Reuters logo
S&P sees pension ruling as credit positive for Florida
January 18, 2013 / 6:41 PM / 5 years ago

S&P sees pension ruling as credit positive for Florida

Jan 18 (Reuters) - Standard & Poor’s Ratings Services on Friday said a court ruling upholding a law requiring a 3 percent employee contribution and other state pension changes were a credit positive for AAA-rated Florida.

“While the decision is still subject to a rehearing motion, if final, the ruling should bring the state and participating governments long-term budget relief and enhance the retirement system’s funding over time,” S&P said in a news release.

Thursday’s ruling by the Florida Supreme Court in Tallahassee upheld a 2011 law and eliminates a risk of big paybacks, S&P said.

“The state had estimated that if the Circuit Court’s decision had been upheld, it would have had to pay an estimated $530 million to reimburse employees for fiscal 2012 contributions and could also increase Florida’s actuarial liability by an estimated $473 million for fiscal 2012 due to the reinstatement of the cost-of-living adjustment.”

The Florida Supreme Court order becomes final on Jan. 25, if no motion for a rehearing is filed by then, S&P said.

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below