George Gibbs Center for Economic Prosperity

January 2012 – Pol⁠i⁠cy Br⁠i⁠ef – Pens⁠i⁠on Reform ⁠i⁠n Flor⁠i⁠da: Unf⁠i⁠n⁠i⁠shed Bus⁠i⁠ness

By: The James Madison Institute / December 7, 2011

The James Madison Institute

George Gibbs Center for Economic Prosperity

December 7, 2011

By Stuart Buck
JMI Adjunct Scholar
University of Arkansas Distinguised Doctoral Fellow
While the legislative reforms of early 2011 made improvements in the Florida Retirement System, further work is needed to keep Florida on the right track and avoid the financial disasters experienced by other states. Five recommendations for further reform include:
Make the defined contribution/investment plan the default option for new hires who don’t express a preference.
Limit employees switching between plans to the first year of employment .
Lengthen the defined benefit/pension plan vesting period to 10 years from 8.
Increase the employee contribution rate to 4% from 3%.
Apply the above reforms to municipalities.

View Press Release (PDF)
View Full Brief:
“Pension Reform in Florida: Unfinished Business” (PDF)