State/National News

State employees to see more retirement cuts on July 1

The retirement plans of about 100,000 Florida employees are about to change, after Governor Rick Scott signed a bill into law that allows employers to reduce the amount they pay into a 401-K type retirement plan. But as Sascha Cordner reports, the move could spur employees to start looking at other options.

Within the Florida Retirement System, there are two types of retirement plans: the pension plan and the investment plan. In the pension plan, employees receive a fixed benefit level. But, in the investment plan, employees could see losses or gains, depending on the fluctuation of the financial market.

Last year, all public employees, regardless of their retirement plan, had to start contributing 3-percent of their pay toward their plans.

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