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Senate moves to modify its FRS pension bill; cap contributions for most at 2%

A Senate committee proposed a modified bill Thursday that focuses on shoring up the Florida Retirement System and less on using the savings to close the state budget gap.

Leaders of the Senate Governmental Oversight and Accountability Committee pushed a compromise that would require most state workers to contribute up to 2 percent of their salaries to their retirement funds, while elected officials, senior management and anyone making more than $75,000 would pay four percent of their salary into the retirement system.

The measure by Sen. Jack Latvala, a St. Petersburg Republican, also removes a requirement that new employees in the Florida Retirement System enroll in 401(k) plans and activates employee contributions only to pay for any unfunded liability in the retirement fund. The committee will vote on the proposal during the first week of the legislative session in March.

“It would have a minimal effect on their take home pay,’’ Latvala said, adding that he sought a compromise that could pass the full Senate, where leaders have said they don’t want state employees to have richer retirement accounts than those offered in the private sector. More here.