Government Pensions and Benefits
The defined benefit pension plan given to many government workers is not sustainable. In 2007 the Florida Retirement System was underfunded by $40 billion. My plan to eliminate the risk to taxpayers is to create a two tier pension system in Florida. All current employees can enjoy the retirement plan they are enrolled in. All future employees in Florida must go into a defined contribution plan. Like a 401K, the employer gives the employee an annual pension contribution and does not guarantee a salary for life.
The private sector went to a defined contribution plan long ago and it is time to bring government pensions into the 21st century.
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