This story originally appeared in VSEA’s Week In Action Newsletter. Subscribe here!
Governor Scott now says he wants to provide new state employees with an option to join a defined contribution (DC) pension plan (a.k.a. 401K) versus enrolling in the much-favored defined benefit pension plan. While this is a good soundbite, do employees really want to be able to choose? Good question.
The last time the “let’s give employees a choice” idea looked to have any legs was 2018, and VSEA asked the State to see how many exempt employees have opted to join the DC Plan since the choice was first granted to the class in 2011.
Here are the yearly percentages:
- 2011 39%
- 2012 38%
- 2013 38%
- 2014 37%
- 2015 34%
- 2016 33%
- 2017 30%
- 2018 30%
- 2019 33%
- 2020 31%
- 2021 30%
The takeaway here is defined contribution plans remain a tough sell, even to exempt state employees–and for good reason. Also, if 30 percent of classified employees were the choose a 401k plan, the harm to the defined benefit plan’s funding would be huge–a reality you can bet is not lost on the State.
Keep Calling & Emailing!
VSEA is encouraging members to continue calling the Governor at (802) 828-3333, or e-mailing him using this link. Tell him you want him to support both the pension bill and the State budget. A deal is a deal.
See Also:
- Study Finds Retirees With 401ks Not Doing Well On Investing
- ACTION ALERT! Governor Scott Threatens To Reopen Pension Fight!
- View Recent VSEA Pension Posts
Questions About This Page?
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