Senate Committee on Government Operations Report: Overview of Local Government Pension Plans

 

The Florida Senate Committee on Government Operations met on Wednesday December 12, 2007 to discuss several interim projects that Committee staff completed while the Legislature was not in session. 

To view the meeting packet, click here.

Of particular importance to the Committee was Interim Project Report 2008-128, “Overview of Local Government Pension Plans.” 

To view the report click here.

Staff Director Ray Wilson reported to Committee members that local governments and special districts currently sponsor more than 500 retirement plans for their employees.  Although these plans are for the most part not governed by the state Division of Retirement, some oversight is provided to make sure local governments comply with state and federal law.

Mr. Wilson said that staff had identified several local government pension plans suffering from over-utilization and therefore may struggle to pay out their required distributions to retiring employees.  Because of this, many local governments and special districts are turning to the Florida Retirement System (“FRS”).

Because the interim project does not identify specific local government pension plans that are suspect, Committee Chairman Al Lawson (D-Tallahassee) requested that Mr. Wilson identify those plans that may be in trouble so that immediate action may be taken.

Ultimately, because of the lack of state oversight for most local government pension plans, there is little that can be done statutorily to rectify the problems identified in the report. 

Mr. Wilson called the remedies “self-correcting” and suggested that the Committee may want to suggest a budget item that would provide the Division of Retirement more resources to oversee local government plans.  Other recommendations include the convening of a rules workshop to create a definitive review plan and continued legislative oversight of local government pension plans.

 

 

 

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