SB 2100 passes 2nd reading with amendments!

SB 2100 has passed its 2nd reading and is heading to the third and final reading.

As best as we can decipher the myriad amendments, amendments to the amendments, and replacements to the amendments, SB 2100 has passed its 2nd reading and is heading to the third and final reading.  The changes would seem to indicate the following:

  • Employee contributions would be a graduated scale; 2% on the first $25,000, 4% for compensation between $25,000 and $50,000, and 6% for compensation over %50,000.
  • AFC will include up to 300 hours of overtime, and 500 hours of accumulated leave time.
  • The DROP will continue through July 1, 2016.  No new enrollees after that date.
  • The interest rate for DROP members entering after July 1, 2011 will be reduced to 2%, it will stay at 6.5% for those enrolling before July 1.
  • Vesting for the Pension goes to 10 years for those hired after July 1.  Only those hired in Special Risk may participate in the Pension Plan after July, all other new hires must participate in the Investment Plan.
  • Special Risk members retain the normal retirement date of age 55 or 25 years of service.
  • Accrual rates remain the same.

 

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Some better news, new amendments to SB2100 an HB1405

Today Senator Ring introduced several amendments to SB 2100 that (as we read and interpret) make the following notable and positive changes

Wow, what a difference a day makes.  Today Senator Ring introduced several amendments to SB 2100 that (as we read and interpret) make the following notable and positive changes:

  • ·         The DROP would be extended for five more years.  This would allow members to enter the DROP up until  July 1, of 2016.
  • ·         Special Risk would retain the normal retirement ages of 25 years of service, or age 55.
  • ·         Allow  up to 300 hours of overtime in the calculation of Average Final Compensation
  • ·         Specifies DROP members do not have to make employee contribution.

These are all steps in the right direction!

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Florida Retirement System – Should I DROP? – Special Risk Participant

The Florida Retirement System added the DROP program to the Pension in 1998 as a way to induce employees to work longer. So, should I DROP???? MAYBE! Contrary to popular belief, the DROP is not the end-all for everybody.

So … Should I Drop ????? for Special Risk participants.

Before we decide, let’s take a look at why we even have a decision to make. FRS added the DROP program to the Pension in 1998 as a way to induce employees to work longer. Prior to 1998, an FRS participant had no options – they retired and received a monthly pension check.  End of story!  FRS further expanded the range of retirement options in 2002 with the addition of the FRS Investment Plan. This change was significant! Now a FRS Participant has several different retirement options to choose from.  There is still the basic Pension, there is a combination Pension and the DROP (Deferred Retirement Option Program), and after 2002, a third alternative whereby you can participate in the FRS Investment Plan, and take control of how your retirement money is invested.  You also have a fourth option, which is to “roll the current value of your retirement into a self-directed IRA account at retirement.

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