Retirement

• No employee contribution required. Our members will not be required to personally contribute any percentage of their pay for retirement. Current law is maintained. This is a big win.
• Heath Insurance Subsidy (HIS) – no FRS member will lose this subsidy. Current law is maintained. This is another big win.
• DROP – The program maintains current law for members currently in DROP. However, as of July 1, 2010, all new enrollees in DROP, the interest rate has been dramatically reduced from 6.5% down to 3%.

Significant changes were suggested to all of these programs for ideological and financial reasons but due to public pressure by FEA members sending emails and making phone calls to their legislators those changes failed to be included in the final legislation.

A recent OPPAGA report showed a potential $15.4 billion shortfall in future payments helped spark debate about forcing the state's 27,000 workers to pay into the fund. Most of that fund deficit has been erased, which eased the call for changes.