CS/CS/HB 1307 Summary

• Revises the Public Employee Optional Retirement Program (PEORP) by allowing employees to transfer excess account balances from the optional program to the defined benefit program, where they may purchase service credit or upgrade creditable service.

• Establishes a forfeiture account within the PEORP Trust Fund to hold assets from forfeited benefits, which may be used only for program expenses and reducing future employer contributions consistent with IRS rulings.

• Reduces employer contribution rates for administrative and educational expenses from 0.05% to 0.03% of payroll (effective July 1, 2010 through June 30, 2014), then to 0.04% effective July 1, 2014.

• Creates an audit committee for the State Board of Administration with three members serving 4-year terms, requiring annual financial statements for the Florida Retirement System to be audited by an independent third-party firm.

• Expands the Investment Advisory Council from six to nine members, requires annual fiduciary training and conflict disclosures, authorizes the council to create subcommittees, and establishes ethics standards for investment advisers and managers with annual certification requirements.

• Exempts the Division of Retirement, State Board of Administration, and third-party administrators from liability for market losses due to acts of God, and allows the Board to develop and protect work products subject to trademark, copyright, or patent rights.