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Florida CFO on Pension Battle

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    Florida Chief Financial Officer Jeff Atwater on the state's new pension law.

  • Duration 3:50
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Show well one big pension battle is heating up in Florida in new law there requires all state employees to contribute 3% of their salaries toward their pensions.

And now being challenged in court.

All lawsuit filed by the Florida teachers union -- -- Florida's governor attorney general and the CFO Jeff Atwater who happens to be with us here.

We'll in the balance tell us about.

First of all this -- for people aren't following what's happening in Florida.

What -- you guys aim to do here surely begin though there are there three principles of the pension system of course to to set the right benefits to begin with -- generously.

Rich not -- early hard.

You contribute if you go along and make the contributions you go along and that you have an investment portfolio planning process that works for you.

So in Florida.

We had the size it up we have been well funded I think any state in the country would say we've been the envy of the pension world.

But it came to a point we always need to think ahead and -- structurally balanced so all we have -- of our state employees employees is that.

They would begin the process of doing every other state in the union with making a contribution to their own retirement the taxpayers of course are not only trying to cover their own retirement.

You have -- -- -- and plan to begin with they may be contributing their own 41 K.

So they've been paying full pension for all of us who have worked for the state it was a fair request to make any 3% number.

As you know many state -- now you got.

-- and -- the question is.

At what point does this get resolved because once it's in the court system good luck it will -- but but we feel very good news.

The legislature has a responsibility to manage and establish the partners of the pension system and civil legislature.

Made the right call it's time for all of us to be -- all of us to have.

A skin in the game and so the FDA regrettably has chosen to go this route but but that's where it will be resolved now tell me.

How much -- big picture how much progress you guys are making in Florida trying to get the economy turned to run you're here in New York meeting -- investors never charged.

Now the numbers I saw and correct me if any of this is wrong is that the governor Rick Scott at setting goals that we -- -- create 700000 jobs in seven years.

And people who track that as of now say the pace is only for about -- 175000.

Jobs over the seven years that tells me -- You're running behind we have a lot of work to do -- -- well.

It's it's fair we do have some work to do but -- has been seen for years.

By anybody who would take an interest CEO magazine.

And others Tax Foundation we've been -- we've -- business friendly place and that's where our focus remains now.

Are the center of the universe is not the state capital if we can create creating the environment for success.

Intellectual capital flows investment capital flows and so this past year we've reduced property taxes again in the session we reduced the already low corporate income tax.

And there's no personal income there's no personal income tax we've already eliminated the intangibles tax.

But to that point we had the governor there writing a letter to -- CME group saying come on down but have you had any success at getting businesses to move from other.

Higher tax states to Florida could you need something to offset the huge loss of construction jobs.

We did and there was a loss of construction jobs during.

During certainly an accelerated run -- that we had.

There is that there is that you mentioned that some of these jobs are coming back now about 80000 in the first five months of this year.

Have been in health care industry we had been recruiting over the last couple of years have brought.

Real giants in the India life -- Scripps Research Institute came from California -- came to Florida.

-- plane came from Germany Torrey Pines came from California and we had -- those but we had to diversify our economy for the long run in Florida so.

Yes there is a tremendous amount of interest and of other states continue right.

Think that the center of the universe is the state capital will keep creating an environment for success for both -- -- covenant here talking with us that today you bet thanks for having me Jeff Atwater is the chief financial officer in the --

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