HB 423 DE
AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO DEFERRED COMPENSATION.
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Summary
Delaware HB 423 establishes automatic enrollment in the State's 457(b) deferred compensation retirement plan for newly hired state employees. A predetermined percentage of each employee's salary will be automatically deducted and contributed to the plan beginning 90 days after hire. New employees can opt out before automatic withdrawals commence or can request a refund within 30 days of enrollment if they choose, with refund requests to be submitted within 120 days of hire. Employees covered by collective bargaining agreements are not automatically enrolled but may participate if they choose to do so. The law takes effect 10 days after the State Treasurer certifies that necessary payroll system upgrades have been completed.
AI-generated plain-language summary of the bill (from the OpenStates abstract — no full text available yet) — neutral, and may be imperfect.
Official abstract
This Act establishes an automatic enrollment feature for newly hired state employees in the State’s 457(b) deferred compensation retirement plan. The Board may, through a plan amendment, modify the definition of a covered employee. Under the Act, a predetermined percentage of an employee’s salary will be automatically deducted from each paycheck and contributed to the 457(b) plan upon hire. This Act allows new employees to opt out at any time prior to the commencement of automatic withdrawals, which normally commences 90 days after hire. If an employee does not opt out of automatic enrollment during this 90-day period, the employee will be enrolled and contributions will commence. The employee will thereafter have an additional 30 days to opt out and request a refund of any contributions. Refund requests must be submitted no later than 120 days after the date of hire. Employees under a collective bargaining agreement are not subjected to auto-enrollment but are able to participate if should they elect to do so. This Act takes effect 10 days after the date of publication in the Register of Regulations of a notice from the State Treasurer that the Office of Management and Budget has certified to the State Treasurer that necessary payroll upgrades necessary to implement this Act have been completed.
Sponsors (10)
- William Bush Democratic · primary
- Trey Paradee Democratic · primary
- William J. Carson Democratic · primary
- Nicole Poore Democratic · primary
- Russell Huxtable Democratic · primary
- Kerri Evelyn Harris Democratic · primary
- Edward S. Osienski Democratic · primary
- David P. Sokola Democratic · primary
- David L. Wilson Republican · primary
- Claire Snyder-Hall Democratic · primary
Action history (7)
- May 14, 2026 Introduced and Assigned to Administration Committee in House · lower
- May 20, 2026 Reported Out of Committee (Administration) in House with 1 Favorable, 3 On Its Merits · lower
- Jun 11, 2026 Passed By House. Votes: 32 YES 8 NO 1 ABSENT · lower
- Jun 11, 2026 Assigned to Elections & Government Affairs Committee in Senate · upper
- Jun 18, 2026 Reported Out of Committee (Elections & Government Affairs) in Senate with 4 On Its Merits · upper
- Jun 30, 2026 Passed By Senate. Votes: 20 YES 1 ABSENT · upper
- Jul 23, 2026 Signed by Governor · executive
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