The purpose of the rule amendment is to revise the State of Florida Deferred Compensation Plan and related forms.

Division of Treasury

RULE NO.:RULE TITLE:

69C-6.003              The Plan; Prescribed Forms

PURPOSE AND EFFECT:  The purpose of the rule amendment is to revise the State of Florida Deferred Compensation Plan and related forms.

SUMMARY:  Amendments to the rule include:

• Updates to the rule due to changes to and clarifications of the Federal deferred compensation regulations.
• Definitions added or changed in the Plan Document (Form DFS-J3-1176) are as follows:

       Beneficiaries of the Plan are now defined,

       “Compensation” was added to clarify language as provided by the IRS,

       “Normal Retirement Age” was amended to provide the definition for members of the Florida Retirement System’s Investment Plan and the Optional Retirement Plan.

       Roth Contribution – if Roth IRA is available,

       Trust Agreement was added to provide language for the protection of the participants and beneficiaries assets,

       Trust Fund was added to clarify the Plan created a Trust as required by the IRS,

       “Trustees of the Plan” definition was added for clarification, and

       “Unforeseeable Emergency” definition was added to the Plan Document to provide specific language to assist in the qualifying of a participant’s in-service distribution.

• Language was added to provide instruction to the Plan Administrator making corrections for excess deferrals.
• Language was added to clarify the Required Minimum Distribution provision.
• Language was added to clarify the requirements necessary for a participant to utilize the Standard catch-up provision.
• Language was added to clarify the approval process for distributions due to unforeseeable emergencies.

• A provision was added to clarify specific beneficiary types for death benefits.
• A provision was added to clarify Deemed IRA’s and Roth IRA’s requirements.
• A provision was added for Qualified Domestic Relations Orders.
• A provision was added for the distribution process for settlement proceeds received from the investment vendors.
• Amendments to existing forms and adding new forms for the State of Florida Employees Deferred Compensation Plan in order to clarify requirements, conform all forms to changes in the Plan Document (Form DFS-J3-1176), and implement minor administrative changes to the Plan.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:

The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule.  A SERC has not been prepared by the agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein:  The Bureau of Deferred Compensation conducted an analysis of the proposed rule’s potential economic impact and determined that it did not exceed any of the criteria established in Section 120.541(1), F.S. and it therefore does not require legislative ratification pursuant to Section 120.541(3), F.S.

Any person who wishes to provide information regarding the statement of estimated regulatory costs, or to provide a proposal for a lower cost regulatory alternative, must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 112.215(12) FS.

LAW IMPLEMENTED: 112.215 FS.

IF REQUESTED IN WRITING WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A RULE HEARING WILL BE HELD AT THE TIME, DATE, AND PLACE SHOWN BELOW (IF NOT REQUESTED, THIS HEARING WILL NOT BE HELD):

DATE AND TIME: Thursday, April 11, 2013, 2:00 p.m.

PLACE:  Suite 440-C, Hermitage Centre, Suite 400, 1801 Hermitage Blvd., Tallahassee, Florida

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS:  Kandi Winters, Chief of Deferred Compensation, Bureau of Deferred Compensation, Division of Treasury, Department of Financial Services, 200 East Gaines Street, Tallahassee, Florida 32399-0346, [phone] or [e-mail]

Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this program, please advise the Department at least 5 calendar days before the program by contacting the person listed above.

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

69C-6.003 The Plan; Prescribed Forms.

(1) Form DFS-J3-1176 (Rev. 01/13 4/8/07), State of Florida Employees Deferred Compensation Plan, is hereby established and incorporated into this rule by reference as the “plan of deferred compensation”contemplated in Section 112.215, F.S.  The form can be obtained from the Deferred Compensation Section, Division of State Treasury, 200 East Gaines Street, Tallahassee, Florida 32399-0346.

(2) The forms listed below are incorporated into and made a part of this rule chapter by reference and shall take effect on the effective date of this rule. The forms can be obtained from investment providers servicing the plan. A listing of authorized investment providers and the forms can be obtained from the Deferred Compensation Section, Division of State Treasury, 200 East Gaines Street, Tallahassee, Florida 32399-0346. The State of Florida Employees Deferred Compensation Plan may also be referred to as the “457b Plan.”

(a) Form DFS-J3-1163 (rev. 01/138/03)	Participant Action Form – (Used for most participants requests, including enrollment and account changes)
(b) Form DFS-J3-1164 (rev. 01/138/03)	Enrollment Information Form – (General enrollment form identifying important provisions and restrictions of the 457b Plan)
(c) Form DFS-J3-1165 (rev. 01/137/03)	Company to Company Transfer and/or Replacement Authorization-(Used when a participant wants to transfer funds between Investment Providers)
(d) Form DFS-J3-1166 (rev. 01/131/02)	Company to Company Transfer Invoice-(Used to inform Investment Providers of participant’s request to transfer account to another Investment Provider within the Plan)
(e) Form DFS-J3-1169 (rev. 01/131/02)	Transfer/Rollover Invoice Plan to Plan Transfer Invoice–(Used to inform Investment Providers to distribute funds from the Plan to another tax sheltered pension plan)
(f) Form DFS-J3-1152 (rev. 01/131/02)	Application for Standard Catch-upApplication to Participate in the Standard Catch-Up Provision-(Used for participants to request  to catch up the difference between the maximal deferrals that could have been contributed and what was actually contributed as a State employee)
(g) Form DFS-J3-1171 (rev. 01/131/02)	Request for Unforeseeable Emergency Withdrawal-(Used to request a distribution due to an unforeseeable emergency)
(h) Form DFS-J3-1172 (rev.1/02)	Request for Distribution
(h) Form DFS-J3-1172(GWRS) (new 01/13)	Request for Distribution-(Used by Great West participants to request a distribution from the Plan after they have left employment)
(i) Form DFS-J3-1172(NRS) (new 01/13)	Request for Distribution-(Used by Nationwide Retirement Services participants to request a distribution from the Plan after they have left employment)
(j) Form DFS-J3-1172(VAL) (new 01/13)	Request for Distribution-(Used by Valic participants to request a distribution from the Plan after they have left employment)
(k) Form DFS-J3-1172(ING) (new 01/13)	Request for Distribution-(Used by ING participants to request a distribution from the Plan after they have left employment)
(l) Form DFS-J3-1172(TRP) (rev. 01/13)	Request for Distribution-(Used by T. Rowe Price participants to request a distribution from the Plan after they have left employment)
(m)(i) Form DFS-J3-1174 (rev. 01/131/02)	Frequently Commonly Asked Questions with Answers–(Answers to the most frequently asked questions about the Plan)
(n)(j) Form DFS-J3-1175 (rev. 01/131/02)	Forms Procedures–(Procedures and guidelines for completing specific forms of the Plan)
(o)(k) Form DFS-J3-1525 (rev. 01/131/02)	Purchase of Prior Service Credits-(Used by participants to transfer funds from their Deferred Compensation accounts to purchase prior years of service from previous Florida employment, military time, or employment with other states and/or counties)
(p)(l) Form DFS-J3-1526 (rev. 01/131/02)	Rollover Into/Out of Florida Plan Rollover Form- (Used to transfer funds from their State of Florida 457(b) Plan to another tax shelter pension plan)
(q)(m) Form DFS-J3-1541 (rev. 01/13 10/05)	Investment Policy for and Product Selection and Retention Policy- (Establishes the standards for the State of Florida Government Employees’ Deferred Compensation Plan; adopts criteria for the selection and retention of the Plan’s investment options;  and provides a method for the quarterly evaluation and monitoring of the investment options)
(r) Form DFS-J3-1173 ( new 1/13)	Deferrals for Special Supplemental Pay-(Used for a participant to defer special supplemental pay (accrued annual/sick leave) to the Plan)
(s) Form DFS-J3-1796 (new 1/13)	Loan Application- (Used by participants to request a loan from the 457b Plan)
(t) Form DFS-J3-1956 (new 1/13)	EZ Enrollment Form-(Abbreviated form for participants to enroll in the Deferred Compensation Program via the internet)
(u) Form DFS-J3-1954 (new 1/13)	Loan Frequently Asked Questions-(Answers to the most frequently asked questions about the State 457b Loan Program)

(3) The State of Florida Employees’ Deferred Compensation Plan shall be construed to conform to the requirements of 26 USC 457 (2008) (2005 USCA Cumulative Annual Pocket Part), which is hereby incorporated by reference into this rule, and a copy of 26 USC 457 (2008) can be obtained at www.gpo.gov.

(4) The following portions of the Internal Revenue Code and Code of Federal Regulations are also hereby incorporated by reference, and a copy of the Code and Regulations may be obtained at www.gpo.gov:

(a) 26 USCA 401 (2010) (2001 Supplementary Pamphlet as modified by the USCA September 2001 Pamphlet Number 1);

(b) 26 USCA 403(b) (2008) (2005 USCA Cumulative Annual Pocket Part);

(c) 26 USCA 911 (2007) (2002);

(d) 26 CFR 1.457-2 (August 27, 2003).

Rulmaking Specific Authority 112.215(12) FS. Law Implemented 112.215 FS. History–New 1-1-87, Amended 10-7-87, 2-14-88, 2-19-89, 6-21-89, 8-7-95, 9-21-98, 6-11-02, Formerly 4C-6.003, Amended 8-26-04, 2-21-05, 7-9-06, 4-8-07,____________.

 

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Kandi Winters, Chief of Deferred Compensation, Bureau of Deferred Compensation, Division of Treasury, Department of Financial Services

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE:

Jeff Atwater, Chief of Financial Officer, Department of Financial Services

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: March 15, 2013

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: February 11, 2013

 

 

1