Bill > HB2783

This bill introduces a new mechanism for automatic participation in deferred compensation plans for county employees in Texas. Specifically, the bill allows county commissioners courts to elect to automatically enroll employees in a deferred compensation plan, with employees contributing 3% of their compensation to a default investment product unless they actively choose to opt out. Under this new provision, employees do not need to affirmatively consent to participate; instead, they will be automatically enrolled and can later choose to modify their participation by changing contribution amounts, selecting different investment products, or stopping contributions altogether. The county must inform new employees about this automatic enrollment and their right to opt out during the onboarding process. The law will only apply to employees who begin work on or after January 1, 2026, and the county must ensure that the plan complies with federal rules regarding default investment alternatives. The bill aims to encourage retirement savings by making participation easier and more streamlined, while still preserving employee choice and flexibility in managing their deferred compensation plan.

Labor and Employment

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB2783