Governor Scott Wants 5 Percent of State Salaries to Fund Retirement

BRADENTON – Governor Rick Scott laid out some proposals for closing the state's massive budget gap today in advance of his February 7 budget proposal. It was widely expected that the state employee retirement system would be targeted and the Governor delivered, proposing a requirement for state employees to give back 5 percent of their pay toward funding the retirement system. The governor's office said the move would save $2.8 billion over the next to years.

Scott also proposed discontinuing defined benefit pensions for new employees that are hired going forward and replacing them with 401k plans that wouldn't cost the state anything once the employee retires. The governor also advocated discontinuing the state's DROP program that gives incentives to older employees to encourage them to retire early and putting a stop to cost of living adjustments to retirement accounts.

In a statement released by his office, Scott said, "We must bring Florida in line with the private sector and nearly every other state in the country by requiring government workers to contribute towards their own retirement."