Pension Reform for State Employees Passes House Committee

The House Appropriations Committee approved a measure reforming pension plans for state employees, backing a bill that requires government workers to contribute part of their annual salaries to the Florida Retirement System (FRS). The measure passed on a party linesvote with Republicans backing the reform and Democrats opposing it.

With Gov. Rick Scott calling for state employees to invest in their own retirement plans, the Republican leadership controlling the House turned to Rep. Ritch Workman, R-Melbourne, the chairman of the Community and Military Affairs Subcommittee, to push the legislation. Workman spoke to the Appropriations Committee on Wednesday as part of a marathon meeting.

While Scott initially called for FRS participants to contribute 5 percent of their salaries, Workmans bill currently mandates they contribute 3 percent of their salaries. Workman called it modest from where we started.

The measure also would pull the plug on the state Deferred Retirement Option Program (DROP) -- though Workman has expressed that he is open to continue to work on that aspect of his bill.

In order to balance the budget, state government must reduce its costs, said Workman, noting that the FRS had a $16 billion shortfall. The bill is not perfect but it is a reasonable effort to reform the FRS, added Workman, noting that it will add meaningful cost savings to the state.

Workman defended the watered down version of the initial proposal. We need to do the most modest reform we can to preserve the FRS system, said Workman.

Workman attempted to define what his legislation did -- and what it did not.

It does not change the current 3 percent COLA, insisted Workman. It does not change the defined benefit options of the FRS.

As they had at previous committee stops, Democrats on the committee went after Workmans proposal, attacking it on a number of grounds.

Are there problems with the current pension systems funding? demanded House Democratic Leader Ron Saunders of Key West, who called the 3 percent contribution a tax.

Calling it a tax is just rhetoric, fired back Workman. It is not a tax. Most people pay into their pension fund. Every other state has employees pay into their pension fund.

Saunders replied that he would continue the conversation on the House floor when the measure is debated.

More than 40 members of the audience filled out appearance cards to speak on the bill -- with the overwhelming majority of them opposing it.