2010 Legislative Alert # 5
From the Desk: Valorie Boyd, Executive Director
Date: March 19, 2010
RE: Potential Legislation Impacting Florida’s
Retirement System
It has come to our attention that there is some potential legislation being discussed that would impact the Florida Retirement System. House Bill 1319 was filed last week related to the Florida Retirement System and other governmental retirement systems to scale back government retirement benefits and corresponding costs in a number of ways.
House and Senate committees have had a number of workshops where reducing the cost of retirement benefits to the state and local governments has been discussed, including reduction in benefits and requiring employees to make partial contributions.
Attached is a link to HB 1319 and I encourage you to take a look at this bill.
http://www.flsenate.gov/data/session/2010/House/bills/billtext/pdf/h131900.pdf
HB 1319 Governmental Retirement Systems; Designates act "Public Employee Retirement Preservation Act"; requires certain public employees to contribute an additional specified percentage of their gross income for certain purposes; provides requirements for certain retirement system or plan actuarial reports & experience studies; provides for closing of certain plans; provides maximum retirement benefit for certain retirement system or plan members, etc. EFFECTIVE DATE: 07/01/2010
Below are a few items of the bill which are of concern. The line number is also listed so that you may find the information easier in the bill, which is 50+ pages.
Line 110: 1 percent contribution of salary to FRS for new hires
Line 250: Overtime, accumulated annual leave excluded from “compensation”
Line 271: Average final compensation no longer includes accumulated annual leave and no longer based on highest five years, but now average annual compensation over creditable service
Line 448: Reduction in annual multiplier from 1.60 to 1.44 percent for regular class
Line 623; 731: Normal retirement ages and ages for DROP eligibility are increased
You are encouraged to contact your legislators to have your concerns heard. Stay vigilant on this issue.
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We need to stay on top of this and contact the legislature. Thanks ACE of Florida.
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