Unions warn: Senate bill would hand over state retirement system to 'Wall Street swindlers'

Unions are organizing last-ditch efforts to defeat legislation that would bar new state and local government employees from Florida’s public pension plan and commit the retirement income of thousands of administrators, teachers, nurses, and more to private investments.

The legislation (SB 84) would require all workers joining state government’s workforce after July 1, 2022, to forgo the traditional pension plan in favor of a “defined contribution” plan — that means investment vehicles like 401(k)s that don’t guarantee retirement income. It could hit the Senate floor as soon as Wednesday.

The bill exempts “special risk” workers — police, corrections, and probation officers, firefighters, and paramedics and EMTs. But they represent the smallest class under the retirement system and earn the most in benefits, Rick Templin, a lobbyist for the Florida AFL-CIO, said during a Zoom news conference.

Without fresh contributions from new workers, the responsibility for keeping the Florida Retirement System afloat would fall on taxpayers, Templin said.

Read more: https://www.floridaphoenix.com/2021/04/01/unions-warn-senate-bill-would-hand-over-state-retirement-system-to-wall-street-swindlers/