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 introduces a new subsection (5) that establishes a different calculation method for retirees whose effective retirement date is on or after July 1, 2025. For these members, the monthly benefit will be adjusted annually based on a fixed percentage of 2% of their initial benefit, regardless of prior adjustments. Additionally, the bill specifies that for retirees with a retirement date before July 1, 2025, the adjustment will continue to be based on a calculated cost-of-living factor that cannot fall below 2% starting July 1, 2025.

The bill also includes a declaration of important state interest, emphasizing the necessity of providing fair and adequate benefits to state employees, retirees, and their beneficiaries. This declaration underscores the commitment to managing retirement systems in a sound manner, as required by the state constitution. The act is set to take effect on July 1, 2025.