Nearly seven months after Florida Gov. Ron DeSantis released his “Freedom First Budget” recommending an improved defined contribution retirement benefit for teachers and most public employees statewide, House Bill 5007 (HB 5007), which grants a 3% benefit increase to all active plan members, is now law. Over 180,000 educators, administrators, and other government workers participating in the default Florida Retirement System Investment Plan are slated to receive the additional 3%, effective July 2022.

With this move, Florida continues to demonstrate its commitment to maintaining a retirement system that works for both taxpayers and public workers. It will align the state’s default defined contribution retirement option offered to most newly hired public workers with private-sector retirement contribution best practices. This will have the long-term effect of mitigating financial risk to taxpayers while improving employees’ ability to contribute to a secure, future retirement no matter how long they work in public service.