TALLAHASSEE, Fla. (AP) — A Senate panel has cleared a bill aimed at overhauling the state retirement system but keeping the option for a traditional pension.
The Appropriations committee initially approved the bill (SB 1392) by a largely party-line 14-5 vote on Thursday. It next goes to the full Senate.
The bill keeps traditional pensions but makes 401(k)-style investment accounts the default option for new hires.
The move sets up a showdown with the House. It passed a bill that grandfathers people into their existing pensions but does away with guaranteed pensions for workers hired as of Jan. 1, 2014.
More than 900,000 current employees and retirees belong to the state's pension plan.