Bill > HB1270

This bill amends existing law to expand automatic enrollment options for deferred compensation plans for county, municipal, and other political subdivision employees. The bill modifies the definition of "employee" to include full-time, part-time, and seasonal workers across various government levels, and allows counties, municipalities, and political subdivisions to automatically enroll eligible employees in their deferred compensation plans unless the employee specifically opts out. The legislation builds upon previous rules that allowed automatic enrollment for state employees, now extending similar provisions to local government entities. Specifically, the bill permits these local government bodies to automatically enroll new employees in their deferred compensation plans under Section 457 of the U.S. Internal Revenue Code, with employees having the ability to waive participation as described in their specific plan documents. The bill also requires the state department to offer a Roth option in the deferred compensation plan by December 1, 2023, providing employees with additional tax-advantaged retirement savings choices. This legislation aims to encourage more consistent retirement savings among government employees by making participation in deferred compensation plans more automatic and accessible.