A controversial plan to close off the Florida Retirement System’s traditional pension plan to future public employees passed the House on a nearly party-line vote Friday, setting up a battle with the Senate over the retirement system.
The measure (HB 7011) passed 74-42, but Rep. Richard Stark of Weston, the only Democrat to vote for the bill, later said he meant to vote against it. The proposal is a top priority for House Speaker Will Weatherford, R-Wesley Chapel.
House Republicans say the measure will keep the FRS from consuming an ever-larger share of the state budget, crowding out education and other priorities. They also said it would create stability and keep the state from having to take more drastic steps in the future.
“We will know exactly what our obligations are rather than a constant sense of uncertainty,” said Rep. Ritch Workman, R-Melbourne.
But Democrats hammered the transition from a “defined benefit” plan, like a traditional pension, to a 401(k)-style “defined contribution” plan. They said workers might not get the same return on their own investments, and would lose the security that comes from a defined benefit plan- often cited as a key recruitment tool for getting people to take otherwise low paying government jobs.
“Rewarding our state employees should not be a game of chance,” said Rep. Joe Gibbons, D-Hallandale Beach. “It should be a sure bet.”
Labor groups also blasted the House for making the changes.
“They’ve addressed an imaginary crisis of their own making with a radical change that disrespects school employees, first responders, and other public workers who enhance the quality of life in Florida,” said Alan Stonecipher, director of the Florida Retirement Security Coalition, a group tied to unions.
The measure faces an uphill climb in the Senate, where lawmakers are backing a more limited change to the retirement system. The upper chamber’s bill (SB 1392) would encourage employees to enter the defined contribution plan by making that the default plan for workers — unless they opt in to the traditional plan — and giving workers a discount on their contributions if they choose the investment option.
House leaders say they would rather the Senate accept their measure.
“I’d like to see the Senate take up the bill as it is, because I don’t think anything in there should give them heartburn,” said Rep. Jason Brodeur, R-Sanford, the House sponsor.
But Weatherford also wouldn’t rule out compromising on the measure, or even accepting the bill from Sen. Wilton Simpson, R-Trilby.
“If we weren’t eliminating defined benefit for new employees going forward, I would say his bill is better than nothing,” Weatherford said. “It’s certainly better than the status quo. But our question would be, why would we go halfway when we can go all the way?”
by Brandon Larrabee
