A call to ACTION,
In the last few weeks I have posted several news releases in regard to the potential for significant change to the Florida Retirement System. Even though Florida has one of the most financially sound pension systems in the US, it is underfunded by some 10 or 12%. That situation could get even worse in view of the economy, unemployment, and depressed real estate values, which create stress on the state’s tax collection and revenues. I visited the Florida Legislature’s website to investigate what might be in store, and found no less than 10 bills suggesting changes to the current system. You will find what I deemed to be the most pertinent considerations summarized below.
House Bill 1319 sponsored by Representative Tom Grady of Collier County
This bill could be far reaching. Among its provisions is one to eliminate the current basis of your Average Final Compensation (AFC) from the average of your highest five years, and instead make your AFC the AVERAGE OF ALL YEARS of service. This could effectively cut your pension by as much as 50%. It would average your first year with your last, and every year in between. This is by far the most drastic change proposed.