Legislation proposed in the Florida Senate aims to adjust the state’s public sector retirement system and is projected to decrease the Florida Retirement System’s annual revenue by approximately $30 million.
Filed legislation in the Florida Senate proposes revisions to the state’s public sector retirement system, reducing the Florida Retirement System’s (FRS) annual revenue by $30 million and altering contribution rates for state employees, universities, and government entities.
If adopted, the bill would affect a range of public employers, including state agencies, schools, and other government entities, with most seeing a decrease in retirement contributions. However, state universities are projected to face an annual increase of approximately $750,000 in their contributions.
Florida’s state employees in the Regular Class are likely to see a reduction in their employer’s contribution from 6.73 percent to 6.70 percent while the Special Risk Class, which includes jobs like law enforcement officers and firefighters, will see an increase in their employer contribution rate from 18.39 percent to 18.66 percent under the legislation.
The contribution rate for state legislators, including the Governor, Lieutenant Governor, Cabinet Officers, State Attorneys, and Public Defenders is set to rise from 10.45 percent to 10.68 percent under the measure, and the contribution rates for Justices and Judges under the Elected Officers’ Class will see an adjustment from 14.90 percent to 14.50 percent. For County Elected Officers, the rate will change from 12.39 percent to 12.22 percent.
The reductions would directly decrease the state’s financial obligation towards retirement benefits, effectively freeing up previously earmarked state funds and potentially allowing for reallocation to other areas of public spending or contributing to overall budgetary savings.
The Florida Retirement System, established in 1970, serves more than 646,000 active members and about 455,000 annuitants. It offers two primary plans: the Investment Plan, a defined contribution plan, and the Pension Plan, a defined benefit plan.