Senate Bill 0820c1
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2000 CS for SB 820
By the Committee on Fiscal Policy and Senators Thomas, Silver,
Rossin and Horne
309-2191-00
1 A bill to be entitled
2 An act relating to state employees; authorizing
3 the Department of Management Services and the
4 Board of Regents to adopt tax-sheltered plans
5 for state employees who are eligible for
6 payment for accumulated leave upon termination
7 of employment; providing conditions; providing
8 for funding; providing for review of proposed
9 plans by the State Board of Administration;
10 providing for continuous departmental
11 oversight; authorizing employees to withdraw
12 such funds upon termination of employment;
13 providing that employees are to be held
14 harmless by the state for early withdrawal
15 penalties imposed by the Internal Revenue
16 Service; providing for participation in the
17 plan by employees enrolled in the Deferred
18 Retirement Option Program; authorizing the
19 department and the Board of Regents to
20 determine the design of the plans and the
21 eligible participants; providing an effective
22 date.
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24 Be It Enacted by the Legislature of the State of Florida:
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26 Section 1. Alternative benefits; tax-sheltered
27 annual-leave and sick-leave payments.--
28 (1) The Department of Management Services and the
29 Board of Regents on behalf of the State University System have
30 authority to adopt tax-sheltered plans under s. 401(a) of the
31 Internal Revenue Code for state employees who are eligible for
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CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2000 CS for SB 820
309-2191-00
1 payment for accumulated leave. The department and the Board of
2 Regents, upon adoption of the plans, shall contract for a
3 private vendor or vendors to administer the plans. The plans
4 must provide retirement benefits in a manner that minimizes
5 the tax liability of the state and participants. The plans
6 must be funded by employer contributions of payments for
7 accumulated leave as specified by the department and the Board
8 of Regents. The plans must have received all necessary federal
9 and state approval as required by law, must not adversely
10 impact the qualified status of the Florida Retirement System
11 defined benefit or defined contribution plans or the pretax
12 benefits program, and must comply with the provisions of s.
13 112.65, Florida Statutes. Adoption of the plans is contingent
14 on the department and the Board of Regents receiving favorable
15 determination letters and favorable private letters rulings
16 from the Internal Revenue Service, and being negotiated under
17 the provisions of chapter 447, Florida Statutes, where
18 applicable. The plans shall also be contingent upon
19 appropriate resources to modify the state payroll system
20 within the office of Comptroller. The department's and the
21 Board of Regent's request for proposals by vendors for such
22 plans may require that the vendors provide market-risk or
23 volatility ratings from recognized rating agencies for each of
24 their investment products. The proposals must be reviewed by
25 the State Board of Administration, which shall advise the
26 department and the Board of Regents with respect to the
27 findings of that review. The department and the Board of
28 Regents shall provide for a system of continuous
29 quality-assurance oversight to ensure that the program
30 objectives are achieved and that the program is prudently
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CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2000 CS for SB 820
309-2191-00
1 managed. These plans, if implemented, shall be administered by
2 the Division of Treasury of the Department of Insurance.
3 (2) Within 30 days after termination of employment, an
4 employee may elect to withdraw the moneys without penalty by
5 the plan administrator. If any employee is adversely affected
6 financially by a plan, the plan shall include a provision
7 which will make the employee financially whole.
8 (3) These contracts may be used by any other pay plans
9 or personnel systems in the executive, legislative, or
10 judicial branches of government upon approval of the
11 appropriate administrative authority.
12 (4) Notwithstanding the terminal-pay provisions of s.
13 110.122, Florida Statutes, the department and the Board of
14 Regents are authorized to develop and contract for
15 tax-sheltered plans for leave payments for employees
16 participating in the Deferred Retirement Option Program.
17 (5) The department and the Board of Regents shall
18 determine by rule the design of the plans and the eligibility
19 of participants.
20 (6) Nothing in this act shall be construed to remove
21 plan participants from the scope of s. 110.122(5), Florida
22 Statutes.
23 Section 2. This act shall take effect July 1, 2000.
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CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2000 CS for SB 820
309-2191-00
1 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
2 SB 820
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4 The Department of Management Services and the Board of Regents
are authorized to adopt tax-sheltered plans under s. 401 (a)
5 of the Internal Revenue Code for payment of accumulated leave.
6 Makes adoption of the plans contingent upon the Department of
Banking and Finance receiving resources to make the necessary
7 changes in its computer system.
8 Requires that adopted plans be administered by the Department
of Insurance.
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