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Pension Contributions Challenged

June 20th, 2011 by Mike Vasilinda

The unions representing police, correctional employees and teachers have filed a lawsuit challenging the state’s new requirement that employees must contribute three percent of their salary towards their pension. As Mike Vasilinda tells us, the suit won’t be settled before the first deductions take place, so it is asking the court to keep the money from being spent.

Greylynn DeWinter has taught high school English for the last eight years. She calls the three percent pension contribution enacted by the legislature a payroll tax and she’s none too happy that her next check will be lighter.

“I feel insulted and demeaned,” DeWinter said. “I think that if you want to increase learning and you want to improve education, the worst thing that you can do is to slap your teachers.”

DeWinter is not a union member, but she could benefit from the law suit filed by the Florida Education Association. The suit argues the three percent was part of a contract agreement between existing employees and their employer.

“If the legislature chose to change the retirement system, it would be for all new employees coming in after July 1,” FEA President Andy Ford said. “But they can’t do what they did for current employees.”

Why?

“It’s unconstitutional,” Ford said.

Because this issue isn’t going to be settled before the three percent starts coming out of people’s checks, the lawsuit asks the court to hold onto the money until there’s a final decision.

Legislative leaders who pushed the contribution would not rule out losing the court suit, but they say the contribution is the right thing to do.

“The state of Florida has been the only state in the country that does not require its public employees to contribute towards their pension,” Rep. Will Weatherford (R-Wesley Chapel) said. “I think that it’s legal, I think it’s practical. And frankly, I think it’s realistic, given the times that we live in today.

The new contribution requirement affects 655,000 people in the Florida retirement system.

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