Wednesday, February 2, 2011

Florida state workers to pay for own pensions?

Gov. Rick Scott is proposing to overhaul the state's pension system for tens of thousands of teachers, police officers and other state and county workers by requiring them to contribute to their retirement accounts and by not offering the pension plan to new workers.

The proposal, which must be approved by the Legislature, would save the state $2.8 billion over the next two years. The state is facing a budget shortfall next year that could top $4 billion.

In announcing the plan on Tuesday, Scott said he wants current employees to pay 5 percent of their salaries into their retirement accounts. State employees currently do not pay for their retirement.

New employees would not receive a traditional defined benefit pension plan, but would be eligible for 401(k) retirement accounts typically offered in the private sector.

http://www.miamiherald.com/2011/02/01/2045971/scott-workers-must-pay-own-way.html

The public employees' unions will scream bloody murder, but the general public will be overwhelmingly in favor.

This is an idea that will sweep the nation.

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