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 member's initial benefit and their service credit. Effective July 1, 2025, a new adjustment mechanism will be introduced, ensuring that the cost-of-living factor for retirees will not fall below 2 percent.

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