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HB 2783

Relating to automatic participation by certain county employees in deferred compensation plans provided by certain counties.

89th Legislature (2025) Introduced by Philip Cortez and 9 co-sponsors

Texas HB 2783 requires automatic enrollment of eligible county employees in deferred compensation plans unless they actively opt out, aiming to increase retirement savings participation.

Received from the House
#countygovernment--employees/officers(i0095) #deferredcompensation(s2810) #retirementsystems--county&district(i0731)
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Bill Summary · HB 2783

Legislative bill overview

HB 2783 establishes automatic enrollment in county-sponsored deferred compensation plans for eligible county employees in Texas, rather than requiring employees to manually opt-in. The bill allows counties to automatically enroll workers at a default contribution rate, with employees retaining the right to decline participation or modify their contributions.

Why is this important

Automatic enrollment significantly increases retirement savings participation rates, as behavioral economics shows most employees remain in default options. This could substantially improve retirement security for county workers who might otherwise skip enrollment due to inertia or complexity, while also potentially reducing future county pension liabilities.

Potential points of contention

  • Cost implications: Counties must establish administrative infrastructure for automatic enrollment, potentially creating unfunded mandates on local budgets already strained by other obligations
  • Employee autonomy concerns: Automatic enrollment pre-commits workers' income to savings without explicit consent, raising questions about whether default participation respects individual choice
  • Default contribution rates: Disagreement likely over what percentage is appropriate for automatic deduction—too high may burden lower-wage employees, too low may prove ineffective for retirement adequacy

Compiled from official sources — confirm details with the bill’s official record.

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