Late yesterday, 2/15/2011, Sen. Ring introduced the much-anticipated FRS pension reform bill, SB 1130 (154 pages). FEA PPA has done a quick review of the 154-page bill and found the bill makes the following changes listed below. This is a preliminary listing of what SB 1130 does, but this preliminary report may not be completely accurate and/or comprehensive . FEA PPA is continuing to read and analyze the bill and will provide you with additional information as we develop it.
Sen. Ring will be holding a hearing on SB 1130 on Friday, 2/18/2011 to receive public input and comment. FEA has arranged for one or two FEA members who have a Legislator from their local area sitting on the committee to come in offer public comment..FEA is also working with the labor union and public employee coalition organizations to generate a large turn-out for this hearing, so that the Chairman and other members of the Committee see and feel the concern and interest of the large number of public employees from a diverse range of backgrounds and circumstances who will be negatively impacted by this legislation. Hearing location details:
Friday, 2/18/2011
Hearing time: 8:00 a.m. – 12 noon
Senate Governmental Oversight and Accountability Cmte
412 Knott Office Building
The Capitol
Tallahassee, FL
SB 1130 reforms the Florida Retirement System (FRS) --
1. Closes defined benefit plan to new members, effective 7/1/11.
2. Changes vesting for new members of the defined contribution plan on or after 7/1/11. They will vest in graded increments over a five-year period.
3. Requires employee contributions for all members, effective 7/1/11, but the employee contribution amount is not specified. The rates probably will be decided in Senator Alexander's Budget Committee and will probably be included in the budget conforming bill (near the end of the 2011 legislative session)
4. The employer rates are listed for 2011 and 2012 so I am hopeful the employee rates will be phased in but the employer rates may be changed in the conforming bill also
5. Changes the definitions of “compensation” and “average final compensation” to exclude overtime and lump sum annual leave for all members, effective 7/1/11.
6. Allows reenrollment in the defined contribution plan.
7. Sets the employer contribution rates (which will be subject to change depending on other economic and policy issues).
8. DROP appears to be continued with no apparent changes except for those hired after 7/1/11.
9. HIS is not impacted by this bill.
10. The bill includes an actuarial study that will look at how DROP is funded
Pat Dix, J.D.
FEA Public Policy Advocacy
Florida Education Association
