Rep. Tobia Offers Severe Amendments to HB 1405!

Florida Retirement Specialist Archives Rep. Tobia offers severe amendments to HB 1405! From the website: Options FRS.

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Senate backtracks, new bill proposed! Committee Approves SB 1130, Rep files HB 1405. Thoughts from a non FRS member! Amendments to SB 1130 FRS Reform A letter to FRS members from one of you! Florida Legislators Benefits Senator Ring proposes to eliminate the Pension! The Governor’s Proposal for FRS Reform. Scott’s Proposals for FRS HB 303 Withdrawn !! FRS Legislative Alert, HB 303 FRS Change Ahead Debunking the Myth of the Overpaid Public Employee FRS NOT on Special Session Agenda! Special Session to Override Vetoes Fact? or fiction. Is Florida Paying Former Employees Too Much? Think Twice? Be Prepared ! Ask Why? Crist Vetoes cut in DROP interest? Your Nest Egg in Volatile times Should FRS drop the D.R.O.P? A word of encouragement about the “new” DROP! DROP Rate Dropped! This is it, Call your legislators! HB 5701 Dropped. H.I.S. stays!!! All FRS Legislation put on HOLD? It ain't over, A further call to action for FRS benefits! A battle won, but the War is still on to preserve your benefits. You are going to LOVE THIS! House Bills 1319 and 1543 Dead? A call for ACTION in regard to your pension! "Is my FRS Pension Secure"? FRS Pension Basics 2010 Welcome to Florida Retirement System Options Florida Retirement System – Should I Drop? – Civilian Participants The DROP basics for Civilian Participants FRS Investment Plan Basics The DROP basics for Special Risk Participants Florida Retirement System – Should I DROP? – Special Risk Participant Senate backtracks, new bill proposed! .Rep. Tobia offers severe amendments to HB 1405! On April 4, 2011, in DROP Basics - Civilian Participants, DROP Basics - Special Risk Participants, Florida Retirement System - Pension Plan, FRS Investment Plan Basics, Should I DROP- Special Risk, by FRS Options News ....101 ShareRepresentative John Tobia (Republican from Melbourne) offered five new amendments to House Bill 1405. The amendments would bring HB 1405 in line with Governor Scott’s recommendations. As we read and interpret the changes, they include:

■· Reduces the service credit for future years of service in the Special Risk, Elected Officers, and Judges from 3% to 2%. Amendment 460885

■· Eliminate the Cost of Living Adjustment for Pensions and the DROP after July. Amendment 279579

■· Eliminate overtime in the calculation of the Average Final Compensation. Amendment 696491

■· Raises the Employee contribution up to 5% across the board (it had been reduced to 3% in committee). Amendment 328909

■· Reiterates the closing of the Pension Plan after July 1, and mandates all new members to the Investment Plan. Amendment 251959 This is very disappointing, as it appeared some headway was being made.

We can only guess that Rep. Tobia is a pawn of the governor, and we plead with all members to bombard Rep. Tobia with phone calls, emails, and letters – and let him know how punitive his actions are to FRS members who have served the public for all of these years. Add Your Comments Now! Tagged with: changes to florida retirement system • Deferred Retirement Option Program • Florida DROP Program • Florida Pension Reform • Florida Pension System • Florida retirement legislation • Florida Retirement System • florida retirement system changes • Florida Retirement System Pension • florida retirment system changes • FRS • FRS changes • FRS legislative changes . .Like Dislike 1 person liked this. Community Disqus LoginAbout Disqus Glad you liked it. Would you like to share?Facebook Twitter ShareNo thanksSharing this page … Thanks! Close Add New Comment Image Post as … Showing 19 comments Sort by Popular now Best rating Newest first Oldest first Subscribe by email Subscribe by RSS Biagio 1 hour ago Mark, This is just unbelievable! It's been a damn roller coaster with emotions. Is this guy a "tool" and "do boy" for Scott? How does this moron come up with these amendments when it's been already agreed upon by the majority of legislators that Scott's bill was too extreme? Is this misguided dope trying to make a name for himself? It's like we take a step forward and then 2 steps backward. FYI, I just received word from a reliable source that we have enough support to kill those amendments. Flag 4 people liked this. Like ReplyReply FRS Options 1 hour ago in reply to Biagio I will ignore the adjectives, as you have made some super points. I suspect he has his own agenda, and I also sense he will have as much success as HB 303 had. It is obvious FRS members have gained a lot of support, and this looks to go against what every other legislator from both houses and both parties had agreed to. Don't give up. Make the calls. YOU ARE BEING HEARD! Flag 2 people liked this. Like ReplyReply Daniel Shumaker 4 hours ago If my special risk pension gets cut from 3% to 2%, then I'm done. Been nice working for most of you. I'd move out of Florida, if I were you, and take your business and money with you. There won't be any "high risk" employees left to speak of. You know, those folks you count on when you dial 911?! Flag 6 people liked this. Like ReplyReply FRS Options 3 hours ago in reply to Daniel Shumaker While I empathise with your anger, there are no changes made yet. Blaming the entire state for the proposals of one might not be the best road to take. Flag Like ReplyReply K9rambo30 2 hours ago they do that im not staying in florida either im stuck in the middle .l I have 8 years in and hate to .leave the state but i will see no other choice.l Flag Like ReplyReply FRS Options 1 hour ago in reply to K9rambo30 Then make the calls to keep it from happening! Flag Like ReplyReply Adgirl 2 hours ago You really have to be kidding. Do you honestly think letter writing is going to do anything at all? These guys have an agenda. Scott's agenda...and nothing is going to get in their way. Flag Like ReplyReply FRS Options 1 hour ago in reply to Adgirl It would seem the calls and letters have had a significant impact on the proposals that have gone through the committees. They have basically grandfathered the majority of benefits for current employees, and have indicated a willingness to discuss the DROP and COLA options. I would suggest if everyone assumes the attitude you are suggesting, then you truly will not have any impact. You can Complain and let it happen, or work to keep it from happening. Please do not ask us to endorse such a fatalistic outlook. We will not post such comments going forward. Flag Like ReplyReply Dalexa4798 3 hours ago Like you said these look close to the same as gov scotts which other reps and senators have already said no way to.. Flag Like ReplyReply Charles Toney 3 hours ago Can somone explain to me how the State is going to save billions of dollars by changing the way the participating organizations (counties and cities) are contributing into a retirement fund where the funds are supposed to stay for retirement purposes?!!! By requiring all new employees to join the investment plan only - it will eliminate the funds coming into the FRS defined benefit plan from the approximatley 60% of participating members that do not vest. Please take the time to read the following information. Changing the Florida Retirement System – the Single Most Fiscally Irresponsible Mistake the Legislature Can Make Many local and state workers including teachers, clerks, police officers, firefighters and other government workers in Florida currently have what is called a defined benefit plan. This, simply put, means their earnings in retirement are defined and guaranteed. Most, including teachers, accumulate 1.6% per year. Some police and firefighters that work in high risk earn 3%. Elected officials get 3%. So, for most, if a government employee works 30 years they would get 48% of the average of their 5 highest years (30 x 1.6%). If they earn an average of $46,000 (the average teacher pay in Florida), for their five highest earning years they could get 48% of $46,000 or $22,080 per year ($1840 per month). This is reduced if a survivor benefit is chosen, reduced by any federal income tax assessed and reduced by a very hefty amount for health insurance. This is a far cry from the huge retirement hauls you sometimes read judges and other rich folk are getting. Florida teacher pay is ranked 37th in the country and far lower compared to private sector earnings. However, job security and benefits have always been part of the compensation. For workers currently in this plan, forcing them out of it would probably fail in the courts. The courts have considered this "deferred compensation". In other words it has been part of their compensation package for the past number of years and the employer can't go back and change that in the same manner that your employer can't go back and say they feel they paid you too much for the past twenty years and they want you to pay it back. The plan Scott wants to switch government workers into and what the legislature seems eager to accept is called a defined contribution plan. Typically it works like this: you put in (x) amount and the employer matches it to some degree and it gets invested. If it makes a lot of money, you do well. If the stock market or other investments do poorly, oh well, you get what's left and deal with it. This is a great plan for business because they (in this case the government) have no responsibility for the employee either now or in the future. Most companies had defined benefit plans in the past, but raided the investment funds (think Enron) and then couldn't pay the retirements. Rather than face the legal consequences under ERISA (Employee Retirement Income Security Act of 1974), it is better for the company to have no responsibility to their employees. Currently Florida's retirement fund has 125 billion dollars. It is one of the most successful and healthiest plans in the world. If those that are currently in it have to start paying into it as Scott wants (5%), the amount the state was paying in could be diverted into other things. In other words what is currently part of their compensation would now be used to pay down the budget shortfall or other government bills. Legally, it is widely believed they can't force current workers in the defined benefit plan to switch. The defined contribution plan is more likely to begin with new hires. That's the safest approach they can take without risking the whole thing be thrown out in court down the road. But there are severe problems they don't appear to be accounting for. First, the retirement plan currently receives money for every government employee beginning from when they are first hired. However, as high as 60% of those employees don't stay in the system long enough to be vested (at 6 years). They go into the private sector to make real money or they jump in a lake - who knows. But that money stays in the pool and keeps it healthy. Should the plans switch, that money would stop. In addition, ALL the new hires would no longer contribute to the pool. Instead, as current employees retire it would be drained. Eventually, there wouldn't be enough money to sustain it, however the state will still be legally responsible to pay the retirement benefits those workers are due. And there lies the problem. How will our government leaders come up with what could be hundreds of billions of dollars more when they can't come up with the current $3 billion shortfall for this years budget? They would be forced to purchase annuities from insurance companies, which would be equally devastating. Currently governments aren't able to purchase the federally discounted annuities from the the Pension Benefit Guaranty Corporation because that is only available to private companies. It is fiscally devastating for this state to consider switching plans in this manner. While it may make sense to take the government out of being responsible for paying yearly retirement contributions, it makes no sense for the government to cut off the money supporting its retirement obligation for the next 60 or 70 years as all the current employees in the system move through, retire and eventually die. That simple mistake will ultimately be the single most fiscally irresponsible thing this current administration could ever do. The best choice they could make for Florida would be to ease the members into contributing, ease the state out of contributing, and keep the defined benefit plan. It has been and will continue to be self-supporting with these changes and a prohibition against the government using or borrowing against the existing fund. Carl Zimmerman - Carl Zimmermann is a former candidate for Florida State House and a teacher at Countryside High School, Clearwater, Florida. Flag Like ReplyReply Sig43 3 hours ago it appears that he is also adding drop participants into his 5% contribution list? Flag Like ReplyReply FRS Options 3 hours ago in reply to Sig43 That is how we read it also! Flag Like ReplyReply Dep 1 hour ago in reply to FRS Options But if you are in DROP aren't you already technically retired? How can they make you contribute if you are already retired? Flag Like ReplyReply FRS Options 36 minutes ago in reply to Dep Seems like a grey area. Though technically retired, you are obviously still working and drawing a paycheck. Employer contributions are paid based on being on the payroll, and not the "technical" side of retirement. I guess we will see. Flag Like ReplyReply cecil 3 hours ago Eliminate the 3% COLA After July, Would that take in account existing employees and Retirees Also ?? Flag Like ReplyReply FRS Options 3 hours ago in reply to cecil It is difficult to tell, but it kind of looks that way. These amendments seem to be written in a code that is difficult for a simple lay person like ourselves to understand. Flag Like ReplyReply Yvonne 3 hours ago Would the amendment #460885 ending the COLA adjustment for pensions after July mean that it would be the same calculation as with SPB 7094 (Service years before July 1 divided by total service years times 3%)? Flag Like ReplyReply Yvonne 57 minutes ago in reply to Yvonne I meant to say amendment #279579 for ending the COLA. Flag Like ReplyReply FRS Options 3 hours ago in reply to Yvonne Hopefully. Flag Like ReplyReply Trackback URL blog comments powered by Disqus . Categories DROP Basics – Civilian Participants DROP Basics – Special Risk Participants Florida Retirement System – Pension Plan FRS Investment Plan Basics IRA Rollover Should I DROP – Civilian Participants Should I DROP- Special Risk Should I DROP- Special Risk Uncategorized FRS Options on Twitter Severe amendments to HB 1405! 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