Fla. Governor Signs Measure to Reduce 401(k) Contributions

April 23, 2012 (PLANSPONSOR.com) – Florida Governor Rick Scott signed a measure to reduce contributions to public employees’ 401(k)-style accounts.  

The bill will reduce state contributions to retirement accounts in its defined contribution (DC) plan. It will also lower contribution rates for optional retirement programs at colleges and universities, reports The Current.

This will save the state and local governments an estimated total of more than $175 million in the upcoming year, according to the news report. The measure will bring the investment plan’s costs to state and local governments more in line with those of the defined benefit (DB) plan.