Florida’s public pensions carry trillions of dollars in unfunded liabilities. The state-run Florida Retirement System alone, has at least $24 billion in unfunded liabilities. But the way the system is currently set-up the liabilities just keep growing. In fact, last year, despite strong returns on their investments, the unfunded liabilities grew by three billion dollars!
The current system is not only unsustainable, but also fails a majority of state employees. Sixty percent of state employees don’t stay with the state long enough to vest their pension. So when they leave state employment they lose all of the retirement they earned while employed.
It’s time to modernize Florida’s public pension system and create a system that will give employees a retirement account they own and can take with them if they leave state employment. SB 1114 sponsored by Senator Wilton Simpson does just that, by defaulting all new state employees into the investment plan. The House has already passed this bill, so now it is up to the Senate.