The bill amends RCW 41.50.770 to establish automatic deferred compensation enrollment for employees of counties, municipalities, and other political subdivisions in Washington State. It mandates that all newly employed full-time individuals eligible for a deferred compensation plan under 26 U.S.C. Sec. 457 be automatically enrolled unless they choose to opt out. The bill specifies that counties, municipalities, or political subdivisions offering their own deferred compensation plans can also implement automatic enrollment in accordance with their plan documents. Additionally, it introduces a Roth option for employees in the deferred compensation plan, which must be offered by December 1, 2023.

Key changes in the bill include the insertion of provisions that clarify the automatic enrollment process for employees of local governments and the ability for these entities to offer their own plans. The language also emphasizes that employees who do not select a deferral amount will contribute a default percentage of their taxable compensation, which will be invested in a state-selected option. The bill aims to enhance participation in retirement savings plans among public employees while ensuring compliance with federal regulations.

Statutes affected:
Original Bill: 41.50.770
Bill as Passed Legislature: 41.50.770
Session Law: 41.50.770