House Bill 1489
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1999 HB 1489
By Representative Bloom
1 A bill to be entitled
2 An act relating to trust funds; amending s.
3 121.091, F.S.; creating the Florida Retirement
4 System Preservation of Benefit Plan Trust Fund;
5 providing for administration by the Division of
6 Retirement; providing an exemption from
7 termination; providing an effective date.
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9 Be It Enacted by the Legislature of the State of Florida:
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11 Section 1. Subsection (15) is added to section
12 121.091, Florida Statutes, 1998 Supplement, to read:
13 121.091 Benefits payable under the system.--Benefits
14 may not be paid under this section unless the member has
15 terminated employment as provided in s. 121.021(39)(a) or
16 begun participation in the Deferred Retirement Option Program
17 as provided in subsection (13), and a proper application has
18 been filed in the manner prescribed by the division. The
19 division may cancel an application for retirement benefits
20 when the member or beneficiary fails to timely provide the
21 information and documents required by this chapter and the
22 division's rules. The division shall adopt rules establishing
23 procedures for application for retirement benefits and for the
24 cancellation of such application when the required information
25 or documents are not received.
26 (15) The Florida Retirement System Preservation of
27 Benefit Plan Trust Fund is hereby created.
28 (a) Contributions to the preservation plan shall be
29 deposited in this trust fund which shall be established and
30 administered by the Division of Retirement. The trust fund
31 shall be maintained and utilized solely for the purpose of
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Florida House of Representatives - 1999 HB 1489
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1 providing benefits under the preservation plan. Income
2 accruing to the trust fund shall constitute income derived
3 from the exercise of an essential governmental function upon
4 which such trust fund shall be exempt from tax under s. 115 of
5 the Internal Revenue Code. The trust fund moneys and assets
6 used to provide benefits under the preservation plan shall not
7 be commingled with the moneys and assets of the remainder of
8 the Florida Retirement System or of any other qualified plan.
9 The preservation plan and the trust fund created hereunder
10 shall never receive any transfer of moneys or assets from the
11 remainder of the Florida Retirement System or any other
12 qualified plan.
13 (b) Title to the beneficial ownership of any assets,
14 whether cash or other investments which the employers may
15 earmark to pay any amount under the preservation plan, shall
16 at all times remain in the employer until used to pay benefits
17 under the preservation plan, administrative expenses, or
18 employer taxes, if any. Participants and other persons
19 receiving benefits under the preservation plan shall not have
20 any property or ownership interest whatsoever in any specific
21 assets of the employer.
22 (c) The obligation of the employer to make payments
23 pursuant to the preservation plan shall be according to law.
24 No participant or other person receiving benefits hereunder
25 shall have a preferred claim or lien on any assets of the
26 employer.
27 (d) The benefit liabilities of the preservation plan
28 shall be funded on a plan year to plan year basis. The trust
29 fund assets required hereunder shall not be accumulated to pay
30 benefits payable in future years. Any assets of the trust
31 fund not used for paying benefits for a current plan year
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CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1999 HB 1489
252-375-99
1 shall be used, as determined by the Division of Retirement,
2 for the payment of administrative expenses of the preservation
3 plan for the current year or for future plan years.
4 (e) The Florida Retirement System Preservation of
5 Benefit Plan Trust Fund is a trust fund described in s.
6 19(f)(3), Art. III of the State Constitution, and therefore is
7 not subject to termination pursuant to s. 19(f)(2), Art. III
8 of the State Constitution.
9 Section 2. This act shall take effect July 1, 1999, if
10 HB or similar legislation is adopted in the same legislative
11 session or an extension thereof.
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15 HOUSE SUMMARY
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Creates the Florida Retirement System Preservation of
17 Benefit Plan Trust Fund to be administered by the
Division of Retirement. Provides an exemption from
18 termination. See bill for details.
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