Bill Text: FL S7038 | 2014 | Regular Session | Introduced

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Bill Title: Deferred Compensation

Spectrum: Committee Bill

Status: (N/A - Dead) 2014-02-19 - Submit as committee bill by Community Affairs (SB 1110) [S7038 Detail]

Download: Florida-2014-S7038-Introduced.html

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       Florida Senate - 2014         (PROPOSED COMMITTEE BILL) SPB 7038
       
       
        
       FOR CONSIDERATION By the Committee on Community Affairs
       
       
       
       
       
       578-01632-14                                          20147038__
    1                        A bill to be entitled                      
    2         An act relating to deferred compensation; creating s.
    3         112.2151, F.S.; defining “state agency” and “state
    4         employee”; requiring that state employees be
    5         automatically enrolled in the deferred compensation
    6         program by specified dates; requiring the Chief
    7         Financial Officer to notify state employees of
    8         automatic enrollment by a specified date; prescribing
    9         the contents of the notice given; providing that a
   10         state employee may opt out of the program by filing an
   11         election with the program administrator; establishing
   12         contribution levels for participating state employees
   13         by specified dates; requiring a state agency to match
   14         employer contributions up to a specified amount;
   15         authorizing a county, municipality, other political
   16         subdivision, or constitutional county officer to amend
   17         a deferred compensation program to provide automatic
   18         enrollment and matching employer contributions;
   19         providing an effective date.
   20          
   21  Be It Enacted by the Legislature of the State of Florida:
   22  
   23         Section 1. Section 112.2151, Florida Statutes, is created
   24  to read:
   25         112.2151 Deferred compensation program; automatic
   26  enrollment; employer contribution.—
   27         (1) As used in this section, the term:
   28         (a) “State agency” means a branch, department, or agency of
   29  state government.
   30         (b) “State employee” means an employee or officer of a
   31  state agency who is paid by state warrant from salary
   32  appropriations or other agency funds and who works an average of
   33  at least 20 hours per week.
   34         (2) Except as provided in subsection (3), each state
   35  employee shall be automatically enrolled in the deferred
   36  compensation program, established pursuant to s. 112.215, as
   37  follows:
   38         (a) Beginning January 1, 2015, if the employee was hired by
   39  a state agency before October 1, 2014; or
   40         (b) Ninety days after the date of hire if the employee was
   41  hired by a state agency on or after October 1, 2014.
   42         (3)(a) By October 1, 2014, each state agency, in
   43  consultation with the Chief Financial Officer, shall notify each
   44  state employee of the automatic enrollment in the program. The
   45  notice must contain a statement concerning the procedures for an
   46  employee to notify the state that he or she does not want to
   47  enroll in the program, the tax consequences of opting out of the
   48  program, information regarding the state match for employee
   49  contributions to the program, and the contact information for
   50  the program administrator.
   51         (b) Each state employee hired on or after October 1, 2014,
   52  may elect to not enroll in the program by filing an election to
   53  opt out of the program with the program administrator within 90
   54  days after the date of hire.
   55         (4) Each state employee participating in the deferred
   56  compensation program shall contribute each pay period ending on
   57  or after:
   58         (a) January 1, 2015, through December 31, 2017:
   59         1. If paid on a monthly basis, at least $25; or
   60         2. If paid on a biweekly basis, at least $12.50.
   61         (b) January 1, 2018:
   62         1. If paid on a monthly basis, at least $50; or
   63         2. If paid on a biweekly basis, at least $25.
   64         (5)(a) For each pay period ending on or after January 1,
   65  2015, as a component of the deferred compensation program
   66  created pursuant to s. 112.215, each state agency shall
   67  contribute an amount equal to the contribution paid by a state
   68  employee participating in the deferred compensation program;
   69  however, such contribution may not exceed the lesser of:
   70         1. Two percent of the employee’s salary for the pay period;
   71  or
   72         2. One hundred dollars if paid on a monthly basis or $46.15
   73  if paid on a biweekly basis.
   74         (b) For any bonus payment specifically authorized by the
   75  General Appropriations Act, each state agency shall contribute
   76  an amount equal to the contribution paid by a state employee
   77  from the bonus payment; however, such contribution by the state
   78  agency may not exceed the lesser of 25 percent of the bonus
   79  payment or $500.
   80         (6) Each county, municipality, other political subdivision,
   81  or constitutional county officer that has established a deferred
   82  compensation program pursuant to s. 112.215 may amend the
   83  program to provide automatic enrollment and an employer
   84  contribution-matching component.
   85         Section 2. This act shall take effect July 1, 2014.