House Bill 529 (2025) amends the Florida Retirement System by updating the management of disability retirement benefits and survivor benefits for members of the investment plan. The bill outlines specific procedures for handling account balances when a member recovers from disability or passes away, including the transfer of both vested and nonvested amounts to appropriate accounts. It stipulates that if a member returns to covered employment, their transferred amounts must be deposited into individual accounts under the investment plan, while any remaining nonvested amounts will be held in a suspense account and may be forfeited after five years. Additionally, the bill clarifies the calculation of monthly disability benefits for justices and judges and the distribution of survivor benefits to spouses and children.

Furthermore, the bill introduces new investment provisions for the State Board of Administration, allowing for a maximum of 5% of any fund to be invested in securities and financial obligations, including unsecured loans and bonds. It mandates the filing of an annual report detailing all investments made under these new provisions. The bill also updates fiduciary standards by incorporating federal regulations from the Employee Retirement Income Security Act (ERISA) and revises timeframes for financial instrument cancellations and suspense account forfeitures. The act is set to take effect on July 1, 2025.

Statutes affected:
H 529 Filed: 121.4501, 121.591, 215.47