Automatic participation in county deferred compensation plans for new employees starting January 1, 2026.

The bill amends the Texas Government Code to allow certain counties to automatically enroll new employees in deferred compensation plans. Employees are automatically enrolled unless they opt out. The county must inform employees about this enrollment and their right to opt out during the new employee orientation. Employees contribute three percent of their compensation to a default investment product selected by the plan administrator. The bill takes effect immediately if passed with a two-thirds vote; otherwise, it takes effect September 1, 2025.

Automatic participation in county deferred compensation plans for new employees starting January 1, 2026.

The bill amends the Texas Government Code to allow certain counties to automatically enroll new employees in deferred compensation plans. Employees are automatically enrolled unless they opt out. The county must inform employees about this enrollment and their right to opt out during the new employee orientation. Employees contribute three percent of their compensation to a default investment product selected by the plan administrator. The bill takes effect immediately if passed with a two-thirds vote; otherwise, it takes effect September 1, 2025.