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 mustshall51 be underwritten and offered in compliance with the applicable 52 federal and state laws and regulations by personswho areduly 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 asshall beauthorized and requested by such 92 employee or employees and for such purpose asshall be93 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 mayshallnot 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 asshall beauthorized and 111 requested by such employee or employees and for such purpose as 112shall beauthorized 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.