Florida Senate - 2025                                    SB 1068
       
       
        
       By Senator Rodriguez
       
       
       
       
       
       40-00014A-25                                          20251068__
    1                        A bill to be entitled                      
    2         An act relating to deferred compensation plans for
    3         public employees; providing a short title; amending s.
    4         112.215, F.S.; authorizing the inclusion of an
    5         automatic enrollment arrangement in a government
    6         employee’s deferred compensation plan; requiring that
    7         the automatic enrollment arrangement be established
    8         with a default contribution rate; authorizing the
    9         periodic reenrollment of specified government
   10         employees; authorizing the periodic resetting of
   11         contribution rates for specified government employees;
   12         requiring that the automatic enrollment arrangement
   13         provide employees the ability to make certain
   14         elections regarding contributions; requiring that the
   15         plan provide for a default investment into which
   16         contributions must be placed under a specified
   17         circumstance; authorizing counties, municipalities,
   18         political subdivisions, and constitutional county
   19         officers to adopt automatic enrollment arrangements
   20         for specified deferred compensation programs;
   21         providing that the deferred compensation plan of the
   22         state may adopt an automatic enrollment arrangement
   23         only upon the approval of the Legislature; amending
   24         ss. 110.114 and 112.171, F.S.; requiring that a
   25         certain deduction of the wages or salary of employees
   26         be treated in a specified manner; providing an
   27         effective date.
   28          
   29  Be It Enacted by the Legislature of the State of Florida:
   30  
   31         Section 1. This act may be cited as the “Deferred
   32  Compensation Automatic Enrollment Act.”
   33         Section 2. Subsection (3) of section 112.215, Florida
   34  Statutes, is amended to read:
   35         112.215 Government employees; deferred compensation
   36  program.—
   37         (3)(a) In accordance with a plan of deferred compensation
   38  which has been approved as herein provided, the state or any
   39  state agency, county, municipality, other political subdivision,
   40  or constitutional county officer may, by contract or a
   41  collective bargaining agreement, agree with any employee to
   42  defer all or any portion of that employee’s otherwise payable
   43  compensation and, pursuant to the terms of such approved plan
   44  and in such proportions as may be designated or directed under
   45  that plan, place such deferred compensation in savings accounts
   46  or use the same to purchase fixed or variable life insurance or
   47  annuity contracts, securities, evidence of indebtedness, or such
   48  other investment products as may have been approved for the
   49  purposes of carrying out the objectives of such plan. Such
   50  insurance, annuity, savings, or investment products must shall
   51  be underwritten and offered in compliance with the applicable
   52  federal and state laws and regulations by persons who are duly
   53  authorized by the applicable state and federal authorities.
   54         (b)Such plan of deferred compensation may include an
   55  automatic enrollment arrangement under which a government
   56  employee’s otherwise payable compensation is deducted and
   57  contributed to the plan unless the government employee elects
   58  not to contribute or elects to contribute a different rate or
   59  amount. Such automatic enrollment arrangement must establish a
   60  default contribution rate, may provide for the periodic
   61  reenrollment of government employees eligible but not
   62  participating in the plan, and may allow the periodic resetting
   63  of contribution rates for government employees contributing at
   64  rates lower than those established by the automatic enrollment
   65  arrangement.
   66         (c)An automatic enrollment arrangement must provide that a
   67  government employee may, at any time, elect not to contribute to
   68  the plan or may elect to contribute to the plan at a different
   69  rate or amount than the default rate.
   70         (d)If a deferred compensation plan includes an automatic
   71  enrollment arrangement, the plan must provide for a default
   72  investment into which contributions must be placed in the
   73  absence of an election from the government employee.
   74         (e)Any county, municipality, or other political
   75  subdivision of the state may by ordinance, and any
   76  constitutional county officer under s. 1(d), Art. VIII of the
   77  State Constitution may by contract agreement or other
   78  documentation constituting approval, adopt an automatic
   79  enrollment arrangement for its own deferred compensation
   80  program. Notwithstanding subsection (4), the deferred
   81  compensation plan of the state may adopt an automatic enrollment
   82  arrangement only upon the approval of the Legislature and not
   83  pursuant to the authority of the Chief Financial Officer.
   84         Section 3. Subsection (1) of section 110.114, Florida
   85  Statutes, is amended to read:
   86         110.114 Employee wage deductions.—
   87         (1) The state or any of its departments, bureaus,
   88  commissions, and officers are authorized and permitted, with the
   89  concurrence of the Department of Financial Services, to make
   90  deductions from the salary or wage of any employee or employees
   91  in such amount as shall be authorized and requested by such
   92  employee or employees and for such purpose as shall be
   93  authorized and requested by such employee or employees and shall
   94  pay such sums so deducted as directed by such employee or
   95  employees. Deduction of the salary or wage of an employee as
   96  authorized by an automatic enrollment arrangement pursuant to s.
   97  112.215(3)(c) must be treated as authorized and requested by
   98  such employee for purposes of this subsection. The concurrence
   99  of the Department of Financial Services may shall not be
  100  required for the deduction of a certified bargaining agent’s
  101  membership dues deductions pursuant to s. 447.303 or any
  102  deductions authorized by a collective bargaining agreement.
  103         Section 4. Subsection (1) of section 112.171, Florida
  104  Statutes, is amended to read:
  105         112.171 Employee wage deductions.—
  106         (1) The counties, municipalities, and special districts of
  107  the state and the departments, agencies, bureaus, commissions,
  108  and officers thereof are authorized and permitted in their sole
  109  discretion to make deductions from the salary or wage of any
  110  employee or employees in such amount as shall be authorized and
  111  requested by such employee or employees and for such purpose as
  112  shall be authorized and requested by such employee or employees
  113  and shall pay such sums so deducted as directed by such employee
  114  or employees. Deduction of the salary or wage of an employee as
  115  authorized by an automatic enrollment arrangement pursuant to s.
  116  112.215(3)(c) must be treated as authorized and requested by
  117  such employee for purposes of this subsection.
  118         Section 5. This act shall take effect July 1, 2025.