TALLAHASSEE --
In a major victory for the state, the Florida Supreme Court ruled against state workers and allowed the state to retain the 3 percent levy on worker salaries to offset the state’s investment into the Florida Retirement System.
The ruling allows lawmakers to avoid another $2 billion budget hole next year, while state employees will see their salary cuts retained indefinitely. The lawsuit, Scott v. Williams, was filed by the Florida Education Association. Lawmakers and Gov. Rick Scott had approved the new law over pension fund contributions in 2011. It affected the salaries of 623,000 public employees, including teachers, state, county and some city workers.
Lawmakers argued at the time that the change was needed to fill a $3.6 billion budget gap and bring Florida in line with 47 states that require their government workers to contribute to their pension plans. The savings was then plowed back into the budget, not into the retirement fund.
The Supreme Court overturned a decision by Leon County Circuit Court Judge Jackie Fulford, who ruled in 2012 that the pension changes were unconstitutional because they impaired the contractual rights of the FRS employees, took private property without full compensation and violated employee collective bargaining rights. She ordered the state to halt the practice and reimburse workers with interest.
Attorney General Pam Bondi and Republican legislative leaders immediately challenged the ruling and continued collecting money from employee payments.
If the seven justices had upheld the lower court ruling, state and local governments would have had to reimburse active workers in the Florida Retirement System and cover the resulting hole in their budgets.
The state has already collected more than $900 million from employees and are expected to take up to $2 billion by June 30, 2013, the end of the state’s current fiscal year.
Florida Supreme Court upholds law requiring state workers to contribute 3 percent of pay to state pension plan
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Florida Supreme Court upholds law requiring state workers to contribute 3 percent of pay to state pension plan
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Florida Supreme Court upholds law requiring state workers to contribute 3 percent of pay to state pension plan
