This rule amendment revises the Deferred Compensation Plan document and adopts a revised Deferred Compensation Investment Policy and Product Selection and Retention Policy. The changes to the Plan are as follows: (1) The definition of UNREDUCED ...

Division of Treasury

RULE NO.: RULE TITLE:

69C-6.003 The Plan; Prescribed Forms

PURPOSE AND EFFECT: This rule amendment revises the Deferred Compensation Plan document and adopts a revised Deferred Compensation Investment Policy and Product Selection and Retention Policy.  The changes to the Plan are as follows:

(1) The definition of UNREDUCED BENEFITS is changed to fit the ORP and PEORP which do not have a defined benefit calculation.

(2) Section 3.06 is amended to reflect the IRS policy that employment with another employer cannot be used to calculate a catch-up contribution.

(3) Section 3.08 is added to provide for the payment of excess contributions to the participant.

(4) Section 5.08 is added to explicitly allow investment providers to impose reasonable limitations to limit frequent trading of mutual funds.

(5) Foreclosure upon real property is added as an unforeseeable emergency to conform to federal regulation.

(6) Separation is added to divorce or dissolution of marriage as not constituting an unforeseeable emergency.

(7) A simplified process for an unforeseeable emergency withdrawal for up to $1500 for damage due to a disaster such as a hurricane is provided.

(8) Several other minor edits and clarifications are made that do not have a significant substantial effect.

The Deferred Compensation Investment Policy and Product Selection and Retention Policy is changed with regard to the standards for the retention of mutual funds in the program.

The rule is also revised to incorporate up to date versions of applicable federal law.

SUBJECT AREA TO BE ADDRESSED: Amendments to the Deferred Compensation Plan and the adoption of the Deferred Compensation Investment Policy and Product Selection and Retention Policy

SPECIFIC AUTHORITY: 112.215(11), F.S.

LAW IMPLEMENTED: 18.125(4)(c) FS., 112.215 FS.

IF REQUESTED IN WRITING AND NOT DEEMED UNNECESSARY BY THE AGENCY HEAD, A RULE DEVELOPMENT WORKSHOP WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:

DATE AND TIME: April 18, 2005, 2:00 p.m.

PLACE:  139 Larson Building, 200 East Gaines Street, Tallahassee, Florida.

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE DEVELOPMENT AND A COPY OF THE PRELIMINARY DRAFT IS: , , Department of Financial Services, 200 East Gaines Street, Tallahassee, Florida 32399-0346, (850)413-.

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 PRELIMINARY TEXT OF THE PROPOSED RULE DEVELOPMENT IS:

 

69C-6.003  The Plan; Prescribed Forms.

(1) Form DFS-J3-1176 (rev. 11/05 4/04), State of Florida Employees Deferred Compensation Plan, is hereby established and incorporated into this rule by reference as the plan contemplated in Section 112.215, F.S.

(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 can be obtained from the Deferred Compensation Section, Division of State Treasury, 200 East Gaines Street,

Tallahassee, Florida 32399-0346.

(a) Form DFS-J3-1163 (rev. 8/03) Participant Action Form

(b) Form DFS-J3-1164 (rev. 8/03) Enrollment Information Form

(c) Form DFS-J3-1165 (rev. 7/03) Company to Company Transfer and/or Replacement Authorization

(d) Form DI4-1166 (rev. 1/02) Company to Company Transfer Invoice

(e) Form DI4-1169 (rev. 1/02) Plan to Plan Transfer Invoice

(f) Form DI4-1152 (rev. 1/02) Application to Participate in the Standard Catch-Up Provision

(g) Form DI4-1171 (rev. 1/02) Request for Unforeseeable Emergency Withdrawal

(h) Form DI4-1172 (rev. 1/02) Request for Distribution

(i) Form DI4-1174 (rev. 1/02) Commonly Asked Questions with Answers

(j) Form DI4-1175 (rev. 1/02) Forms Procedures

(k) Form DI4-1525 (rev. 1/02) Purchase of Prior Service Credits

(l) Form DI4-1526 (rev. 1/02) Rollover Form

(m) Form DFS-J3-1541 (rev. 10/05 06/04) Investment Policy and Product Selection and Retention Policy

(3) The State of Florida Employees Deferred Compensation Plan shall be construed to conform to the requirements of 26 USC 457 (2005 2001 USCA Cumulative Annual Pocket Part Supplementary Pamphlet as modified by the USCA September 2001 Pamphlet Number 1), which is hereby incorporated by reference into this rule.

(4) The following portions of the Internal Revenue Code and Code of Federal Regulations are also hereby incorporated by reference;

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

(b) 26 USCA 403(b) (2001 USCA Cumulative Annual Pocket Part Supplementary Pamphlet as modified by the USCA September 2001 Pamphlet Number 1);

(c) 26 USCA 911 (2002 2001 Supplementary Pamphlet);

(d) 26 CFR 1.457-2 (August 27, 2003 April 1, 2001).

Specific Authority 112.215(11) FS. Law Implemented 18.125(4)(c) FS., 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, _________________.

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