The bill, titled the "Deferred Compensation Automatic Enrollment Act," amends existing Florida statutes to allow for the inclusion of automatic enrollment arrangements in deferred compensation plans for public employees. It authorizes government entities, including counties and municipalities, to implement these arrangements, which will automatically deduct a portion of an employee's compensation for contributions to the 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 provide for periodic reenrollment and resetting of contribution rates for employees. Additionally, it requires that contributions be placed in a default investment if the employee does not make an election regarding their investment choice.

The bill further modifies the treatment of wage deductions related to these automatic enrollment arrangements, specifying that such deductions must be considered authorized by the employee. It removes the requirement for the concurrence of the Department of Financial Services for certain deductions and clarifies that the state’s deferred compensation plan can adopt an automatic enrollment arrangement only with legislative approval. The effective date for the provisions of this act is set for July 1, 2026.

Statutes affected:
H 1403 Filed: 112.215, 110.114, 112.171