Bill > SB2559

This bill allows county commissioners courts in Texas to elect to automatically enroll county employees in a deferred compensation plan (a type of retirement savings plan) without requiring the employee's explicit prior consent. Under this provision, employees would be automatically enrolled and contribute 3% of their compensation to a default investment product unless they actively choose to opt out. The employee can, at any time, choose to stop participation, change their contribution amount, select a different investment product, or designate contributions as Roth contributions. Counties electing to implement this automatic enrollment must inform new employees about their enrollment and opt-out rights during the onboarding process, and must ensure the plan complies with federal rules regarding default investment alternatives. The bill specifies that these provisions will only apply to employees who initially begin employment on or after January 1, 2026. The bill aims to encourage retirement savings by making participation in deferred compensation plans easier and more automatic for county employees, while still preserving individual choice about participation and contribution levels.

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB2559