Scott v. Williams
107 So. 3d 379
| Fla. | 2013Background
- SB 2100 (2011) amended chapter 2011-68, converting the Florida Retirement System (FRS) to contributory and eliminating retirement cost-of-living adjustments for post-June 30, 2011 service.
- Pre-2011 FRS was noncontributory for most public employees and provided an annual 3% COLA.
- Preservation of Rights statute (Fla. Stat. 121.011(3)(d)) declared rights of FRS members contractual and not to be abridged as of July 1, 1974.
- Circuit Court held the amendments impaired contract rights, violated takings, and abridged collective bargaining.
- State appealed, contending the amendments are facially constitutional and do not impair contractual rights or take private property.
- Majority reverses, holding amendments constitutional on facial review and not impairing contract rights.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Contract impairment under preservation of rights | Challengers: rights vest upon employment; amendments abridge contract | State: rights are prospectively alterable; statute permits changes | Amendments do not impair contract rights; preserved rights are prospectively alterable |
| Takings clause application | Contributions and COLA elimination constitute a taking without just compensation | No taking; changes are within legislative power and do not deprive vested property rights | No unconstitutional taking established on facial challenge |
| Collective bargaining rights | Amendments extinguish or render futile bargaining on retirement benefits | Retirement topics remain subject to bargaining; amendments do not prohibit bargaining on retirement issues | Facial challenge to collective bargaining rights rejected; no effective prohibition found |
| Prospective vs retroactive effect | Changes create lasting effects on preexisting members even though effective after July 1, 2011 | Lawful prospective changes within legislature’s authority | Changes are prospective within authority; not retroactive impairment |
| Facial constitutionality of SB 2100 | SB 2100 unconstitutional under several constitutional provisions | SB 2100 facially constitutional; within legislative powers | Challenged provisions facially constitutional |
Key Cases Cited
- Florida Sheriffs Ass’n v. Department of Administration, 408 So.2d 1033 (Fla.1981) (preservation of rights allows prospective changes but not abolishing core rights)
- U.S. Trust Co. of New York v. New Jersey, 431 U.S. 1 (U.S. 1977) (contract impairment test requires reasonableness and necessity plus alternatives)
- Chiles v. United Faculty of Florida, 615 So.2d 671 (Fla.1993) (compelling state interest required; no other reasonable means)
- Pomponio v. Claridge of Pompano Condominium, Inc., 378 So.2d 774 (Fla.1979) (balancing impairment against state interest; as to extent of impairment)
- State v. Gadsden County, 229 So.2d 587 (Fla.1969) (legislature can grant contract rights to future legislatures)
- Voorhees v. City of Miami, 199 So. 313 (Fla.1940) (retirement rights may be altered if not binding contractual limitations)
- Florida Police Benevolent Ass’n, Inc. v. State, 613 So.2d 415 (Fla.1992) (appropriations context; not dispositive on collective bargaining changes)