This rule establishes a deferred compensation program,
under section 112.215, F.S., and section
457
of the Internal Revenue Code, whereby District employees may voluntarily defer
all or part of their otherwise payable compensation pursuant to a deferred
compensation plan approved by the Governing Board of the District. This program
establishes a supplementary retirement plan for participating employees who
wish to defer and designate a portion of their income into an approved plan of
investment programs on a tax-favored basis.
(1) Administration of the Plan. The Board
shall approve and administer the deferred compensation plan, or otherwise
provide for such administration. Prior to implementation of an approved plan,
the Board shall obtain an opinion from the appropriate federal agency or
agencies which states that the compensation deferred and investment products
purchased under the plan will not be included in the participating employee's
taxable income under federal or state law until it is actually received by such
employee under the terms of the plan, and that such compensation will
nonetheless be deemed compensation at the time of deferral for the purposes of
Social Security coverage, the state retirement system or for any other
retirement, pension or benefit program established by law.
(2) Election to Participate and Deferred
Amount.
(a) Pursuant to an approved plan, and
upon written agreement with a participating employee, deferral of compensation
may be accomplished by the payroll deductions, with such funds thereafter
administered and remitted to the investment products designated by the
participating employee under the plan.
(b) The maximum amount deferred by a
participating employee under an approved plan for a taxable year shall not
exceed the limitations established under Section
457
of the Internal Revenue Code.
(3) Investment of Deferred Amount.
(a) The Board may establish such plan or
plans of deferred compensation for District employees, including such
investment vehicles or products as provided thereunder, as may be available
through duly qualified or licensed private corporations or institutions offered
in compliance with applicable federal and state laws and regulations. The Board
may approve one or more of such plans for implementation on behalf of the
District and its employees.
(b) The
amount deferred by a participating employee, under the terms of an approved
plan and in such proportions as designated by the employee, may be used to
purchase fixed or variable life insurance or annuity contracts, securities,
evidence of indebtedness, or placed into a savings account, or into such other
investment products as may have been approved for the purposes of fulfilling
the objectives of the plan.
(4) Receipt of Benefits. A participating
employee shall be eligible to receive benefits, as provided in an approved
plan, upon separation from the District or upon occurrence of an unforeseen
emergency.
(5) Other Benefit
Programs. Any deferred compensation plan approved as provided by this rule
shall exist and serve in addition to any other retirement, pension or benefit
systems established by the District and shall not supersede, obviate, or reduce
any benefits provided by the Florida Retirement System or by any other
retirement, pension, or benefit program established by
law.
