Retirement and Pensions (Updated 4/23/13)
Pension costs have become a challenging issue across the nation. Municipalities and state governments are struggling with ways to adequately fund pension costs. Florida is no different. Over the next session, the legislature is expected to address issues with the Florida Retirement System.
The Florida Retirement System (FRS) is a multi-employer, contributory plan that provides retirement income benefits to 623,011 active members, 334,682 retired members and beneficiaries, and 40,556 members of the Deferred Retirement Option Program. It is the primary retirement plan for employees of the state and county government agencies, district school boards, community colleges, and universities. The FRS also serves as the retirement plan for participating employees of the 185 cities and 257 independent hospitals and special districts that have elected to join the system.
Members of the FRS have two plan options available for participation: the defined benefit plan, also known as the pension plan, and the defined contribution plan, also known as the investment plan. In addition to the two primary plans, some eligible members have the choice of participating in optional retirement plans, which include the Senior Management Service Optional Annuity Program, State Community College System Optional Retirement Program, and the State University System Optional Retirement Program.
There will be several reports and pieces of legislation to share.
House Bill 7011
House Bill 7011 started as a committee bill produced by the House Government Relations Subcommittee. It amends chapter 121, Florida Statutes, relating to the Florida Retirement System Act. Key provisions of the bill are listed below.