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DISCLAIMER!! Although PBA and others have fought hard to mitigate the radical pension reform proposed by Gov. Scott, this is the best legislation the Senate would provide. HOWEVER, this is NOT the final product because it still has to go through further legislative stops!! Brent Henzi, 03/10/2011 - 08:14 PM A Senate panel on Thursday approved a pension reform bill that would likely spare most state workers -- as well as teachers and sheriff's deputies -- from having to pay for their own pension. It's not clear if the legislation will remain this way as it moves through the process, but the bill right now varies greatly from the changes proposed by Gov. Rick Scott. The Senate Governmental Oversight and Accountability Committee approved SB 1130 by a 12-1 vote after making a series of adjustments designed to ease the impact on state workers and others.
State employees would not have to contribute if they earn $40,000 or less annually. Workers that make between $40,000 and $75,000 will have to contribute no more than 2 percent and those making more than $75,000 would have to contribute no more than 4 percent. The bill would also give future employees the ability to stay in a defined benefit plan if they made less than $75,000.
Sen. Jeremy Ring, D-Margate and the bill's sponsor, said that even by easing the bill back it would still save the state several hundred million dollars. Sen. Jack Latvala, R-St. Petersburg, was also able to get an amendment adopted that changes the vesting requirement from 6 to 8 years for all new state employees. Latvala, who was behind a couple of the amendments passed, stated that if the Legislature were to make drastic changes to state pension plans it could hurt Florida's chances of hiring and maintaining quality employees.
"We've got the best pension plan in America, some say," said Latvala. "I subscribe to the philosophy that if it ain't broke don't fix it. I think we moved this bill back into a positive direction where we can keep a qualified workforce."
Scott has called for contributions of 5 percent for all new state employees but Senate committee members on Thursday made it clear they would not go as far as the governor's recommendations.
"Unlike the governor, we are not balancing the budget on the backs of all working men and women at the state, local and city levels," said Sen. Mike Fasano, R-New Port Richey. The Senate's version could set up a clash with the governor as well as the House, where some proposals have been filed that are similar to Scott's ideas. But Ring said that he's not sure where the House is headed and that it is too early to tell.
Ring, however, said that his committee has purposefully set out to include as much public comment as possible and not drastically impact those that work for the state while reforming the pension system.
"What this committee was very sensitive towards was trying our hardest and our best to not demonize any state workers," said Ring. The bill now moves to the Senate Budget Committee before it reaches the floor. Latvala noted that changes will likely occur during its next stop, as well as when it reaches the floor, stating the issue "is going to last until the very last day of session."
But Ring was optimistic in the bill moving forward and what might happen at the next committee chaired by Sen. JD Alexander, R-Lake Wales.
"He's not apt to create the budget cuts on the pay and benefits side," said Ring. Ring, however, cautioned that while he supported many of the changes, he was not sure if the requirement to spare all employees earning under $40,000 annually would remain in the bill once it moves forward.
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