Bill Text: FL S7040 | 2014 | Regular Session | Introduced

Florida Senate Bill 7040 (Prior Session Legislation)

Introduced

Bill Title: Florida Retirement System Cash Balance Plan Trust Fund

Spectrum: Committee Bill

Status: (N/A - Dead) 2014-02-19 - Submit as committee bill by Community Affairs (SB 1112) [S7040 Detail]

Download: Florida-2014-S7040-Introduced.html

       Florida Senate - 2014         (PROPOSED COMMITTEE BILL) SPB 7040
       
       
        
       FOR CONSIDERATION By the Committee on Community Affairs
       
       
       
       
       
       578-01635-14                                          20147040__
    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 under pursuant to s. 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.