Florida Retirement System Underfunded
By Hannah Carroll, News 20 at Five
A report released Monday by the Florida State Board of Administration shows that the Florida Retirement system is underfunded by 13.1 percent.
The gap has now grown to 19.2 billion dollars. The gap is between the amount of money it currently has and how much it needs in the future. According to financial specialists, this gap is still within a healthy range, but it is still a cause of concern.
June Johnson is a former Leon County school teacher. She has been retired for 19 years so this issue is not affecting her directly. She is concerned for her family members that will be retiring in the future.
“I’m concerned for my grandkids because I think it will go down to them. I know that we cannot maintain the same rate of spending that we have had.”This is the fourth year the fund has been underfunded. The main cause for this deficit is due to the 2008 financial crisis. The state plans on using investments in order to help close this retirement fund gap.