Title: Deferred Compensation

Summary: Requiring that state employees be automatically enrolled in the deferred compensation program by specified dates; requiring the Chief Financial Officer to notify state employees of automatic enrollment by a specified date; establishing contribution levels for participating state employees by specified dates; requiring a state agency to match employer contributions up to a specified amount, etc.

Full Text:
An act relating to deferred compensation; creating s. 112.2151, F.S.; defining  state agency  and  state employee ; requiring that state employees be automatically enrolled in the deferred compensation program by specified dates; requiring the Chief Financial Officer to notify state employees of automatic enrollment by a specified date; prescribing the contents of the notice given; providing that a state employee may opt out of the program by filing an election with the program administrator; establishing contribution levels for participating state employees by specified dates; requiring a state agency to match employer contributions up to a specified amount; authorizing a county, municipality, other political subdivision, or constitutional county officer to amend a deferred compensation program to provide automatic enrollment and matching employer contributions; providing an effective date. Be It Enacted by the Legislature of the State of Florida: Section 1. Section 112.2151, Florida Statutes, is created to read: 112.2151  Deferred compensation program; automatic enrollment; employer contribution.  (1) As used in this section, the term: (a) State agency  means a branch, department, or agency of state government. (b) State employee  means an employee or officer of a state agency who is paid by state warrant from salary appropriations or other agency funds and who works an average of at least hours per week. (2) Except as provided in subsection (3), each state employee shall be automatically enrolled in the deferred compensation program, established pursuant to s. 112.215, as follows: (a) Beginning January 1, 2015, if the employee was hired by a state agency before October 1, 2014; or (b) Ninety days after the date of hire if the employee was hired by a state agency on or after October 1, 2014. (3)(a) By October 1, 2014, each state agency, in consultation with the Chief Financial Officer, shall notify each state employee of the automatic enrollment in the program. The notice must contain a statement concerning the procedures for an employee to notify the state that he or she does not want to enroll in the program, the tax consequences of opting out of the program, information regarding the state match for employee contributions to the program, and the contact information for the program administrator. (b) Each state employee hired on or after October 1, 2014, may elect to not enroll in the program by filing an election to opt out of the program with the program administrator within days after the date of hire. (4) Each state employee participating in the deferred compensation program shall contribute each pay period ending on or after: (a)   January 1, 2015, through December 31, 2017: 1. If paid on a monthly basis, at least $25; or 2. If paid on a biweekly basis, at least $12.50. (b) January 1, 2018: 1. If paid on a monthly basis, at least $50; or 2. If paid on a biweekly basis, at least $25. (5)(a) For each pay period ending on or after January 1, 2015, as a component of the deferred compensation program created pursuant to s. 112.215, each state agency shall contribute an amount equal to the contribution paid by a state employee participating in the deferred compensation program; however, such contribution may not exceed the lesser of: 1. Two percent of the employee s salary for the pay period; or 2. One hundred dollars if paid on a monthly basis or $46.15 if paid on a biweekly basis. (b) For any bonus payment specifically authorized by the General Appropriations Act, each state agency shall contribute an amount equal to the contribution paid by a state employee from the bonus payment; however, such contribution by the state agency may not exceed the lesser of percent of the bonus payment or $500. (6) Each county, municipality, other political subdivision, or constitutional county officer that has established a deferred compensation program pursuant to s. 112.215 may amend the program to provide automatic enrollment and an employer contribution-matching component. Section 2. This act shall take effect July 1, 2014.