BILL NUMBER: SJR 30INTRODUCED BILL TEXT INTRODUCED BY Senator Kehoe APRIL 7, 2010 Relative to deferred compensation plans. LEGISLATIVE COUNSEL'S DIGEST SJR 30, as introduced, Kehoe. Deferred compensation plans. This measure would declare California's support of legislative action by Congress to extend to participants in 457(b) plans the option to treat elective deferrals as Roth IRA contributions and to provide 457(b) plan participants with savings options similar to participants in 401(k) and federal Thrift Savings Plans. Fiscal committee: no. WHEREAS, On June 7, 2001, the Economic Growth and Tax Reconciliation Act of 2001 was signed into law by President George W. Bush, granting section 401(k) retirement plan participants the option to treat elective deferrals as Roth IRA contributions; and WHEREAS, On June 22, 2009, the Federal Retirement Reform Act of 2009 was signed into law by President Barack Obama, granting participants in the federal government's Thrift Savings Plan the option to treat elective deferrals as Roth IRA contributions; and WHEREAS, There is presently no option for 457(b) plan participants to create elective deferrals as Roth IRA contributions; and WHEREAS, The State of California would benefit from granting state and local government employees the ability to use a 457(b) plan by receiving immediate tax revenue based on the contributions to the plan and the employees will benefit from the ability to withdraw their retirement money tax free when they retire; and WHEREAS, There are more than 269,000 state employees who are eligible to enroll in a 457(b) plan; and WHEREAS, There are more than 1.08 million local government employees who are eligible to enroll in a 457(b) plan; now, therefore, be it Resolved by the Senate and the Assembly of the State of California, jointly, That the California State Legislature strongly supports legislative action by Congress to extend to participants in 457(b) plans the option to treat elective deferrals as Roth IRA contributions and to provide 457(b) plan participants with savings options similar to participants in 401(k) and federal Thrift Savings Plans; and be it further Resolved, That the Secretary of the Senate transmit copies of this resolution to the author for appropriate distribution.