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 will be automatically enrolled unless they choose to opt out. The bill also allows counties and municipalities that offer their own deferred compensation plans to automatically enroll employees 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 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 bill specifies that employees who do not select a deferral amount or investment option will contribute three percent of their taxable compensation to a default investment option chosen by the state investment board. Furthermore, it ensures that participation in these deferred compensation programs does not affect an employee's eligibility for pension systems for public employees.

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