House Releases Projected Savings for Pension Reform Bill (HB 7011)

Submitted by Nancy Smith on March 6, 2013 - 2:10pm

The House staff has reviewed and released the latest actuarial study of the House Pension Reform Bill (HB 7011). According to the Milliman study -- not accounting for "intervening variables and variations in assumptions" the bill would incur the following costs and savings:

An estimated $9.8 billion in savings to taxpayers in 2042-43.

An estimated $2.1 billion in savings to taxpayers in 2023-24.

No cost in the first fiscal year of the implementation and a modest $2.7 million cost in FY 2014-15.

First savings realized in 2015-16 ($12.9 million).

Reduction in taxpayer risk as taxpayer savings increases.

The House Pension Reform Bill would close Florida's 623,000-member pension system to new employees as of 2014 and instead direct them to a 401(k)-style option.

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