Senate Bill 0820e1
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CS for SB 820 First Engrossed
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; amending ss. 110.123,
22 287.022, F.S.; prohibiting limitations by the
23 state on competition for an insurance product
24 or plan on the basis of the compensation
25 arrangement used by the insurer or
26 organization; providing an effective date.
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28 Be It Enacted by the Legislature of the State of Florida:
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30 Section 1. Alternative benefits; tax-sheltered
31 annual-leave and sick-leave payments.--
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CS for SB 820 First Engrossed
1 (1) The Department of Management Services and the
2 Board of Regents on behalf of the State University System have
3 authority to adopt tax-sheltered plans under s. 401(a) of the
4 Internal Revenue Code for state employees who are eligible for
5 payment for accumulated leave. The department and the Board of
6 Regents, upon adoption of the plans, shall contract for a
7 private vendor or vendors to administer the plans. The plans
8 must provide retirement benefits in a manner that minimizes
9 the tax liability of the state and participants. The plans
10 must be funded by employer contributions of payments for
11 accumulated leave as specified by the department and the Board
12 of Regents. The plans must have received all necessary federal
13 and state approval as required by law, must not adversely
14 impact the qualified status of the Florida Retirement System
15 defined benefit or defined contribution plans or the pretax
16 benefits program, and must comply with the provisions of s.
17 112.65, Florida Statutes. Adoption of the plans is contingent
18 on the department and the Board of Regents receiving favorable
19 determination letters and favorable private letters rulings
20 from the Internal Revenue Service, and being negotiated under
21 the provisions of chapter 447, Florida Statutes, where
22 applicable. The plans shall also be contingent upon
23 appropriate resources to modify the state payroll system
24 within the office of Comptroller. The department's and the
25 Board of Regent's request for proposals by vendors for such
26 plans may require that the vendors provide market-risk or
27 volatility ratings from recognized rating agencies for each of
28 their investment products. The proposals must be reviewed by
29 the State Board of Administration, which shall advise the
30 department and the Board of Regents with respect to the
31 findings of that review. The department and the Board of
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CS for SB 820 First Engrossed
1 Regents shall provide for a system of continuous
2 quality-assurance oversight to ensure that the program
3 objectives are achieved and that the program is prudently
4 managed. These plans, if implemented, shall be administered by
5 the Division of Treasury of the Department of Insurance.
6 (2) Within 30 days after termination of employment, an
7 employee may elect to withdraw the moneys without penalty by
8 the plan administrator. If any employee is adversely affected
9 financially by a plan, the plan shall include a provision
10 which will make the employee financially whole.
11 (3) These contracts may be used by any other pay plans
12 or personnel systems in the executive, legislative, or
13 judicial branches of government upon approval of the
14 appropriate administrative authority.
15 (4) Notwithstanding the terminal-pay provisions of s.
16 110.122, Florida Statutes, the department and the Board of
17 Regents are authorized to develop and contract for
18 tax-sheltered plans for leave payments for employees
19 participating in the Deferred Retirement Option Program.
20 (5) The department and the Board of Regents shall
21 determine by rule the design of the plans and the eligibility
22 of participants.
23 (6) Nothing in this act shall be construed to remove
24 plan participants from the scope of s. 110.122(5), Florida
25 Statutes.
26 Section 2. Present paragraphs (e), (f), (g), and (h)
27 of subsection (3) of section 110.123, Florida Statutes, are
28 redesignated as paragraphs (f), (g), (h), and (i),
29 respectively, and a new paragraph (e) is added to that
30 subsection, to read:
31 110.123 State group insurance program.--
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CS for SB 820 First Engrossed
1 (3) STATE GROUP INSURANCE PROGRAM.--
2 (e) The Department of Management Services or the
3 Division of State Group Insurance may not prohibit or limit
4 any properly licensed insurer, health maintenance
5 organization, prepaid limited health services organization, or
6 insurance agent from competing for any insurance product or
7 plan purchased, provided, or endorsed by the department or the
8 division on the basis of the compensation arrangement used by
9 the insurer or organization for its agents.
10 Section 3. Subsection (3) is added to section 287.022,
11 Florida Statutes, to read:
12 287.022 Purchase of insurance.--
13 (3) The Department of Management Services or the
14 Division of State Group Insurance may not prohibit or limit
15 any properly licensed insurer, health maintenance
16 organization, prepaid limited health services organization, or
17 insurance agent from competing for any insurance product or
18 plan purchased, provided, or endorsed by the department or the
19 division on the basis of the compensation arrangement used by
20 the insurer or organization for its agents.
21 Section 4. This act shall take effect July 1, 2000.
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