Important announcement regarding Pension Reform IP: 96.228.144.23 Posted on February 3, 2011 at 04:32:37 PM by Sonny Lefstead
Brother & Sister's:
I received news today regarding pension reform. The information given to me is Governor Rick Scott will be announcing his proposed changes to FRS; those changes will have impacts on both current employees as well as new employees. Below is a few quick highlights of changes.
In addition, the Senate Chairman of Pension Reform has indicated they, too, will follow similar proposed changes. However, their proposed changes will include Local Law-Chapter 175/185 plans as well; impacting both current and new employees also.
While nothing has been set in stone and any proposed changes have to be approved by the legislature, this is a significant step in the direction of massive, draconian change. These changes will have tremendous negative impacts on our current defined benefit systems (both FRS & 175/185).
Again, here is some brief highlights of proposed changes by both the Governor and Senate Chairman (each highlight affects both FRS & 175/185 unless expressly stated otherwise):
- all new employees go into a "401(k)" (this will have a direct impact on current members as this will drive up the cost of current employer contribution amounts to a point that will result in potential closing of all defined benefit plans).
- eliminating the "DROP PROGRAM" for all employees (unless you are currently in the program now).
- creating a formula that sets limits on how much incentives count toward pensionable earnings (i.e. overtime, educational pay, emt/paramedic pay if not part of base pay, annual leave buy-backs & payouts, etc.).
- average final compensation being limited to an average of "best 5 years" (i.e. instead of best 3).
- requiring a minimum employee contribution level (FRS = 5% - 175/185 is currently a minimum of 1/4%, proposing a higher set amount; amount unknown at this time).
- FRS: reducing accrued multiplier benefit for all classifications by 50% (i.e. fire would decrease from 3% to 1.6% immediately for all current members).
- 175/185: reducing accrued multiplier benefit (number and/or percentage is unknown at this time).
These are just the obvious changes that will have drastic impacts. This information is all coming out in real time, so I apologize for any grammatical or misspelled words - I typed it on my I-Phone as I was confirming the information.
I will follow this up with another bulletin very soon.
Fraternally yours:
John K. McNamara
President - IAFF Local 3080
Metro-Broward Professional Fire Fighters
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