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, municipalities, or political subdivisions 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 insertions in the bill include provisions that exempt higher education student employees and those working for political subdivisions with their own deferred compensation plans from automatic enrollment. The bill also clarifies that employees participating in the state deferred compensation plan can self-direct their investments and that any income deferred will still count as regular compensation for retirement and pension benefits. Overall, the legislation aims to streamline the enrollment process for deferred compensation plans while providing flexibility for local governments to manage their own plans.

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