August 29, 2012 - Legislative Update of FRS Retirement Lawsuit
On September 7, the Florida Supreme Court will hear oral arguments on the FRS co-pay law suit lead by the FEA and several other employee bargaining groups. The AFC is not a party to this suit however due to our strong working partnership on this matter with the FEA, School Supt’s and School Boards our concerns have been carried forward along with theirs. Certainly, whatever the decision, it will affect full-time employees at all our colleges. There is no timetable on when the court renders its final edict on the matter. It could be 3 days, three months, or even longer. Either way, if the suit holds, and one of the attorneys I met with yesterday is confident their argument is right, as evidenced by the Judge Fulford 2nd Circuit court ruling, the payback of 3% will probably become a significant budget issue and a negotiated process that could take much longer. Total dollars collected by December are estimated to be about $1.2B, none of which went into the FRS. It all went into general revenue to offset employer contribution costs across the system. So a general appropriation will need to be made in order to authorize the re-payment.