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Bill Summary Details

FRS: Investment Plan (Watch)

SB 992 (Brandes) makes several changes related to employer and employee contributions, as well as account allocations, under the Florida Retirement System Investment Plan. SB 992 clarifies that if an employee defaults into the investment plan retroactively to the date of employment, the employee and employer begin paying employee and employer contributions at the applicable rate for investment plan members only after the default has occurred and not retroactively to the date of hire. The bill would also allow FRS investment plan members to make voluntary, after-tax employee contributions to their investment plan accounts, up to the maximum allowed by IRS rules. Employee contribution rates to the investment plan are currently 3% of gross compensation. Beginning July 1, 2021, SB 992 would increase member contribution rates for investment plan members initially enrolled before July 1, 2020, until the rate of all membership classes under the investment plan is 5%. The bill incrementally increases allocations to investment plan accounts. In order to fund the increased allocations to investment plan member accounts under SB 992, required employer contribution rates would be increased by an amount that has yet to be determined by the Legislature. Finally, the bill requires the State Board of Administration to prepare a report that examines the adequacy and use of current annuity options available to members of the investment plan. (Hughes)