Welcome to the latest edition of This Week in Pensions! This is the news you need to know in the fight for a secure retirement. We have gathered the top stories about pensions and retirement security from the previous week.
State News
[Florida]
Like many states across the country, Florida is seeking ways to keep public safety workers on the job as they face historic staffing shortages. Florida lawmakers have approved the expansion of the Deferred Retirement Option Program (DROP) to allow eligible public workers to receive pension payments while continuing to work for eight to ten years instead of the current limit of five years. While lawmakers admit that they lose employees after the current five-year mark, they hope extending the program will entice workers to stay longer. The legislation also increases employer contributions made by state agencies by $350 million. Nearly 30,000 out of the 448,000 pension beneficiaries in Florida currently participate in the DROP program.
[Louisiana]
This session, Louisiana lawmakers have encountered difficulties in determining what to do with the $2.2 billion in surplus revenue the state has amassed. The two-month session saw the House and the Senate pitted against one another over whether to appropriate funds to pay down old state debt, including making additional payments to the pension system, or inject the money into things like pay raises for teachers and infrastructure projects. This week, Governor John Bel Edwards vetoed portions of the proposed budget, his action redirecting money from paying down old unfunded liability debts to funding for early childhood education and the Louisiana Department of Public Health. Read more about the contentious decision here.
Be sure to check back next Friday for the latest news in the fight for a secure retirement! For now, sign up for NPPC News Clips to receive daily pension news from across the country directly to your inbox.
