Proposals requiring Florida state workers to contribute part of their income to their pensions are raising concerns over the effect it may have on lower-income workers.
The Florida House passed a bill earlier this month which would force employees to contribute 3 percent of their income to their pensions, while the Senate proposed a tiered plan, which reduces the required contribution to 2 percent for those making less than $25,000 a year, and going up to 6 percent for those making $50,000 or more a year.
The two chambers have two weeks to come to an agreement on a plan. Governor Rick Scott wants the contribution to be 5 percent.
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The House bill, which would also end the Referred Retirement Option Program for new participants and raise the retirement age for enrollees after July 1, is expected to save taxpayers more than $1 billion and would help close a $4 billion budget gap.
The proposals are worrying workers, who say many are already barely making ends meet. Department of Transportation worker Mike Ebersole agrees with the plan premise, but says it will be hard on fellow employees. "I work with people who are on welfare because they don't make enough. And now they're going to make even less," he said. He added, "Everyone thinks we make all this money," he said, but says he hasn't had a raise in six years.
Shawn Brennan, a North Port city maintenance worker said, "It's going to cripple a lot of us." Brennan supports a wife and two children on about $44,000 a year.
An analysis by state Sen. Charlie Dean, R-Ocala, shows that of 105,000 workers, more than 32,000 made less than $30,000 a year. A majority, more than 74,000, made less than $40,000. Only about 5,200 workers made more than $70,000 a year.
But for lawmakers, the main issue is how much Florida could afford. Rep. Rich Workman, R-Melbourne, who sponsored the house bill, said the state has paid state worker pensions since 1975. "We find ourselves in the unfortunate position of no longer being able to shoulder 100 percent of the burden," Workman said.
Florida is one of only a handful of states that doesn't require a pension contribution from workers, said Rep. Debbie Mayfield, a Vero Beach Republican.
"This is far better than deeper cuts to basic government," Mayfield said.
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