SB 2559 —

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This bill amends 2 section(s) of the Texas statutes: Section 609.007(c), Government Code, Section 609.1026, Government Code.

• Section 609.007(c), Government Code

  609.1026, ,

  amended

• Section 609.1026, Government Code

  Sec. 609.1026. AUTOMATIC PARTICIPATION BY CERTAIN COUNTY EMPLOYEES; DEFAULT INVESTMENT PRODUCT. (a) In this section, "electing county" means a county that elects to require automatic employee participation in a deferred compensation plan under this section. (b) The commissioners court of a county that offers a deferred compensation plan to the county's employees under this subchapter may by order elect to require automatic employee participation in a deferred compensation plan under this section. (c) An employee of an electing county automatically participates in a deferred compensation plan provided by the county unless the employee affirmatively elects not to participate in the plan. The employee is not required to affirmatively contract for and consent to participation in a plan under this section. (d) An employee participating in a deferred compensation plan under this section makes a contribution of three percent of the compensation earned by the employee to a default investment product selected by the plan administrator based on the criteria established under Section 609.113 and the order adopted under Subsection (b), including requirements prescribed in accordance with Subsection (g). The contribution is made by automatic payroll deduction. (e) At any time, an employee participating in a deferred compensation plan under this section may, in accordance with the order adopted by the commissioners court of the electing county, or its designee, elect to end participation in the plan, to contribute to a different investment product, 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. (f) An electing county shall ensure that, at the time of employment, each employee is informed of: (1) the elections the employee may make under this section; and (2) the responsibilities of the employee under Section 609.010. (g) In the order adopted under Subsection (b), the commissioners court of an electing county, or its designee, shall prescribe the requirements of this section. The order must ensure that the operation of a deferred compensation plan under this section conforms to the applicable requirements of any federal rule that provides fiduciary relief for investments in qualified default investment alternatives or otherwise governs default investment alternatives under participant-directed individual account plans. (h) The amount deducted under this section from an employee's compensation is not deducted for payment of a debt and the automatic payroll deduction is not garnishment or assignment of wages. (i) Using existing resources, the electing county shall inform new employees of their automatic enrollment in a deferred compensation plan and their right to opt out of enrollment. Using existing resources, this information must be included as part of the new employee orientation process. The county shall maintain a record of a new employee's acknowledgment of receipt of information regarding the ability to opt out of enrollment in a deferred compensation plan.

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