Amendments to SB 1130 FRS Reform

In plain english, because this is getting real confusing and everyone has a different view. Does anyone know for CERTAIN if all overtime earned before July 2011 is counted torwards retirement or is it just 300 hours max?

Yes, all overtime earned before July 2011 will be counted towards retirement.

Section 6 amends s. 121.021, F.S., to:
Amend the definition of “compensation” for purposes of the FRS defined benefit program to
exclude overtime payments paid from a salary fund in excess of 300 hours and accumulated
annual leave payments, for service earned on or after July 1, 2011. Service earned before that
date will be subject to the current definitions.
Amend the definition of “average final compensation” for purposes of the FRS defined
benefit program to exclude accumulated annual leave payments and overtime payments paid
from a salary fund in excess of 300 hours, for service earned on or after July 1, 2011. Service
earned before that date will be subject to the current definitions.

You should go to the post titled (SB 1130 The Florida Senate BILL ANALYSIS AND FISCAL IMPACT S). This document makes it easy to understand SB 1130. I posted it on 3-15-11.I hope this helps answers everyones questions.

[Tom]

HOUSE REPUBLICAN PENSION TAX CLEARS SUBCOMMITTEE; DEMOCRATIC MEMBERS OPPOSED



TALLAHASSEE, Fla. --- In committee Thursday night, House Democratic Caucus members voted in opposition to a Republican bill that imposes an across-the-board 5-percent tax on the salaries of participants in the Florida Retirement System, including Florida’s teachers, police and other public workers.



Democratic Caucus members warned of severe long-term negative consequences and said House Bill 1405 could damage Florida’s economy. They also said Republican budget writers ought to find other ways to help fill a more than $3-billion hole in the state budget.



There are more than 650,000 Florida Retirement System members statewide and 300,000 government retirees who participate in the FRS.



The measure, which cleared the House Government Operations Subcommittee on a party-line vote, also lengthens time police, firefighters, and other “special risk” employees must work before they can retire from 25 to 30 years, or from age 55 to age 60, whichever comes sooner. For everyone else, the retirement age would rise from age 62 to 65, or from 30 to 33 years of service.

Rep. Jeff Clemens (D-Lake Worth) is the Democratic Ranking Member on the House Government Operations Subcommittee. The panel approved the bill Thursday night on a party-line vote. During his closing remarks in opposition, Rep. Clemens described the legislation as “patently unfair” to public servants.



“We’ve been dealing with pay freezes for public employees for years and now we’re putting a 5-percent salary tax on the backs of state employees,” said Rep. Clemens. “Absolutely, this is a 5-percent pay cut. I don’t know what else you would call it but a tax.”



Clemens also said HB1405 is a “solution in search of a problem,” noting that the FRS is nearly fully funded and is considered one of the best-operating public pension systems in the nation.



Rep. Alan Williams (D-Tallahassee) another member of the subcommittee who opposed the bill, said the legislation will create a deficit in the Florida economy.



“There are 720 million reasons why we shouldn’t support this bill,” Williams said. “That’s the amount of money that will be coming out of the economy, with the 5 percent tax on the incomes of just state employees and on teachers…Members, when you talk about trying to stimulate the economy, and you go back to your districts and say: `What have I done to stimulate the economy?’ Don’t point to this bill.”



Reps. Irv Slosberg (D-Boca Raton), Dwayne Taylor (D-Daytona Beach), and Barbara Watson (D-Miami) also spoke in opposition to the bill.

The expected next hearing for the bill is in the House Appropriations Committee.

Overtime WILL be capped at 300 hours in the latest ammendent to HB1130.

Sure glad I have 5 good years in, I see a lot of people retiring and going into the drop. I averaged 375 hours of overtime the last 5 years and now they are going to cap it at 300, thats only 60 hours per year, the new guys are screwed. :evil: :evil: :evil:

Perhaps you are not understanding the latest ammendment. Overtime will be capped at 300 hours for everyone. Prior overtime earned before 7/2011 will also be capped at 300 hours.

Perhaps you are not understanding the latest ammendment. Overtime will be capped at 300 hours for everyone. Prior overtime earned before 7/2011 will also be capped at 300 hours.

Amend the definition of “average final compensation” for purposes of the FRS defined
benefit program to exclude accumulated annual leave payments and overtime payments paid
from a salary fund in excess of 300 hours, for service earned on or after July 1, 2011. Service
earned before that date will be subject to the current definitions.


Service earned before that date will be subject to the current definitions. All overtime earned before July 1,2011 will not be effected.

I knew that guest was just trying to stir the pot, I feel bad for the new guys.

2 days ago I e mailed the head of the PBA legislator in TLH asking to clarify if the overtime earned before 7/2011 will count towards your final average earnings. His response was "YES" it will count. Yesterday I saw the "new" version of this bill and it seemed to have been reversed. This time I called to confirm and the response was, "the new ammendment to this bill will not count your overtime earned before 7/2011. We will all be capped at 300 hours. He told me the House (or senate) I cant remember which one decided that there is too much "spiking" going on with overtime during your last 5 years and they put a stop to it by placing this cap on everyone. He also stated that they expect it to get worse in the comming weeks.
I'm not trying to stir the pot. This is what I was told as of yesterday 3/18.

Well guest who ever gave you info isnt giving you good info. Florida Supreme Court has already made a ruling on this issue not too long ago.

The Florida Supreme Court has held that the Florida Legislature may only alter the benefits structure of the FRS prospectively.39 The prospective application would only alter future benefits. Those benefits previously earned or accrued by the member, under the previous benefit structure, remain untouched and the member continues to enjoy that level of benefit for the period of time up until the effective date of the proposed changes. Further, once the participating member reaches retirement status, the benefits under the terms of the FRS in effect at the time of the member’s retirement vest.40
The Florida Supreme Court further held that the “preservation of rights” provision was not intended to bind future legislatures from prospectively altering benefits which accrue for future state service.41
This bill does not change any benefits that a member has earned prior to July 1, 2011. The bill only makes changes prospectively. As such, it does not appear to impair the contractual obligation between the FRS employer and the FRS member. :evil: :evil: :evil:

I really hope you are correct.