Senate Bill 0348

    Florida Senate - 1999                                   SB 348

    By the Committee on Governmental Oversight and Productivity





    302-575-99

  1                      A bill to be entitled

  2         An act relating to the Florida Retirement

  3         System; creating s. 121.46, F.S.; authorizing

  4         employers within the state retirement system to

  5         offer a supplemental defined contribution

  6         retirement account; limiting the total annual

  7         contribution to the account; authorizing the

  8         employer to contribute up to one-half of the

  9         total contribution amount; providing for an

10         employer to make the contribution conditional

11         upon the attainment of performance objectives;

12         providing for the Division of Retirement to

13         issue a request for proposals for investment

14         carriers to manage the accounts; providing

15         rulemaking authority; providing an effective

16         date.

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18  Be It Enacted by the Legislature of the State of Florida:

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20         Section 1.  Section 121.46, Florida Statutes, is

21  created to read:

22         121.46  Performance supplement; authorization;

23  application.--Each employer within the Florida Retirement

24  System may offer a supplemental defined contribution

25  retirement account to its employees in an amount not to exceed

26  $500 per year. The account must be available to all employees

27  who are not paid from an appropriation category for other

28  personal services and must be available to employees who

29  participate in any optional annuity program authorized under

30  this chapter. Each employer may contribute up to one-half of

31  the total contribution amount per year and may make its annual

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CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 1999                                   SB 348
    302-575-99




  1  contribution conditional upon an employer unit attaining

  2  performance objectives, as determined by the employer's

  3  governing body. For a state agency, the annual contribution

  4  may be conditioned upon attainment of specified output or

  5  outcome expectations established in the agency's approved

  6  performance-based budget under s. 216.0166. An employer may

  7  not establish a performance-based retirement supplemental

  8  account until the division has applied for and received

  9  approval from the Internal Revenue Service. Upon such

10  approval, the division shall issue a request for proposals to

11  obtain investment carriers to manage the accounts on the

12  employee's behalf. The division shall adopt rules to

13  administer this section.

14         Section 2.  This act shall take effect July 1, 1999.

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17                          SENATE SUMMARY

18    Provides for employers within the Florida Retirement
      System to offer supplemental retirement accounts. Limits
19    the amount of the annual contribution to $500. Authorizes
      an employer to contribute up to one-half of the total
20    contribution amount. Provides for an employer to base its
      contribution upon the attainment of performance
21    objectives. Requires that the Division of Retirement of
      the Department of Management Services obtain approval for
22    performance-based retirement accounts from the Internal
      Revenue Service. (See bill for details.)
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