As a valued FRS member, we wanted to share with you some good news that recently appeared in a Miami Herald article today May 1st, 2014. Luckily, for all future FRS members the Pension reform bill SB114 was not approved by the Senate. This is great news for all FRS members. The bill would have required elected officials and all other employees (except judges) to enroll in a 401(k) style investment plan (new hires) or choose between the pension plan and investment plan (existing members). Those members who did not elect an option would default into the 401(k) style plan.
We wrote an article on our website, www.myfrsanswers.com, which referred to the difference between a defined benefit pension plan and a defined contribution pension plan. A 401(k) style investment plan would be considered a defined contribution plan. If you would like to read our article, please visit, https://www.myfrsanswers.com/defined-frs-benefit-retirement-plans-vs-defined-contribution-retirement-plans/.
Senator Simpson and Mr. Weatherford both claim the pension program could go bankrupt without a change. However, as stated in the Miami Herald article, “The pension plan can’t go bankrupt unless 86% of state employees retire at the same time”.
If you would like to read the Miami Herald article written by Michael Sickler, please visit, http://www.miamiherald.com/2014/04/30/4090350/pension-reform-bill-dies-in-senate.html.
Should you like to discuss this further, please give us a call at 305-670-7088.