Texas Senate Bill SB1411

Texas 2019 - 86th Regular

Caption

Relating to the creation of a state-administered retirement plan; authorizing administrative penalties.

Impact

The implementation of SB1411 is expected to have significant implications for state labor laws and retirement security. It introduces a systematic approach to retirement savings by enabling individuals in small and non-traditional employment setups, who typically lack employer-sponsored retirement plans, to accumulate savings for their future. However, the move to automatically enroll employees may raise concerns among some regarding individual choice and autonomy over retirement planning.

Summary

Senate Bill 1411, known as the Act relating to the creation of a state-administered retirement plan, establishes a Secure Retirement Savings Program in Texas. This program is designed to provide retirement savings options for employees working for eligible employers who do not have access to a traditional retirement plan. Eligible employees are automatically enrolled, allowing contributions through payroll deductions, aimed primarily at improving retirement security for the workforce. The bill mandates participating employers to facilitate these deductions and encourages employee savings through a structured IRA plan.

Contention

Notable points of contention surrounding the bill include the administrative penalties imposed on employers who fail to comply with the program's regulations. Critics argue that this could impose unnecessary burdens on small businesses struggling to comply with new regulations while proponents argue that these penalties are essential for ensuring program integrity and successful implementation. The balance between encouraging participation and imposing penalties remains a focal point of debate among stakeholders.