UPDATE: Panel clears bill ending guaranteed pension plan for Fla. workers

Nest Egg
Posted at 12:07 PM, Mar 08, 2013
and last updated 2013-03-28 10:05:24-04

TALLAHASSEE, Fla. (AP) - A House panel has cleared a proposal to end traditional pensions for new teachers and state and county employees.

The House Appropriations committee on Friday voted 12-9 along party lines on the bill (HB 7011) that would do away with guaranteed pensions for workers hired as of January 2014. It would replace pensions with individual investment accounts similar to 401(k) plans.

The idea is to shift retirement investment risk from the state to its employees. The bill also would end disability benefits for new workers.

Those now in the Florida Retirement System can select a traditional pension or a 401(k)-style plan. About three-quarters of those now in the state pension plan are teachers and local government workers such as law enforcement officers and firefighters.