Legislators join Scott's call to make state employees contribute to their retirement

Legislators who need to identify at least $3.6 billion in cuts to balance the 2011-2012 state budget are climbing onto a campaign promise of Gov. Rick Scott to make state employees contribute to their own retirement.

During the campaign, Scott promised to align "state employee pension contributions with other states" to save almost $1.4 billion. Scott hasn't let up in the months since his election.

In a speech to the business community on Nov. 18, 2010, Scott said that "Florida has to bring its pension system into line with other states' plans by increasing employee contributions. Doing that will save almost $1.4 billion."

And then during a meeting with state legislators on Dec. 14, Scott claimed that Florida is "the only state in the country that state employees don't contribute (to their pensions)." PolitiFact Florida looked into that claim and found it Mostly True, noting that many employees in Tennessee and Utah still do not have to contribute toward their own retirement, although other employees in those states do.

The state retirement system covers state workers, county school teachers, state university employees and many local government employees. The system, called the Florida Retirement System, has 655,000 active members and another 304,000 people retired and receiving benefits.

In 2010, state and local governments contributed nearly $3.4 billion to the fund. Governments typically contribute between 9 and 10 percent of an employee's annual income toward retirement. (Pension plans for police and firefighters, which pay better benefits, receive contributions equal to more than 22 percent of their income.) In every case, employees are not required to contribute anything.

Like Scott, legislators have started to discuss making employees contribute to their own retirement.

"Our state employees have the best deal in the country," said Sen. Jeremy Ring, D-Margate, who chairs a committee overseeing pension policy. "They don't contribute and that's wrong."

"All government workers have to understand the pension system for the government worker cannot be superior to the private sector," added Senate President Mike Haridopolos, R-Merritt Island. "Government service comes at a price."

We've yet to see a concrete plan detailing what employees would be required to contribute, if that contribution would be offset by any type of raise -- state workers haven't received a general pay raise since 2006 -- and how much money pension reform would save. But it's clear that Scott's promise is moving along. We rate this promise In the Works.