Senator Young, District 18 — Press Release
FOR IMMEDIATE RELEASE
March 1, 2013
Rachel Perrin Rogers,
Senator Simpson Files Retirement Bill
Today, Senator Wilton Simpson (R-Trilby) filed Senate Bill 1392, aimed at revamping Florida’s current retirement system.
“This bill allows the Senate to start a meaningful conversation with the House of Representatives regarding the future of the State of Florida’s Retirement System,” said Senator Simpson. “By creating incentives for employees to opt into the investment plan, the choice to have more control over individual retirement savings remains in the hands of the employee. This will ultimately help us to increase the pension fund’s long-term sustainability and give more of our state employees the option of having control of their own financial future just as their peers do in the private sector. These are common sense changes that respect the retirement choices of our hardworking employees."
“Our heroes in law enforcement, our brave firefighters, and our teachers who brighten the futures of so many children and all of our hardworking public sector employees will continue to have a choice when it comes to their retirement options under this legislation.”
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%.