Honorable Vicki Truitt, Chair, House Committee on Pensions & Investments
FROM:
John S. O'Brien, Director, Legislative Budget Board
IN RE:
HB957 by Orr (Relating to participation by certain state employees in a default investment product under a deferred compensation plan.), As Introduced
No significant fiscal implication to the State is anticipated.
The bill would make participation in the 401(k) plan automatic for any new employee hired after January 1, 2008 unless the employee elects not to participate. The employee would contribute a minimum of 1 percent to a default investment product selected by the board of trustees. The payroll deduction would be made automatically and would not require written consent of the employee.
It is anticipated by the Employees Retirement System that any administrative costs associated with implementing the provisions of the bill could be absorbed within existing TexaSaver program resources.
Local Government Impact
No fiscal implication to units of local government is anticipated.