Bill > S1112

This bill establishes the Florida Retirement System Cash Balance Plan Trust Fund to hold assets for the Florida Retirement System Cash Balance Plan, ensuring these assets are managed in trust for plan members and beneficiaries, similar to how retirement funds are handled under Section 401 of the Internal Revenue Code. The trust fund will be administered by the State Board of Administration and will not be subject to termination under a specific constitutional provision (s. 19(f), Art. III of the State Constitution), meaning it's a permanent retirement trust fund. A key provision is the creation of a forfeiture account within the trust fund, which will hold money forfeited by participants and can only be used to pay plan expenses or reduce future employer contributions, with an aim to deplete the account annually. Additionally, the bill amends existing law to include this new Cash Balance Plan Trust Fund as a destination for contributions cleared through the Florida Retirement System Contributions Clearing Trust Fund, which is managed by the Department of Management Services. The State Board of Administration will also seek confirmation from the Internal Revenue Service regarding the use of forfeited funds for plan expenses and reducing employer contributions.