The proposed bill, titled the Deferred Compensation Automatic Enrollment Act, aims to enhance deferred compensation plans for public employees in Florida by introducing automatic enrollment arrangements. It amends section 112.215 of the Florida Statutes to allow government entities to implement automatic enrollment, where a portion of an employee's compensation is automatically deducted and contributed to a deferred compensation plan unless the employee opts out or chooses a different contribution rate. The bill also mandates that these arrangements establish a default contribution rate and allows for periodic reenrollment and resetting of contribution rates for employees. Additionally, it requires that a default investment option be provided for contributions in the absence of an employee's election.

Furthermore, the bill modifies sections 110.114 and 112.171 to clarify that deductions made under the automatic enrollment arrangement are considered authorized by the employee, thus streamlining the process for implementing these deductions. The legislation stipulates that while counties and municipalities can adopt these arrangements, the state’s deferred compensation plan can only do so with legislative approval. The act is set to take effect on July 1, 2025.

Statutes affected:
S 1068 Filed: 112.215, 110.114, 112.171