Politics

State Files Appeal of Judge Jackie Fulford's Pension Fund Ruling

By: Jim Turner | Posted: March 7, 2012 4:45 PM

Jeff Atwater, Rick Scott and Pam Bondi

CFO Jeff Atwater, Gov. Rick Scott and Attorney General Pam Bondi | Credit: Gage Skidmore - Flickr


RELATED: Budget process unaffected, lawmakers say.

The governor’s office wasted little time filing an appeal to Circuit Judge Jackie Fulford’s ruling Tuesday that requires all state employees to contribute 3 percent of their pay toward the pension program.

“Defendants, RICK SCOTT, JEFF ATWATER, and PAM BONDI, in their capacities as the STATE BOARD OF ADMINISTRATION; and JOHN P. MILES, Secretary of the Department of Management Services, appeal to the District Court of Appeal, 1st District of Florida, the order of this court rendered March 6, 2012,” the appeal filed Tuesday night simply stated.

House Speaker Dean Cannon, R-Winter Park, told reporters he doesn't expect the ruling by Circuit Judge Jackie Fulford on Tuesday to create a budget crisis as the session winds down.

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"I think, more so, it validates the wisdom of always having $1 billion in reserve," Cannon told reporters following the ruling. “That’s the position the House has long insisted upon in our budget negotiations. It’s the type of thing that just preserves the state’s credit rating, bond rating with the agencies."

Fulford's ruling that the state requirement that all employees -- regardless of when hired -- pay 3 percent of their pay into the Florida Retirement System is unconstitutional could mean a refund, with interest, to the more than 655,000 state and local government workers who pay into the Florida Retirement System.

However, state leaders have said they will appeal the ruling by Fulford, an appointee of former Gov. Charlie Crist, and expect to ask for a stay on the repayment.

The Florida Education Association, which filed the lawsuit with a number of public-employee unions, contends legislators violated the state Constitution, which requires contract changes to be negotiated through collective bargaining.

The union didn’t argue against the state requiring employees hired after July 1, 2011, when the law went into effect, to pay into the Florida Retirement System.

In her ruling, Fulford stated that she was interpreting the law.

“The 2011 Legislature, when faced with a budget shortfall, turned to the employees of the state of Florida and ignored the contractual rights given to them by the Legislature in 1974,” Fulford wrote.

“Considering the entire record before it, this court finds that certain provisions of Senate Bill 2100 constitute an unconstitutional impairment of plaintiffs’ contract with the state of Florida, an unconstitutional taking of private property without full compensation, and an abridgement of the rights of public employees to collectively bargain over conditions of employment.

“To find otherwise would mean that a contract with our state government has no meaning,” she added.



Reach Jim Turner at jturner@sunshinestatenews.com or at (772) 215-9889.

Comments (16)

Mike
4:05PM JUL 26TH 2012
what is the date for rick scotts appeal
Michael
12:42AM MAR 21ST 2012
I am a teacher. I will pay the 3% without complaining. My problem is the pension has to be adjusted or my salary needs to be raised. I accepted a lower salary and crappy multiplier with the promise that my pension would be fully funded. I'm fine with changing to the 3%, but up my salary and multiplier so I can get what a teacher deserves.
Morphine10
5:17PM MAR 9TH 2012
When your house is on fire or there are major wildfires threatening houses and your house, when your child stops breathing and you call 911, when dear old gram gram has a stroke, when your trapped under a semi and in need of care -even though you were texting-, when there are school massacres and your family is at risk, when terrorist attack and we go in without regard to life and limb and sometimes die....do you think to yourselves......

"Man if I could just take this guy's salary to balance the state budget, I mean, I know he works holiday's, misses anniversaries and works for less money than me, I know that he is 50% more likely to die of a heart attack from springing into action at 3 AM and I know he has had friends die on the job while helping people like me and my family, butttt..... Who cares, take it Ricky, screw him for helping us out"

How about this, next time you call 911, what if it took 3% longer for help to get there (btw fire quadruples in size every couple of minutes, and an unshocked heart starts dying after just 2 minutes). How about if these guys let 3% of your homes burn, or let 3% of your families suffer....

Don't worry, we won't ever do this but 3% isn't so small after all is it?
Al Moncrief
6:26PM MAR 8TH 2012
COLA LAWSUIT VICTORY IN FLORIDA! – FLORIDA JUDGE: IT’S ILLEGAL TO TAKE EVEN FUTURE COLA ACCRUALS FROM EMPLOYEES, LET ALONE COLA BENEFITS THAT HAVE ALREADY BEEN EARNED AND ACCRUED (SEE: COLORADO GENERAL ASSEMBLY, SB1.)

The Florida Legislature attempted pension reforms that were not nearly as aggressive, in terms of risk of unconstitutionality, as those adopted by the Colorado General Assembly. Nevertheless, the Florida Legislature has been smacked down by the courts.

Here are some noteworthy portions of the Florida ruling:

“This court cannot set aside its constitutional obligations because a budget crisis exists in the state of Florida. To do so would be in direct contravention of this court’s oath to follow the law.”

“To find otherwise would mean that a contract with our state government has no meaning.”

“There was certainly a lawful means by which they could have achieved the same result.”

“Florida law is clear that a legislature can, as part of its power to contract, authorize a contract that grants vested rights which a future legislature cannot impair.”

“The elimination of the future COLA adjustment alone will result in a 4 to 24% reduction in the plaintiffs total retirement income. These costs are substantial as a matter of law.”

“Where the state violates its own contract, complete deference to a legislative assessment of reasonableness and necessity is not appropriate because the state’s self-interest is at stake.”

“All indications are that the Florida Legislature chose to effectuate the challenged provisions of SB 2100 in order to make funds available for other purposes.”

“If a state could reduce its financial obligations whenever it wanted to spend the money for what it regarded as an important public purpose, the Contract Clause would provide no protection at all.”

“The Takings Clause is intended to prevent the government from forcing some people alone to bear public burdens, which in all fairness and justice should be borne by the public as a whole.”

“Defendants are further ordered to reimburse with interest the funds deducted or withheld . . . from the compensation or cost-of-living adjustments of employees who were members of the FRS prior to July 1, 2011.”

Here’s hoping that one day Justus will prevail in Colorado.
A Buchanan
12:15AM MAR 8TH 2012
If the judge is indeed correct about the contracts, then they should be honored. Eventually a bankruptcy court can void or restructure the contracts, albeit after the damage to the municipalities and counties is done (cuts in government employees and services in order to pay public employee retiree pensions and healthcare costs). Reference Vallejo CA four years ago and Stockton CA now (and many more to come), both the result of unsustainable public employee benefits costs. Google them. I was going to retire to FL, now might go to Tenn or TX. As a systems engineer and native Floridian now in Cali, I do admire Gov Scott's initiative to increase Science, Tech, Engineering and Math (STEM) education. STEM is critical for FL to become something more than a vacation destination.
Mikey
11:54PM MAR 7TH 2012
Scott is wasting millions of tax payer dollars to fight this lawsuit... and how is he able to go over the per hour cap for lawyers that is built into Florida law??
Harold
11:21PM MAR 7TH 2012
This ruling is ludicrous. Most states around the country require salaried state workers to dedicate a portion of their salary to their own retirement. The idea that an early 1972 deal negotiated on behalf of the unions can never be changed by law is ridiculous.

Just a pandering judge who sees no downside in making a bunch of state workers in her area happy.

You state workers are a bunch of crybabies. 3% is the end of the world? Go live in the real world.
AC
10:50PM MAR 8TH 2012
It seems that you are ignorant to the fact that with police, we started at a lower salary, 7k to 12k a year lower because we didn't have to pay into our pension. I could have went to a department starting out at a 12k higher salary with the expectation to pay 3% to 5%. I took the lower salary for my pension to be covered 100%. Now they say I have to pay and my salary doesn't increase for it? Double whammy. I was hired with a contract. It's like if you have a 30 year mortgage on a house and 15 years in the bank says "um,,,yeah, we need to change this...for our benefit." Not fair.
patoolla
1:21PM MAR 8TH 2012
The ruling is not ludicrous.. She is correct.. When is it ever appropriate to alter a contract without the agreement of both parties.. Never... Take 3% of your income without choice and see how you like it.. I agree that they can alter the contracts of employees who started after July2011, but you should not mess with those who have a current contract in place.. Rick Scott is a crook...
D.S.
12:48PM MAR 8TH 2012
The issue is not whether a 3% contribution is fair and that is why the judge did not rule on the "fairness" of that contribution, (it may or may not be perfectly fair). The question is can the legislature (or any other party to a contract) unilaterally amend that contract. I think that the answer is no. While the goal may be great, the method has to be legal and correct.Otherwise why bother with a contract.
Step
10:44AM MAR 8TH 2012
Most states around the country pay better salaries than Florida does.

Exactly how long do contractual obligations last?
Doris
11:57PM MAR 7TH 2012
Let them take 3% of whatever government assistance program you're on and see how you like it.

Florida has the best funded retirement system in the US, if those other states did they wouldn't NEED to have their employees pay into it.. Just like Florida doesn't NEED to have anyone pay into it.
Guest
8:03PM MAR 7TH 2012
They've now spent 800K of taxpayer's money on trying to cheat a bunch of nurses, policemen, firefighters and teachers. These people have no shame-crooks and idiots trying to get away with murder.
Guest
8:02PM MAR 7TH 2012
They've now spent 800K of taxpayer's money on trying to cheat a bunch of nurses, policemen, firefighters and teachers. These people have no shame-crooks and idiots trying to get away with murder.
A.J.
11:34AM MAR 8TH 2012
Amen. Unless you are one fo the underpaid (teacher, policeman, firefighter...) you can never understand that
Andrew Nappi
6:05PM MAR 7TH 2012
The Department of Management Services already has $300,000 for a Rick Scott connected law firm who rightfully lost this case, to handle the appeal. Scott, Cannon and especially that little weasel Haridopolis are doing what they are best at, hiring cronies at taxpayer expense. This decision is correct, like it or not.
Understand that Rick Scott should be being provided with publicly paid housing, just not the governor's mansion. He is as phony and bent as the day is long. Check his record on Obamacare- he already took millions from legislation he says is no law at all. Check his record on Agenda 21- he is a supporter of so called "green sustainability." Republicans had a choice in 2010 between the turd, McCollum, and the phony, Scott. In the end, the odor is indistinguishable. Rick Scott- claims he wasn't an Insider but spent 70 million buying his way into them. As for Cannon and Haridopolis, there is less talent there than than the '62 Mets. Let's not make these mistakes over and over and over electing these imbeciles. Check out Liberty Take Over 2012 dot com. We need to put real people back in Florida's government.

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