Bill > S1126

This bill modifies the cost-of-living adjustment (COLA) for members of the Florida Retirement System (FRS), implementing changes to how retirement benefits are annually increased. For members who retired before July 1, 2025, the current COLA calculation will remain in place, with a factor calculated by multiplying 3 percent by the proportion of service credit earned before July 1, 2011, to total service credit, with a new provision ensuring the factor cannot be below 2 percent. For members retiring on or after July 1, 2025, a new COLA method will be introduced: those who have never received an adjustment will have their initial benefit increased by a percentage based on months of retirement divided by 12, multiplied by 2 percent, while those who have previously received adjustments will see their monthly benefit increased by a flat 2 percent. The bill also includes a legislative declaration affirming that providing fair and actuarially sound retirement benefits serves an important state interest, and the changes will take effect on July 1, 2025, giving current and future retirees clear guidance on how their retirement benefits will be adjusted for cost of living.

https://www.flsenate.gov/Session/Bill/2025/1126