Florida Senate - 2025 SB 1126 By Senator Rodriguez 40-01763A-25 20251126__ Page 1 of 3 CODING: Words stricken are deletions; words underlined are additions. A bill to be entitled 1

An act relating to cost-of-living adjustment of 2 retirement benefits; amending s. 121.101, F.S.; 3 revising the amount of the Florida Retirement System 4 annual cost-of-living adjustment; revising how the 5 cost-of-living adjustment of benefits for certain 6 retirees and beneficiaries is calculated; providing a 7 declaration of important state interest; providing an 8 effective date. 9 10 Be It Enacted by the Legislature of the State of Florida: 11 12

Section 1. Present subsections (5) through (9) of

section 13 121.101, Florida Statutes, are redesignated as subsections (6) 14 through (10), respectively, a new subsection (5) is added to 15 that section, and subsection (4) of that

section is amended, to 16 read: 17 121.101 Cost-of-living adjustment of benefits.— 18

(4) Commencing for members whose effective retirement date 19 is on or after July 1, 2011, the benefit of each retiree and 20 annuitant whose retirement date is before July 1, 2025, shall be 21 adjusted annually on July 1 as follows: 22 (

a) For those retirees and annuitants who have never 23 received a cost-of-living adjustment under this subsection, the 24 amount of the monthly benefit payable for the 12-month period 25 commencing on the adjustment date shall be the amount of the 26 member’s initial benefit plus an amount equal to a percentage of 27 the member’s initial benefit. This percentage is derived by 28 dividing the number of months the member has received an initial 29 Florida Senate - 2025 SB 1126 40-01763A-25 20251126__ Page 2 of 3 CODING: Words stricken are deletions; words underlined are additions. benefit by 12, and multiplying the result by the factor 30 calculated pursuant to paragraph (c). 31 (

b) For those retirees and annuitants who have received a 32 cost-of-living adjustment under this subsection, the adjusted 33 monthly benefit shall be the amount of the monthly benefit being 34 received on June 30 immediately preceding the adjustment date 35 plus an amount determined by multiplying the benefit by the 36 factor calculated pursuant to paragraph (c). 37 (

c) The department shall calculate a cost-of-living factor 38 for each retiree and beneficiary retiring on or after July 1, 39 2011. This factor shall equal the product of 3 percent 40 multiplied by the quotient of the sum of the member’s service 41 credit earned for service before July 1, 2011, divided by the 42 sum of the member’s total service credit earned. Effective July 43 1, 2025, this factor may not be below 2 percent. 44

(5) For members whose effective retirement date is on or 45 after July 1, 2025, the benefit of each retiree and annuitant 46 shall be adjusted annually on July 1 as follows: 47 (

a) For those retirees and annuitants who have never 48 received a cost-of-living adjustment under this section, the 49 amount of the monthly benefit payable for the 12-month period 50 commencing on the adjustment date shall be the amount of the 51 member’s initial benefit plus an amount equal to a percentage of 52 the member’s initial benefit. This percentage is derived by 53 dividing the number of months the member has received an initial 54 benefit by 12, and multiplying the result by 2. 55 (

b) For those retirees and annuitants who have received a 56 cost-of-living adjustment under this subsection, the adjusted 57 monthly benefit shall be the amount of the monthly benefit being 58 Florida Senate - 2025 SB 1126 40-01763A-25 20251126__ Page 3 of 3 CODING: Words stricken are deletions; words underlined are additions. received on June 30 immediately preceding the adjustment date 59 plus an amount equal to 2 percent of this benefit. 60

Section 2. The Legislature finds that a proper and 61 legitimate state purpose is served when employees and retirees 62 of the state and its political subdivisions, and the dependents, 63 survivors, and beneficiaries of such employees and retirees, are 64 extended the basic protections afforded by governmental 65 retirement systems that provide fair and adequate benefits and 66 that are managed, administered, and funded in an actuarially 67 sound manner as required by s. 14, Art. X of the State 68 Constitution and

part VII of

chapter 112, Florida Statutes. 69 Therefore, the Legislature determines and declares that this act 70 fulfills an important state interest. 71

Section 3. This act shall take effect July 1, 2025. 72