2014 Employee Benefit Issues
No Major changes were made to public employee benefits this Legislative Session.
Below is a proposal that had worked its way through the House of Representatives but was not passed by the Senate.
Retirement Proposal - Did Not Pass
SB1114 alters the Florida Retirement System for future state employees. Current members of the FRS and Optional Retirement Program and retirees are not affected by changes in this bill. In addition, employees initially enrolled in the FRS before July 1, 2015 will not have their retirement choices affected.
Effective July 1, 2015, the bill makes the following changes to the FRS:
- Increases the vesting period for members enrolled in the pension plan from 8 years to 10 years
- Increases the disability vesting period for all new enrollees from 8 years to 10 years
- Changes the default from the Defined Benefit plan to the Defined Contribution plan for members who do not choose a plan
- Extends the time period for member's to select a plan from the last day of the fifth month after the month of hire to the last day of the eighth month after the month of hire
- Closes the Senior Management Service Optional Annuity Program to new participants
- Prohibits members initially enrolled in a position covered by the Elected Officers' Class or Senior Management Service Class from participating in the pension plan and requires participation in the investment plan
- Prohibits elected officials from joining the Senior Management Service Class in lieu of participation in the Elected Officers' Class