GDCP at UGA

The Georgia Defined Contribution Plan

Individuals employed as temporary employees by state agencies (including the University of Georgia) are required by Georgia law to contribute 7.5% of their pay to the Georgia Defined Contribution Plan (GDCP) instead of making contributions to Social Security.  

Excluded from this plan are the following:

  1. Persons qualified as bona fide independent contractors
  2. Active members of ERS or TRS
  3. Retirees of ERS or TRS
  4. Persons working for an institution in which that person is regularly enrolled and attending classes and meets IRS student-exclusion criteria

View the State of Georgia GDCP page. View an example of GDCP participation vs. Social Security.

Information for supervisors of GDCP-eligible employees:

Enrollment in GDCP
Employees hired into GDCP-eligible positions will have automatic deductions and will receive a letter from ERS/GDCP requesting them to designate a beneficiary.

When the employee leaves a GDCP-eligible position, the department should submit a personnel reflecting the employee is either terminating (leaving UGA) or transferring to a non-GDCP-eligible position (student worker, benefit-eligible employee).

Information for GDCP-eligible employees:

Requesting refund of GDCP contributions
The Employees Retirement System of Georgia (ERSGA) administers the GDCP program. When leaving a GDCP-eligible position, it may be possible to request a refund of your GDCP contributions. In order to be eligible to apply for a refund, you must separate employment from UGA or transfer to a benefits-eligible position. UGA must notify ERSGA of your GDCP termination date and your GDCP account status must be “inactive.” You must wait 31 days after you receive your last GDCP  payroll deduction before you can request a refund.

Visit the ERS site to log in to your account and request a refund of GDCP contributions.

  • If you are leaving UGA employment and are not able to request a refund after 6-8 weeks from the  date you receive your last paycheck, please contact your department to ensure they have submitted paperwork to terminate your temporary employment at UGA. If your paperwork has been submitted and you still cannot access the ERS site, please email payroll@uga.edu.
  • If you transferred from a temporary position to a benefits-eligible position at the University and are not able to request a refund after 31 days from receiving your last paycheck from the previous department, please contact Human Resources at 706-542-2222.
  • If you are returning to a student worker position, you cannot request a GDCP refund.


Student employees (as defined in UGA policy):

When student employees are attending classes on a full time basis and classes are in session, they are exempt from participating in GDCP. However, if a student employee works between semesters during any break that exceeds five weeks, exceeds 20 work hours per week, or decides not to attend classes for a period of time but continues working, he/she must contribute to GDCP.

When a student employee works between semesters (during any break longer than five weeks), or when he/she is not attending classes, his/her supervisor should:

  • Submit a personnel report changing the employee to a temporary employee status

When a temporary employee begins or resumes attending classes full time, supervisors should:

  • Submit a personnel report changing the employee to a student employee status
  • Submit a separation notice for the student employee leaving a temporary position
  • The supervisor should not change a student employee to a temporary status just because the student will work more than 20 hours per week.

To read more about exit procedures for employees of all job types, view the "End of Employment" section of the Administrative Policies & Procedures Manual.

For guidelines regarding the retention of these records, please visit: http://www.libs.uga.edu/recman/retention.html.

If you have questions about GDCP at the University of Georgia, please contact Employee Benefits at 706-542-2222 or benefits@uga.edu.

GDCP participation vs. Social Security
An example

GDCP participation at UGA

Mandatory deductions from gross salary:

7.5% GDCP
1.45% SS FICA HI
8.95% TOTAL DEDUCTION

With GDCP, you have the option to receive a benefit when you reach retirement age or withdraw your 7.5% GDCP contribution early when you are no longer eligible to participate.

 

Social Security participation

Mandatory deductions from gross salary:

6.2% OASDI
1.45% SS FICA HI
7.65% TOTAL DEDUCTION

With Social Security, you are eligible for benefits if you become disabled or when you reach normal Social Security retirement age.

 

Revised 12.1.16