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Senator: Five Percent State Pension Too High
February 25, 2011
Rank and file government workers, police, firefighters and other emergency responders would be required to contribute 2 percent toward their pensions under a Senate proposal aired Thursday.
Focusing on the Senate’s pension reform plan (SB 1130), the chamber’s Governmental Oversight and Accountability Committee took nearly two hours of public testimony as it discussed amendments that will be considered when the committee meets again after the legislative session begins next month. Lawmakers are looking to have government workers contribute to their pensions – which they currently don’t do – in part because they say it’s fair, and in part because they say the current system is too expensive to sustain over the long haul.
Sen. Jack Latvala, R-St. Petersburg, introduced a series of amendments that would blunt the impact of an earlier proposed plan, which would have had workers put in 5 percent of their paychecks. Latvala on Thursday proposed a 2 percent maximum contribution for rank and file employees covered by the Florida Retirement System, which now has more than 650,000 state, county , school district and local employees.
“I feel strongly that there are many people who work for government for the pension they are going to get,” Latvala said. “It’s important to keep that path open for them.”
Unlike rank and file workers, senior managers and elected officials would have to contribute 4 percent of their salaries toward their pensions under amendments Latvala distributed Thursday and will likely formally introduce at the committee’s next hearing.
Other proposed amendments would allow new employees first hired at salaries of $75,000 or below to choose a traditional pension plan that guarantees retirement benefits or opt for a 401 (k) plan similar to those increasingly offered by private businesses. Senior managers and employees hired at more than $75,000 would be required to go into a 401 (k).
Gov. Rick Scott has proposed doing away with the traditional retirement plan in favor of a having employees contribute 5 percent to what amounts to an individual retirement account. Scott wants all new hires to be placed in the 401 (k)-style plans.
While he would prefer no employee buy-in, Latvala said the writing is on the wall and the Senate needs to offer a plan that is less expensive for employees, many of whom have not seen raises in the past several years.
“What we’re trying to do is craft something meaningful out of this committee that may have a little longer shelf life,” he said.
Committee members heard from a procession of union representatives, teachers, firefighters, and university officials echoing the sentiment that public employees in their respective fields trade higher salaries in the private sector for the retirement benefits available from the state.
They also argued that Florida’s system has operated in a surplus for much of the past 15 years. Like most investments, the fund took a hit in the most recent recession but is climbing its way back toward fully funded status.
Andrew McMullian, former director of the state’s retirement system, said lawmakers must tread lightly and not scrap something that has become the envy of others.
“You cannot improve on the system, but you can destroy the system,” McMullian said. “…You are putting employees at risk with the ebb and flow of the stock market.”
Comments
13 Responses to “Senator: Five Percent State Pension Too High”
ill tell you a good place to start cutting benifits. it is at the county level. our commissioners get retirement after serving 5 years. this rule to the best of my knowledge goes all the way up to the top executives of our nation. if they are fortunate enough to get elected to a second term they get retirement. so after 8 years what benefits are they intitled to. if everyone else in society has to work a lifetime, ages 18-68, which is 50 years. Why should our elected officials start getting retirement after serving 5 years, a mere 10% of the rest of societies work life. i will tell you why. it is because these elcted officials vote on their own destiny. For the rest of the world this would be considered a conflict of interest. Can anyone enlighten me or the rest of our unknowing citizens on this situation??
It’s easy to call folks names; please prove your point.
I guess these government workers who claim to be doing the job for love of the job aren’t as sincere as we might be led to believe. When talk comes to money, they tend to threaten to bail.
I say bail.
Local Yocal is ignorant.
I work in Corrections…..6 yrs….no raises. We’ve had increases in our insurances. Now they want us to pay our retirement.
Why do we risk our lives every day? For what?????
The inmates are much worse now. They are younger with more time and NO respect. If these changes keep coming, I’ll cut my losses & retire. I can push buggies and greet customers AND live.
This state has really messed up with Scott. Change is not a bad thing. The public needs to be involved more. This man obviously has too much power without our voices being heard.
I guess state worker isn’t as dedicated as he/she would have us believe.
As a former government employee (law enforcement and corrections) for 14 years, I know how it feels to work 2 jobs and sacrifice time away from home; I know how it feels to sacrifice my job for my family. I loved my job; however, I finally decided to find a job that allowed me to make more money and I took it. It became about me and my family. Maybe I wasn’t as dedicated to my ‘career’ as I thought, either. (Go ahead and challenge my dedication-purple heart and commendation of valor)
If one isn’t making the money one needs to maintain a lifestyle, one of two things must happen-1) lower the lifestyle; or 2) increase the money. If increasing the money means changing jobs or working multiple jobs, then that is the option.
If there are no jobs where one is, one goes to where the jobs are.
Having your retirement paid for you is a free ride; doesn’t matter how you figure it. Contributing to your own retirement might actually get you a better retirement and give you a tax break in the meantime…who knows? No one has taken time to find out; everyone is just screaming about the change…WAITAMINIT! I thought everyone wanted change.
An equitable solution would be to allow those who have reached a certain point to continue with the program they started under and require all others to start under a new system; what that dividing point would be is certainly an arguable one. Maybe there would be a group who would have parts of both worlds as a transition.
Quite honestly, government’s job is to protect us, i.e., law enforcement, fire, courts, jails. Everything else should be on us, locally. A free market could provide for medical, i.e. privately owned ambulances hospitals, etc.
I’ll go so far as to say that teachers are not a required part of our collective government’s function; nor are many of the administrative functions of the behemoth we call government-state, local, and federal. If all teachers walked off the job, then the task of educating our children would fall back on the parents; I bet some creative parents would probably hire a tutor/teacher to teach their children to read, write, and do math. I bet that teacher would do okay by being paid by those parents; probably be able to negotiate a salary and get paid per child and have smaller classrooms; wasn’t this system in place until just a few years ago anyway? Was it all that bad? Colleges were private, too. Who says that everyone must be educated? That’s not government’s job; it is our personal responsibility to ourselves and our children.
Does a government issued license make a person more qualified to do a task? Does having a driver’s license make better drivers? Does having a teaching certificate make for better teachers? Does having a business license make for better business? Does a marriage license make better marriages? I think not. It is just a way for government to tax every part of our lives.
If those in government service (other than law enforcement, jails, courts, military, and fire service) don’t like the salary being offered: walk off, quit, strike, whatever; I bet it won’t be long before some creative private free enterprise capitalist figures out a way to provide a similar service for less money maybe even provide it more efficiently and better…who knows?
Listen to what society is saying. The taxed can’t pay any more. Those who live off those taxes can’t demand any more. I have the utmost respect for those who sacrifice life and limb for my personal safety, i.e., law enforcement, corrections, courts, military–I’ll pay for that service; who knows, if we got other unnecessary functions of government off our backs, we might be able to pay more. (Of course, historically, those professions haven’t paid well).
Others who live off the tax dollar can’t demand more of us than we are willing or able to pay.
Well I guess if we could get a raise for the six years that we haven’t had one, get paid for the overtime we do instead of a extra day off maybe there wouldn’t be such a big problem paying into our retirement. We’ve been robbed long enough. But when it changes I’ll be leaving along with several others. So know that the crime rate will rise and the inmates will watch themselves cause we will only do as much as our pay is worth…it will just be a job and no longer a career
Local Yocal, use your skills and figure this out, as a firefighter/paramedic I make roughly 35,000 a year, I start out before taxes at roughly $1500. I pay over $400 a check in (family) insurance premiums plus my taxes. Leaves roughly $700. I have a $750 month mortgage and car payments of $500 together. I have gas, groceries and auto insurance. I haven’t taken my family out in forever because the extra money isn’t there. Being a firefighter we don’t get extra overtime. Now the state wants my families money to pay for my retirement? Where am I suppose to find it? Please show me or anyone who says it’s a free ride? I have to work extra jobs and average roughly 16 hours (awake) with my family a week. I don’t see my wife nor my children but you say Im getting a free ride?
Local Yocal,
State employees haven’t seen a pay raise since 2007! Most make under 40K a year. And you reward them for staying on the job by making them pay more for their Medical and Retirement. What is wrong with this picture?
Northend Alumni..Teachers also taught the politicians that have got us in to this mess.
LocalYocal…Maybe we should “let them eat cake”. Say hello to Marie.
@ local yocal
Are you serious……tired of free rides….why would you even say something like that? You chose your profession, we chose ours, we used to get merit increases and pay raises…havn’t had that in years, but we stay dedicated and keep pushing on, teachers deal with so many attitudes on a daily basis and still go to work everyday to try and educate your children, firefighters, ems and police strive to protect and save lives. I can guarentee that most state workers have to work more than one job to support their families…..we just want what was promised to us years ago, after 28 years I feel I should have the comfort of knowing my hard work and dedication will be rewarded!!!
Response to Local Yocal. It’s great that your family budget allows you to contribute such a large amount for your retirement. However, I’m sure that you are working in a private sector job and being paid what your are worth. Great for you! Give yourself a cookie!!! Some people choice to work in the public sector and most of these public sector jobs simply don’t pay the big bucks. Think about how different your life would be without these people (police officers, teachers, firefighters, etc.). The state had to come up with something to attract good workers to low paying jobs. Good health benefits and a good retirement plan were the deciding factors for some of the teachers are have taught or are currently teaching your children AND who taught you. Maybe you should think about this, “What would be your annual salary and what kind of job would you have now if it were not for your teachers?” Probably would not be able to afford to contribute 5% of your paycheck let along 10%. No need to respond to this post. Just think about it!
2%- Really? I am required to contribute 6% to my 401K and have opted in for 10% currently and plan to opt in for more in the coming years. Free rides, tired of them.