FOP President Preston with State FRS/Retirement update IP: 72.185.171.1 Posted on May 6, 2011 at 02:32:08 PM by Jerry Wotherspoon
The FRS/Retirement Budget Committee has concluded their work finally and is not expected to meet again. What they have reported has been announced by Senator Benacquisto. The Senate accepted House Offer #1 presented at their meeting in full.
What has not changed for current employees:
1.The Pension and Investment Plan remain.
2.DROP remains the same for current DROP members
What has changed for current employees:
1. If you enter the DROP after July 1, 2011 your guaranteed interest rate will be 1.3% instead of the current 6.5%
2. All members will be required to make a 3% Contribution on gross compensation. There will be no contribution for members who are in the DROP.
3. The Senate moved to eliminate the COLA. The compromise is to put the COLA on pause until June 30, 2016.
The formula for a member’s COLA will be (service years prior to July 1, 2011 divided by total service years, multiplied by 3%). For instance, if you have 25 years in as of July 1st and continue to work for another 5 years, your COLA calculation will be 25/30 times 3% 0r .83333 times 3%, or a COLA of 2.5% for your retirement.
For New Hires – After July 1, 2011
1. AFC- Average Final Compensation - becomes the highest 8 fiscal years instead of the highest 5.
2. Regular members normal retirement age will go from age 62 to age 65, or 30 years of service up to 33 years of service.
3. Special Risk Members – the normal retirement age will jump from age 55 up to age 60, and the years of service to retire goes from 25 years up to 30 years.
4. Vesting requirements will go from 6 years of service up to 8 years (new hires).
These are the proposals that the House and Senate have agreed upon in a Conforming bill. It will come up for a vote around 10:00pm Friday evening in the Senate.
Municipal Pension Plans:
1. No change to the application of Premium Tax dollars
2. 300 hour cap on overtime hours included in the pension calculation/no spiking
3. Instead of no increase in contributions without equal increase in benefit, increases in contributions for the employee will be permitted only upon mutual agreement of both parties. Must be negotiated.
Local Pensions: 175/185
Lisa and Thomas Grigsby worked very closely with firefighters on this issue. A special thanks to the Union Coalition for all of their assistance fighting this bill. To the FOP members who offered their attorneys and their detailed knowledge of the issue ... We could not have done it without you. This was obviously a crucial issue for the police officers with local pensions and everyone should note that Robert Klausner walked me thru every step of what must be saved and/or changed .... For those who have not taken the class given for pension board trustees, it is worth the experience. Even with that knowledge it was amazing the twists and turns that this bill took. Again, thank you Bob Klausner.
Senate Bill 1128
1. No mandatory DC plan: We keep DB
2. No changes to Premium Tax revenue use as enhancement
3. Cities may NOT lower their contributions (no more sliding scale)
4. They took our board language keeping the cities from having majority over sight.
Now for the bad:
1. 300 hour cap on overtime calculation for AFC- annually
2. No sick or annual leave calculation for AFC
3. Upon agreement of both parties employee contribution could increase without a new or increase benefit
4. Task force study of heart presumption
No changes for those already retired or in DROP
Senate Bill 830 is on Special Order (Payroll Deduction of Dues). Attempts have been made to amend other bills with similar language but so far our Senate block of the bill have stood firm.
The Impasse Bill (sheriff as a legislative body) is dead.
Only one more day of SESSION!!!
For those who know George Hachigian, his father passed away last evening. Funeral is scheduled for Wednesday, May 11th in Steelton, PA. at Weideman Funeral Home.
The 29th Annual Law Enforcement Officers’ Memorial was held in the Capitol Courtyard on Monday, May 2, 2011. The survivors met with Governor Scott and were then escorted to the Florida Senate where they were recognized by the Senate with a Proclamation presented by Senator Jack Latvala. They then went to the House where again they were recognized by the House by Representative Evan Jenne and Representative Rachel Burgin.
Replies: There have been no replies.
You must register before you can post on this board. You can register here.