Scott looks to corporate board rooms for help in revamping pensions
by John Kennedy | April 12th, 2011Flanked by business organizations hungry for tax breaks, Gov. Rick Scott threw another monkey wrench at the Legislature in the push to overhaul public pension plans.
Scott reiterated his demand that government workers hired after July 1 be blocked from joining the Florida Retirement System, instead being given only the option of participating in 401 (k)-styled investment plans.
The approach has fallen out of both the House and Senate pension proposals, which would require 655,000 teachers, police, firefighters and other government workers to contribute between 2 percent and 6 percent of their pay be included in the FRS.
“The right thing to do is exactly what the private sector has done,” Scott said of moving public employees away from traditional pension plans.
He was joined by such groups as Associated Industries of Florida, the National Federation of Independent Business, and Florida Chamber of Commerce, which have labeled their drive “Floridians for Sustainable Pensions.”
Although the House and Senate use as much as $1.1 billion from the employee contributions to plug the almost $3.8 billion hole in the state budget, Scott and business advocates insisted the payments will help stabilize the FRS. Most pension officials have testified earlier to legislative committees that the FRS is considered adequately funded, after rebounding from losses stemming from Wall Street’s 2008 implosion.
Scott also insisted that freeing up as much as $2 billion for corporate and property tax cuts — which he still expects lawmakers to do — has nothing to do with the pension revamp.
“They’re totally separate issues,” Scott said.
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April 12th, 2011 at 10:34 am
Recall Governor Scott! The employees have a contract and were hired under those terms. Additionally, many of these employees have not had raises in years. Now your “telling them” they have to pay 2-6% of their pay to help fill the State Deficit. Why, becuase it is easy. This is a large group. Easy prey. One large swoop and wah lah, we have a couple of billion dollars. Screw them and their contracts, forget what they were contracted for.
If I was a corporstation, Florida would be the “LAST STATE” I would want to move my corporation to. We have a governor who can’t even manage his own business, how do we ever expect him to properly run a state. Like I started this off, Rick Scott must be recalled while Florida is still somewhat in tact.
April 12th, 2011 at 10:51 am
Wow! I’ve always associated the name “John Kennedy” with statesmanship and “profiles in courage.” Now, I see that the name can also be associated with great fiction writing. The press conference this morning had three speakers — the Governor, a researcher from a center-left think tank, and the president of a center-right think tank. All were in agreement that Florida’s unfunded pension liabilities threaten the well-being of today’s government workers and of tomorrow’s taxpayers (today’s children). Mr. Kennedy may not like the fact that many business groups are also concerned about pensions, but before he writes skewed “news stories” like this, he ought to ask himself this question, “Will I be glad that I misrepresented the proponents of pension reform when my city has to cut other vital public services in order to bail out the pension plan?”
April 12th, 2011 at 10:52 am
What’s the difference with the Obama-Reid-Pelosi regime?
Evidence: Pay back to the Big Banks, Unions socialist workers of Amerika, Big corporations like GE, GM, , now Government Motors, Hollywood etc.
Hypocrisy knows no bounds…
Scott is a fascist (national Socialist) and the DNC is the Democrat National Communist party of Amerika
This is a black hole leading to a Soviet style 1917 revolution.. An artificial economic and social crisis have to be executed by the regime to impose tyranny
April 12th, 2011 at 10:56 am
If new employees are placed in 401K type investment plans instead of the pension system, then less money will be input into the pension sytem. This will cause the Florida pension system, which is one of the best in the nation, to lose money. That is just irresponsbile governing and mismanagement of Florida citizen’s money. Also, if a state worker’s 401K is invested in a company such as ENRON, then they may end up with no retirement savings.
April 12th, 2011 at 11:00 am
Typical political BS. Scott surrounds himself with the greedy hacks just like himself. How many hearings must be held stating the FRS is sound? I have no problem making them pay 2-6% to make it even stronger, I pay substantially more than that for mine. But to just come in, pass unnecessary legislation, so they can get their filthy hands on that money is ridiculous. What sense does it make to have new members go into a 401k, those new people keep, if they have to pay, will continue to fund the FRS. Hey Scott, make your corporate pals pay their share of taxes and your deficit problem can correct itself. Those scumbags won’t “trickle down” the profits, it goes to the shareholders and upper management. Just like you.
April 12th, 2011 at 11:03 am
Hey, Truthman, a quick question for you: “Would it better if an FRS employee invested the state’s pension fund in ENRON?” Actually, it would be worse. If I invest in ENRON through my 401(k), Florida’s taxpayers don’t have to pay for my mistake. But if an FRS employee invests the state’s pension fund in ENRON, Florida’s taxpayers have to bail out the pension fund for making foolish investment decisions (and promising ridiculously high rates of return).
April 12th, 2011 at 11:06 am
Yeah, put all the money into the companies of the Gov’s friends.
Sounds like a plan for the destruction of the middle class.
Make the employer have zero responsibility for his employee.
Take your crappy pay and stfu.
Work until your 75 and then go before the Death Panel.
And all the while, have your wealth in the hands of Hedge Fund managers who are bribing Govt officials.
Is the Right Wing trying to cause the Revolution now ?
April 12th, 2011 at 11:23 am
The outcome of a Revolution 2011, the Fascists vs. the Socialists. Historically the Fascists have never won a revolution simple due to the fact that their followers are wealthy but always a huge minority. Same scenario today. The outcome: 12 million “illegals” will become legal leaders, wealth will be redistributed, whites will become the true minority. Hitler knew this and that is why he killed millions who could have risen against him had they had the foresight. The Tea Party will not have this luxury, the widespread media now enlightens the masses.
April 12th, 2011 at 11:26 am
@nemo….get your facts straight….your friend mr. W. bush was responsible for all those bail outs….fact not fiction…and most of what you say is fiction……