House Releases Projected Savings for Pension Reform Bill (HB 7011)
The House staff has reviewed and released the latest actuarial study of the House Pension Reform Bill (HB 7011). According to the Milliman study -- not accounting for "intervening variables and variations in assumptions" the bill would incur the following costs and savings:
· An estimated $9.8 billion in savings to taxpayers in 2042-43.
· An estimated $2.1 billion in savings to taxpayers in 2023-24.
· No cost in the first fiscal year of the implementation and a modest $2.7 million cost in FY 2014-15.
· First savings realized in 2015-16 ($12.9 million).
· Reduction in taxpayer risk as taxpayer savings increases.
The House Pension Reform Bill would close Florida's 623,000-member pension system to new employees as of 2014 and instead direct them to a 401(k)-style option.