The state should ensure that excessive resources are not committed to funding teachers' pension systems.
As of July 1, 2015, the most recent date for which an actuarial valuation is available, Florida's teacher defined benefit pension plan is 89.4 percent funded, an increase of 0.9 percentage points since NCTQ's last report. Its current pension debt exceeds $2,000 per pupil throughout the state. Florida also has an amortization period of 26 years. This means that if the plan earns its assumed rate of return of 7.65 percent and makes its full actuarially determined contribution payments, it would take the state 26 years to pay off its unfunded liabilities. Both levels are better than regulatory recommendations, and Florida's system is financially sustainable according to actuarial benchmarks. Further, Florida's defined contribution plan is fully funded and sustainable. E
mployers make mandatory payments credited to teachers' individual accounts.
Florida does not commit excessive resources toward its teachers' retirement system. The current employer contribution rate of 6.21 percent to the defined benefit plan and 3.30 percent to the defined contribution plan are both reasonable, in light of the fact that local districts must also contribute 6.2 percent to Social Security. The rate is determined according to statutory requirements, which mandate that the employer contribution rate must be equal to an actuarially determined rate in order to provide sufficient assets to pay benefits when due. All employees contribute 3 percent to their choice retirement plan.
Florida Retirement System Pension Plan, Actuarial Valuation Report as of July 1, 2015.
Florida did not respond to repeated request to review this analysis.