{"id":17694,"date":"2013-03-28T14:03:07","date_gmt":"2013-03-28T18:03:07","guid":{"rendered":"http:\/\/stateimpact.npr.org\/florida\/?p=17694"},"modified":"2013-04-01T14:33:00","modified_gmt":"2013-04-01T18:33:00","slug":"union-says-eliminating-pension-will-cut-teachers-annual-retirement-income-by-8400","status":"publish","type":"post","link":"https:\/\/stateimpact.npr.org\/florida\/2013\/03\/28\/union-says-eliminating-pension-will-cut-teachers-annual-retirement-income-by-8400\/","title":{"rendered":"Union Says Eliminating Pension Will Cut Teachers’ Annual Retirement Income By $8,400"},"content":{"rendered":"
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Jordan Michael\/StateImpact Florida<\/p>

The FEA says Florida's pension system is strong, and changing it would result in retirement insecurity for teachers.<\/p><\/div>\n

While the Easter Bunny is delivering festive eggs this week, the Florida Education Association said lawmakers are trying to take a chunk out of teachers’ nest eggs.<\/p>\n

The teacher’s union held a news conference in Tallahassee blasting state leaders for trying to impose \u201cchanges to the pension system that guarantee retirement insecurity.<\/a>\u201d<\/p>\n

The Florida Legislature is considering requiring new state workers, including teachers, to enroll in 401(k)-style retirement plans instead of the state pension plan,<\/a> known as the Florida Retirement System.<\/p>\n

\u201cOur members who devote their professional lives to teaching our children and making sure they are safe and well cared for in our schools are already facing financial sacrifice,\u201d said FEA Vice President Joanne McCall said. \u201cTeachers earn less than those with similar levels of college education who enter professions like computer programming, public accountants, and nurses.\u201d<\/p>\n

She said the pay gap is even larger in Florida, where teachers earn about $10,000 less<\/a> than the national average.<\/p>\n

House Speaker Will Weatherford later said the assertion that the proposed changes would force teachers to retire into poverty isn\u2019t true.<\/p>\n

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\u201cUnions are going to use scare tactics,\u201d Weatherford said. \u201c85 to 90 percent of the companies in this country have transferred from defined benefit to defined contribution (plans).\u201d<\/p>\n

The change would not impact current state employees. It would go into effect for new hires starting in January 2014.<\/p>\n

Weatherford said the idea of a long-term defined benefit plan doesn\u2019t work.<\/p>\n

\u201cWe\u2019re spending $500 million a year that should go to education and should go to things like healthcare,\u201d Weatherford said, \u201cand we\u2019re putting it into a broken pension plan.\u201d<\/p>\n

McCall said the pension system is doing just fine.<\/p>\n

\u201cThe FRS is funded at 87 percent, which is more than the 80 percent threshold for a healthy retirement system,\u201d McCall said.<\/p>\n

\u201cWe used to be able to take comfort knowing that we would have security if we did our job well, due process rights if problems arose,” McCall said, “and there would be a modest nest egg when we decided to enjoy our retirement.\u201d<\/p>\n

She said the proposed changes will make it more difficult to recruit and keep high quality teachers.<\/p>\n

Stats from the FEA:<\/p>\n