A second retirement check less of option

Posted: June 4, 2012 at 8:21 am


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TALLAHASSEE Changes to the state employee retirement program aimed at eliminating abuses and excessive payouts are in place although a dwindling number of state government workers are still banking two retirement checks.

That second retirement check is quickly becoming a thing of the past and new hires must work longer to become vested in a retirement plan that is less lucrative than its predecessor.

Doing away with the double dipping was pretty much focused on elected officials and judges who were truly taking advantage of the system; it was shameful, state Sen. Mike Fasano, R-New Port Richey, said. Its frustrating to the average citizen and average taxpayer.

But almost 2,000 employees, including some prominent names, are still receiving two retirement checks and its all legal.

Former Secretary of State Kurt Browning retired in the spring of 2010 when he claimed a $426,897 payout from the states Deferred Retirement Option Program (DROP) in addition to a $7,273 monthly retirement and returned to the $140,000-a-year job in January 2011 before resigning a second time earlier this year.

The state paid nearly $5.8 billion to 319,689 retirees (an average of $18,066) in the fiscal year that ended June 30, 2011 and another 9,595 employees cashed out of the DROP program. Nearly half of the 643,000 active members in the Florida retirement system are teachers and other school district employees.

Under the new rules, employees are allowed to return to work if they sit out at least six months after cashing out of DROP. Previously they were able to return after 30 days.

Willie Meggs, a state attorney in Tallahassee, received $519,995 from DROP in late 2007 and began collecting a monthly retirement check of $8,468.32 but didnt retire. He took a month, as previously required, and returned to his $153,000-a-year job.

Obviously, they had to think people would come back after 30 days or they wouldnt have put it in there, Meggs said. They must have anticipated you would come back.

The recent legislative changes make it more difficult, if not impossible, for an elected official to circumvent the intent of the DROP since they would have to sit out for six months and the amount of money in the retirement account would be frozen and not earn interest during the period that individual would continue in their career.

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A second retirement check less of option

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June 4th, 2012 at 8:21 am

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