CONTACT: Rachel Perrin Rogers, 850.487.5018
SENATE COMMITTEE UNANIMOUSLY PASSES SENATOR SIMPSON’S RETIREMENT BILL
Tallahassee, Fla. — This morning, Senator Wilton Simpson (R-Trilby) presented Senate Bill 1392, aimed at revamping Florida’s current retirement system. This legislation received bipartisan support and a unanimous vote. “It was encouraging to hear testimony from a wide variety of stakeholders who all voiced support for this legislation,” said Senator Simpson. “I look forward to continuing the discussion as the bill moves forward in the Community Affairs Committee next week.”
The Senate bill makes four changes, effective January 1, 2014:
1) All newly hired employees in the Regular and Special Risk Classes who have never previously participated in the state retirement system continue to have a choice between the pension plan and the investment plan. If the new member fails to make an active election, the member will default into the Investment Plan.
2) All newly elected officials and newly hired employees within the Senior Management Service Class who have never previously participated in the FRS will be required to enroll in the investment plan.
3) The vesting period for the pension plan will be increased from eight years to ten years for members initially enrolling on or after January 1, 2014. The vesting period for the investment plan will remain one year.
4) Beginning January 1, 2014, all employees participating in the investment plan will contribute 2% of their salary towards retirement. Employees participating in the pension plan will continue to contribute 3%.