FRS Options has received many requests in regard to the posting on the MyFRS.com site concerning SB 5005. We hope this will help. SB 5005 was simply a proposal by the legislature to match the contributions into the Florida Retirement System to the amounts required by the actuaries. SB 5005 was not passed, and was sent to the Conference Committee for final resolution. The results of the committee are not yet known to us.
We have provided a copy of the Legal Analysis done by the Senate. It contains some interesting language, which we have highlighted below.
Section 121.031, F.S., requires that an actuarial study of the FRS be provided by the administrator of the system (the Department of Management Services) and for the results to be reported to the Legislature by December 31 of each year. Thereafter, the Legislature uses this report in establishing uniform contribution rates in law during the next legislative session.
revises s. 121.71 F.S. to adjust the employer contribution rates for the FRS based on the 2011 Actuarial Valuation as adjusted by the changes to the Investment Plan allocations.
As is evidenced by the analysis, the basis of SB 5005 is simply to lower the contributions into the Florida Retirement System Pension Plan or the Investment Plan for members, as is recommended by the actuaries empowered by Florida statute, to insure the well-being of FRS. In order to lower contribution rates, the actuaries must be able to demonstrate that the plan is funded sufficiently to allow lower contributions. We find it ironic that the actuaries are recommending a lower contribution, which means less money is required to keep the plan well-funded, at the same time Governor Scott is on record as saying that FRS is not well funded.
It would seem the Governor is willing to make any statements necessary to further his personal agenda, unfortunately, the media doesn’t seem willing to tie the hypocrisy of his statements with the facts.
We will keep you posted as to any outcomes affecting FRS in the Conference Committee.