conflict with this Act are repealed.