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From the staff of the Tampa Bay Times

Senate finds new compromise on pension, creates tiered rate

6

April

Teachers, firefighters and most state workers would pay differing portions of their salary into the Florida Retirement System but most state workers, who make $40,000 or less, would pay $900 a year or less, while those who make $25,000 would pay $500.

The changes are the third compromise emerging from the Senate and were added to SB 2100, the chamber's pension reform plan. The amendment, by Sen. Charlie Dean, R-Inverness, would create a tiered contribution system with two percent of the first $25,000 of a person's salary, 4 percent of any salary amount between $25,000 and $50,000, and 6 percent of the salary above that amount

Senators also agreed to:

  • Returns the retirement age to 52 years of age or 25 years service for police, fire and other special risk officers
  • Allows up to 300 hours of overtime to be calculated in retirement benefits for special risk officers
  • Employees would have to work 10 years to vest in the pension plan, up from the current 6 years
  • All elected officials and senior management employees must be enrolled in the 401k-style defined contribution plan beginning July 1, 2011
  • The guaranteed interest accrued on contributions made to the DROP program increases from 6.5 percent to 2 percent
  • DROP will be eliminated beginning in 2016

A proposal to impose a flat 7 percent contribution rate to all elected officials, including judges and county officials was postponed. In the House, members gave preliminary approve to a bill to impose a flat 3 percent contribution rate for all members of the Florida Retirement System.

[Last modified: Wednesday, April 6, 2011 8:28pm]

    

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