Texas 2025 - 89th Regular

Texas Senate Bill SB2248

Filed

3/11/25

Out of Senate Committee

Voted on by Senate

Out of House Committee

Voted on by House

Governor Action

Bill Becomes Law

Caption

Relating to automatic participation by certain county employees in deferred compensation plans provided by certain counties.

Impact

The legislation is expected to impact existing laws relating to employee participation in deferred compensation programs by eliminating the requirement for employees to proactively consent to participate. This change is anticipated to simplify the enrollment process and potentially increase the number of employees saving for retirement. The bill requires counties to inform new employees about their enrollment and opt-out rights, ensuring that they understand their options regarding participation in the deferred compensation plan.

Summary

Senate Bill 2248 introduces provisions regarding automatic participation for certain county employees in deferred compensation plans. The bill stipulates that employees of counties that elect to offer such plans will automatically be enrolled unless they opt out. This aims to increase participation rates in retirement savings plans among county employees, facilitating a more secure financial future for them. Under the new system, a default contribution of three percent of their compensation will be automatically deducted from employees' wages, making saving easier and more accessible.

Contention

Notable points of contention surrounding SB 2248 include concerns about how automatic enrollment might infringe on individual choice. Critics argue that some employees may prefer to opt out or choose different savings levels or strategies for their contributions. There is also debate about whether automatic enrollment could lead to complacency regarding individualized financial planning among employees. Nonetheless, proponents contend that the measure is necessary to counteract low participation rates in voluntary retirement saving plans, particularly amongst governmental employees.

Texas Constitutional Statutes Affected

Government Code

Chapter 609. Deferred Compensation Plans
- Section: 007
- Section: New Section

Companion Bills

TX HB2783

Identical Relating to automatic participation by certain county employees in deferred compensation plans provided by certain counties.

TX SB2559

Same As Relating to automatic participation by certain county employees in deferred compensation plans provided by certain counties.

Previously Filed As

TX HB4928

Relating to the continuation of certain health care provider participation programs in certain counties.

TX HB993

Relating to sheriff's department civil service systems in certain counties.

TX HB2926

Relating to certain claims for benefits or compensation by certain public safety employees and survivors of certain public safety employees.

TX SB2471

Relating to certain claims for benefits, compensation, or assistance by certain public safety employees and survivors of certain public safety employees.

TX HB4853

Relating to the issuance of obligations by certain counties to pay the unfunded liabilities of the county to a public retirement system.

TX HB307

Relating to requiring certain employers to provide paid sick leave to employees; providing administrative penalties.

TX HB3398

Relating to county zoning authority for counties adjacent to populous counties; creating a criminal offense.

TX HB4000

Relating to the public retirement systems for employees of certain municipalities.

TX SB1444