In a long awaited opinion, Judge Jackie Fulford issued a decision on March 6, 2012, in which shedeclared unconstitutional a requirement that government employees in Florida contribute 3% of their earnings to a state retirement fund (i.e., the Florida Retirement System). Judge Fulford wrote in her opinion that the Legislature committed “an unconstitutional impairment of plaintiff’s 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.” This ruling could cost the state more than $1 billion a year. The ruling does not impact the 3% contribution to the state retirement fund from employees hired after July 1, 2011, when the law went into place.
The Legislature passed the law last year as a cost-cutting measure because it allowed the state and local governments to reduce their contributions to the pension plan. In addition to mandating the 3% contribution, they increased the retirement age for some classes of workers and lowered benefits for employees. Those other changes were not considered in the Judge’s ruling. The state is expected to file an appeal and the decision will likely end up in front of the Florida Supreme Court.
Author(s): Brett J. Schneider & Raquel Elejabarrieta
