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 whether they have previously received a cost-of-living adjustment. Additionally, the bill specifies that the cost-of-living factor for retirees and beneficiaries retiring on or after July 1, 2011, cannot be below 2% effective 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 supports the management and funding of retirement systems in a sound manner, as required by the state constitution. The act is set to take effect on July 1, 2025.