{"id":20645,"date":"2025-11-26T13:34:10","date_gmt":"2025-11-26T13:34:10","guid":{"rendered":"https:\/\/news2.watchtowatch.top\/ll-florida-must-stay-the-course-to-pay-for-promised-pension-benefits\/"},"modified":"2025-11-26T13:34:10","modified_gmt":"2025-11-26T13:34:10","slug":"ll-florida-must-stay-the-course-to-pay-for-promised-pension-benefits","status":"publish","type":"post","link":"https:\/\/news2.watchtowatch.top\/?p=20645","title":{"rendered":"ll.Florida must stay the course to pay for promised pension benefits"},"content":{"rendered":"

\"ll.Florida<\/p>\n

Florida\u2019s retirement system for public workers is estimated to be 17 years away from eliminating expensive pension debt.<\/p>\n

Florida\u2019s retirement system for public workers, which covers most of the state\u2019s teachers, police, firefighters, and other government employees, is estimated to be 17 years away from eliminating expensive pension debt. However, this result will depend significantly on market outcomes. A recession during that period could undo years of progress and drive up costs for government budgets and taxpayers. Lawmakers in the Sunshine State need to stay the course and resist the temptation to add to pension promises while they remain several years away from being able to fund existing promises fully.<\/p>\n

A new\u00a0analysis\u00a0by Aon Investments USA Inc. (a market consulting company), commissioned by the Florida State Board of Administrators (SBA), predicts that the Florida Retirement System, FRS, is on track to eliminate all unfunded pension liabilities by 2042. Lawmakers reformed the system in 2011 by introducing a defined contribution (DC) option called the Investment Plan, and subsequently made it the default retirement plan for most new hires in 2018. These reforms have helped FRS make progress in closing what was a nearly $40 billion funding shortfall after the Great Recession.<\/p>\n

The latest reporting from FRS now gives the system an 83.7% funded ratio (up from 70% in 2009), indicating that the state has made progress but still needs to stay the course to return to its pre-recession, full funding status. According to Reason Foudnation\u2019s recently released\u00a0Annual Pension Solvency and Performance Report, one bad year in the market (0% returns in 2026) would essentially undo that progress, bringing the system\u2019s unfunded liabilities back to an estimated $40 billion overnight.<\/p>\n

Florida has a long way to go before catching up with its public pension promises\u00a0\"\"Source: Reason\u2019s Annual Pension Solvency and Performance Report, using FRS annual valuation reports.<\/p>\n

If market outcomes over the next two decades resemble those of the last 20 years, FRS won\u2019t achieve full funding anytime soon. The pension system\u2019s 24-year average return since 2001 is 6.4%, falling short of the plan\u2019s 6.7% assumption. According to Reason Foundation\u2019s actuarial modeling of FRS, this seemingly small 0.3% shortfall would push the date for reaching full funding out by another three years.<\/p>\n

Another major recession would also significantly derail the system. Reason Foundation\u2019s modeling indicates that an investment loss in 2026 similar to that of 2009 (a 20% loss) would result in a funding ratio of 62%, and it would take 15 years just to climb back to today\u2019s funding levels. The full funding date would extend well beyond 2055 in that scenario.<\/p>\n

Lower market returns would also drive up the annual costs of FRS, which taxpayers and lawmakers should be wary of. In 2024, employers contributing to the FRS pension paid an amount equal to around 12.7% of payroll (totaling $5.6 billion statewide annually). If everything goes as planned, with returns matching the system\u2019s assumptions, this cost will remain relatively stable and drop significantly once the system is free from pension debt. Under the scenario of a major recession, annual costs will need to rise to as high as 22.9% of payroll to maintain full pension benefit payments.<\/p>\n

A recession would necessitate much larger government contributions\u00a0\"\"Source: Reason actuarial modeling of FRS. Recessions use return scenarios reflective of Dodd-Frank testing regulations.<\/p>\n

When it comes to public pensions, policymakers can hope for the best, but they need to prepare for the worst. At a minimum, they should structure pension systems to withstand the same market pressures and funding challenges that created today\u2019s costly pension debt.<\/p>\n

Florida lawmakers should consider these risks as they weigh proposals to expand benefits. During the 2025 legislative session, lawmakers saw (and rejected) a proposal to unroll the state\u2019s crucial 2011 reform by again granting cost-of-living adjustments (COLAs) to all FRS members.<\/p>\n

Reason Foundation\u2019s\u00a0analysis\u00a0of the proposal warned that even under a best-case scenario, the move would add $36 billion in new costs over the next 30 years. A scenario in which the system sees multiple recessions over the next 30 years would have driven the estimated costs of the proposed COLA to $47 billion.<\/p>\n

For a pension fund that is still many years away from having the assets to fulfill existing retirement promises, the last thing it needs is to double down on more costs and liabilities.<\/p>\n

Current proposals to cut taxes in the Sunshine State should also factor into any consideration of granting additional pension benefits to public workers. A new\u00a0group of bills introduced in the state\u2019s House of Representatives\u00a0signals that lawmakers intend to offer several property tax-cutting measures to voters on the 2026 ballot. It is safe to say that the idea of increasing pension costs on Florida\u2019s local governments while simultaneously facing the prospect of reduced tax revenue is ill-advised.<\/p>\n

Through prudent reforms, Florida has made some laudable progress in improving the funding of its public pension system. However, the state is still several years away from achieving the end goal of all these efforts, and any level of market turbulence would push the finish line out by decades. Policymakers need to be aware of Florida\u2019s long-term pension funding strategy and avoid any proposals to add to the costs and risks imposed on taxpayers through new pension benefits.<\/p>\n

Investigative journalist John Solomon has issued a stern warning to government officials, using the recent indictment of former FBI Director James Comey as a cautionary tale.<\/p>\n

Solomon, known for exposing corruption within the intelligence community, emphasized that Comey\u2019s legal troubles should serve as a wake-up call.<\/p>\n

\u201cThe James Comey case is just the tip of the iceberg,\u201d Solomon said. \u201cIf you abuse your power, if you lie to Congress, there will be consequences.\u201d<\/p>\n

He pointed to Comey\u2019s mishandling of the Hillary Clinton email investigation as one example of bureaucrats acting above the law.<\/p>\n

\u201cThis isn\u2019t about politics,\u201d Solomon added. \u201cIt\u2019s about accountability. People who think they\u2019re untouchable are being reminded that no one is above the law.\u201d<\/p>\n

Solomon warned that other officials could face scrutiny if investigations continue. \u201cThere are others in the system who think they can play fast and loose with the rules,\u201d he said.<\/p>\n

He praised President Donald J. Trump\u2019s administration for pursuing justice. \u201cThe fact that Comey has been indicted under Trump\u2019s DOJ shows that corruption will not be tolerated,\u201d Solomon explained.<\/p>\n

Solomon also highlighted the importance of transparency in government, stressing that public trust depends on holding officials accountable.<\/p>\n

\u201cThe American people deserve honesty,\u201d he said. \u201cThey need to know that the people in charge are not manipulating investigations for personal or political gain.\u201d<\/p>\n

He referenced recent revelations about misuse of surveillance powers, saying, \u201cThese actions have real consequences. People who think they can operate in the shadows will be caught.\u201d<\/p>\n

Solomon noted that Comey\u2019s indictment sends a message to other deep-state operatives. \u201cIt\u2019s a warning shot,\u201d he said. \u201cFollow the law, or face prosecution.\u201d<\/p>\n

The journalist also discussed the broader impact on federal agencies, suggesting that the culture of impunity may be coming to an end.<\/p>\n

\u201cThis is a historic moment,\u201d Solomon said. \u201cWe\u2019re seeing accountability being restored in agencies that have long acted above the law.\u201d<\/p>\n

He called on Congress to support oversight efforts, ensuring that no official is able to evade responsibility.<\/p>\n

\u201cThis is a test for our democracy,\u201d Solomon said. \u201cIf leaders can commit crimes without consequences, the system fails.\u201d<\/p>\n

Solomon praised Trump\u2019s DOJ for acting decisively. \u201cThis is what leadership looks like. When you see wrongdoing, you take action, no matter how powerful the person involved may be.\u201d<\/p>\n

He also stressed the importance of media scrutiny. \u201cInvestigative reporting matters. Without journalists asking hard questions, abuses would go unnoticed.\u201d<\/p>\n

Solomon warned that the ripple effect of Comey\u2019s indictment could reach beyond Washington. \u201cOther states and agencies should take note \u2014 accountability is coming.\u201d<\/p>\n

He highlighted that whistleblowers and insiders have a role to play. \u201cIf you see misconduct, report it. The system is listening now.\u201d<\/p>\n

Solomon said he expects further revelations as investigations continue. \u201cThe Comey case is not an isolated incident. There are others whose actions will soon be exposed.\u201d<\/p>\n

He noted that this era could be a turning point in restoring public trust in federal institutions. \u201cThis is about cleaning house and restoring integrity,\u201d Solomon said.<\/p>\n","protected":false},"excerpt":{"rendered":"

Florida\u2019s retirement system for public workers is estimated to be 17 years away from eliminating expensive pension debt. Florida\u2019s retirement system for public workers, which covers most of the state\u2019s teachers, police,…<\/p>\n","protected":false},"author":1,"featured_media":20644,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-20645","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-breaking-news"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/news2.watchtowatch.top\/index.php?rest_route=\/wp\/v2\/posts\/20645","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/news2.watchtowatch.top\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news2.watchtowatch.top\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news2.watchtowatch.top\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/news2.watchtowatch.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=20645"}],"version-history":[{"count":0,"href":"https:\/\/news2.watchtowatch.top\/index.php?rest_route=\/wp\/v2\/posts\/20645\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news2.watchtowatch.top\/index.php?rest_route=\/wp\/v2\/media\/20644"}],"wp:attachment":[{"href":"https:\/\/news2.watchtowatch.top\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20645"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news2.watchtowatch.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20645"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news2.watchtowatch.top\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20645"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}