This rule establishes a deferred compensation program, under Florida Statutes § 112.215, 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.
Rulemaking Authority 373.044, 373.113 FS. Law Implemented 112.215, 373.044 FS. History-New 8-25-83, Formerly 40C-1.21, 40C-1.211, Amended 8-1-89.