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 and resetting of contribution rates for eligible employees, and ensure that employees can opt out or adjust their contribution rates. Additionally, the bill mandates that contributions be directed to a default investment unless the employee specifies otherwise. Local governments and constitutional county officers are authorized to adopt such arrangements, while the state's plan requires legislative approval.

Furthermore, the bill amends sections 110.114 and 112.171 to clarify that deductions from employee wages for automatic enrollment contributions are considered authorized by the employee, streamlining the process for implementing these deductions. The effective date for the act is set for July 1, 2026. Key insertions include the requirement for default contribution rates and the treatment of automatic enrollment deductions as employee-authorized, while several phrases have been deleted to modernize the language and clarify the provisions.

Statutes affected:
S 1018 Filed: 112.215, 110.114, 112.171