SB 290 - This act makes enrollment in the state deferred compensation program automatic for those state employees eligible for the plan hired on or after September 1, 2009. Contributions shall be effective on or after the first day of the month following the date of hire and shall be at least twenty-five dollars a month. Employees who do not want to contribute to the program may opt out of automatic enrollment, and at a later date decide to participate. The contribution rate for employees who are automatically enrolled adjusts automatically based on any increase in the state contribution that occurs after automatic enrollment. Employees who are automatically enrolled can change the amount of contribution. Employees of state colleges or universities would not be automatically enrolled.
On or after September 1, 2009, if a participant in the deferred compensation plan or the 401(a) plan established in section 105.927 is married, their surviving spouse will be automatically designated as their primary beneficiary, unless the surviving spouse consented in writing to allow the participant to designate someone else as their beneficiary. This automatic beneficiary designation does not apply to designations made prior to September 1, 2009.
The deferred compensation board is also authorized to adopt and amend plan documents to change terms and conditions of the deferred compensation plan that are consistent with federal law.
The act also allows the state treasurer to credit funds through a local payroll for qualified participants who are compensated from a local payroll system.
This act is similar to HB 597 (2009).