GSEPS (Tier 3) FAQ
The Georgia State Employees’ Pension and Savings Plan (GSEPS), or Tier 3, has two components:
- A traditional Defined Benefit plan component (guaranteed by the state), and
- A 401(k) savings plan with an employer matching contribution.
The GSEPS Defined Benefit Plan has a pension benefit formula of :
1% x years of service x highest average salary*
*Average of the highest 24 consecutive calendar months of salary while a member of the retirement system.
The employee contribution is 1.25%.
Vesting is 10 years minimum creditable service.
Disability Retirement Monthly Death Benefit (calculated as follows):
- 15 years of creditable service and have at least 24 consecutive months as an ERS member
- Not eligible if age 60 or attained 30 years creditable service. Disability benefits for these employees will be calculated the same as a service retirement under the New Plan, but without regard to age:
- Pension Benefit Formula Salary x 1% x years of Creditable Service
How does GSEPS work?
GSEPS is a combination Defined Benefit and a PSR 401(k) savings plan with employer match. It works as follows:
The Defined Benefit (DB) plan component
- By law, with a cost to the employee of 1.25 % of salary.
- The benefit multiplier is 1% for each year of service.
- Vesting is 10 years.
- The cost to the state is based on actuarial requirements.
The 401(k) plan component
Uses the Peach State Reserves 401(k) Plan. New employees are automatically enrolled to contribute 5% of their compensation.
- Effective July 1, 2022, employers will match member contributions dollar per dollar, up to 5% of pay. Members saving 5% or more receive a full 5% match.
- GSEPS members with at least six years of service, and who are contributing at least 5%, will get an additional half percent employer match for every full year of service in excess of five years, up to a maximum match of 9%.
Employees may contribute more than 5%, subject to IRS rules, with no match. Employer matching contributions to the 401(k) plan will vest over 5 years at 20% per year. The employee’s own savings amounts are always 100% vested. See example match calculation below, as well as vesting schedule.
Note: Employees can choose to opt out of this contribution and forego any match. Once enrolled, they will have 90 days to discontinue participation and receive a refund of contributions. After 90 days, employees may still discontinue and re-enroll at any time, however no refund of contributions will be made.
Example of a 401(k) Match
Based on an annual salary of $30,000 paid semi-monthly
| Contribution | Years of Service | Contribution Amount per Pay period | Employer Matching % | Employer Match per Pay Period |
|---|---|---|---|---|
| 1% | Any | $12.50 | 1.0% | $12.50 |
| 2% | Any | $25.00 | 2.0% | $25.00 |
| 3% | Any | $37.50 | 3.0% | $37.50 |
| 4% | Any | $50.00 | 4.0% | $50.00 |
| 5% | less than 6 | $62.50 | 5.0% | $62.50 |
| 5% | 6 | $62.50 | 5.5% | $67.85 |
| 5% | 7 | $62.50 | 6.0% | $75.00 |
| 5% | 8 | $62.50 | 6.5% | $81.25 |
| 5% | 9 | $62.50 | 7.0% | $87.50 |
| 5% | 10 | $62.50 | 7.5% | $93.75 |
| 5% | 11 | $62.50 | 8.0% | $100.00 |
| 5% | 12 | $62.50 | 8.5% | $106.25 |
| 5% | 13 | $62.50 | 9.0% | $112.50 |
401(k) Vesting Schedule
| Years of continuous service in a GSEPS-eligible position |
Vested Amount |
|---|---|
| After 1 year |
20% |
| After 2 years |
40% |
| After 3 years |
60% |
| After 4 years |
80% |
| After 5 years |
100% |
Note: For the GSEPS 401(k) plan component, any break in service of greater than 31 days will cause the 5-year 401(k) vesting schedule to begin again as of the new date of hire.
I’m currently a member of the ERS New Plan. If I transfer my retirement plan membership to GSEPS, how will this affect my pension benefit?
With GSEPS the vesting period for the pension plan is the same (10 years of creditable service, including service already completed under the ERS Old or New Plan), but the Pension Benefit Formula Factor upon which the amount you receive at retirement is based changes from 2% for each year of service to 1%. If you transfer membership from the ERS Old or New by opting in to GSEPS, your pension plan retirement benefit will be calculated as a pro-rata share of both Formula Factors, based upon actual service under each plan. This means the benefit for the years of service completed prior to Opting-In is frozen at the 2% rate, and all service completed after Opting-In will be calculated at the 1% rate (assuming you are vested).
Age 29, with 1 year creditable service as of date of Opt-In – retires at age 58
| Pension Benefit Formula | Pro-Rated Benefit % of Formula Salary |
|---|---|
| 1 year x 2% (ERS New Plan) | 2% |
| 29 years x 1% (GSEPS) | 29% |
| Total | 31% |
| Formula Salary | $4,000 |
| Retirement Benefit | $1,240 |
I currently participate in the Peach State Reserves 457 Plan. Will my 457 contributions be matched if I’m covered under GSEPS?
For current participants in the Peach State Reserves 457 plan, your 457 contributions will NOT be matched.
If you are a member of the ERS New Plan and want to transfer your retirement plan membership to GSEPS, completion of the GSEPS Opt-In form and election of a contribution percentage will automatically enroll you in the 401(k) plan, however 457 contributions will not change unless you access your PSR account and change or stop those contributions.
If I’m currently covered under the New Plan, and I leave my job with the state but return to state employment at a later date will I be covered under GSEPS?
There are various scenarios that affect your retirement plan eligibility. You will be covered by GSEPS on your return if:
- At separation from state service, you accepted a refund of your contributions or
- At separation from state service, you had less than 10 years of service (vested) and your break in service was greater than 4 years.
Note: If you left with vested rights under ERS (10 years of creditable service) and did not take a refund, you would retain your New Plan coverage under ERS regardless of the length of the break in service. For the GSEPS 401(k) plan component, any break in service of greater than 31 days will cause the 5-year 401(k) vesting schedule to begin again as of the new date of hire.
Will Appellate court judges continue to have the optional benefits provided in Code Section 47-2-244 in lieu of GSEPS?
Yes. Any “appellate court judge” (any Judge, Presiding Judge, or Chief Judge of the Court of Appeals and any Associate Justice, Presiding Justice, or Chief Justice of the Supreme Court) shall be entitled to receive the benefits under provisions of Code section 47-2-244 in lieu of any retirement allowances otherwise available under this retirement system and in lieu of the appointment to or the holding of any emeritus office upon written notice of same to the ERS Board of Trustees within 60 days after the commencement of the judge’s term of office. The election is irrevocable. Such judge shall resign from office as an appellate court judge on or before the day upon which they attain 75 years of age or on the last day of the term in which such appellate court judge is serving when they attain age 70, whichever is later. After ten years of service as an “appellate court judge,” such judge shall be entitled to receive during life a retirement benefit payable monthly equivalent to 75 percent of the salary of an appellate court judge then serving in the office from which such judge retired. The monthly employee contribution is 8.5% of the judge’s earnable compensation for each pay period and an additional .50% for group term life insurance.
Will Law Enforcement Personnel continue to have special benefits under GSEPS?
Yes. Line of Duty Disability is available for any member in service in the Uniform Division of the Department of Public Safety, a game warden or deputy game warden of the Department of Natural Resources, a parole officer employed by the State Board of Pardons and Paroles, an officer or agent of the Georgia Bureau of Investigation, an alcohol and tobacco officer or agent of the Department of Revenue, and a probation officer employed by the Department of Corrections.
- Injury occurred in the line of duty
- Benefit equal to the greater of, 24% of monthly salary plus $150, or 1% x service at age 55 x monthly salary
- Maximum payable for life of member only. No optional allowances for survivor.
Early Service Retirement is available for any member in service in the Uniform Division of the Department of Public Safety as an officer, noncommissioned officer, or trooper, an officer or agent of the Georgia Bureau of Investigation, a game warden of the Department of Natural Resources, an alcohol and tobacco officer or agent of the Department of Revenue, or an officer or agent of the Special Investigations Unit of the Department of Revenue.
- Must have minimum 10 years of creditable service
- Must be at least age 55
- Benefit equal to 1% x years of service x average of highest 24 consecutive calendar months of salary while a member of the retirement system
- Choice of maximum plan payable for life of member only or optional allowance