Florida Public Employees
February 20, 2014
It is now official, Senate Bill 7046 [Bill Number changed to SB 1114] has been introduced proposing changes to the Florida Retirement System. This bill would require all new hires to be on a cash balance plan. This is a hybrid plan; the employee and employer put money into an investment fund. When the person retires they may receive the money they have invested in one lump sum or receive payments. Special Risk groups are exempt from this plan.
1. What happens if your money runs out before you do? With the pension plan you receive money for life.
2. Will there be a cost of living factor? (Probably not)
3. Senator Simpson has stated that this plan will “free the state from having to spend $500 million a year” towards the unfunded liability. How does the Cash Balance Plan help the state with its current liability?
4. Is there a start up cost?
5. What will this plan do to the State Board of Administration’s ability to make long term investments? Long term investments is how the SBA makes money for the pension fund.
6. Has this plan been implemented in other states? What are the results?
7. Since Florida has one of the best pension plans in the country, why are some people thinking it must be changed?
On Tuesday, February 18th, at 2:00 the Community Affairs Committee met to discuss this issue. The chair of this committee, Senator Simpson, R- New Port Richey, has made the proposal for this bill.
WHAT CAN YOU DO???
Immediately write a quick email to each member of this committee expressing your concerns. They keep a tally of the number of emails that come in and if they are for or against a bill. (This is SPB 7046 / now SB 1114)
Legislative Co-chair for Florida Retired Educators Association
Sample letter: (you can cut and paste)
I am in opposition to Senate Bill 7046. Cash Balance plans have not worked in other states and it is not needed here in Florida. Senator Simpson has been quoted as saying it would “free the state from having to spend $500 million a year” for the unfunded liability. How is this possible since it does not eliminate the current liability? Actually, it will cost the tax payers money to set up this new plan. Please do not support this bill. We have a highly functioning retirement system and it would be to the benefit of our state to continue to have seniors that are financially independent.
Phone or email address
The Senate Community Affairs Committee:
Wilton Simpson (chair) R-New Port Richie, firstname.lastname@example.org
Geri Thompson (vice) D- Orlando, email@example.com
Rob Bradley D-Orange Park, firstname.lastname@example.org
Dorothy Hukill R-Port Orange, email@example.com
Jack Latvala R-Clearwater, firstname.lastname@example.org
Chris Smith D-Oakland Park, email@example.com
Darren Soto D-Kissimmee, firstname.lastname@example.org
Kelli Stargel R-Lakeland, email@example.com
John Thrasher R-St. Augustine, firstname.lastname@example.org
UPDATE: Please note, the number of SPB 7046 has been changed to SB 1114 – Florida Retirement System
GENERAL BILL by Community Affairs
Florida Retirement System; Requiring the Trustees of the State Board of Administration to establish the Florida Retirement System Cash Balance Plan; requiring employees and employers to make contributions for funding the plan; providing that the plan provide a lump-sum or annuity benefit; providing procedures for employees who are members of the pension plan or investment plan before a certain date to transfer to the cash balance plan; providing procedures for employees employed after a certain date to be enrolled in the investment plan or cash balance plan, etc.
Last Action: 2/19/2014 Senate – Filed
Bill Text: Web Page | PDF
Act Now, Contact Your Legislators – Urge Them Not To Change The Florida Retirement System.
Leave Our FRS Alone!
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