Senate Bill 0820

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



    Florida Senate - 2000                                   SB 820

    By Senators Thomas, Silver, Rossin and Horne





    3-283A-00

  1                      A bill to be entitled

  2         An act relating to state employees; requiring

  3         the Department of Management Services to

  4         contract with a private vendor for a

  5         tax-sheltered plan for state employees who are

  6         eligible for payment for accumulated sick leave

  7         or annual leave upon termination of employment;

  8         providing conditions; providing for funding;

  9         providing for review of proposed plans by the

10         State Board of Administration; providing for

11         continuous departmental oversight; authorizing

12         employees to withdraw such funds upon

13         termination of employment; providing that

14         employees are to be held harmless by the state

15         for early withdrawal penalties imposed by the

16         Internal Revenue Service; providing for

17         participation in the plan by employees enrolled

18         in the Deferred Retirement Option Program;

19         authorizing the department to determine the

20         calculation and frequency of payments into the

21         tax-sheltered plan; providing an effective

22         date.

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

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26         Section 1.  Alternative benefits; tax-sheltered

27  annual-leave and sick-leave payments.--

28         (1)  The Department of Management Services shall

29  contract for the implementation of a tax-sheltered plan for

30  state employees who are eligible for payment for accumulated

31  sick leave or annual leave upon termination of employment. The

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






    Florida Senate - 2000                                   SB 820
    3-283A-00




  1  contract must provide for a private vendor to administer the

  2  plan. The plan must provide retirement benefits in a manner

  3  that minimizes the tax liability of the participants. The plan

  4  must be funded by employer contributions of payments for

  5  accumulated sick leave or annual leave. The plan must have

  6  received all necessary federal and state approval as required

  7  by law and must comply with the provisions of section 112.65,

  8  Florida Statutes. The department's request for proposals by

  9  vendors for such a plan may require that the vendor provide

10  market-risk or volatility ratings from recognized rating

11  agencies for each of its investment products. The proposal

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

13  shall advise the department with respect to the findings of

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

15  continuous quality-assurance oversight to ensure that the

16  program objectives are achieved and that the program is

17  prudently managed.

18         (2)  Within 30 days after termination from employment,

19  an employee may elect to withdraw the moneys without penalty

20  by the plan administrator and shall be held harmless by the

21  state with regard to any early withdrawal penalties imposed by

22  the Internal Revenue Service.

23         (3)  Notwithstanding the terminal-pay provisions of

24  section 110.122, Florida Statutes, the department shall

25  develop and contract for a tax-sheltered plan for sick-leave

26  payments for employees participating in the Deferred

27  Retirement Optional Program. These payments shall be paid into

28  a tax-sheltered plan during the time the employee participates

29  in the DROP program and shall be distributed to the employee

30  upon termination of the DROP program.

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






    Florida Senate - 2000                                   SB 820
    3-283A-00




  1         (4)  The department shall determine by rule the methods

  2  of calculation and frequency of payments into the

  3  tax-sheltered plans.

  4         Section 2.  This act shall take effect July 1, 2000.

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  7                          SENATE SUMMARY

  8    Requires the Department of Management Services to
      contract with a private vendor for a tax-sheltered plan
  9    for state employees who are eligible to receive payment
      for their accumulated sick leave or annual leave upon
10    termination of their employment. Specifies conditions and
      provides for funding by the contributions of the employer
11    for accumulated sick leave and annual leave.  Provides
      for review of the plan by the State Board of
12    Administration. Provides for continual departmental
      oversight. Authorizes state employees to withdraw moneys
13    from the plan upon termination of employment. Provides
      that employees are to be held harmless by the state for
14    early withdrawal penalties imposed by the Internal
      Revenue Service. Authorizes the department to determine
15    by rule the calculation and frequency of payments into
      the plan.
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