This bill amends section 121.101 of the Florida Statutes to revise the annual cost-of-living adjustment for retirement benefits within the Florida Retirement System. It establishes new criteria for calculating these adjustments for retirees and beneficiaries, particularly focusing on those whose retirement dates fall before and after July 1, 2025. For retirees with effective retirement dates before July 1, 2025, the adjustment will be based on a percentage derived from the number of months they have received their initial benefit, with a minimum cost-of-living factor set at 2 percent starting July 1, 2025. For those retiring on or after that date, the adjustments will also be calculated similarly, but with a fixed percentage of 2 percent applied to their benefits.

Additionally, the bill includes a declaration of important state interest, emphasizing the necessity of providing fair and adequate retirement benefits to state employees, retirees, and their beneficiaries. The act is set to take effect on July 1, 2025. The revisions aim to ensure that retirement benefits are managed and funded in a manner that aligns with the state's constitutional requirements.