Florida Senate - 2020 SB 858 By Senator Gruters 23-00932-20 2020858__ 1 A bill to be entitled 2 An act relating to cost-of-living adjustment for 3 Special Risk Class retirees; amending s. 121.101, 4 F.S.; revising the manner of calculating the cost-of 5 living factor for Special Risk Class retirees, and 6 their beneficiaries, who meet certain criteria; 7 providing a declaration of important state interest; 8 providing an effective date. 9 10 Be It Enacted by the Legislature of the State of Florida: 11 12 Section 1. Paragraph (c) of subsection (4) of section 13 121.101, Florida Statutes, is amended to read: 14 121.101 Cost-of-living adjustment of benefits.— 15 (4) For members whose effective retirement date is on or 16 after July 1, 2011, the benefit of each retiree and annuitant 17 shall be adjusted annually on July 1 as follows: 18 (c) The department shall calculate a cost-of-living factor 19 for each retiree and beneficiary retiring on or after July 1, 20 2011. This factor shall equal the product of 3 percent 21 multiplied by the quotient of the sum of the member’s service 22 credit earned for service before July 1, 2011, divided by the 23 sum of the member’s total service credit earned. However, 24 beginning July 1, 2020, the cost-of-living factor for each 25 retiree, and the beneficiary of such a retiree, who was a member 26 of the Special Risk Class on June 30, 2011, is a member of the 27 Special Risk Class on the effective date of retirement, who 28 retires on or after July 1, 2011, and has earned service credit 29 before July 1, 2011, shall equal the product of 3 percent 30 multiplied by the quotient of the sum of the member’s service 31 credit earned for service before July 1, 2011, divided by the 32 sum of the member’s total service credit earned as of June 30, 33 2020. 34 Section 2. The Legislature finds that a proper and 35 legitimate state purpose is served when employees and retirees 36 of the state and its political subdivisions, and the dependents, 37 survivors, and beneficiaries of such employees and retirees, are 38 extended the basic protections afforded by governmental 39 retirement systems. These persons must be provided benefits that 40 are fair and adequate and that are managed, administered, and 41 funded in an actuarially sound manner, as required by s. 14, 42 Article X of the State Constitution and part VII of chapter 112, 43 Florida Statutes. Therefore, the Legislature determines and 44 declares that this act fulfills an important state interest. 45 Section 3. This act shall take effect July 1, 2020.