Texas Senate Bill SB366

Texas 2013 - 83rd Regular

Caption

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

Impact

The legislation is poised to enhance the offerings available to public employees by aligning state laws with federal requirements concerning deferred compensation. This change allows political subdivisions greater authority in managing retirement plans, which could attract more employees due to the improved benefits. It also reflects a trend toward more attractive compensation packages in the public sector, where benefits can significantly influence job selection.

Summary

SB366, introduced in the Texas legislature, is focused on amending existing laws regarding deferred compensation plans that political subdivisions can offer to their employees. The bill facilitates the establishment of qualified Roth contribution programs under Section 402A of the Internal Revenue Code, allowing employees to convert parts of their contributions to Roth contributions or to designate new contributions as Roth at the time they are made. This aims to provide more flexibility and options for public employees regarding their retirement savings.

Contention

There was little recorded contention around the bill during its discussions or voting phases. The unanimous support indicated by the 147-0 vote in the House suggests broad consensus on the issue of accessing and managing deferred compensation plans more effectively. However, the long-term implications of such legislation could lead to discussions about employee job satisfaction and retention within local government, as enhanced benefits may affect recruitment policies.