(September 9, 2012) – Florida’s Supreme Court has taken on a state official-led appeal for the 2011 pension overhaul, which was overturned earlier this year by a lower-court ruling.
The Florida Legislature had intervened last year to aide the $126.6 billion Florida Retirement System with its $18 billion funding shortfall. Lawmakers required members to contribute 3% of their pay to the pension fund, and eliminated the cost-of-living adjustment for new retirees, according to the system’s 2010-2011 annual report. Furthermore, the reforms increase the number of years members are required to work before qualifying for benefits. In total, the overhaul saved taxpayers an estimated $1 billion for the 2011 fiscal year.
A number of prominent unions led an appeal of the reforms. Leon County Circuit Judge Jackie Fulford struck down the 3% contribution requirement earlier this year, deeming it an illegal circumvention of collective bargaining agreements. To rule in favor of the state “would mean that a contract with our state government has no meaning, and that the citizens of our state can place no trust in the work of our Legislature,” Fulford said, according to Reuters.
The Supreme Court of Florida agreed to hear the case on March 16, saying in court documents that “this appeal is one presenting issues of great public importance and involves circumstances which require that the Supreme Court of Florida immediately resolve the issues.” Arguments began on Friday.