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

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.

Continue reading “A few words about SB 5005”

Be Forewarned!

The legislature may reduce future benefits to lessen plan liabilities, or may raise employee contributions to increase funding.

2012 is a major election year.  Due to the 2010 Census results, Florida will undergo redistricting for legislative purposes.  As a result, ALL Representatives and Senators will be up for re-election next year.  The legislature is already in preliminary committee meetings, and the regular session will begin in January.  It will be a big year, and we would highly urge all FRS members to anticipate another session of potential cuts to their benefits.  The writing is on the wall, and in very large letters. 

You only need to look at the MyFRS.com homepage where you will find a special notice box with the headline “Volatile Financial Markets”, there is a second headline – “Funding of the FRS Pension Planunder which you will see the following;

BE FOREWARNED: The FRS Pension Plan is less than 100 percent funded. The legislature may reduce future benefits to lessen plan liabilities, or may raise employee contributions to increase funding. The legislature may make changes to FRS at any time”.

Continue reading “Be Forewarned!”

The “New” FRS COLA

As of July 1, 2011 there will be some changes made…you will receive no further credit for COLA for the five years after July 1, 2011.

As you are aware, one of the better benefits within the Florida Retirement System has been the automatic 3% Cost of Living Adjustment that FRS adds to your Pension checks each year.  Over the course of a 24 year retirement, the COLA would almost double your annual pension, which would hopefully allow your standard of living to keep up with rising prices and inflation.

COLA is a simple process.  Each year, beginning on July 1, your pension check is increased by 3% more than what it had been for the previous 12 months.  That 3% compounds each year, meaning next year’s 3% pension increase will be added to last year’s pension increase, which was added to last year’s pension hike, and so on.  To illustrate, let’s assume you Pension check is $2500 at retirement.  Next year, it will be $2500, plus 3% ($75), so your pension check will be $2,575.  Year three FRS will add 3% to the Second year amount which is $82.50, so the third year checks will be $2,657.50, and so forth.  If you retire at 62, by the time you reach age 85 your monthly pension check will be almost $4,900!

As of July 1, 2011 there will be some changes made.

Continue reading “The “New” FRS COLA”

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”

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!”

A letter to FRS members from one of you!

NEVER come across as negative, conflict oriented, or otherwise play into the hands of the politicians, who want pictures of workers with pitchforks massing as the gates.

We received this letter from the following individual, and felt it was such a well rounded and wonderful perspective,  that with the author’s permission, we have copied it verbatim.  I urge you ALL to read it, absorb it, and take action accordingly!  Thank you Paul!

Subject: Concern over Legislative Season
By way of introduction, I am a retired Martin County deputy. Politically I am libertarian…

As I read the various posts on Facebook and elsewhere by public sector employees, I am struck with a fear that the attitude being conveyed by far too many public employees is playing directly into the aims of the political structure and their media supporters. The actions in Wisconsin are especially troubling. The political power structure wants to be able to paint the public employees as merely union followers using a pink brush, recognizing that the American voter, suffering under the current economic situation, can be easily led to consider public employees as the problem.

Continue reading “A letter to FRS members from one of you!”

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.

HB 303 Withdrawn !!

HB 303 Withdrawn !!

Congratulations, Florida House Bill HB 303 affecting the benefits for the Florida Retirement System was withdrawn this afternoon by Representitive Costello!  Your calls and actions had an impact!

Debunking the Myth of the Overpaid Public Employee

The data indicates that public employees, both state and local, are NOT overpaid!

This article is a must read.  It is a well presented, and thoroughly researched paper comparing the compensation and education of public vs. private employees by the noted think tank, the Economic Policy Institute.

Please follow this link;   Debunking the Myth…