Florida Governor Rick Scott says he signed Senate Bill 2100 to keeping his promise to make sure Florida is no longer the only state in America that does not require government employees to contribute to their pensions. Scott says the pension reform legislation will save taxpayers and participating employers $2 billion next year. Scott adds he feels the reform ensures that retirees can continue to depend on the Florida Retirement System for decades to come. Under the new law, beginning July 1, 2011, state workers and other participants in the Florida Retirement System will contribute three percent of their salaries toward their pensions. The required contribution applies to all active members of the Florida Retirement System or one of the optional retirement programs sponsored by the state universities and colleges. According to a press release from the Governor’s office, the bill signed today will provide the following savings by employer groups:
School Boards $ 819.4 million
Counties $ 597.7 million
State $ 356.8 million
Others $ 108.8 million
Universities $ 66.2 million
Colleges $ 56.4 million
Total $2,005.3 million (over $2 billion)
Just this week, a lawsuit was filed by a variety of state workers challenging the new law.