House Bill hb0351
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2001 HB 351
By Representative Mayfield
1 A bill to be entitled
2 An act relating to deferred compensation
3 programs for government employees; amending s.
4 112.215, F.S.; redefining the term "employee,"
5 for purposes of participation in such programs,
6 to include employees of constitutional county
7 officers; prescribing duties of constitutional
8 county officers with respect to their
9 employees; providing for negotiation of a joint
10 deferred compensation program for certain local
11 employees currently eligible for participation
12 in such programs and employees of
13 constitutional county officers; providing an
14 effective date.
15
16 Be It Enacted by the Legislature of the State of Florida:
17
18 Section 1. Section 112.215, Florida Statutes, is
19 amended to read:
20 112.215 Government employees; deferred compensation
21 program.--
22 (1) This section shall be known and may be cited as
23 the "Government Employees' Deferred Compensation Plan Act."
24 (2) For the purposes of this section, the term
25 "employee" means any person, whether appointed, elected, or
26 under contract, providing services for the state; any state
27 agency or county or other political subdivision of the state;
28 or any municipality; or any constitutional county officer
29 under s. 1(d), Article VIII of the State Constitution for
30 which compensation or statutory fees are paid.
31
1
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2001 HB 351
782-100-01
1 (3) In accordance with a plan of deferred compensation
2 which has been approved as herein provided, the state or any
3 state agency, county, municipality, or other political
4 subdivision, or constitutional county officer may, by contract
5 or a collective bargaining agreement, agree with any employee
6 to defer all or any portion of that employee's otherwise
7 payable compensation and, pursuant to the terms of such
8 approved plan and in such proportions as may be designated or
9 directed under that plan, place such deferred compensation in
10 savings accounts or use the same to purchase fixed or variable
11 life insurance or annuity contracts, securities, evidence of
12 indebtedness, or such other investment products as may have
13 been approved for the purposes of carrying out the objectives
14 of such plan. Such insurance, annuity, savings, or investment
15 products shall be underwritten and offered in compliance with
16 the applicable federal and state laws and regulations by
17 persons who are duly authorized by applicable state and
18 federal authorities.
19 (4)(a) The Treasurer, with the approval of the State
20 Board of Administration, shall establish such plan or plans of
21 deferred compensation for state employees, including all such
22 investment vehicles or products incident thereto, as may be
23 available through, or offered by, qualified companies or
24 persons, and may approve one or more such plans for
25 implementation by and on behalf of the state and its agencies
26 and employees.
27 (b) If the Treasurer deems it advisable, he or she
28 shall have the power, with the approval of the State Board of
29 Administration, to create a trust or other special funds for
30 the segregation of funds or assets resulting from compensation
31
2
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2001 HB 351
782-100-01
1 deferred at the request of employees of the state or its
2 agencies and for the administration of such program.
3 (c) The Treasurer, with the approval of the State
4 Board of Administration, may delegate responsibility for
5 administration of the plan to a person the Treasurer
6 determines to be qualified, compensate such person, and,
7 directly or through such person or pursuant to a collective
8 bargaining agreement, contract with a private corporation or
9 institution to provide such services as may be part of any
10 such plan or as may be deemed necessary or proper by the
11 Treasurer or such person, including, but not limited to,
12 providing consolidated billing, individual and collective
13 recordkeeping and accountings, asset purchase, control, and
14 safekeeping, and direct disbursement of funds to employees or
15 other beneficiaries. The Treasurer may authorize a person,
16 private corporation, or institution to make direct
17 disbursement of funds under the plan to an employee or other
18 beneficiary only upon the order of the Comptroller to the
19 Treasurer.
20 (d) In accordance with such approved plan, and upon
21 contract or agreement with an eligible employee, deferrals of
22 compensation may be accomplished by payroll deductions made by
23 the appropriate officer or officers of the state, with such
24 funds being thereafter held and administered in accordance
25 with the plan.
26 (5) Any county, municipality, or other political
27 subdivision of the state may by ordinance, and any county
28 officer under s. 1(d), Article VIII of the State Constitution
29 of 1968 may by contract agreement or other documentation
30 constituting approval, adopt and establish for itself and its
31 employees a deferred compensation program. The ordinance
3
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2001 HB 351
782-100-01
1 shall designate an appropriate official of the county,
2 municipality, or political subdivision to approve and
3 administer a deferred compensation plan or otherwise provide
4 for such approval and administration. The ordinance shall
5 also designate a public official or body to make the
6 determinations provided for in paragraph (6)(b). If a
7 constitutional county officer elects to adopt and establish
8 for that office and its employees a deferred compensation
9 program, the constitutional county officer shall be the
10 appropriate official to make the determinations provided for
11 in this subsection and in paragraph (6)(b).
12 (6)(a) No deferred compensation plan of the state
13 shall become effective until approved by the State Board of
14 Administration and the Treasurer is satisfied by opinion from
15 such federal agency or agencies as may be deemed necessary
16 that the compensation deferred thereunder and/or the
17 investment products purchased pursuant to the plan will not be
18 included in the employee's taxable income under federal or
19 state law until it is actually received by such employee under
20 the terms of the plan, and that such compensation will
21 nonetheless be deemed compensation at the time of deferral for
22 the purposes of social security coverage, for the purposes of
23 the state retirement system, and for any other retirement,
24 pension, or benefit program established by law.
25 (b) No deferred compensation plan of a county,
26 municipality, or other political subdivision, or
27 constitutional county officer shall become effective until the
28 appropriate official or body designated under subsection (5)
29 by ordinance is satisfied by opinion from such federal agency
30 or agencies as may be deemed necessary that the compensation
31 deferred thereunder and/or the investment products purchased
4
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2001 HB 351
782-100-01
1 pursuant to the plan will not be included in the employee's
2 taxable income under federal or state law until it is actually
3 received by such employee under the terms of the plan, and
4 that such compensation will nonetheless be deemed compensation
5 at the time of deferral for the purposes of social security
6 coverage, for the purposes of the retirement system of the
7 appropriate county, municipality, or political subdivision, or
8 constitutional county officer, and for any other retirement,
9 pension, or benefit program established by law.
10 (7) The deferred compensation programs authorized by
11 this section, and any plan approved and adopted as herein
12 provided, shall exist and serve in addition to any other
13 retirement, pension, or benefit systems established by the
14 state or its agencies, counties, municipalities, or other
15 political subdivisions, or constitutional county officers and
16 shall not supersede, make inoperative, or reduce any benefits
17 provided by the Florida Retirement System or by another
18 retirement, pension, or benefit program established by law.
19 All records identifying individual participants in any plan
20 under this section and their personal account activities shall
21 be confidential and are exempt from the provisions of s.
22 119.07(1).
23 (8)(a) There is hereby created a Deferred Compensation
24 Advisory Council composed of seven members.
25 1. One member shall be appointed by the Speaker of the
26 House of Representatives and the President of the Senate
27 jointly and shall be an employee of the legislative branch.
28 2. One member shall be appointed by the Chief Justice
29 of the Supreme Court and shall be an employee of the judicial
30 branch.
31
5
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2001 HB 351
782-100-01
1 3. One member shall be appointed by the chair of the
2 Public Employees Relations Commission and shall be a nonexempt
3 public employee.
4 4. The remaining four members shall be employed by the
5 executive branch and shall be appointed as follows:
6 a. One member shall be appointed by the Chancellor of
7 the State University System and shall be an employee of the
8 university system.
9 b. One member shall be appointed by the Treasurer and
10 shall be an employee of the Treasurer.
11 c. One member shall be appointed by the Governor and
12 shall be an employee of the executive branch.
13 d. One member shall be appointed by the Comptroller
14 and shall be an employee of the Comptroller.
15 (b) Each member shall serve for a term of 4 years from
16 the date of appointment, except that a vacancy shall be filled
17 by appointment for the remainder of the term.
18 (c) Members shall elect a chair annually.
19 (d) The council shall meet at the call of its chair,
20 at the request of a majority of its membership, or at the
21 request of the Treasurer, but not less than twice a year. The
22 business of the council shall be presented to the council in
23 the form of an agenda. The agenda shall be set by the
24 Treasurer and shall include items of business requested by the
25 council members.
26 (e) A majority of the members shall constitute a
27 quorum, and action by a majority of a quorum shall be
28 official.
29 (f) The council shall make a report of each meeting to
30 the Treasurer, which shall show the names of the members
31 present and shall include a record of its discussions,
6
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2001 HB 351
782-100-01
1 recommendations, and actions taken. The Treasurer shall keep
2 the records of the proceedings of each meeting on file and
3 shall make the records available to any interested person or
4 group.
5 (g) Members of the council shall serve without
6 compensation but shall be entitled to receive reimbursement
7 for per diem and travel expenses as provided in s. 112.061.
8 (h) The advisory council shall provide assistance and
9 recommendations to the Treasurer relating to the provisions of
10 the plan, the insurance or investment options to be offered
11 under the plan, and any other contracts or appointments deemed
12 necessary by the council and the Treasurer to carry out the
13 provisions of this act. The Treasurer shall inform the
14 council of the manner in which each council recommendation is
15 being addressed. The Treasurer shall provide the council, at
16 least annually, a report on the status of the deferred
17 compensation program, including, but not limited to,
18 information on participant enrollment, amount of compensation
19 deferred, total plan assets, product provider performance, and
20 participant satisfaction with the program.
21 (9) The purchase of any insurance contract or annuity
22 or the investment in another investment option under any plan
23 of deferred compensation provided for in the United States
24 Internal Revenue Code and not prohibited under the laws of
25 this state for an employee shall impose no liability or
26 responsibility whatsoever on the state, county, municipality,
27 or other political subdivision, or constitutional county
28 officer, except to show that the payments have been remitted
29 for the purposes for which the compensation has been deferred.
30 (10)(a) The moneys, pensions, annuities, or other
31 benefits accrued or accruing to any person under the
7
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2001 HB 351
782-100-01
1 provisions of any plan providing for the deferral of
2 compensation and the accumulated contributions and the cash
3 and securities in the funds created thereunder are hereby
4 exempt from any state, county, or municipal tax. They shall
5 not be subject to execution or attachment or to any legal
6 process whatsoever by a creditor of the employee and shall be
7 unassignable by the employee.
8 (b)1. There is created in the State Treasury the
9 Deferred Compensation Trust Fund, through which the Treasurer
10 as trustee shall hold moneys, pensions, annuities, or other
11 benefits accrued or accruing under and pursuant to 26 U.S.C.
12 s. 457 and the deferred compensation plan provided for therein
13 and adopted by this state; and
14 a. All amounts of compensation deferred thereunder;
15 b. All property and rights purchased with such
16 amounts; and
17 c. All income attributable to such amounts, property,
18 or rights.
19 2. Notwithstanding the mandates of 26 U.S.C. s.
20 457(b)(6), all of the assets specified in subparagraph 1.
21 shall be held in trust for the exclusive benefit of
22 participants and their beneficiaries as mandated by 26 U.S.C.
23 s. 457(g)(1).
24 (11) With respect to any funds held pursuant to a
25 deferred compensation plan, any plan provider which is a bank
26 or savings association and which provides time deposit
27 accounts and certificates of deposit as an investment product
28 to the plan participants may, with the approval of the State
29 Board of Administration for providers in the state plan, or
30 with the approval of the appropriate official or body
31 designated under subsection (5) by ordinance for a plan of a
8
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2001 HB 351
782-100-01
1 county, municipality municipal, or other political
2 subdivision, or constitutional county officer plan, be exempt
3 from the provisions of chapter 280 requiring it to be a
4 qualified public depository, provided:
5 (a) The bank or savings association shall, to the
6 extent that the time deposit accounts or certificates of
7 deposit are not insured by the Federal Deposit Insurance
8 Corporation or the Federal Savings and Loan Insurance
9 Corporation, pledge collateral with the Treasurer for all
10 state funds held by it under a deferred compensation plan, or
11 with such other appropriate official for all public funds held
12 by it under a deferred compensation plan of a county,
13 municipality, or other political subdivision, or
14 constitutional county officer, in an amount which equals at
15 least 150 percent of all uninsured deferred compensation funds
16 then held.
17 (b) Said collateral shall be of the kind permitted by
18 s. 280.13 and shall be pledged in the manner provided for by
19 the applicable provisions of chapter 280.
20
21 The Treasurer shall have all the applicable powers provided in
22 ss. 280.04, 280.05, and 280.08 relating to the sale or other
23 disposition of the pledged collateral.
24 (12) The Treasurer may adopt any rule necessary to
25 administer and implement this act with respect to deferred
26 compensation plans for state employees.
27 (13) This subsection may not impair an existing
28 contract. In each county that has one or more constitutional
29 county officers, the board of county commissioners and the
30 constitutional county officers shall negotiate a joint
31 deferred compensation program for all their respective
9
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2001 HB 351
782-100-01
1 employees under s. 163.01. If all parties to the negotiation
2 cannot agree upon a joint deferred compensation program, the
3 provisions of subsection (5) apply.
4 Section 2. This act shall take effect October 1, 2001.
5
6 *****************************************
7 SENATE SUMMARY
8 Extends to employees of constitutional county officers
under Section 1(d), Article VIII of the State
9 Constitution the same eligibility to participate in a
deferred compensation program as is currently provided to
10 state and local employees. Without impairing any existing
contract, boards of county commissioners must negotiate
11 with constitutional officers to establish a joint
deferred compensation program, but if all negotiating
12 parties cannot agree on a joint program, each employer is
responsible for its own employees.
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
10
CODING: Words stricken are deletions; words underlined are additions.