FRS Conference Committee Named

The Conference Committee members are in line to decide the fate of Pension Reform for the Florida Retirement System

It appears the Conference Committee members are in line to decide the fate of Pension Reform for the Florida Retirement System.  As discussed previously, since the House and Senate could not agree on the proposals put forth, the House and Senate have appointed conferees to determine what course the legislature will take as to the reduction or elimination of your retirement benefits.  It can be presumed that whatever agreement the Committee comes up with, will be presented to the Governor for his signature.

In the Senate, Senate President Mike Haridopolos named J.D. Alexander, R-Lake Wales, as the chairman of the Senate Conference with Joe Negron, R-Palm City, as vice-chairman. At large conferees will be republicans Andy Gardiner of Orlando (Majority Leader), Don Gaetz of Destin and John Thrasher of Jacksonville.  Democratics named arer Nan Rich of Sunrise and Gary Siplin, D-Orlando.

In the House of Representatives, Speaker Dean Cannon tapped Representative Denise Grimsley as the House Leader of the conferees. Representing the house as republicans will be GOP Leader Carlos Lopez-Cantera of Miami, Gary Aubuchon of Cape Coral, Dorothy Hukill of Port Orange, Paige Kreegel of Punta Gorda, Speaker Pro Tempore John Legg of Port Richey, Seth McKeel of Lakeland, William Proctor of St. Augustine, Rob Schenck of Spring Hill,  William Snyder of Stuart and Incoming House Speaker Will Weatherford of Wesley Chapel. On the Democratic side will be Democratic Leader Ron Saunders of Key West, Chuck Chestnut of Gainesville, Darryl Rouson of St. Petersburg and Franklin Sands of Weston.

Continue reading “FRS Conference Committee Named”

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.

 

Continue reading “SB 2100 passes 2nd reading with amendments!”

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!

Continue reading “Some better news, new amendments to SB2100 an HB1405”

Rep. Tobia offers severe amendments to HB 1405!

Representative John Tobia (Republican from Melbourne) offered five new amendments to House Bill 1405. The amendments would bring HB 1405 in line with Governor Scott’s recommendations

Representative John Tobia (Republican from Melbourne) offered five new amendments to House Bill 1405.  The amendments would bring HB 1405 in line with Governor Scott’s recommendations.  As we read and interpret the changes, they include:

  • ·         Reduces the service credit for future years of service in the Special Risk, Elected Officers, and Judges from 3% to 2%.    Amendment 460885
  • ·         Eliminate the Cost of Living Adjustment for Pensions and the DROP after July.  Amendment 279579
  • ·         Eliminate overtime in the calculation of the Average Final Compensation.  Amendment 696491
  • ·         Raises the Employee contribution up to 5% across the board (it had been reduced to 3% in committee).  Amendment 328909
  • ·         Reiterates the closing of the Pension Plan after July 1, and mandates all new members to the Investment Plan.  Amendment 251959

 

Continue reading “Rep. Tobia offers severe amendments to HB 1405!”

Committee Approves SB 1130, Rep files HB 1405.

The Senate Committee on Government Oversight and Accountability approved a version of Senator Ring’s proposed Senate Bill 1130 today by a vote of 12 to 1.

The Senate Committee on Government Oversight and Accountability approved a version of Senator Ring’s proposed Senate Bill 1130 today by a vote of 12 to 1.  This was done on the heels of House Bill 1405 filed by Representative Workman from Brevard.  We are not experts on the legislative process, but believe the bill will now go to the Budget Committee for their approval.


As we read the final version of SB 1130, and the myriad amendments we have pieced together we believe it proposes the following important aspects :

  • The proposal eliminates the Pension Plan for all employees hired after July 1, 2011 that make more than $75,000 per year and mandates participation in the FRS Investment Plan for those employees.  A last minute amendment has preserved the Pension Plan for those making less than $75,000, UNLESS you are in the Elected Officers Class, the Senior Management Class.  Member those classes are required to  participate in the Investment Plan is mandatory regardless of Income.
  • A notable change is the proposal now allows 300 hours of overtime and up to 500 hours of accrued leave time in the computation of Average Final Compensation for service before July 1, 2011.   It does away with all  accumulated annual leave pay for service after that date.
  • Employees will make contributions into their FRS Investment Plan.  The contribution schedule is 0% on the first $40,000 of compensation, 2% on compensation from $40,000 to $75,000, and 4% on compensation over $75,000.  They amended the original version to contain language that seems to limit the employee contribution to no more that 2% of total compensation for regular and special risk members, and a maximum of 4% of total compensation for those in the Elected Official and Senior Management Groups.
  • There is also some new language amended to read that NO employee contributions would be required for years in which the plan is 100% funded.  That amendment would raise more questions to us than it answers, but let’s hope it is as simple as it sounds.
  • The vesting schedule for employee contributions is immediate, and for employer contributions vesting is on a graduated scale as follows:

Continue reading “Committee Approves SB 1130, Rep files HB 1405.”

Amendments to SB 1130 FRS Reform

The biggest change as we see it would indicate the amended version will allow for up to 500 hours of overtime to be used in the computation of the Average Final Compensation

Today the Florida Senate returned a “Strike-All” Amendment to Senate Bill 1130 which is meant to reform the Florida Retirement System.  The purpose of the “Strike-All” was to amend the language and stipulations of the original bill, filed by Senator Jeremy Ring.  There were also 5 additional amendments proposed changing other aspects of the proposal.

  • The biggest change, as we read it, would indicate the amended version will allow for up to 500 hours of accumulated leave payments to be used in the computation of the Average Final Compensation.  (lines 208-248, and 274-308).  And further appears that for service prior to July 1, 2011 overtime is included.

This seems to be a significant compromise to the original proposal, but excludes overtime after July 1.  It does not mitigate the fact that overtime is time worked for compensation earned, and therefore, as compensation, should be used for the AFC calculation. Continue reading “Amendments to SB 1130 FRS Reform”

The Governor’s Proposal for FRS Reform.

Rick Scott has released his proposal for reform of the Florida Retirement System. As expected, the changes are far reaching and dramatic.

Newly elected Governor Rick Scott has released his proposal for reform of the Florida Retirement System.  As expected, the changes are far reaching and dramatic.  The Governor’s Bill on Pension Reform (beginning of page 610) proposal is 213 pages long, so we have attempted to hit the highlights, as the details will unfold ad infinitum over the next several weeks.

“Floridians shouldn’t have to send more of their MONEY to Tallahassee to pay for non-essential government programs or solely fund the retirement programs of government employees.”

This quote from Governor Governor Scott’s speech today in Eustis seems to sum his position on the Florida Retirement System up neatly, by lumping you in with “non-essential government programs”.  Along with cutting your benefits, and taxing you to pay for future benefits, Governor Scott kicked off his self-proclaimed “job’s budget” by eliminating almost 9000 jobs in the state!

Continue reading “The Governor’s Proposal for FRS Reform.”

Scott’s Proposals for FRS

It might be be premature to make any decisions until the details are known.

As you are no doubt aware, Governor Scott is slipping tidbits about his plan for FRS into the news.  Unfortunately, those tidbits are sparse in detail and his full plan is not scheduled to be released until February 7, so it is very difficult to get a grasp of how they will ultimately affect Florida Retirement System workers and retirees.  It is obvious the changes, IF ENACTED, will be significant.  It might be be premature to make any decisions until the details are known.  In the meantime, 1,000,000 strong FRS participants and retirees should be contacting their legislators and directing those representatives as to how they want to be represented in Tallahassee.

FRS Legislative Alert, HB 303

House Bill 303 was introduced by Representative Fredrick Costello (click for contact information)of Ormond Beach. It is a far reaching and devastating proposal.

THIS BILL WAS WITHDRAWN AT 4:28 THURSDAY, JANUARY 27, 2011.  ONE WEEK AFTER IT WAS PROPOSED!!!!

House Bill 303 was introduced by Representative Fredrick Costello (click name for contact information)of Ormond Beach.  It is a far reaching and devastating proposal for Florida Retirement System members, particularly FRS Special Risk members.  The bill was filed just today, so we have had very limited time to study it.  Please note also, that we are not lawyers, so some of the language is somewhat subject to interpretation, but as we read it, the bill includes the following changes:

Service credit would be reduced from 3% to a maximum of 1.6% for ALL employees for future service after June 30, 2011.  Higher credits for previous years will be honored, but all future years for ALL employees will be reduced to 1.6% per year.   (HB 303, lines 112-125)

Effective December 31, 2012 the Deferred Retirement Option Program (DROP program) is terminated for ALL members.  Those already in the DROP will be paid out and terminated.  (HB 303, lines 147-152)

Continue reading “FRS Legislative Alert, HB 303”

Special Session to Override Vetoes

Florida legislature has called a special session to begin on November 16th at 10:00 specifically to consider overriding the vetoes Governor Charlie Crist

The newly elected Florida legislature has called a special session to begin on November 16th at 10:00 specifically to consider overriding the vetoes Governor Charlie Crist instituted back in May.

As you will recall, Crist’s veto nullified a reduction in the interest rate paid to DROP participants from 6.5% down to 3% in House Bill 5607. It also would have established the basis for employer contributions into the pension plan.

While we don’t know if those line item vetoes will be a target of the special session, we can only imagine the legislators will be keen on overriding anything that Crist Vetoed. You will recall that these are the bills that passed without being discussed in committee where opposing views could be voiced.  It is essential that all 685,000 members contact  their Representatives and Senators and urge them to NOT override the FRS veto’s, as well as making sure your Legislators know that you do not want them reducing or changing the benefits that were promised to you at the time of employment.   Numbers count,  encourage your fellow workers and FRS members to call and share this information.

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