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 automatic enrollment arrangements in which a portion of an employee's compensation is 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 removes the requirement for the concurrence of the Department of Financial Services for certain deductions and makes technical changes to the language. The act is set to take effect on July 1, 2025, and allows counties, municipalities, and other political subdivisions to adopt similar automatic enrollment arrangements for their deferred compensation programs, contingent upon legislative approval.

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