Before passage of State Government Pension Reform (SB 2100/1405) during the 2011 Legislative Session, Florida was the only state in the nation where government workers paid nothing toward their own retirement. Under this measure, state workers will now pay three percent into their pensions. Additional reforms to better align the state’s retirement program with the private sector and other states include an increase in the retirement age and required years of service, changes to the interest accrual rates for the DROP program and elimination of the Cost-of-Living Adjustment (COLA) for service earned on or after July 1, 2011.
This Florida Chamber-backed issue was also supported by Governor Rick Scott, who joined with various pension reform advocates to form a new coalition, Floridians for Sustainable Pensions – a group of citizens, civic and business organizations concerned with Florida’s unsustainable government sector pension plans.
Working with pro-job lawmakers like Sen. JD Alexander and Rep. Ritch Workman, we made strides toward public-sector pension reform by passing measures that began to align state employee pension contributions with other states and the private-sector. In the coming years, we look forward to working with partners such as the Florida League of Cities, The James Madison Institute and Florida TaxWatch to extend these reforms to local governments and other organizations at the municipal level to help prevent further bankruptcies like we saw in the town of Pritchard, Ala. in 2009.
The Florida Chamber supports modernizing the Florida Retirement System and local government retirement and benefit plans to make public employee benefits sustainable and consistent with those offered by the private-sector. We look forward to working with Governor Scott and the legislature in the future on further reforms, such as switching new employees from a defined benefit to a defined contribution plan.
State Pension Reform (HB 525)
Modernizing Florida’s retirement system for sustainability and consistency with retirement plans offered by the private-sector remains a Florida Chamber priority. By modernizing the plan, Florida can help ensure the public employee retirement system can continue providing benefits without burdening taxpayers.
This year lawmakers introduced legislation to help ensure a sustainable and more actuarially sound public employee retirement plan. Three public employee unions reached an agreement to support pension reform, but one later broke the agreement. Instead of focusing on long-term solutions to ensure future public employees have a sound retirement system available, unions back-peddled on their support and instead focused on short-term political fixes.
Local Pension Plans (HB 365)
Special interest groups pushed back against efforts to provided public employees a sustainable retirement plan. A local pension plan bill would have modernized public pensions to ensure a sound financial future for employees, reduce the state’s liability and provide cost savings to taxpayers.
There is more work to be done and the Florida Chamber remains committed to ensuring Florida’s hard-working public employees can receive retirement benefits without burdening taxpayers.
FOR IMMEDIATE RELEASE CONTACT: Edie Ousley, 850-521-1231 or 850-251-6261 eousley@flchamber.com Tallahassee, FL (March 6, 2012) – The Florida Chamber of Commerce, a long-time advocate for government pension reform and the voice of Florida business in support of the 2011 modernization of Florida’s state government pension system, today issued the following statement from Mark Wilson, President [...]
The Florida Chamber of Commerce thanks Governor Rick Scott for helping modernize Florida’s retirement system by signing SB 2100 and SB 1128 into law today.
The Florida Chamber of Commerce thanks Governor Rick Scott for helping modernize Florida’s retirement system by signing SB 2100 and SB 1128 into law today.
