SENATE AMENDMENT

    Bill No. CS/HB 1707

    Amendment No.    

                            CHAMBER ACTION
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11  Senator Diaz-Balart moved the following amendment:

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13         Senate Amendment (with title amendment) 

14         On page 51, between lines 26 and 27,

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16  insert:

17         Section 57.  Effective July 1, 1999, section 110.1315,

18  Florida Statutes, is created to read:

19         110.1315  Alternative benefits; other-personal-services

20  employees.--Upon review and recommendation of the department

21  and approval of the Governor, the department may contract for

22  the implementation of an alternative retirement income

23  security program for eligible temporary and season employees

24  of the state which is funded from appropriations for other

25  personal services. The contract may provide for a private

26  vendor or vendors to administer the program under a

27  defined-contribution plan under s. 401(a), 403(b), or 457 of

28  the Internal Revenue Code, and the program must provide

29  retirement benefits as required under s. 3121(b)(7)(f) of the

30  Internal Revenue Code. The department may develop a request

31  for proposals and solicit qualified vendors to compete for the

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                                                  SENATE AMENDMENT

    Bill No. CS/HB 1707

    Amendment No.    





 1  award of the contract. The vendor shall be selected on the

 2  basis of the plan that best serves the interests of the

 3  participating employees and the state. The proposal must

 4  comply with all necessary federal and state laws and rules.

 5  The proposal must be reviewed by the State Board of

 6  Administration, which shall advise the department with respect

 7  to the findings of that review.

 8         Section 58.  Effective July 1, 1999, section 110.1316,

 9  Florida Statutes, is created to read:

10         110.1316  Alternative benefits; tax-sheltered

11  annual-leave and sick-leave payments.--Upon review and

12  recommendation of the department and approval by the Governor,

13  the department may contract for the implementation of a

14  tax-sheltered plan for state employees who are eligible for

15  payment for accumulated sick leave or annual leave at

16  termination of employment. The contract may provide for a

17  private vendor or vendors to administer the plan and the plan

18  must provide retirement benefits in a manner that minimizes

19  the tax liability of the participants. The plan must be funded

20  by employer contributions of payments for accumulated sick

21  leave or annual leave. The plan must have received all

22  necessary federal and state approval as required by law and

23  must comply with the provisions of s. 112.65. The request for

24  proposals may require that the vendor or vendors provide

25  market risk or volatility ratings from recognized rating

26  agencies for each of its investment products. The proposal

27  must be reviewed by the State Board of Administration, which

28  shall advise the department with respect to the findings of

29  that review. The department shall provide for a system of

30  continuous quality-assurance oversight to ensure that the

31  program objectives are achieved and that the program is

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                                                  SENATE AMENDMENT

    Bill No. CS/HB 1707

    Amendment No.    





 1  prudently managed. Within 30 days after termination from

 2  employment, an employee may elect to withdraw the moneys,

 3  without penalty by the plan administrator, and shall be held

 4  harmless by the state with regard to any early withdrawal

 5  penalties imposed by the Internal Revenue Service. The method

 6  of calculation of such withdrawal payment shall be prescribed

 7  by rule.

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 9  (Redesignate subsequent sections.)

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12  ================ T I T L E   A M E N D M E N T ===============

13  And the title is amended as follows:

14         On page 5, line 17, after the semicolon,

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16  insert:

17         creating s. 110.1315, F.S.; providing for the

18         Department of Management Services to contract

19         for implementation of an alternative retirement

20         income security program for temporary state

21         employees; creating s. 110.1316, F.S.;

22         providing for the Department of Management

23         Services to contract for the implementation of

24         a tax-sheltered plan for state employees for

25         payment of accumulated sick leave or annual

26         leave; providing for review by the State Board

27         of Administration;

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