05-01-2011, 01:20 AM
“It is my goal to continue to modernize Florida’s retirement system until it is no longer reliant on our state’s taxpayers,” Governor Scott said. “But I’m pleased that we’re moving in the right direction.”
The pension agreement also will hit workers in their retirement years. It calls for the elimination of the annual three percent cost-of-living adjustment for all employees enrolled in the FRS after July 1, 2011. Anyone who is currently retired will continue to receive COLA payments and current employees will keep the benefits they have already earned when they retire but will not earn any more after this year.
If you aren't already gone or retired you are screwed.
Legislators reach pension deal, agree to a three percent wage cut
Legislators ink pension deal, requiring 3 percent cut to workers salaries to pay for retirement benefits
BY MARY ELLEN KLAS
HERALD/TIMES TALLAHASSEE BUREAU
TALLAHASSEE -- Teachers, police, firefighters and state workers would face a three percent cut in their take home pay as the state uses the money to pay for retirement costs under a pension agreement reached late Friday by state legislators.
The agreement will require all public employees enrolled in the Florida Retirement System to have three percent of their earnings shifted to their retirement accounts beginning July 1. Combined with other adjustments in the state benefit’s plan, the savings to the state will be $1.18 billion -- more than budget writers planned in their first budget drafts as they attempt to fill a $3.8 billion budget deficit
The extra cash from state and local government workers -- about $234 million over the Senate’s proposed budget and $471 million over the House’s -- leaves room for bill drafters to use the extra money to resolve differences in the health care budgets or to help finance the first installment of Gov. Rick Scott’s plan for a corporate income tax cut, which had been initially rejected by both chambers.
In a statement released Saturday, Scott hailed the Legislature’s actions and said he would push for more pension reform in the future.
“The Legislature's proposal is a great first step toward modernizing Florida’s outdated pension system, and I applaud Speaker [Dean] Cannon and Senate President [Mike] Haridopolos for their leadership in starting us down the path toward a modern, robust and secure retirement system for Florida’s workers.”
“It is my goal to continue to modernize Florida’s retirement system until it is no longer reliant on our state’s taxpayers,” he said. “But I’m pleased that we’re moving in the right direction.”
The pension agreement also will hit workers in their retirement years. It calls for the elimination of the annual three percent cost-of-living adjustment for all employees enrolled in the FRS after July 1, 2011. Anyone who is currently retired will continue to receive COLA payments and current employees will keep the benefits they have already earned when they retire but will not earn any more after this year.
That provision alone saves the state $404.8 million. Lawmakers attempted to soften the hit by requiring that legislators reinstate the COLA payment on June 30, 2016. However, one legislature can’t bind future legislatures and the change will only happen if lawmakers agree to that change during the 2016 legislative session.
Legislators kept the popular deferred retirement option program, known as DROP, which allows workers nearing retirement age to accumulate five years worth of retirement pay while they continue to work so that they can gather a lump sum upon retirement. But rather than guaranteeing that money will earn a 6 percent interest, as is current law, legislators will allow them to reap a 1.3 percent interest on their money, giving the state $81 million in savings.
The plan also reduces benefits for any new hires who enroll in the state retirement system after July 1:
They will have to work longer before they are eligible to retire. Special risk employees, such as police, firefighters and paramedics, would retire at age 62 instead of 60 or after 30 years, instead of 25, whichever comes first. All other employees in the system, including newly hired teachers, would have to wait until age 65 to retire, instead of age 62 or after 33 years, instead of 30 as it is now. The change saves the state $145.3 million.
Read more: http://www.miamiherald.com/2011/04/30/2 ... z1L3jl5YeF (http://www.miamiherald.com/2011/04/30/2194197/legislators-reach-pension-deal.html#ixzz1L3jl5YeF)
The pension agreement also will hit workers in their retirement years. It calls for the elimination of the annual three percent cost-of-living adjustment for all employees enrolled in the FRS after July 1, 2011. Anyone who is currently retired will continue to receive COLA payments and current employees will keep the benefits they have already earned when they retire but will not earn any more after this year.
If you aren't already gone or retired you are screwed.
Legislators reach pension deal, agree to a three percent wage cut
Legislators ink pension deal, requiring 3 percent cut to workers salaries to pay for retirement benefits
BY MARY ELLEN KLAS
HERALD/TIMES TALLAHASSEE BUREAU
TALLAHASSEE -- Teachers, police, firefighters and state workers would face a three percent cut in their take home pay as the state uses the money to pay for retirement costs under a pension agreement reached late Friday by state legislators.
The agreement will require all public employees enrolled in the Florida Retirement System to have three percent of their earnings shifted to their retirement accounts beginning July 1. Combined with other adjustments in the state benefit’s plan, the savings to the state will be $1.18 billion -- more than budget writers planned in their first budget drafts as they attempt to fill a $3.8 billion budget deficit
The extra cash from state and local government workers -- about $234 million over the Senate’s proposed budget and $471 million over the House’s -- leaves room for bill drafters to use the extra money to resolve differences in the health care budgets or to help finance the first installment of Gov. Rick Scott’s plan for a corporate income tax cut, which had been initially rejected by both chambers.
In a statement released Saturday, Scott hailed the Legislature’s actions and said he would push for more pension reform in the future.
“The Legislature's proposal is a great first step toward modernizing Florida’s outdated pension system, and I applaud Speaker [Dean] Cannon and Senate President [Mike] Haridopolos for their leadership in starting us down the path toward a modern, robust and secure retirement system for Florida’s workers.”
“It is my goal to continue to modernize Florida’s retirement system until it is no longer reliant on our state’s taxpayers,” he said. “But I’m pleased that we’re moving in the right direction.”
The pension agreement also will hit workers in their retirement years. It calls for the elimination of the annual three percent cost-of-living adjustment for all employees enrolled in the FRS after July 1, 2011. Anyone who is currently retired will continue to receive COLA payments and current employees will keep the benefits they have already earned when they retire but will not earn any more after this year.
That provision alone saves the state $404.8 million. Lawmakers attempted to soften the hit by requiring that legislators reinstate the COLA payment on June 30, 2016. However, one legislature can’t bind future legislatures and the change will only happen if lawmakers agree to that change during the 2016 legislative session.
Legislators kept the popular deferred retirement option program, known as DROP, which allows workers nearing retirement age to accumulate five years worth of retirement pay while they continue to work so that they can gather a lump sum upon retirement. But rather than guaranteeing that money will earn a 6 percent interest, as is current law, legislators will allow them to reap a 1.3 percent interest on their money, giving the state $81 million in savings.
The plan also reduces benefits for any new hires who enroll in the state retirement system after July 1:
They will have to work longer before they are eligible to retire. Special risk employees, such as police, firefighters and paramedics, would retire at age 62 instead of 60 or after 30 years, instead of 25, whichever comes first. All other employees in the system, including newly hired teachers, would have to wait until age 65 to retire, instead of age 62 or after 33 years, instead of 30 as it is now. The change saves the state $145.3 million.
Read more: http://www.miamiherald.com/2011/04/30/2 ... z1L3jl5YeF (http://www.miamiherald.com/2011/04/30/2194197/legislators-reach-pension-deal.html#ixzz1L3jl5YeF)