Updates from ERSGA

GSEPS Legislative Changes

 
ERSGAHB 764 (Act 663) was recently signed by the Governor and includes significant changes for some of the GSEPS population. GSEPS members becoming eligible for membership on or after July 1, 2014 will have an initial contribution rate of 5% of their salary (rather than 1%) to the 401(k) plan, unless they opt out or otherwise elect to change their contribution rate through GaBreeze.

The automatic enrollment change from 1% to 5% allows members to take advantage of the full employer match offered by the state.

More information and updated communication materials will be released on the ERSGA website for download in June. Materials and information will include:

▪ GSEPS Automatic Enrollment Acknowledgement form for new hires to sign, acknowledging that they have been informed about the 5% automatic enrollment. This signed form will remain onsite with local HR as part of the employee’s personnel file and should not be returned to ERS.

◦ HR will also be required to populate a new PeopleSoft field verifying receipt of the employee signed GSEPS Automatic Enrollment Acknowledgement form.

▪ Updated GSEPS plan brochures.
▪ Updated GSEPS 401(k) Enrollment Notice.

An email will be sent to all HR and Payroll contacts once materials are posted and available for download on the ERSGA website and will include more information about the new PeopleSoft field.

Change in Retiree Direct Deposit Payments

 
Beginning in June of this year, a retiree’s first pension payment came via direct deposit to their bank account! Previously, the first payment was sent by check and all subsequent payments by direct deposit. Retirees no longer have to worry about waiting for their first retirement check via snail mail. Now, they can enjoy retirement, knowing their pension payment will make its way to their account on the last business day of each month.

If retirees have elected a Partial Lump Sum Option (PLOP), they will still receive a check for their requested PLOP.

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