Conference Committee Amendment

The official Conference Committee Agreement has been posted on the Senate Web site.

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Here is the link to the official

Conference Committee Agreement

from the Senate Web site.

We haven’t found any surprises yet, but are still digesting all 203 pages.  We will report back later!

 

  • Guest

    Can you explain the contribution rates on pages 179-181 of the conference document? Last year, the employer contribution for the regular class was 9.63%. This year it’s to be 3% employee + 3.28% employer + .49% employer for unfunded liability = 6.77%. Are the changes in the COLA, lower drop interest, and various changes for new hires after July 1 enough to justify this drop in total funding? Despite what people say about the FRS, the state has been good about funding each year’s expected future cost of the pension, so my working assumption is that the pension changes are big enough to justify the drop. Can you shed any light on this?

  • http://www.floridaretirementsystem.info FRS Options

    The state is required by law to fund FRS to maintain actuarial funding
    levels. We’ll look into it, as we haven’t got that far yet.

  • http://www.floridaretirementsystem.info FRS Options

    Type your reNothing like an objective view of things! First, the state can’t spend the employee contributions and more than they can the employer contributions. All of the contributions, by both statute and constitution go to FRS and only FRS. Unless you mean addressed in some other manner. I would suggest that lowering the interest rate on DROP from 6.5% to 1.3% is a change that will affect DROP. Paying a lower interest rate saves them money, it doesn’t earn them more money – all of the money is for the benefit of FRS members retirements.ply…

  • http://www.floridaretirementsystem.info FRS Options

    Line 5156

  • http://www.floridaretirementsystem.info FRS Options

    It has been adjusted, I don’t know if we can call it tampered with. You will get credit for the years served prior to July 1, 2011, but then no credit for COLA for the following five years.

  • http://www.floridaretirementsystem.info FRS Options

    That is correct. If you retire 5 years early, you will have your benefit reduced by 5% per year, so 5 years early would lose you 25% of your pension.

  • http://www.floridaretirementsystem.info FRS Options

    The language is 5259, the total contribution is 9%.

  • Krava

    To much legal wording for me. However, I believe that I understand that the 3% cola is going to happen for the people who retired prior to July 1, 2011. Is that what is being sent to the Gov. to sign? Thank you.

  • http://www.floridaretirementsystem.info FRS Options

    Correct, for those retired prior to July 1, there is no reduction in COLA.

  • http://www.floridaretirementsystem.info FRS Options

    Exactly like it does every other member of FRS. They are members, and any changes affect them as well as everyone else.

  • Hayesbowen

    How about those retiring on July 1, 2011?

  • http://www.floridaretirementsystem.info FRS Options

    You’re good! Nothing changes.

  • Acm247

    I currently have four years in DROP and will finish in June 2012. Will I still receive the 3% COLA? I’ve heard yes, and no. . .Many thanks for all your helping us with all this confusion.

  • http://www.floridaretirementsystem.info FRS Options

    You will get it.

  • Cmarfuta

    I have been retired for 8 years. Will I continue to receive the HIS & 3% COLA?

  • http://www.floridaretirementsystem.info FRS Options

    This seem to be the favorite question, yes you will.

  • http://www.floridaretirementsystem.info FRS Options

    In the absence of knowing what you earn, it would be impossible to answer. Our latest post discusses the “new” DROP. For the record, you can not lose something you don’t have, the new DROP will just not give you as much.

  • Cmarfuta

    Thank you very much for the info. I am sure that has been asked alot and again thanks for answering it once again.

  • http://www.floridaretirementsystem.info FRS Options

    It has been asked enough we will do a post on the “new” COLA!

  • http://www.floridaretirementsystem.info FRS Options

    5 years. You are “normal retirement age” at the first of those hurdles, which in your case would be 30 years. You would lose 25%.

  • Jack

    Does the current agreement:
    1) CLOSE the Pension Plan to new members or is it still open for new members after July 1, 2011.
    2) Is the second election to switch from the Investment Plan into the Pension Plan impacted=changed after July 1, 2011 for current members?

  • http://www.floridaretirementsystem.info FRS Options

    1. No
    2. No

  • http://www.floridaretirementsystem.info FRS Options

    The penalty works out to 5/12 of 1% per month, or 5% per year. If you are eligible to retire at 30 years, you should only lose 10%. Sounds like they did the calculation to age 62, and not your first “normal retirement date” of 30 years. Call them back.

  • http://www.floridaretirementsystem.info FRS Options

    Yes, you will get your 3% COLA

  • http://www.floridaretirementsystem.info FRS Options

    Not after you are in DROP. DROP members do not have to make the employee contribution.

  • http://www.floridaretirementsystem.info FRS Options

    Just up until February of 2012.