Texas 2013 - 83rd Regular

Texas House Bill HB1804

Filed
 
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to the authority of political subdivisions to offer certain deferred compensation plans to employees.

Impact

The key impact of HB1804 is that it modernizes the approach to employee benefits at the local level, enabling political subdivisions to provide more flexible and tax-advantaged retirement savings options. By allowing Roth contributions and loans under the 457 plans, the bill intends to enhance the attractiveness of public sector employment in Texas and promote better financial planning for employees. This change is particularly significant for long-term employees looking to optimize their retirement savings strategies.

Summary

House Bill 1804 addresses the authority of political subdivisions in Texas to offer certain deferred compensation plans to their employees. The bill amends the Government Code, allowing local governments and other political entities to establish qualified Roth contribution programs as part of their deferred compensation offerings. This means that employees can choose to designate or convert their contributions to Roth accounts under both 401(k) and 457 plans, aligning these options with federal tax regulations.

Contention

While supporters argue that the bill will empower local governments to compete more effectively in attracting and retaining talent, there are concerns about the potential financial implications for those subdivisions. Critics may question whether expanding the authority to offer these plans could lead to unsustainable retirement benefits obligations. Additionally, there may be apprehension regarding adequate administrative support for these new programs and their impact on existing employee benefit structures.

Companion Bills

TX SB366

Identical Relating to the authority of political subdivisions to offer certain deferred compensation plans to employees.

Previously Filed As

TX HB3002

Relating to the authority of certain political subdivisions to issue certificates of obligation.

TX HB5222

Relating to consent to the creation of certain political subdivisions.

TX SB2349

Relating to consent to the creation of certain political subdivisions.

TX HB4559

Relating to the application of statutes that classify political subdivisions according to population.

TX SB1104

Relating to the authority of the legislature, governor, and certain political subdivisions with respect to disasters and emergencies.

TX HB2654

Relating to the authority of the legislature, governor, and certain political subdivisions with respect to disasters and emergencies.

TX HB1819

Relating to the repeal of the authority of political subdivisions to adopt or enforce juvenile curfews.

TX SB603

Relating to the repeal of the authority of political subdivisions to adopt or enforce juvenile curfews.

TX SB1412

Relating to regulation of accessory dwelling units by political subdivisions.

TX SB1017

Relating to the authority of a political subdivision to regulate an energy source or engine.

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