Florida TaxWatch Report Recommends FRS System Changes
TALLAHASSEE – Florida TaxWatch today released a report expanding on previous recommendations to switch the Florida Retirement System (FRS) to a Defined Contribution model.
The Report, Modernizing the FRS: Switching to a Defined Contribution Plan, explains that this reform will improve equity between the private and public sector, provide predictable budgeting for the Legislature, reduce unpredictable future liabilities for Florida taxpayers, and allow current FRS members to maintain their earned benefits and stay in the plan of their choice.
“It is long past time for the Legislature to modernize the FRS,” said Dominic M. Calabro, President & CEO of Florida TaxWatch, the statewide, independent, nonpartisan, nonprofit taxpayer research institute and government watchdog. “The Florida TaxWatch Government Cost Savings Task Force has recommended changing to a defined contribution system for several years now, and this Report lays out several different reasons why this change is appropriate for Florida.”
The Report shows the development and growth of the FRS from 1970 through today, compares defined benefit to defined contribution systems, and looks at the benefits for all Floridians in switching to a defined contribution system.
The Report can be found here.