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The association for administrators, district superintendents, principals, assistant principals, supervisors and those who support the public schools of Florida. |
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MESSAGE FROM EXECUTIVE DIRECTOR, JUHAN MIXON ED.DOriginally published Friday, February 3, 2012.  This week the House passed their budget bill out of the Appropriations Committee. Part of the bill relates to the Florida Retirement System (FRS) and changes to rates for DROP. While there is no increase in the FRS assessment to employees in this bill or in any other bill that is currently in the process, there is a proposed increase of 0.37% on the employer rate for Regular Class employees. This would change from 3.28% to 3.65%. The FRS employer rate for DROP employees is also proposed to change from 3.31% to 4.33%, an increase of 1.02%. These are the two classes that make up almost all of the FRS employees in school districts, and there are nominal changes in the other employer rates for the other classes of employees.The Unfunded Actuarial Liability (UAL) employer assessments for FY 2012-2013 are not changed from the rates charged to employers in FY 2011-2012. Which means Regular Class employees will remain at .49% and DROP Class employees will remain at 0.00%. The on-going employer assessments of 1.11% for the Retiree Health Insurance Subsidy (HIS) and .03% for education and administration for Regular, DROP and all other classes continue and are unchanged from FY 2011-2012. The House estimates the changes in rates will cost school districts an additional $99.4 million for FRS assessments in FY 2012-2013. Although the Senate has not yet released its appropriations allocations or bills, it has estimated the costs of the FRS rate increases for FY 2012-2013 to school districts would be $99.3 million. The Governor’s budget estimated that the cost of FRS rate increases to school districts in FY 2012-2013 would be $164 million. The Governor’s costs were based on increases in the UAL rates for Regular and other class employees that were placed in the law during the 2011 regular session of the Legislature. Both the House and Senate are expected to be on the floor next week and the Senate is still developing their spending plan. Watch for updates on this bill and others via email. You can also view the major bills and their status on the FASA 2012 Legislative webpage. Previous Messages from the Executive Director
February 3, 2012
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