Gov. Rick Scott signed into law a set of changes to local pension plans (SB 1128) in Orlando on Thursday.
The measure bars including sick leave and annual leave after July 1 in the calculations of retirement benefits, and limits how much overtime can be counted toward those benefits.
It also removes a requirement that increases in employee contribution rates be used to pay for new benefits, though it still requires that any increases be approved by the local union or a majority of workers.
Scott also ceremonially signed SB 2100, a more sweeping overhaul of pensions for state employees.
“The steps we are taking this year move us closer to modernizing the system and ensuring it will be around decades down the road for future retirees,” Scott said in a news release issued by his office.
On Monday, Florida Education Association (FEA), backed by other labor groups, filed suit challenging the constitutionality of the law.  The FEA has requested a temporary injunction and wants Circuit Judge Jackie Fulford to order that the state set aside money collected from the contributions. That would allow the money to be returned to employees if the lawsuit is successful.
FEA attorney Ron Meyer said he expects the case ultimately to be decided by the Florida Supreme Court, a process that can take months.
A Leon County circuit judge has scheduled a June 30 hearing.
