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AN ACT
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relating to increasing state employee participation in the |
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TexaSaver program. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 609.006(a), Government Code, is amended |
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to read as follows: |
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(a) A deferred compensation plan must conform to federal law |
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to provide that deferred amounts and investment income are not |
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includable, for federal income tax purposes, in the gross income of |
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a participating employee until distributed to the employee, subject |
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to the employee's option to designate all or a portion of deferred |
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amounts as Roth contributions under Section 609.5021, the federal |
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income tax treatment of which is governed by Section 402A, Internal |
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Revenue Code of 1986. |
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SECTION 2. Subchapter C, Chapter 609, Government Code, is |
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amended by adding Section 609.5021 to read as follows: |
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Sec. 609.5021. ROTH CONTRIBUTION PROGRAMS. The board of |
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trustees may: |
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(1) establish a qualified Roth contribution program in |
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accordance with Section 402A, Internal Revenue Code of 1986, under |
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which an employee may designate all or a portion of the employee's |
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contribution under a 401(k) plan as a Roth contribution at the time |
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the contribution is made; and |
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(2) if authorized by federal law, establish a program |
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in accordance with the applicable federal law under which an |
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employee may designate all or a portion of the employee's |
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contribution under a 457 plan as a Roth contribution at the time the |
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contribution is made. |
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SECTION 3. Section 609.5025(d), Government Code, is amended |
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to read as follows: |
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(d) At any time, an employee participating in a 401(k) plan |
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under this section may, in accordance with rules adopted by the |
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board of trustees, elect to end participation in the 401(k) plan, to |
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contribute to a different investment product, [or] to contribute a |
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different amount to the plan, or to designate all or a portion of |
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the employee's contribution as a Roth contribution subject to the |
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availability of a Roth contribution program under Section 609.5021. |
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SECTION 4. Subchapter C, Chapter 609, Government Code, is |
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amended by adding Section 609.5026 to read as follows: |
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Sec. 609.5026. STATE MATCHING CONTRIBUTIONS. Subject to a |
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separate legislative appropriation for that purpose, the Employees |
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Retirement System of Texas may make matching contributions to a |
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401(k) plan on behalf of employees participating in the plan solely |
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from, and in an amount specified by, the appropriation. |
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SECTION 5. This Act takes effect September 1, 2009. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 2283 was passed by the House on April |
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30, 2009, by the following vote: Yeas 128, Nays 1, 1 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 2283 on May 23, 2009, by the following vote: Yeas 144, Nays 0, |
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2 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 2283 was passed by the Senate, with |
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amendments, on May 19, 2009, by the following vote: Yeas 30, Nays |
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0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |