The proposed bill, titled the Deferred Compensation Automatic Enrollment Act, aims to enhance deferred compensation plans for public employees in Florida. It amends section 112.215 of the Florida Statutes to allow for the inclusion of an automatic enrollment arrangement in government employees' deferred compensation plans. This arrangement would establish a default contribution rate, enable periodic reenrollment of eligible employees, and allow for the resetting of contribution rates. Employees would retain the ability to opt out or adjust their contribution rates, and the plan must include a default investment option for contributions made without an employee's election. Additionally, counties, municipalities, and other political subdivisions are authorized to adopt similar automatic enrollment arrangements, while the state's plan requires legislative approval for such arrangements.

The bill also amends sections 110.114 and 112.171 to clarify that deductions from employee wages for contributions made under the automatic enrollment arrangement are considered authorized by the employee. This change ensures that the deductions are treated as employee-requested, streamlining the process for implementing automatic enrollment in deferred compensation plans. The act is set to take effect on July 1, 2025.

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