FL S7040

Creates the Florida Retirement System Cash Balance Plan Trust Fund as a retirement trust fund administered by the State Board of Administration to hold assets of the Cash Balance Plan for members and beneficiaries.

Establishes the trust fund as not subject to termination under Article III, Section 19(f) of the State Constitution and exempts it from general revenue service charges.

Creates a forfeiture account within the trust fund for assets derived from forfeited participant benefits, which may be used only to pay plan expenses and reduce future employer contributions.

Requires the State Board of Administration to obtain an Internal Revenue Service determination letter regarding the approved use of funds in the forfeiture account.

Amends section 121.4503 to allow transfer of funds from the Florida Retirement System Contributions Clearing Trust Fund into the Florida Retirement System Cash Balance Plan Trust Fund, effective July 1, 2014, contingent on passage by three-fifths vote and adoption of similar companion legislation.