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 an automatic enrollment arrangement in which a portion of an employee's compensation can be deducted and contributed to a deferred compensation plan unless the employee opts out or chooses a different contribution rate. The bill mandates the establishment of a default contribution rate and allows for periodic reenrollment and resetting of contribution rates for eligible government employees. Additionally, it requires that the plan includes a default investment option for contributions made in the absence of an employee election.

The bill also amends sections 110.114 and 112.171 to clarify that deductions made under the automatic enrollment arrangement are considered authorized by the employee. It specifies that counties, municipalities, and other political subdivisions can adopt such arrangements for their deferred compensation programs, but these must receive legislative approval. The effective date for the act is set for July 1, 2025.

Statutes affected:
H 985 Filed: 112.215, 110.114, 112.171