by Randall G. Holcombe
James Madison Institute
April 30, 2014
Policy Brief
Proposals to reform the Florida Retirement System (FRS) for government employees have created a lively debate regarding the type of reform desirable and the necessity of reform. FRS is currently funded at about 85 percent. This does not put it in immediate danger, and the current system provides guaranteed benefits to retirees, offering them some degree of financial security on retiring. The argument against reform: not only is the current system not “broken,” but it is working well. However, other government pension plans across the nation—and even many local Florida government plans—are not in such good shape. The time to look at reform is not after the system is broken, but rather before it runs into problems. In the long run, the best reform would privatize state pensions and have them managed by private investment firms.

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