81R17704 TJS-D
By: Truitt H.B. No. 2283
Substitute the following for H.B. No. 2283:
By: Anderson C.S.H.B. No. 2283
A BILL TO BE ENTITLED
AN ACT
relating to increasing state employee participation in the
TexaSaver program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 609.006(a), Government Code, is amended
to read as follows:
(a) A deferred compensation plan must conform to federal law
to provide that deferred amounts and investment income are not
includable, for federal income tax purposes, in the gross income of
a participating employee until distributed to the employee, subject
to the employee's option to designate all or a portion of deferred
amounts as Roth contributions under Section 609.5021, the federal
income tax treatment of which is governed by Section 402A, Internal
Revenue Code of 1986.
SECTION 2. Subchapter C, Chapter 609, Government Code, is
amended by adding Section 609.5021 to read as follows:
Sec. 609.5021. ROTH CONTRIBUTION PROGRAMS. The board of
trustees may:
(1) establish a qualified Roth contribution program in
accordance with Section 402A, Internal Revenue Code of 1986, under
which an employee may designate all or a portion of the employee's
contribution under a 401(k) plan as a Roth contribution at the time
the contribution is made; and
(2) if authorized by federal law, establish a program
in accordance with the applicable federal law under which an
employee may designate all or a portion of the employee's
contribution under a 457 plan as a Roth contribution at the time the
contribution is made.
SECTION 3. Section 609.5025(d), Government Code, is amended
to read as follows:
(d) At any time, an employee participating in a 401(k) plan
under this section may, in accordance with rules adopted by the
board of trustees, elect to end participation in the 401(k) plan, to
contribute to a different investment product, [or] to contribute a
different amount to the plan, or to designate all or a portion of
the employee's contribution as a Roth contribution subject to the
availability of a Roth contribution program under Section 609.5021.
SECTION 4. Subchapter C, Chapter 609, Government Code, is
amended by adding Section 609.5026 to read as follows:
Sec. 609.5026. STATE MATCHING CONTRIBUTIONS. (a) Except
as provided by Subsection (b) and subject to a separate legislative
appropriation for that purpose, the Employees Retirement System of
Texas may make matching contributions to a 401(k) plan on behalf of
employees participating in the plan solely from, and in an amount
specified by, the appropriation.
(b) The Employees Retirement System of Texas may only make a
contribution under this section if the retirement system:
(1) receives amounts sufficient to cover normal cost;
and
(2) maintains a funded ratio equal to or greater than
90 percent.
SECTION 5. Notwithstanding Section 4, Chapter 1409 (H.B.
957), Acts of the 80th Legislature, Regular Session, 2007, Section
609.5025, Government Code, as amended by this Act, applies to an
employee of a state agency regardless of the date on which the
employee begins employment. For an employee who began employment
before the effective date of this Act, automatic participation in a
401(k) plan under Section 609.5025, Government Code, begins as soon
as practicable after the effective date of this Act, but not later
than August 31, 2010, subject to the employee's option to elect not
to participate or to contribute a different amount to the plan.
SECTION 6. This Act takes effect September 1, 2009.