Teachers not happy over 3 percent pay cut

Published 1:51 pm Wednesday, June 29, 2011

The Florida Education Association filed a class-action lawsuit last week as a challenge to a new law that takes effect Friday that will force state and other public employees to chip in to the state pension system.

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The FEA claims last month’s legislative decision to require state employees to contribute three percent of their annual salary to the state retirement fund violates contractual and collective bargaining rights. State employees have not been required to pay into the pension since legislation that took place in the 1970s.

The local teachers union said while it’s not joining the lawsuit, it supports it fully.

“Absolutely, we would love to see this resolved in a manner to where teachers won’t have to pay the three percent towards their own retirement,” said United Teachers of Suwannee County president Jackie Ford.

Ford said that teachers were told when hired they would never have to contribute to their retirement.

“We are disappointed, we are in essence taking a three percent pay cut to have to contribute to our retirement,” she said.

State workers view the new legislation as government going back on its word, said Suwannee School Board member Jerry Taylor.

“I understand balancing the budget, but balancing the budget on the backs of teachers, policemen and firefighters isn’t right,” Taylor said.

Many who hold these jobs have not had raises in years and see the contribution rather as a tax or pay cut. This was evident last week when the Florida Police Benevolent Association filed a motion to join the suit by Florida’s teachers. Eleven other plaintiffs have also been named.  

Live Oak Police Chief Buddy Williams said it’s mostly correctional officers from the PBA who have joined together in the lawsuit, and said he doesn’t mind chipping in.

“For me personally, I don’t mind contributing to my pension plan,” he said.

Williams was at a conference Tuesday morning to learn more on the matter.

City of Live Oak Finance Director Jan Parkhurst said those who rely on a state pension will actually see less going into their accounts. She said last year the employer contribution rate for regular employees was 10.7 percent. The employee will now only receive 7.91 percent – 4.91 percent from the employer and 3 percent being added by the employee. For special risk employees – firefighters, police – last year’s contribution rate was 23.25 percent by the employer. Now, the employee will receive 17.10 percent contribution with the employer contributing 14.10 percent.

The FEA called the measure an “unfair” move by the Legislature to use teachers, law enforcement officers, firefighters and others to shore up a hole in the state budget.  

But with local law enforcement and schools straining under years of budget cuts, officials say this is just another hit.

“It’s essentially a tax that’s being imposed on a certain group of people, many who haven’t had a raise for years,” said Taylor.

Florida Gov. Rick Scott is standing behind GOP legislative leaders, however. According to Scott, asking state employees to pay a “small percentage” into their pensions is common sense.

“Floridians who don’t work in government are required to pay into their own retirement. This is about fairness for those who don’t have government jobs. Plus, we are ensuring a pension will be there for state employees when they retire,” Scott said.

Scott has said the three percent contribution will save the state $769 million annually.

FEA is expected to further challenge other measures passed by the state Legislature, such as SB 736, which forces teachers pay to be determined largely by their students performance on standardized tests.

“Promises are hard to back out on,” Taylor said.