Florida Senate - 2015 SB 1352
By Senator Smith
31-01324A-15 20151352__
1 A bill to be entitled
2 An act relating to deferred compensation; amending s.
3 112.215, F.S.; prohibiting contracts with investment
4 providers and recordkeepers for state or local
5 deferred compensation programs from exceeding a 5-year
6 term; specifying requirements for the competitive
7 solicitation or bidding process for investment
8 providers and recordkeepers; defining the term
9 “professionally qualified independent consultant”;
10 prohibiting specified persons from participating in
11 the selection of an investment provider or
12 recordkeeper under certain circumstances; requiring
13 the administrator of a local deferred compensation
14 program to comply with certain fiduciary standards;
15 authorizing a public body or official that establishes
16 a local deferred compensation program to organize an
17 oversight committee; providing an effective date.
18
19 Be It Enacted by the Legislature of the State of Florida:
20
21 Section 1. Paragraph (a) of subsection (4) of section
22 112.215, Florida Statutes, is amended, present paragraphs (b)
23 through (e) of subsection (4) are redesignated as paragraphs (c)
24 through (f), respectively, a new paragraph (b) is added to that
25 subsection, and subsections (5) and (14) of that section are
26 amended, to read:
27 112.215 Government employees; deferred compensation
28 program.—
29 (4)(a) The Chief Financial Officer, with the approval of
30 the State Board of Administration, shall establish such plan or
31 plans of deferred compensation for state employees, including
32 all such investment vehicles or products incident thereto, as
33 may be available through, or offered by, qualified companies or
34 persons, and may approve one or more such plans for
35 implementation by and on behalf of the state and its agencies
36 and employees. The Chief Financial Officer, or the administrator
37 delegated responsibility for administration of the plan under
38 paragraph (d), may not enter into a contract with an investment
39 provider or recordkeeper for purposes of offering investment
40 vehicles or products to participants in the deferred
41 compensation program or recordkeeping services for the program
42 for a term to exceed 5 years. Before the end of each contract
43 term, the Chief Financial Officer or plan administrator shall
44 initiate a competitive solicitation for the procurement of
45 investment providers and recordkeepers. The solicitation must be
46 overseen by a professionally qualified independent consultant
47 procured through the competitive solicitation processes
48 authorized in s. 287.057. For purposes of this paragraph, the
49 term “professionally qualified independent consultant” means a
50 consultant who is professionally qualified based on education
51 and experience to evaluate the performance of investment
52 providers and recordkeepers, not associated in any manner with
53 an investment provider or recordkeeper responding to the
54 competitive solicitation, and not offering any products or
55 services other than overseeing the procurement process.
56 (b) If the Chief Financial Officer, plan administrator, or
57 any other person involved with the selection of an investment
58 provider or recordkeeper has had any direct interest in any
59 contract, privilege, or other benefit granted by the investment
60 provider or recordkeeper in the preceding 2 years, he or she
61 must abstain from participating in any decision regarding the
62 selection of the investment provider or recordkeeper.
63 Establishing a personal account with an investment provider or
64 recordkeeper or taking a distribution from a personal account
65 does not constitute a direct interest for purposes of this
66 paragraph.
67 (5) Any county, municipality, or other political
68 subdivision of the state may by ordinance, and any
69 constitutional county officer under s. 1(d), Art. VIII of the
70 State Constitution of 1968 may by contract agreement or other
71 documentation constituting approval, adopt and establish for
72 itself and its employees a deferred compensation program. The
73 ordinance shall designate an appropriate official of the county,
74 municipality, or political subdivision to approve and administer
75 a deferred compensation plan or otherwise provide for such
76 approval and administration. The ordinance shall also designate
77 a public official or body to make the determinations provided
78 for in paragraph (6)(b). If a constitutional county officer
79 elects to adopt and establish for that office and its employees
80 a deferred compensation program, the constitutional county
81 officer shall be the appropriate official to make the
82 determinations provided for in this subsection and in paragraph
83 (6)(b).
84 (a) A county, municipality, political subdivision, or
85 constitutional county officer may not enter into a contract with
86 an investment provider or recordkeeper for purposes of offering
87 investment vehicles or products to participants in the deferred
88 compensation program or recordkeeping services for the program
89 for a term to exceed 5 years. Before the end of each contract
90 term, the public official or body shall initiate a public bid
91 for the procurement of investment providers and recordkeepers.
92 The public bid must be overseen by a professionally qualified
93 independent consultant procured through public bid. For purposes
94 of this paragraph, the term “professionally qualified
95 independent consultant” means a consultant who is professionally
96 qualified based on education and experience to evaluate the
97 performance of investment providers and recordkeepers, not
98 associated in any manner with an investment provider or
99 recordkeeper responding to the public bid, and not offering any
100 products or services other than overseeing the bid process.
101 (b) If the administrator of a deferred compensation program
102 or any other person involved with the selection of an investment
103 provider or recordkeeper has had any direct interest in any
104 contract, privilege, or other benefit granted by the investment
105 provider or recordkeeper in the preceding 2 years, he or she
106 must abstain from participating in any decision regarding the
107 selection of the investment provider or recordkeeper.
108 Establishing a personal account with an investment provider or
109 recordkeeper or taking a distribution from a personal account
110 does not constitute a direct interest for purposes of this
111 paragraph.
112 (c) The administrator of a deferred compensation program
113 established pursuant to this subsection shall comply with the
114 fiduciary standards set forth in the Employee Retirement Income
115 Security Act of 1974, as amended, at 29 U.S.C. s. 1104(a)(1)(A)
116 (C).
117 (d) A county, municipality, or political subdivision or
118 constitutional county officer that establishes a deferred
119 compensation plan may evaluate the performance of the plan
120 administrator through an oversight committee. An oversight
121 committee shall provide assistance and recommendations with
122 respect to the administration of the plan, including, but not
123 limited to, investment options offered under the plan. A county,
124 municipality, or political subdivision or constitutional county
125 officer shall determine the authority, activities, and
126 composition of the oversight committee.
127 (14) This section subsection may not impair an existing
128 contract. In each county that has one or more constitutional
129 county officers, the board of county commissioners and the
130 constitutional county officers shall negotiate a joint deferred
131 compensation program for all their respective employees under s.
132 163.01. If all parties to the negotiation cannot agree upon a
133 joint deferred compensation program, the provisions of
134 subsection (5) apply.
135 Section 2. This act shall take effect July 1, 2015.