Senate Pension Proposal is Major Step Backwards for Public Employees

Promising changes in pension bill vanish in latest version from Senate

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TALLAHASSEE – The latest Senate proposal on the pension fund for public-sector employees in Florida is major step backwards, Florida Education Association president Andy Ford said Wednesday.

The proposal, SB 7094, will be heard Thursday in the Senate Budget Committee, incorporates the most sweeping changes to the current Florida Retirement System (FRS) of any of the retirement proposals introduced this year. 

“SB 7094 represents nothing more than a cynical strategy to balance Florida’s budget on the backs of public school employees and other public servants,” Ford said. “For more than a decade legislative leaders have been fiscally reckless and they continue that irresponsibility by turning to the hardworking men and women of this state to bail them out.”

The legislation requires a 3 percent employee contribution for all members of the FRS pension plan, and for all members of the optional FRS investment plan beginning July 1. It closes the Deferred Retirement Option Program (DROP) to new participants on that date and it freezes the Health Insurance Subsidy (HIS) at the benefit level accrued by June 30, so that no additional service credit for HIS can be earned after July 1. The bill would also phase out cost-of-living adjustments (COLA) for employees hired on or before June 30 and it changes the COLA formula for FRS pension plan retirements so that service credit for COLA earned on or after July 1 is excluded. 

“This action result in a pay cut for teachers and everyone else who works in public schools and throughout state government,” Ford said. “It’s nothing more than an income tax on state workers and their earnings that will go into the FRS will make a huge impact on local economies and local businesses. This is just another example of some lawmakers’ callous disregard for our states law-enforcement officers, firefighters, teachers and other public servants.” 

The Florida Education Association is the state’s largest association of professional employees, with more than 140,000 members. FEA represents pre K-12 teachers, higher education faculty, educational support professionals, students at our colleges and universities preparing to become teachers and retired education employees.