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Pension fund gets some love from analysts

by John Kennedy | February 28th, 2011

The state’s pension fund has consistently met its investment goals – fairly average compared to other states– but also is “financially sound,”  a report released Monday shows.

The state’s Office of Program Policy Analysis and Government Accountability (OPPAGA) gave the $114 billion Florida Retirement System generally satisfactory marks in its review of the fund, which covers almost 1 million government workers and retirees. 

 The pension fund is a big target for lawmakers this spring, with Gov. Rick Scott proposing that employees contribute 5 percent of their paychecks to help finance their retirement benefits — saving the state $1.3 billion.

 The money could help lawmakers patch a budget shortfall of at least $3.6 billion. But it also could help Scott make good on his campaign promise to reduce property taxes by $1.4 billion, something the GOP governor says he’ll do over the next two years.

As part of his push for changing the fund, Scott warns that the pension fund is on shaky financial footing.

 OPPAGA disputes that. Anaysts acknowledge  the FRS has a so-called funding ratio of 87.9 percent and currently does not have ”sufficient assets to pay current and future expected benefits for participants and their beneficiaries.”

But, OPPAGA points out, “experts generally consider public pension plans with funding ratios at or above 80 percent to be fiscally sound.”  


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2 Responses to “Pension fund gets some love from analysts”

  1. Lookout Here It Comes Says:

    Lookout now folks. Here comes Ricky boy to raid your pension. Just like many local politicians did in the late 90′s.
    I have no problem with employees paying a part in their pension (which most do). But I have a big problem when politicians raid a sound system and cash it out. But most voters don’t pay attention. How’s that proposition 1 working out for ya? You know, that property tax reduction you voted for in 06 …. hahahahahah

  2. Susan Says:

    If state employees contribute to their pension plans, then the amount they get back at retirement should increase. Regular class get about 48% x their top 5 yrs with a 30 yr pension. This should be upped to 55% or more, depending on the contribution. When we are told other states require employee contributions, no one is pointing out that their pension is better than the one Florida state employees, regular class, get.

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