Bill > H0945

This bill modifies the cost-of-living adjustment (COLA) for members of the Florida Retirement System (FRS) by changing how annual benefit increases are calculated. For retirees with a retirement date before July 1, 2025, the COLA will continue to be calculated based on a factor that equals 3 percent multiplied by the proportion of service credit earned before July 1, 2011, but with a new minimum factor of 2 percent starting in July 2025. For retirees with a retirement date on or after July 1, 2025, the COLA will be simplified to a flat 2 percent annual adjustment. For first-time COLA recipients, the adjustment will be prorated based on the number of months they have received their initial benefit, multiplied by 2 percent. The bill also includes a legislative declaration that emphasizes the importance of providing fair and actuarially sound retirement benefits to state employees, their dependents, and beneficiaries, and states that the act serves an important state interest. The bill will take effect on July 1, 2025.

Government Affairs

https://www.flsenate.gov/Session/Bill/2025/945