FL S0590

Summary of SB 590 – State Board of Administration

• Updates the federal regulatory citations governing the Florida Retirement System Investment Plan's fiduciary standards from older ERISA Section 404(c) references to current Code of Federal Regulations sections (29 C.F.R. § 2550.404a-5(d)(4))

• Changes the timeframe for canceling uncashed retirement benefit financial instruments from 180 days after the last day of the month of issuance to 180 days after the date of the instrument's issuance, with a corresponding change to the 10-year forfeiture deadline for suspense account funds

• Restricts the State Board of Administration's 5% discretionary investment authority by requiring all such investments to comply with the fiduciary standard of care set forth in statute, replacing the prior broad "as deemed appropriate by the board" standard

• Requires the State Board of Administration to file an annual report by January 31 with the Investment Advisory Council, Board of Trustees members, Senate President, and House Speaker listing all investments made under the 5% discretionary authority during the previous calendar year

• Authorizes the State Board of Administration and its affiliated limited liability entities to issue securities and borrow money—including bonds, equity securities, and other instruments—up to 5% of any fund, which may be unsecured, secured by authorized investments, guaranteed by the related fund, or governed by financial covenants