BILL NUMBER: SJR 30	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 3, 2010

INTRODUCED BY   Senator Kehoe
    (   Coauthor:   Assembly Member  
Fletcher   ) 

                        APRIL 7, 2010

   Relative to deferred compensation plans.


	LEGISLATIVE COUNSEL'S DIGEST


   SJR 30, as amended, 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   urge the Congress of the United States and the
President to amend the United States Internal Revenue Code to allow
all eligible government employees participating in a 457(b) deferred
compensation plan the option to treat their elective deferrals as
Roth IRA contributions. The measure would also urge the Congress of
the United States and the President to create parity among all
workers by presenting 457(b) plan participants with savings choices
similar to those given to participants   planning for
retirement under the Economic Growth and Tax Reconciliation Act of
2001 and the federal government's Thrift Savings Plan  .
   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   treat  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, Under a Roth IRA Contribution Plan Option, an employee
participating in a 457(b) plan would have the option to make his or
her deferred contribution payments on an after-tax basis in exchange
for a tax-free distribution made to him or her upon retirement; and
 
   WHEREAS, Allowing state and local government employees currently
participating in a 457(b) deferred compensation plan the option to
treat elective deferrals as Roth IRA contributions would provide an
immediate and ongoing income benefit for both the State of California
and the Treasury of the United States. Providing employees
participating in a 457(b) plan the option to treat their
contributions as Roth IRA contributions could raise an estimated one
billion dollars ($1,000,000,000) in taxes nationwide over a 10-year
period; 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.
  urge   s the Congress of the United States
and the President to amend the United States Internal Revenue Code to
allow all eligible government employees participating in a 457(b)
deferred compensation plan the option to treat their elective
deferrals as Roth IRA contributions; and be it further  
   Resolved, That the California State Legislature urges the Congress
of the United States and the President to create parity among all
workers by presenting 457(b) plan participants with savings choices
similar to those given to participants planning for retirement under
the Economic Growth and Tax Reconciliation Act of 2001 and the
federal government's Thrift Savings Plan; and be it further 
    
   Resolved, That the Secretary of the Senate transmit copies of this
resolution to the President and the Vice President of the United
States, to the Speaker of the House of Representatives, to the
Majority Leader of the United States Senate, to each Senator and
Representative from California in the Congress of the United States,
to the Commissioner of the Internal Revenue Service, to the Secretary
of the Department of Labor, and to the author for other appropriate
distributions. 
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CORRECTIONS  Text--Page 2.
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