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Relating to automatic employee participation in and administration of a deferred compensation plan provided by certain hospital districts.
No fiscal implication to the State is anticipated.
SB 1196 would allow certain hospital districts to offer deferred compensation plans that would provide for automatic enrollment of new employees unless the employee affirmatively elects not to participate. This would apply only to a hospital district created under general or special law if the district offers a deferred compensation plan to the district's employees under the relevant subchapter. Using existing resources, the hospital district would be required to inform new employees of their automatic enrollment in a deferred compensation plan and their right to opt out of enrollment.
Texas Action recommends opposing SB 1196 because it infringes upon principles of personal responsibility and individual liberty. It should be incumbent upon the employee to actively opt in to these types of investment plans, and decide whether they wish to take advantage of the benefits provided by the plan.