Florida Governor Proposal

Florida Governor’s Retirement Proposals -

· Require government employees to contribute five percent of their salaries to the retirement system

· Require new employees to enroll in investment plans similar to private sector 401(k)s.

· Close the Deferred Retirement Option Program to new participants as of July 1, 2011

· Reduce the annual service credit to 1.6 percent for most members (special risk class members reduced to two percent)

· Eliminate Cost of Living Adjustment on retirement benefits for all service earned after July 1, 2011 - Current retirees will be unaffected

· Employees retiring after July 1, 2011, will receive a three percent Cost of Living Adjustment on the retirement benefit attributable to the service earned prior to July 1, 2011, and no cost of living adjustment for service earned after July 1, 2011


The following is the article in the Naples Press today.

Governor Rick Scott Announces Budget Proposals That Will Save $2.8 Billion Over Two Years by Modernizing the Florida Retirement System


Naples, Fla. – Keeping in line with his 7-7-7 plan and his plan to modernize the Florida

Retirement System, Governor Rick Scott announced today that he would send the Legislature a

budget proposal that better aligns government workers’ pensions with those in the private

sector and saves taxpayers $2.8 billion over two years.

Governor Scott announced that the savings would be realized by requiring government

employees to contribute five percent of their salaries to the system and requiring new

employees to enroll in investment plans similar to private sector 401(k)s.

“We must bring Florida in line with the private sector and nearly every other state in the

country by requiring government workers to contribute towards their own retirement,” said

Governor Scott.


The Governor also announced his intention to close the Deferred Retirement Option Program

to new participants as of July 1, 2011, and to reduce the annual service credit to 1.6 percent for

most members (special risk class members, to two percent).


Governor Scott said the Cost of Living Adjustment on retirement benefits will be eliminated for

all service earned after July 1, 2011. Current retirees will be unaffected. Those members

retiring after July 1, 2011, will receive a three percent Cost of Living Adjustment on the

retirement benefit attributable to the service earned prior to July 1, 2011, and no cost of living

adjustment for service earned after July 1, 2011.


“Government workers, like private sector employees, deserve the opportunity to save for the

future, but taxpayers shouldn’t be asked to foot that bill alone.”

Governor Scott said that modernizing the Florida Retirement System would help reduce

spending and help get government back to its core missions



Governor Scott will send his full budget proposals to the Legislature on Monday, February 7th.