Today, FEA President Andy Ford sent a letter to Gov. Crist asking him to veto HB 5601, a conforming bill that passed during the final hours of the 2010 FL Legislature (copy of the letter is attached, and included below).  To read President Ford’s veto request, click on attached copy (below).

As reported in the FEA “Final Retirement Update – 2010 Legislative Session” which was emailed to you on May 3, 2010, a provision reducing the interest rate on accumulating DROP benefit deposits passed both the House and the Senate and is included in the final budget/appropriations bill.  This means that for anyone “entering DROP on or after July 1, 2010, the interest accrues at an effective annual rate of 3.0 percent compounded monthly, . . .”.  This is a reduction from the current DROP interest rate which is 6.5%.

The FRS system maintains current law for members currently in DROP.  Additionally, the FRS Annual cost of living increase of 3% remains unchanged.

To read HB 5607, click on the link below:

http://www.myfloridahouse.gov/Sections/Documents/loaddoc.aspx?FileName=_h5607er.docx&DocumentType=Bill&BillNumber=5607&Session=2010

Pat Dix, J.D.

FEA Public Policy Advocacy

Florida Education Association

213 S. Adams Street

Tallahassee, FL 32301-1720

850-224-2078 Phone

850-224-9294 Fax