After years of discussions about the tricky issue of overhauling Florida’s retirement system for government employees, a Senate committee this week approved a proposal that would shut future workers out of a traditional pension plan.
The proposal, sponsored by Senate Governmental Oversight and Accountability Chairman Ray Rodrigues, R-Estero, would require new employees as of July 1, 2022, to enroll in a 401(k)-style “investment” plan. Employees currently are allowed to choose whether to take part in the pension plan or the investment plan.
Rodrigues, whose Republican-controlled committee approved the bill (SB 84) in a party-line vote, said lawmakers have to make “difficult decisions” to maintain the long-term solvency of the pension fund. He pointed, in part, to a $36 billion unfunded actuarial liability, which is essentially a measurement of whether the fund is projected to have enough money to meet its future obligations.
Author(s): Jim Saunders
Publication Date: 5 February 2021
Publication Site: Tampa Bay Times