The Florida Supreme Court has upheld a requirement that state workers put money into their own retirement plan. The law has been in legal limbo since it went into effect a year and a half ago. The state teachers union is blasting lawmakers for imposing what it calls a tax on working families. Starting in 1975, public employee pensions were fully funded by the state.
In 2011, the Florida Legislature decided state workers should start contributing 3% of their pay into retirement. Then, a judge in Tallahassee reversed the law because it might interfere with employees’ collective bargaining rights. Finally, the state supreme court reinstated the law, finding that the Legislature acted within its authority to change workers retirement plans.
Florida Education Association President Andy Ford says his group has no further recourse.
“We believe that our arguments were correct and that the justices just didn’t understand what they were doing to a half a million Florida families”, said Ford.
A loss for the state would’ve meant $2 billion had to be paid back to employees. Gov. Rick Scott issued a statement saying the court’s ruling will lure more businesses to the state.
Ford called the governor insensitive to the needs of employees who don’t make more than $50,000 a year.