Florida House To Take Up Pension Reform This Week

Apr 10, 2017

Credit chartingyourfinancialfuture.com

Less than two weeks after the House proposal was unveiled, The Florida House is expected Wednesday to take up a controversial pension reform package.

Among its provisions is changing the default retirement for newly hired state employees, who haven’t chosen a retirement plan. Instead of the more popular and traditional option known as the pension plan, the bill changes the default to the 401K style investment plan.

Supporters of the proposal say the goal is to allow more employees to take their retirement earnings with them, should they leave their state job in a couple years.

But, opponents—mainly state employee unions—say the investment plan is less stable and more risky.

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