FRS Members Lose ! Florida Supreme Court rules in favor of Gov. Scott

the Florida Supreme Court has ruled in favor of Governor Rick Scott in the “Scott vs. Williams” lawsuit filed on behalf of Florida Retirement System members

As we have feared from the outset, the Florida Supreme Court has ruled in favor of Governor Rick Scott in the “Scott vs. Williams” lawsuit filed on behalf of Florida Retirement System members and the three percent contributions taken out of employee paychecks since July 1 of 2010.  The FSC ruling reverses the lower court ruling made by Judge Jackie Fulford in early 2012 indicating the employee contributions and changes were unconstitutional.  As details are more clear, we will continue to provide information for members.  It would appear there will be no repayment of contributions, and the elimination future COLA benefits will remain in effect.

The court ruling can be obtained by clicking on this link:    Supreme Court Decision

FRS Case goes to Florida Supreme Court

Oral Arguments for Governor Rick Scott vs. George Williams et al (FRS members) are on the Florida Supreme Court Calendar for Friday, September 7,

Oral Arguments for Case number SC12-50, Governor Rick Scott, Attorney General Pam Biondi and Florida Chief Financial Officer Jeff Atwater vs.  George Williams et al. are on the Florida Supreme Court Calendar  for Friday, September 7, 2012 at 9:00AM.  At stake is the controversial law enacted by the Florida Legislature in the 2011 session requiring employees to contribute three percent of their pay into their retirement plans, and the discontinuation of the annual three percent Cost of Living Adjustment on FRS members pension benefits.

FRSOptions perused the Documents and Filings  on the Florida Supreme Court website (something one should only do if they are extremely bored or have insomnia) and, in spite of a great deal of paperwork, documents, and filings, have simplified (we are certainly not experts at legal issues, so this might be an oversimplification) the case as follows;

The Plaintiff believes the law changes are a violation of the Florida Constitution as indicated in the Initial BriefPlaintiffs, public employees and members of the FRS, challenge the provisions of the law requiring FRS members to contribute 3% of their gross compensation toward retirement and reducing a cost-of-living adjustment for benefits earned on and after July 1, 2011. The circuit court found that the changes impaired FRS members’ contractual rights, took private property without full compensation, and impaired the right of public employees to collectively bargain.”  This opinion is based on the following ruling from 1974.

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Just how efficient is the Governor’s “Efficiency Task Force” on FRS?

We would ask if the Task Force really studied the issue or just had a little guidance from the Governor as to what “efficiencies” they should look for?

Just how efficient is the Governor’s “Efficiency Task Force” on FRS?

 

It is no secret Florida Governor Rick Scott is putting FRS benefits back in his sights for the 2013 legislature.  Every day the papers and internet post more stories about FRS being scarily underfunded and the taxpayers are being unfairly burdened by “overly generous” pensions to public workers.  We can only guess that, this being an election year, the legislators made an effort to appease FRS members (and their votes) with few and minor changes in the 2011 legislative session.  It does not appear that will be the case next year.  Scott recently went on the record saying that pension plan reform is one of his key financial challenges for the state.

The Governor’s “Government Efficiency Task Force” stacked with his supportive favorites, Senate President Haridopolis  and House Speaker Cannon  brought back recommendations that coincide with the Governor’s mandates for “pension reform”.  No surprise there!  We can’t help but wonder if the Task Force really studied the issue or just had a little guidance from the Governor as to what “efficiencies” they should look for?  They identified the FRS Pension Plan as one of their key areas for legislative change.  Again, there is no surprise to those who have been watching how politics really work.    The task force commentary creates more questions for us than it answers.

“Scott has identified funding for the pension plan as one of the two key financial challenges facing the state”.

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A few words about SB 5005

The actuaries want to lower the contributions into the Florida Retirement System

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.

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Judge Hands Down Ruling, but “It ain’t over … until it is over!”

Judge Jackie L. Fulford handed down a ruling today that would reverse the actions of the 2011 Legislature in assessing a mandatory 3% contribution from members of the Florida Retirement System.

Circuit Court Judge Jackie L. Fulford handed down a ruling today that would reverse the actions of the 2011 Legislature in assessing a mandatory 3% contribution from members of the Florida Retirement System.  You may read the Official Ruling Here.

The following is an excerpt from the ruling, which is the gist of Judge Fulford’s ruling”



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