State Pension Watchdog: Legislature Missed Reform Chance

Seems I'm not alone in my concern for the direction and sustainability of Florida's retirement system. Robert McClure, a Ph.D. member of Floridians for Sustainable Pensions (FSP), has just released a statement on the opportunities lawmakers missed to deal with the crisis during the 2012 legislative session.

Opportunities for immediate and significant fiscal relief again fell to the wayside this legislative session as pension reform measures were passed over," McClure said in a statement. "As private-sector retirement benefits continue to wane, indicating a still distant economic revival, it is only fiscally responsible to Florida taxpayers that public pension reform take place."

McClure certainly gets it. Florida needs to get its system in line with those in the private sector.

He offers FSP's main recommendations for reform:

• "Make the defined contribution/investment plan the default option for new hires who dont express a preference.
• "Limit employees switching between plans to the first year of employment.
• "Lengthen the defined benefit/pension plan vesting period from eight years to 10.
• "Apply the above reforms to municipalities."

McClure also references Circuit Judge Jackie Fulford's recent court ruling on public-employee pension contributions.

It "could further debilitate already weakened state and local governments," he says, "forcing more layoffs and cuts to critical community services. We are pleased the state swiftly appealed this ruling as the Florida Legislature was in the right in taking initial steps to fix a system that is outdated and in danger of being insolvent." For a legal analysis of Judge Fulford's ruling, read "Should Judge Fulford Be Upheld ..."

McClure concludes, "It is our hope for the sake of all Floridians, young and old, that the court decision will be overturned and that the Florida Legislature will take up these further pension reform measures in the 2013 legislative session.
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