The Senate approved a package of pension changes today that sets a graduated contribution rate for public employees in the Florida Retirement System.
The vote was 26-13 to send the plan to the House for negotiations in the month remaining in the 2011 legislative session. The main differences between House and Senate versions of the bill are elimination of the Deferred Retirement Option Plan and the contribution rate employees will pay into the FRS.
The House wants a flat 3 percent for all employees and would close DROP to new enrollment next July 1. The Senate version sets a contribution scale of 2 percent on the first $25,000 of earnings, 4 percent on the next $25,000 and 6 percent on everything above $50,000 a year.
The Senate bill would also eliminate DROP, but not until 2016.
Sen. Don Gaetz, R-Niceville, initially proposed a 7 percent contribution rate for elected officers but some senators said that would unfairly hit some relatively low-paid city and county officials in the FRS. So Gaetz decided to apply his amendment to only the governor, Cabinet members and legislators. Each tier for those elected officials would be 1 percentage point higher than the standard scale for regular employees.
That way, statewide elected officers and legislators would pay 3, 5 and 7 percent up the same scale.. For legislators, who make about $29,000 a year, it would be a 3 percent contribution on $25,000 and 5 percent on the remaining $4,000.
"I believe it still allows us to make a valid and reliable claim that we're leading from the front in this area," said Gaetz.
