03-27-2010, 03:06 AM
Senate budget committee approves pension bill
By Bill Cotterell
Florida Capital Bureau
Public employees would start making a small contribution to the Florida Retirement System next year, under a bill approved Thursday by the Senate budget committee.
The vote came over strong objection by employee representatives.
The employee contribution would be one-fourth of 1 percent of gross earnings - about $75 a year for a worker making $30,000 - but Senate Ways and Means Chairman JD Alexander said the state can't continue an entirely employer-paid pension plan. He said very few states don't require employees to chip in something to the pension pot, with contributions ranging from 2.5 to 10 percent.
"I wish there were some other way, I truly do," said Alexander, R-Lake Wales. "I take absolutely no pleasure in this. I have a great respect and admiration for our public employees, particularly those in public safety who stand to protect us."
Lobbyists from the Florida Police Benevolent Association, Professional Firefighters of Florida, Florida Education Association and the American Federation of State, County and Municipal Employees united in opposition to the bill (SB 2022).
Apart from pensions, the powerful budget chairman has repeatedly said this year that he wants to make all state employees pay for health insurance. About 27,000 Selected Exempt, Senior Management, legislative and other employees now have employer-paid insurance.
There are also some pending budget proposals for pay cuts in the budget, which will likely require layoffs in the fiscal year starting July 1. Separate House and Senate work on the budget will be completed in the next few weeks.
"We really don't think a quarter-percent from employees is going to help the Florida Retirement System; it's got a lot more problems than that," said Don Teems, a lobbyist for the PBA. "But I do think it's the camel's nose under the tent. I do believe that you'll come back year after year after year and impose increases on the employees. I think that's the intent."
Alexander estimated the employee 0.25 percent would add up to about $41 million initially, if implemented Jan. 1 for half of the fiscal year, and $83 million over a full year. The $400 million-plus funding gap he cited is borne largely by city, county and special districts that make up about 80 percent of the FRS membership, but state government, universities and community colleges bear about half.
The budget committee voted 14-8 for the pension contribution. Only one Republican, retired educator Evelynn Lynn of Ormond Beach, voted against Alexander's bill.
Senate Minority Leader Al Lawson, who has represented Tallahassee for 28 years in the House and Senate, said the money may be small but that this is the wrong time to tap employee paychecks.
"We're going on five years without a pay raise for state employees," said Lawson. "This amounts to a reduction in pay for their families."
By Bill Cotterell
Florida Capital Bureau
Public employees would start making a small contribution to the Florida Retirement System next year, under a bill approved Thursday by the Senate budget committee.
The vote came over strong objection by employee representatives.
The employee contribution would be one-fourth of 1 percent of gross earnings - about $75 a year for a worker making $30,000 - but Senate Ways and Means Chairman JD Alexander said the state can't continue an entirely employer-paid pension plan. He said very few states don't require employees to chip in something to the pension pot, with contributions ranging from 2.5 to 10 percent.
"I wish there were some other way, I truly do," said Alexander, R-Lake Wales. "I take absolutely no pleasure in this. I have a great respect and admiration for our public employees, particularly those in public safety who stand to protect us."
Lobbyists from the Florida Police Benevolent Association, Professional Firefighters of Florida, Florida Education Association and the American Federation of State, County and Municipal Employees united in opposition to the bill (SB 2022).
Apart from pensions, the powerful budget chairman has repeatedly said this year that he wants to make all state employees pay for health insurance. About 27,000 Selected Exempt, Senior Management, legislative and other employees now have employer-paid insurance.
There are also some pending budget proposals for pay cuts in the budget, which will likely require layoffs in the fiscal year starting July 1. Separate House and Senate work on the budget will be completed in the next few weeks.
"We really don't think a quarter-percent from employees is going to help the Florida Retirement System; it's got a lot more problems than that," said Don Teems, a lobbyist for the PBA. "But I do think it's the camel's nose under the tent. I do believe that you'll come back year after year after year and impose increases on the employees. I think that's the intent."
Alexander estimated the employee 0.25 percent would add up to about $41 million initially, if implemented Jan. 1 for half of the fiscal year, and $83 million over a full year. The $400 million-plus funding gap he cited is borne largely by city, county and special districts that make up about 80 percent of the FRS membership, but state government, universities and community colleges bear about half.
The budget committee voted 14-8 for the pension contribution. Only one Republican, retired educator Evelynn Lynn of Ormond Beach, voted against Alexander's bill.
Senate Minority Leader Al Lawson, who has represented Tallahassee for 28 years in the House and Senate, said the money may be small but that this is the wrong time to tap employee paychecks.
"We're going on five years without a pay raise for state employees," said Lawson. "This amounts to a reduction in pay for their families."