Florida Senate - 2014 (PROPOSED COMMITTEE BILL) SPB 7040
FOR CONSIDERATION By the Committee on Community Affairs
578-01635-14 20147040__
1 A bill to be entitled
2 An act relating to trust funds; creating s. 121.603,
3 F.S.; creating the Florida Retirement System Cash
4 Balance Plan Trust Fund, to hold the assets of the
5 Florida Retirement System Cash Balance Plan; requiring
6 that the State Board of Administration administer the
7 plan; providing that the trust fund is a retirement
8 trust fund not subject to termination pursuant to s.
9 19(f), Art. III of the State Constitution; providing
10 for sources of moneys and purposes; requiring a
11 forfeiture account to be created within the trust
12 fund; providing for exemption from general revenue
13 service charges; directing the state board to obtain a
14 determination letter from the Internal Revenue Service
15 regarding the approved use of funds in the forfeiture
16 account; amending s. 121.4503, F.S.; allowing transfer
17 of funds into the Florida Retirement System Cash
18 Balance Plan Trust Fund; providing a contingent
19 effective date.
20
21 Be It Enacted by the Legislature of the State of Florida:
22
23 Section 1. Section 121.603, Florida Statutes, is created to
24 read:
25 121.603 Florida Retirement System Cash Balance Plan Trust
26 Fund.—The Florida Retirement System Cash Balance Plan Trust Fund
27 is created to hold the assets of the Florida Retirement System
28 Cash Balance Plan in trust for the exclusive benefit of the
29 plan’s members and beneficiaries in accordance with s. 401 of
30 the Internal Revenue Code.
31 (1) The trust fund is a retirement trust fund of the
32 Florida Retirement System which accounts for retirement plan
33 assets held by the state in a trustee capacity as a fiduciary
34 for members of the Florida Retirement System Cash Balance Plan.
35 The trust fund is not subject to termination under s. 19(f),
36 Art, III of the State Constitution.
37 (2) The trust fund shall be administered by the State Board
38 of Administration as trustee. Funds shall be credited to the
39 trust fund as provided in this part, to be used for the purposes
40 of this part, including the payment of reasonable administrative
41 expenses of the cash balance plan.
42 (3) A forfeiture account shall be created within the trust
43 fund to hold the assets derived from the forfeiture of benefits
44 by participants. The forfeiture account may be used only for
45 paying expenses of the cash balance plan and reducing future
46 employer contributions to the plan. Expected withdrawals from
47 the account must endeavor to reduce the account to zero each
48 fiscal year.
49 (4) The trust fund is exempt from the service charges
50 imposed by s. 215.20.
51 Section 2. As soon as practicable, the State Board of
52 Administration shall request a determination letter from the
53 Internal Revenue Service as to whether funds derived from the
54 forfeiture of benefits by participants in the Florida Retirement
55 System Cash Balance Plan and held within the Florida Retirement
56 System Cash Balance Plan Trust Fund may be used to pay expenses
57 of the cash balance plan and reduce future employer
58 contributions to the plan.
59 Section 3. Section 121.4503, Florida Statutes, is amended
60 to read:
61 121.4503 Florida Retirement System Contributions Clearing
62 Trust Fund.—
63 (1) The Florida Retirement System Contributions Clearing
64 Trust Fund is created as a clearing fund for disbursing employer
65 and employee contributions to the component plans of the Florida
66 Retirement System and shall be administered by the Department of
67 Management Services.
68 (1) Funds shall be credited to the trust fund as provided
69 in this chapter and held in trust for the contributing employees
70 and employers until such time as the assets are transferred by
71 the department to the Florida Retirement System Trust Fund, the
72 Florida Retirement System Investment Plan Trust Fund, the
73 Florida Retirement System Cash Balance Plan Trust Fund, or other
74 trust funds as authorized by law, to be used for the purposes of
75 this chapter. The trust fund is exempt from the service charges
76 imposed by s. 215.20.
77 (2) The Florida Retirement System Contributions Clearing
78 trust fund is a clearing trust fund of the Department of
79 Management Services under pursuant to s. 19(f), Art. III of the
80 State Constitution, and is not subject to termination.
81 Section 4. This act shall take effect July 1, 2014, if
82 passed by a three-fifths vote of the membership of each house
83 and if SB ____ or similar legislation is adopted in the same
84 legislative session or an extension thereof and becomes a law.