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A BILL TO BE ENTITLED
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AN ACT
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relating to participation by certain state employees in a default |
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investment product under a deferred compensation plan. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 609.007(c), Government Code, is amended |
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to read as follows: |
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(c) To [Except as provided by Section 609.5025, to] |
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participate in a deferred compensation plan, an employee must |
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consent in the contract to automatic payroll deductions in an |
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amount equal to the deferred amount. |
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SECTION 2. The heading to Section 609.5025, Government |
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Code, is amended to read as follows: |
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Sec. 609.5025. VOLUNTARY [AUTOMATIC] PARTICIPATION; |
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PROVISION OF INFORMATION [DEFAULT INVESTMENT PRODUCT]. |
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SECTION 3. Sections 609.5025(b) and (h), Government Code, |
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are amended to read as follows: |
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(b) An employee may elect to participate [participates] in a |
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401(k) plan [unless the employee affirmatively elects not to
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participate in the plan]. An [Notwithstanding Sections 609.007(b)
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and (c), an] employee is [not] required to affirmatively contract |
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for and consent to participation in a plan under Sections |
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609.007(b) and (c) [this section]. |
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(h) Within existing resources, a state agency participating |
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in a 401(k) plan shall inform new hires of their option to enroll |
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[automatic enrollment] in a 401(k) account and their right to |
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opt-out of enrollment. Within existing resources, this information |
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shall be included as part of the new employee orientation process. |
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[State agencies participating in a 401(k) plan shall maintain a
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record of a new hire's acknowledgement of receipt of information
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regarding the ability to opt-out of enrollment in a 401(k) plan.] |
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SECTION 4. Section 659.102(a), Government Code, is amended |
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to read as follows: |
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(a) An employee of a state agency may authorize in writing a |
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deduction each pay period from the employee's salary or wage |
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payment for coverage of the employee under an eligible supplemental |
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optional benefits program. A deduction may be made each pay period |
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from the employee's salary or wage payment [without authorization
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in writing from the employee] for participation in a 401(k) plan as |
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provided by Section 609.5025. |
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SECTION 5. Sections 609.5025(c) and (g), Government Code, |
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are repealed. |
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SECTION 6. The change in law made by this Act applies only |
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to an officer or state employee who initially takes office or begins |
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employment on or after the effective date of this Act. |
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SECTION 7. This Act takes effect September 1, 2019. |