BILL NUMBER: SJR 30	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Kehoe

                        APRIL 7, 2010

   Relative to deferred compensation plans.


	LEGISLATIVE COUNSEL'S DIGEST


   SJR 30, as introduced, Kehoe. Deferred compensation plans.
   This measure would declare California's support of legislative
action by Congress to extend to participants in 457(b) plans the
option to treat elective deferrals as Roth IRA contributions and to
provide 457(b) plan participants with savings options similar to
participants in 401(k) and federal Thrift Savings Plans.
   Fiscal committee: no.



   WHEREAS, On June 7, 2001, the Economic Growth and Tax
Reconciliation Act of 2001 was signed into law by President George W.
Bush, granting section 401(k) retirement plan participants the
option to treat elective deferrals as Roth IRA contributions; and
   WHEREAS, On June 22, 2009, the Federal Retirement Reform Act of
2009 was signed into law by President Barack Obama, granting
participants in the federal government's Thrift Savings Plan the
option to treat elective deferrals as Roth IRA contributions; and
   WHEREAS, There is presently no option for 457(b) plan participants
to create elective deferrals as Roth IRA contributions; and
   WHEREAS, The State of California would benefit from granting state
and local government employees the ability to use a 457(b) plan by
receiving immediate tax revenue based on the contributions to the
plan and the employees will benefit from the ability to withdraw
their retirement money tax free when they retire; and
   WHEREAS, There are more than 269,000 state employees who are
eligible to enroll in a 457(b) plan; and
   WHEREAS, There are more than 1.08 million local government
employees who are eligible to enroll in a 457(b) plan; now,
therefore, be it
   Resolved by the Senate and the Assembly of the State of
California, jointly, That the California State Legislature strongly
supports legislative action by Congress to extend to participants in
457(b) plans the option to treat elective deferrals as Roth IRA
contributions and to provide 457(b) plan participants with savings
options similar to participants in 401(k) and federal Thrift Savings
Plans; and be it further
   Resolved, That the Secretary of the Senate transmit copies of this
resolution to the author for appropriate distribution.