Florida Senate - 2021 SB By Senator Polsky 29-00951-21 20211310__ CODING: Words stricken are deletions; words underlined are additions. A bill to be entitled

An act relating to retirement; amending s. 121.101, 2 F.S.; specifying the minimum amount of the factor used to calculate the cost-of-living adjustment of benefits for certain retirees and beneficiaries of the Florida Retirement System; providing a declaration of important state interest; providing an effective date. 7

Be It Enacted by the Legislature of the State of Florida: 9

Section 1. Subsection (4) of

section 121.101, Florida Statutes, is amended to read: 12 121.101 Cost-of-living adjustment of benefits.— 13

(4) For members whose effective retirement date is on or after July 1, 2011, the benefit of each retiree and annuitant shall be adjusted annually on July as follows: 16

(

a) For those retirees and annuitants who have never received a cost-of-living adjustment under this subsection, the amount of the monthly benefit payable for the 12-month period commencing on the adjustment date shall be the amount of the member’s initial benefit plus an amount equal to a percentage of the member’s initial benefit. This percentage is derived by dividing the number of months the member has received an initial benefit by 12, and multiplying the result by the factor calculated pursuant to paragraph (c). 25

(

b) For those retirees and annuitants who have received a cost-of-living adjustment under this subsection, the adjusted monthly benefit shall be the amount of the monthly benefit being received on June immediately preceding the adjustment date Florida Senate - 2021 SB 1310 29-00951-21 20211310__ CODING: Words stricken are deletions; words underlined are additions. plus an amount determined by multiplying the benefit by the factor calculated pursuant to paragraph (c). 31

(

c) The department shall calculate a cost-of-living factor for each retiree and beneficiary retiring on or after July 1, 33 2011. This factor shall equal the product of percent multiplied by the quotient of the sum of the member’s service credit earned for service before July 1, 2011, divided by the sum of the member’s total service credit earned. However, for a retiree and beneficiary retiring on or after July 1, 2011, with service credit earned before July 1, 2011, the factor calculated pursuant to this paragraph may not be a product of less than 2. 40

Section 2. The Legislature finds that a proper and legitimate state purpose is served when employees and retirees of the state and its political subdivisions, and the dependents, 43 survivors, and beneficiaries of such employees and retirees, are extended the basic protections afforded by governmental retirement systems. These persons must be provided benefits that are fair and adequate and that are managed, administered, and funded in an actuarially sound manner, as required by s. 14, 48

Article X of the State Constitution and

part VII of

chapter 112, 49 Florida Statutes. Therefore, the Legislature determines and declares that this act fulfills an important state interest. 51

Section 3. This act shall take effect July 1, 2021. 52