Florida Senate - 2023                                    SB 1354
       By Senator Stewart
       17-01390-23                                           20231354__
    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         specifying the minimum amount of the factor used to
    5         calculate the cost-of-living adjustment of benefits
    6         for certain retirees and beneficiaries of the Florida
    7         Retirement System; providing a declaration of
    8         important state interest; providing an effective date.
   10  Be It Enacted by the Legislature of the State of Florida:
   12         Section 1. Subsection (4) of section 121.101, Florida
   13  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         (a) For those retirees and annuitants who have never
   19  received a cost-of-living adjustment under this subsection, the
   20  amount of the monthly benefit payable for the 12-month period
   21  commencing on the adjustment date shall be the amount of the
   22  member’s initial benefit plus an amount equal to a percentage of
   23  the member’s initial benefit. This percentage is derived by
   24  dividing the number of months the member has received an initial
   25  benefit by 12, and multiplying the result by the factor
   26  calculated pursuant to paragraph (c).
   27         (b) For those retirees and annuitants who have received a
   28  cost-of-living adjustment under this subsection, the adjusted
   29  monthly benefit shall be the amount of the monthly benefit being
   30  received on June 30 immediately preceding the adjustment date
   31  plus an amount determined by multiplying the benefit by the
   32  factor calculated pursuant to paragraph (c).
   33         (c) The department shall calculate a cost-of-living factor
   34  for each retiree and beneficiary retiring on or after July 1,
   35  2011. This factor shall equal the product of 3 percent
   36  multiplied by the quotient of the sum of the member’s service
   37  credit earned for service before July 1, 2011, divided by the
   38  sum of the member’s total service credit earned. However, for a
   39  retiree and beneficiary retiring on or after July 1, 2011, with
   40  service credit earned before July 1, 2011, the factor calculated
   41  pursuant to this paragraph may not be a product of less than 4.
   42         Section 2. The Legislature finds that a proper and
   43  legitimate state purpose is served when employees and retirees
   44  of the state and its political subdivisions, and the dependents,
   45  survivors, and beneficiaries of such employees and retirees, are
   46  extended the basic protections afforded by governmental
   47  retirement systems. These persons must be provided benefits that
   48  are fair and adequate and that are managed, administered, and
   49  funded in an actuarially sound manner, as required by s. 14,
   50  Article X of the State Constitution and part VII of chapter 112,
   51  Florida Statutes. Therefore, the Legislature determines and
   52  declares that this act fulfills an important state interest.
   53         Section 3. This act shall take effect July 1, 2023.