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 on July 1, with the adjustment based on a fixed percentage of 2% of the benefit amount, regardless of prior adjustments received. Additionally, the bill specifies that for retirees with a retirement date before July 1, 2025, the adjustment will continue to be calculated based on a factor derived from their service credit.

The bill also 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 effective date for these changes is set for July 1, 2025.