Tags: Unions | Rick Scott | public pensions | 401k | Florida | sustainable

Florida Gov. Rick Scott Urges Sweeping Public Pension Changes

Wednesday, 13 Apr 2011 04:52 PM

Florida Republican Gov. Rick Scott is pushing state lawmakers considering changes to public pensions to adopt even more sweeping changes, Florida Today reported Wednesday.

"We don't have sustainable pensions right now," Scott said. "We need to solve this problem. I hope the House and Senate will take my proposal."

Rick Scott,public pensions,401(k),Florida,sustainable
Florida Gov. Rick Scott
Scott proposed an across-the-board 5 percent employee contribution and he would require that all new hires go into a plan similar to 401(k) investments that are common in the private sector.

Both the House and Senate have passed bills that require contributions from the more than 650,000 public employees enrolled in the state’s retirement system. Most of those are in a traditional pension plan and none pay toward their own retirement.

The House would require a flat 3 percent salary contribution, while the Senate would require varying contribution levels between 2 percent and 6 percent, depending on salary.

The House leaves the pension in place. The Senate version keeps the pension plan for rank-and-file employees, but closes it to senior managers and elected officials.

"I don't think they go far enough," Scott said.

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