Employee Retirement Benefits Legislative Update
To All USF System Employees:
As you know, the Florida Legislative Session is coming to an end and the proposed budget will be sent to the Governor. We want to make you aware that the Legislature agreed last night to make reductions in the employer contribution rates for the FRS Investment Plan and Optional Retirement Programs. These changes will not affect employee's take-home pay as the 3% "required-contribution" change last year did, but it will lessen the employer portion of the contribution to retirement benefits for employees enrolled in those programs. We will communicate the exact changes as soon as we can see the Legislature's printed proposal and can analyze its impact on our employees. We believe this change should have no impact on employees enrolled in the traditional FRS Pension Plan.
Also today, the Circuit Court of the Second Judicial Circeuit issued a ruling in favor of Williams (plaintiff) in the Williams vs. Scott case. In this case, Williams challenged the Florida Retirement System’s mandatory 3% employee contributions effective July 1, 2011 and reduction in the 3% cost-of-living adjustment for Pension Plan members retiring on or after July 1, 2011. Although Williams prevailed, the case is expected to be appealed to the appropriate Florida appellate court. Because of this appeal, no action will be taken at the present time by the FRS to revise the currently required employee contributions and present cost-of-living calculation. We will keep you informed as the appeal process evolves.
As always, if you have questions or concerns that you would like to discuss, please contact the Benefits Representative for your HR Service Center on the Tampa campus or your HR Department at the St. Petersburg, Sarasota/Manatee, or Polytechnic campuses.
Thank you for your support of USF!
Theresa A. Drye
Associate Vice President
(813) 974-5711 | Fax: (813) 974-5227
4202 E Fowler Ave, Mailstop
Tampa, FL 33620
email@example.com | usf.edu/hr