It’s no secret that Gov. Rick Scott and many of his contemporaries in the Florida Legislature campaigned on a pledge to reform state and local public sector pension plans. It’s also no secret that, based on the rapid decline in property values and the impact of that decline on property tax revenue, local governments are struggling with significant unfunded pension liabilities. Thus, it should come as no surprise that two bills have been filed that, if enacted, would substantially reform public sector pension plans.
Although not required to provide employees with defined benefit pension plans, the state and many local governments historically have offered employees the opportunity to join defined benefit pension plans as an inducement to accept public employment. The Florida Retirement System provides retirement benefits to about 572,000 active and 319,000 retired members and beneficiaries of its more than 900 state and local government public employers. Participating employees in FRS defined benefit plans currently are not required to contribute anything to fund their respective pension benefits. As an alternative, many local governments have created their own defined benefit pension plans. As of last Sept. 30, 239 local governments sponsored a total of 489 public defined benefit plans in Florida.
