The bill amends the Florida Statutes concerning the Florida Retirement System Investment Plan, focusing on fiduciary standards, the cancellation of financial instruments, and investment limitations. It updates references to federal regulations governing fiduciary responsibilities in line with U.S. Department of Labor guidelines. The bill changes the cancellation deadline for financial instruments not presented for payment from the last day of the month of issuance to 180 days after issuance. It also stipulates that amounts transferred to a suspense account will be forfeited after 10 years from the date of issuance. Additionally, it grants the State Board of Administration the authority to invest a specified percentage in compliance with fiduciary standards and requires the filing of a report with the Investment Advisory Council and the Legislature.

Moreover, the bill revises provisions related to disability retirement and survivor benefits, mandating that members receiving disability benefits must be compulsory members of the investment plan. It outlines the process for calculating the net difference between the original account balance and total disability benefits paid, ensuring that any subtracted amounts remain within the disability account of the Florida Retirement System Trust Fund. The bill also introduces new investment provisions, allowing the State Board of Administration to invest up to 5 percent of any fund in compliant investments and mandates an annual report on these investments. The State Board is also permitted to issue securities and borrow money under specific conditions. The act is set to take effect on July 1, 2025.

Statutes affected:
S 590 Filed: 121.4501, 121.591, 215.47