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.