Bill Text: FL S1126 | 2025 | Regular Session | Introduced

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Bill Title: Cost-of-living Adjustment of Retirement Benefits

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2025-02-25 - Filed [S1126 Detail]

Download: Florida-2025-S1126-Introduced.html

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       Florida Senate - 2025                                    SB 1126
       
       
        
       By Senator Rodriguez
       
       
       
       
       
       40-01763A-25                                          20251126__
    1                        A bill to be entitled                      
    2         An act relating to cost-of-living adjustment of
    3         retirement benefits; amending s. 121.101, F.S.;
    4         revising the amount of the Florida Retirement System
    5         annual cost-of-living adjustment; revising how the
    6         cost-of-living adjustment of benefits for certain
    7         retirees and beneficiaries is calculated; providing a
    8         declaration of important state interest; providing an
    9         effective date.
   10          
   11  Be It Enacted by the Legislature of the State of Florida:
   12  
   13         Section 1. Present subsections (5) through (9) of section
   14  121.101, Florida Statutes, are redesignated as subsections (6)
   15  through (10), respectively, a new subsection (5) is added to
   16  that section, and subsection (4) of that section is amended, to
   17  read:
   18         121.101 Cost-of-living adjustment of benefits.—
   19         (4) Commencing for members whose effective retirement date
   20  is on or after July 1, 2011, the benefit of each retiree and
   21  annuitant whose retirement date is before July 1, 2025, shall be
   22  adjusted annually on July 1 as follows:
   23         (a) For those retirees and annuitants who have never
   24  received a cost-of-living adjustment under this subsection, the
   25  amount of the monthly benefit payable for the 12-month period
   26  commencing on the adjustment date shall be the amount of the
   27  member’s initial benefit plus an amount equal to a percentage of
   28  the member’s initial benefit. This percentage is derived by
   29  dividing the number of months the member has received an initial
   30  benefit by 12, and multiplying the result by the factor
   31  calculated pursuant to paragraph (c).
   32         (b) For those retirees and annuitants who have received a
   33  cost-of-living adjustment under this subsection, the adjusted
   34  monthly benefit shall be the amount of the monthly benefit being
   35  received on June 30 immediately preceding the adjustment date
   36  plus an amount determined by multiplying the benefit by the
   37  factor calculated pursuant to paragraph (c).
   38         (c) The department shall calculate a cost-of-living factor
   39  for each retiree and beneficiary retiring on or after July 1,
   40  2011. This factor shall equal the product of 3 percent
   41  multiplied by the quotient of the sum of the member’s service
   42  credit earned for service before July 1, 2011, divided by the
   43  sum of the member’s total service credit earned. Effective July
   44  1, 2025, this factor may not be below 2 percent.
   45         (5) For members whose effective retirement date is on or
   46  after July 1, 2025, the benefit of each retiree and annuitant
   47  shall be adjusted annually on July 1 as follows:
   48         (a) For those retirees and annuitants who have never
   49  received a cost-of-living adjustment under this section, the
   50  amount of the monthly benefit payable for the 12-month period
   51  commencing on the adjustment date shall be the amount of the
   52  member’s initial benefit plus an amount equal to a percentage of
   53  the member’s initial benefit. This percentage is derived by
   54  dividing the number of months the member has received an initial
   55  benefit by 12, and multiplying the result by 2.
   56         (b) For those retirees and annuitants who have received a
   57  cost-of-living adjustment under this subsection, the adjusted
   58  monthly benefit shall be the amount of the monthly benefit being
   59  received on June 30 immediately preceding the adjustment date
   60  plus an amount equal to 2 percent of this benefit.
   61         Section 2. The Legislature finds that a proper and
   62  legitimate state purpose is served when employees and retirees
   63  of the state and its political subdivisions, and the dependents,
   64  survivors, and beneficiaries of such employees and retirees, are
   65  extended the basic protections afforded by governmental
   66  retirement systems that provide fair and adequate benefits and
   67  that are managed, administered, and funded in an actuarially
   68  sound manner as required by s. 14, Art. X of the State
   69  Constitution and part VII of chapter 112, Florida Statutes.
   70  Therefore, the Legislature determines and declares that this act
   71  fulfills an important state interest.
   72         Section 3. This act shall take effect July 1, 2025.