Recognizing a significant shortcoming in the Florida Retirement System’s Investment Plan (FRS IP), the state legislature recently took substantial action to address the problem by passing House Bill 5007, which was signed by Gov. Ron DeSantis last week.
It is generally recognized that a defined contribution structured retirement plan needs a contribution rate of between 12% and 15% of a worker’s salary (where employees participate in Social Security) to produce an income that is likely to maintain the employee’s standard of living once they are in retirement. For teachers and most other non-safety public workers in Florida, the contribution rate
