Florida Senate - 2014 SB 1112 By the Committee on Community Affairs 578-01870-14 20141112__ 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 underpursuant tos. 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.