Plans to dramatically revamp Florida pensions at the state and city levels appeared headed Friday toward the finish line — far short of where Gov. Rick Scott and lawmakers had initially proposed.
House and Senate negotiators have settled on extracting 3 percent paycheck contributions from 655,000 teachers, police, firefighters and other government employees enrolled in the Florida Retirement System, part of an effort to pull $1.1 billion into the state’s recession-strapped budget.
But a plan to scrap the state’s Deferred Retirement Option Program (DROP) has been abandoned, House and Senate negotiators agreed. The House had wanted to bar the lucrative early retirement program to new enrollees in July; the Senate in 2016.
But what emerged Friday night from House lead negotiator Ritch Workman, R-Melbourne, was a proposal to reduce the 6.5 percent interest rate paid on DROP benefits to 1.3 percent. The move will save $81 million, if agreed to by Sen. Lizbeth Benacquisto, R-Wellington, the Senate’s lead negotiator on the Florida Retirement System.
Among other changes nearing agreement are a plan to increase the retirement age for new enrollees in the FRS from age 62 to 65. An existing 3 percent cost-of-living adjustment would be eliminated for service earned after July 1, with Workman saying the goal being that it would be reinstated in 2016.
That change save $404.8 million, analysts said.
Meanwhile, plans to revamp municipal pensions also have been scaled-back. (more…)