Florida HB 525 - Jeff Clemens says NO

With the purpose of undoing a change in the State Pension Plan that was passed last year, a new proposed Bill that was meant to make those in dangerous jobs happier is now controversial once again.

One of the architects of HB 525 is our very own Democrat Joe Abruzzo from Wellington District 85. This Bill would lower the retirement age for special risk state employees such as police and fire. They would now get to retire at age 55 or 25 years of service instead of age 60.

But guess what? Some of those directly involved don't like the new Bill. Their objection is that new employees would automatically be enrolled in the State's 401(k) styled plan unless they choose a defined benefit pension plan that is opposite of the State's current practice. They also feared that it would take longer to collect benefits if they should be laid-off because they would now have to work eleven years minimum instead of the current eight.

The Bill states: Revises definitions of terms "normal retirement date" & "vested" or "vesting"; clarifies provisions related to prohibition of hardship loans or payments; clarifies that retiree who is reemployed in regularly established position after certain date may not be enrolled as renewed member; authorizes certain distributions to member who is terminated from employment for 1 calendar month if member has reached normal retirement date; provides rulemaking authority to DMS; provides that benefit for purposes of optional retirement program for SUS includes certain distribution; clarifies when voluntary contributions may be paid out; requires new employees to, by default, be enrolled in investment plan; authorizes new employees to elect to participate in pension plan or investment plan within specified time; revises provisions related to disability retirement benefit calculation, early retirement benefit calculation, benefit commencement age & years of service, & disability retirement benefit calculation to conform to changes made by act; provides rulemaking authority to boards of trustees for colleges; provides for contribution rate adjustments to fund benefit changes provided in act; directs Division of Statutory Revision to adjust contribution rates set forth in s. 121.71, F.S.; provides declaration of important state interest. Effective Date: July 1, 2012

Jeff Clemens, Democrat, voted NO to HB 525. It passed on a 7/6 vote in the Government Operations Sub-Committee on first reading.