There's a bill floating around the Florida House that would close the current defined benefit pension plan on Jan. 1, 2014, and force all new public employees hired by government agencies into 401(k)-style plans.
If passed, the proposal would be the second major change in the Florida Retirement System (FRS) since Gov. Rick Scott took office two years ago. A law passed in 2011 requires public employees to contribute 3 percent of their earnings to the system.
The proposal is considered a major priority of Gov. Scott and House Speaker Will Weatherford. Legislators said when the state Department of Management Services completes its study this Friday, they will know how much the proposed change will cost the state.
Ray Edmondson, CEO of the Florida Public Pension Trustees Association, said this decision by state lawmakers is purely political, and has nothing to do with the finances of the state's pension plan.
This article appears in Feb 14-20, 2013.