Senate Bill 0350

    Florida Senate - 1999                                   SB 350

    By the Committee on Governmental Oversight and Productivity





    302-574-99

  1                      A bill to be entitled

  2         An act relating to public employees; creating

  3         s. 110.1315, F.S.; requiring that the

  4         Department of Management Services contract with

  5         a private vendor for an alternative retirement

  6         program for temporary and seasonal state

  7         employees; providing contract requirements;

  8         providing for the use of unobligated payroll

  9         contributions by state agencies; providing for

10         oversight of the program; requiring the private

11         vendor to indemnify the state and participating

12         employees from certain adverse tax

13         consequences; providing an effective date.

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

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17         Section 1.  Section 110.1315, Florida Statutes, is

18  created to read:

19         110.1315  Alternative benefits; other-personal-services

20  employees.--The Department of Management Services shall

21  contract for the implementation of an alternative retirement

22  income security program for eligible part-time and seasonal

23  employees of the state which is funded from appropriations for

24  other personal services. The contract must provide for a

25  private vendor to administer the program and the program must

26  provide retirement benefits that are equivalent to or better

27  than the retirement benefits provided under federal law.

28  Subject to annual legislative appropriation, unobligated

29  employer payroll contributions may be retained by the

30  employing agency and used for performance or productivity

31  improvements in fulfilling its approved strategic plan or

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






    Florida Senate - 1999                                   SB 350
    302-574-99




  1  performance budget, for supplemental contributions or

  2  enhancements to the program, or for improvements to the agency

  3  or its workforce which have been collectively bargained. The

  4  department shall develop a request for proposals and solicit

  5  qualified vendors to compete for the award of the contract.

  6  The proposal may require that the vendor provide market risk

  7  or volatility ratings from recognized rating agencies for each

  8  of its investment products. The department shall provide for a

  9  system of continuous quality assurance oversight to ensure

10  that program objectives are achieved and that the program is

11  prudently managed. The successful vendor shall indemnify the

12  state, its agencies, and participating employees from any

13  adverse tax consequences if the program is in violation of the

14  Social Security Act or the Internal Revenue Code.

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

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18                          SENATE SUMMARY

19    Requires the Department of Management Services to develop
      a request for proposals and contract with a private
20    vendor for an alternative retirement program for
      temporary and seasonal state employees. Requires that the
21    program benefits equal or exceed the benefits provided
      under federal law. Provides requirements for oversight of
22    the retirement program. Requires that the private vendor
      indemnify the state, its agencies, and participating
23    employees from adverse tax consequences if the program
      violates federal law.
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