Bill > SB2248

This bill allows county commissioners courts to implement automatic enrollment in deferred compensation plans (retirement savings programs) for county employees, with several key provisions. Under the proposed law, counties can elect to automatically enroll employees in a deferred compensation plan with a default 3% contribution to an investment product selected by the plan administrator, unless an employee specifically chooses to opt out. Employees who are automatically enrolled retain flexibility to change their contribution amount, select a different investment product, or stop participating altogether at any time. The bill requires that new employees be informed about their enrollment and opt-out rights during the employee orientation process, and mandates that the county maintain a record of the employee's acknowledgment of these options. The automatic enrollment would only apply to employees who initially begin employment on or after January 1, 2026. Importantly, the bill specifies that these automatic payroll deductions are not considered debt deductions or wage garnishments, and the county must ensure the plan complies with federal rules governing default investment alternatives. The bill would take effect immediately if it receives a two-thirds vote in the Texas legislature, or on September 1, 2025, if it does not receive the immediate voting threshold.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB2248