4/20/10 Please read this article updated today. Immediate action is required.
Update:
Via TwigVids — April 03, 2010 — Message from a friend:
The Florida House of Representatives needed a ‘revote’ to pass House Bill 5701 (H.B.5701) yesterday evening . The Republican majority overcame opposition (56-63), with a 59 to 57 revote passage.This bill will affect any F.R.S. member planning to retire before the Medicare age of 65. It eliminates the $150.00 per month medical insurance subsidy. Every school employee retiring before age 65 will lose $1,800.00 per year, until age 65.
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Thanks to those of you who sent me messages stating that HB19319 is dead. Senator JD Alexander, of Lake Wales, has another bill, SB 2022, which is still very much alive and will be coming up today in committee. His phone number is (850) 487-5044 This is as of 3/25/10 at 1:30 pm.
There is a bill (HB1319/SB 1902) moving in Tallahassee that will significantly change the Florida Retirement System if passed. Some highlights of HB 1319/SB 1902 include:
Retirement compensation will be computed based on the average salary over ALL years of service. The average of the “highest five years” rule will be repealed. There is no grandparenting clause, so this will apply to existing employees participating in the FRS system who continue to work after July 1, 2010.
All new hires as of July 1, 2011, and all with DROP participation dates beginning on or after July 1, 2011, would pay a 1% contribution of gross income into the FRS system.
Reduction in annual multiplier from 1.6% to 1.44% for regular class; reduced from 2% to 1.8% for senior management class; and reduced from 3% to 2.7% for special risk class (cops, firefighters, etc). There is no grandparenting clause, so this would apply going forward to existing employees participating in the FRS system who continue to work in qualified positions beyond the effective dates.
Normal retirement service years and DROP ages increased to 33 years/age 65 (currently: 30 years/age 62), and by +3 years for all special risk categories. There is no grandparenting clause, so this will apply to existing employees participating in the FRS system who continue to work in qualified positions beyond the effective dates. This would not impact those who enter DROP before the July 1, 2010, effective date.
Average full compensation would no longer include accumulated annual leave paid out of the end. Accumulated sick leave paid out at the end will also not be counted towards calculating FRS compensation benefits.
Maximum benefit reduced to 80% of average final compensation. Existing 90% cap would remain for FRS participating employees who vested (at least 6 years of qualified FRS service) before July 1, 2010.
HB 1319 (Rep Grady) can be viewed at:
http://www.flsenate.gov/data/session/2010/House/bills/billtext/pdf/h131900.pdf
The Senate companion bill SB 1902 (Sen Bennett) can be viewed here:
http://www.flsenate.gov/data/session/2010/Senate/bills/billtext/pdf/s1902.pdf
Also pending is HB 1543 (Rep Zapata) Highlights include:
Cut the maximum benefit to 70% of average final compensation.
Entirely eliminates the elected official, senior management, and special risk administrative support classes for FRS benefits. All in these categories would all remain in FRS, but would be transferred to the “regular class” category.
Eliminates the Senior Management Service Optional Annuity Program.
Retains the “highest five” rule and existing retirement ages/service years.
Makes significant changes in law to municipal pension plans for firefighters and police officers.
Effective July 1, 2010.
You can view HB 1543 here:
http://www.flsenate.gov/data/session/2010/House/bills/billtext/pdf/h154300.pdf
Finally, you can track all FRS-related legislation during the current 2010 Legislative Session here:
http://dms.myflorida.com/human_resource_support/retirement/legislation_laws_and_rules/2010_legislation
These are important issues impacting tens of thousands of hard-working people statewide. We need to closely monitor them as they move forward. Please let your legislators know your concerns about these proposed bills over the next two months of the 2010 Regular Session. If you don’t know who to contact visit VoteSmart.org and enter your zip code and you’ll get exactly what you need.
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Planning your retirement is one of the most important things that you need to do. You want to start planning early to ensure that once you do retire you have sufficient funds to last you through the remainder of your life.The single biggest obstacle to a fruitful retirement is to delay planning. More to the point while, there are plenty of retirement plans out there which are, on average, are cheaper than the ones advisors advise.
http://tangerineflorida.com/2011/05/26/how-scotts-budget-affects-frs-retirement/
http://tangerineflorida.com/2011/03/08/awake-the-state-in-orlando/ Gov Scotts plan for 2011 and beyond is met with resistance from teachers.
[...] The busiest day of the year was March 25th with 3,329 views. The most popular post that day was HB 1319/SB 1902 Will Change Retirement for Public Employees . [...]
Great post, I like it…
I think there is wrong info here. Retirees after age 65 still receive the health insurance subsidy. When I think of how many of my friends have already had to give up health insurance until Medicare, I could just scream. Can the legislature really just empty trust funds whenever they like? To all those people who think government employees are overpaid, we worked not only for small amounts, but also no overtime pay. Compensatory time was limited to 240 hours and you were not paid that if you left the job. One Thansgiving Friday, I worked 13 hours, was going to lose the $13 I received for on call pay and not get credit for the 13 hours either because I already had 240 hours comp time. Only when the federal wage and hour laws came in did we start getting paid overtime and then only under extraordiinary circumstances. We were fools.
There is still talk of getting rid of the subsidy during this session.
Any new updates on 1319 since April 5th? 1319 is a lot worse than 6 for a lot of teachers.I’m not sure it is getting enough press. John
Editor- Your right it’s not getting enough press. It certainly isn’t easy to find online. I heard it was withdrawn and then put back in. I will post as soon as I get any news.
I just called the speaker of the house’s office [850-488-1450] and it died in committee. A staff analysis was never done on it. So we’ll both sleep better tonight. =]
What can be done, can be undone. Any legislator who votes for this needs to be escorted to the nearest exit. I can survive financially but worry about those in the wings.
[...] HB 1319/SB 1902 Will Change Retirement for Public Employees … [...]
Retirees who are alreaedy dependent on the health insurance subsidy should be grandfathered in if the subsidy is stopped. The retirees are very much dependent on the additional small amount of funds to support them. Retirees do not have the recovery time like younger people that can plan ahead for their financial future. It’s time the rich people stop making decisions for the poor people. Who in the world would have thought up such a thing? Editor: I agree totally. They are trying to balance the budget on the backs of those who have worked hard their entire lives.
FL House Bill #5701 will ELIMINATE the Health Insurance Subsidy.
Anyone not retired by 7/1/10 will not be given the subsidy at all.
Anyone who has the Subsidy will lose it on 12/31/10 when the program is elimimated.
Contact your legislators to defeat HB 5701.
Please do not cancel our health subsidy. I worked very hard during my career beginning in 1959 in Broward County.
I retired in 1994 under the TRS not the FRS. Will any bill concerning the FRS have any affect on those of us in the TRS? I have already been punished by the Social Security Administration for remaining in the TRS. Double dipping is not allowed for TRS members. The health subsidy is very important for us.
Thank you for your time.
the name of every politician who votes yes for such a under-handed bill shall and will be be posted on the internet. and when election day rolls around every firefighter teacher fireman and every fl citizen regardless of party needs to through these bums out. to reach into the pockets of retired firefighters and police officers who have laid there lives on the line for us every day. knowing when they took the job they would be working for lower wages un godly hours during hurricanes fires etc. and now after 30 years of work these bums want to go after a measily 150 dollars a month while they pay 1000 dollars a month while other states such as n.y and n.j pay there retired police and firefighters ins premiums in full when they retiree is a disgrace
Amen! and amen and I mean. Lol. Yes, I am mean when it comes time for meanness. Bring it on!
i like your posting
It is bad enough that the mass majority of govenment employees get paid at the poverty rate, but now with Obamacare we will be taxed on our health benefits and now they want us to contribute!!! How much do they think we make? I have two points on this subject… 1) When the senior government officials, (aka the govenor, senators, and house members), start sacrificing and taking legitamate cut in their finacial situations I don’t want to hear about how I should! 2) If I am going to be paying into my retirement then I should be able to place my money into whatever investments I want, whether it is within the FRS system or not.
Why don’t they ask the current employees to contribute to the frs system and leave it like it is. Then we would be a part of the frs system rather than it being a benefit for the state employees . Editor- Do you mean to open it up to everyone?
Just wanted to thank you for information. It has been almost impossible to find elsewhere
I agree that information is hard to find and we need to know now!
This is a post made today with links directly to the Florida Senate page.
http://tangerinefl.wordpress.com/2010/03/27/more-senate-retirement-mayhem/
The bill that was withdrawn on the 24th was HB 1543. Double check because there are SEVERAL bills pending that would adversely affect the FRS for current workers. The FRS website (legislation section) has summaries of the bills. This site was updated to show the withdrawn status of 1543, but 1319 shows as still pending.
I notice that the Federal Governments BLS data/charts are used reference and or justification for some comments. The BLS is a federal propaganda site that overstates much of what goes into the national economic data. The Boskin Commission did a real screw job on the Citizens.
John Williams’ site (http://www.shadow government stistics.com) is much more reliable because he uses pre-1980′s methods for computations.
Sorry Charlie…..The information I submitted about the BLS is accurate, If the Legislature uses any BLS data, present and future retirees will be short-changed. Now , can you provide assurances that BLS data will not be used by either law making body? If, not….so long Charlie and so long to any BIG BROTHER incumbents. Orwell sends
for you doubters on my statement about the growing gap between private worker compensation and public workers, see:
http://innovationandgrowth.wordpress.com/2010/03/23/the-growing-gap-between-govt-and-private-sector-benefits/
These bills are insane. You could possibly have a bill that reduces AFC slightly like instead of highest 5,highest 8. Highest 5 AFC to all years AFC would cut your pension in half.
This is needed. Public workers compensation and retirement benefits are way out of proportion compared to private workers. Or do you not see the mess Illinois, New Jersey, California, and most municipalities are in?
This state of affairs came about because politicians thought they could ride the wave of public union votes for the promise of ever increasing pay for teachers, firemen, police, etc. The day of reckoning is here, sadly. But, it is needed. You cannot ask private sector to carry this burden any longer.
Then change it for future workers, Lou. Don’t destroy the pensions of those who have spent 20 to 30 years on the job…
Lou, I understand where you’re coming from, but the fact is that State salaries are also WAY out of proportion to the private sector. That was the trade-off… we accepted much lower salaries for the “promise” of better benefits and job security.
“Job security” went out the window several years back. We don’t even have that any more.
But we definitely DID have a financial contract of sorts. We allowed the State to “grant” us low salaries in exchange for the benefits.
It’s up to them to fulfill their contract.
The pension fund may need to be changed some to allow for its continued viability. A lot of ideas I’ve seen seem very sensible. Lifetime 70% limit instead of 100% limit. 1.5ish% instead of 2, 3, or even 1.67 sounds sensible. Paying 1% into the fund also sounds very sensible. Using the last 8 years instead of the last 5 years to compute AFC also has some merit.
Your “all years instead of last 5 to compute AFC” is one of the most absurd bills ever introduced in the legislature. And that’s really going some.
You really have the will to say to a 66 year old female teacher, (just using an example), that after she plans for a specific figure for maybe 40 years that you want to cut it in half? I am not exaggerating here. This truly sounds insane.
I truly think your credibility is hurt by the “all years” AFC proposal. Please look to my first paragraph for sensible solutions to fixing the pension system. Editor: Any changes in the system should apply to new employees only.
As a teacher in Miami-Dade County I did not have a raise for 4 out of the last 5 years and the one we received was eaten up by increased health care costs. In all local communities and municipalities where I live the average policeman and fireman can retire on 80 percent of their last two years including overtime after 20 years so please do not put us in this same category. That is why local property taxes are so high and the state retirement fund is in bad shape. After 30 years in the near future with three masters degrees and several state awards for teaching accomplishments I will retire on about $ 30,000 per year not even close to what it takes to live down here where the average home in a somewhat decent area is $300,000 and in a crime/poverty area about $ 180,000.
Use this when the legislatures want to cut and reduce the benefits for the “overpaid, unqualified teachers”
http://www.nefec.org/news0/556/
The bill has been WITHDRAWN!
Scroll towards the lower half:
http://www.flpba.org/dday.php
Yay!!!
[...] HB 1319/SB 1902 Will Change Retirement for Public Employees There is a bill (HB… 1319/SB 1902) moving in Tallahassee that will significantly change the Florida Retirement System if passed. Some highlights of HB 1319/SB 1902 include: [...]
These bills are so unfair to the hard working people who have worked toward retirement. I will be eligible to go into the drop on July 1, 2010., If this bill passes I will have to work an additional 3 years before I can go into the drop program and the clause that bases your retirement on your life time years of service rather than the five highest years is a absurd…
I work for a school district, and am close to retirement so I have been watching this closely.
Our Retirement advisor just called, and said she called Rep. Grady’s office. They said HB 1319 is dead and will not be reintroduced in this session. (3/25/10, 4PM)
Good news, but keep a wary eye out, it’s not over till April 30 when the session is scheduled to end.
This link is not yet up-to-date, but gives a list of all the bills that affect FRS.
http://dms.myflorida.com/human_resource_support/retirement/legislation_laws_and_rules/2010_legislation
Public Pension Red Flags Reminiscent Of Madoff
Florida fund signals trillions at risk, protections lacking.
Edward Siedle
http://www.forbes.com/2010/03/19/public-pension-fund-personal-finance-florida-madoff.html?partner=email
I just read through this bill. Looks like there is some grandfathering in clauses. New hires beginning next year have the biggest changes. Then there are some items that apply to individuals that are not yet vested (less than 6 years teaching) And if you have been in the system for at least 10 years you are safe from most of the changes Editor: You’d better read it again. Everyone would be subject to lower pensions and increased length of service. Employees closest to retirement will be hurt the most as they’re not prepared. Also see what will happen with health insurance supplement. This is a very hurtful bill being pushed through on the backs of public employees.
Read this comment for another perspective.
http://www.congress.org/congressorg/bio/userletter/?letter_id=4890516871&content_dir=congressorg
Capitol Report Thursday on Public radio stated that proposal was that all pensions would be cut retroactively. It was very spacific with somone commenting how hard it would be for retirees in 70′s or 80′s to find work to make up for loss of incomee. Please clarify. Editor: The bill was withdrawn so retirees can rest easy. As I understand it, the cuts would come for those who retired after the effective date at the end of this school year.
I’m not sure I agree with you, Editor. If the law states for example, for persons employed on or before a certain date there is one rule, and persons employed on or after a certain date their is another rule, wouldn’t that mean anyone employed after the date would be subject to the new rule but persons who were employed before that date wouldn’t be? Its confusing, perhaps the word “hired” would be better suited for the sentence. When I called Grady’s office, he said it wasn’t intended to affect current employees, only new ones. So I think there needs to be some language clarification here.
As it happened, it did not pass. As it was first written, I’m not sure that was the case. Thank you for your opinion.
This is really unfair for all who have worked so hard all these years basing their retirment. WHy doesnt the Legislature stop spending money on pet projects, cut the fat and lower social programs that got us into this deep mess.
How can they critcise the bad ways the Obama administration in “bullying” legislation through and they are using the same tactic? Open government…these clowns do not even make the legislation accessible to the public.
I have heard the want a private 401 type plan as there are some big players on Wall Street drooling to manage the state pension fund. You know the same ones that just about destroyed it under Bush.
We need a third party as these two parties are almost totally disconnected from the general public.
I like Zapatas bill as the special catagory is a windfall especially for special risk admin Grady’s bill sucks but this is what you get with Republicans the dismantling of government. Rather than raise a tax they would demolish our country
Teacher cuts Senate bill 6
I am an Independent, but lean conservative/Republican.. This is not a Republican concept, this is just a typical ill-thought out reaction to this mess. The State budget teams from the House and Senate knew this day was coming way back in 1980! This IS NO surprise; this is what we get from a bunch of part-time carpenters trying to make fine cabinetry!
You can not tax your way to financial independence!!
Zapata’s bill, HB 1543 has been withdrawn from further considedraton.
http://www.myfloridahouse.gov/Sections/Bills/billsdetail.aspx?BillId=44364&SessionIndex=-1&SessionId=64&BillText=&BillNumber=&BillSponsorIndex=0&BillListIndex=0&BillStatuteText=&BillTypeIndex=0&BillReferredIndex=0&HouseChamber=H&BillSearchIndex=13
I am planning on retiring from the School Board next year. I hope this plan does not go into affect. I think it would be a shame that all the hard working people who are reaching retirement age with 30 years in are going to be screwed just because they have to fix the deficit. What about the ones who are in the White House and all the Big Shots? Are they going to take the same hit as us, or do they get a reprieve from this. I think everyone should stand up and fight for our rights as citizens. They should have had a plan already in effect instead of coming up with this at the last minute. Contact your State reps and let your voice be heard.
Unless something has changed this will go into effect in July this year if passed. =[
I am three years from retirement with a School Board. I have worked hard for many years and have been planning my retirement based on the existing plan. I hope this plan fails and does not pass! I feel that it is not fair to change a plan right before an employee will be eligible to retire. If changes are made, then there should be a GRANDFATHERING PROCESS! FRS changed the vesting time several years ago and had a grandfathering process then – WHY NOT THIS TIME!!
When the federal government made substantial changes to their retirement system in 1983 they grandfathered in the employees who were covered by the existing plan. The State of Florida should do the same. Some covered state employees have worked almost thirty years under the old system. It is not fair that the rules will be changed shortly before they become eligible for retirement.
I agree.
I am glad that this topic was discussed on this blog, totally agree with all the above.
You must be joking!! My husband will have 30 years of service in Nov 2010 and you are telling us he may now have to work another 3 years and his retirement will be reduced to 1.6% of his overall 30 years income!! NO! I’m absolutely against this. There SHOULD be a grandfathering process. I hope to fails handsdown.
The way the bill is written there is no grandfather clause. Contact your state reps. There is a link to find out who your reps are on a tab at the top of the page.
Hi Karen,
I might be able to help. Please have your husband give me a call at (800) 486-9118 x119. He has options with his retirement and I can help him obtain the maximum benefit from what he currently has before the folks in Tallahassee take it all away.
Jennifer Valley
Jennifer, I have 20 years in and am 62. I have not received a step in 3 years and now this…I was planning on staying another 3 years and now I am uncertain of all the ramifications of opting out before the July 1, 2010 deadline. However it appears on page 16 & 17 of the bill that under normal retirement there is a percentage increase after the 1st, 2nd or 3rd years if one gets out before July 1, 2011. I feel very much like Karen’s husband…caught without a safety net. I may call you as well…
Bryon, please give me a call. I’m not saying you have to make any changes at the moment, but it is imperative that you know and understand all your options so if a change is made, you are prepared to act and receive the best benefit based on your financial goals.
Your husband might be better off taking the hit and retiring before July 1.