Florida Senate - 2021 SB 1310



By Senator Polsky





29-00951-21 20211310__
1 A bill to be entitled
2 An act relating to retirement; amending s. 121.101,
3 F.S.; specifying the minimum amount of the factor used
4 to calculate the cost-of-living adjustment of benefits
5 for certain retirees and beneficiaries of the Florida
6 Retirement System; providing a declaration of
7 important state interest; providing an effective date.
8
9 Be It Enacted by the Legislature of the State of Florida:
10
11 Section 1. Subsection (4) of section 121.101, Florida
12 Statutes, is amended to read:
13 121.101 Cost-of-living adjustment of benefits.—
14 (4) For members whose effective retirement date is on or
15 after July 1, 2011, the benefit of each retiree and annuitant
16 shall be adjusted annually on July 1 as follows:
17 (a) For those retirees and annuitants who have never
18 received a cost-of-living adjustment under this subsection, the
19 amount of the monthly benefit payable for the 12-month period
20 commencing on the adjustment date shall be the amount of the
21 member’s initial benefit plus an amount equal to a percentage of
22 the member’s initial benefit. This percentage is derived by
23 dividing the number of months the member has received an initial
24 benefit by 12, and multiplying the result by the factor
25 calculated pursuant to paragraph (c).
26 (b) For those retirees and annuitants who have received a
27 cost-of-living adjustment under this subsection, the adjusted
28 monthly benefit shall be the amount of the monthly benefit being
29 received on June 30 immediately preceding the adjustment date
30 plus an amount determined by multiplying the benefit by the
31 factor calculated pursuant to paragraph (c).
32 (c) The department shall calculate a cost-of-living factor
33 for each retiree and beneficiary retiring on or after July 1,
34 2011. This factor shall equal the product of 3 percent
35 multiplied by the quotient of the sum of the member’s service
36 credit earned for service before July 1, 2011, divided by the
37 sum of the member’s total service credit earned. However, for a
38 retiree and beneficiary retiring on or after July 1, 2011, with
39 service credit earned before July 1, 2011, the factor calculated
40 pursuant to this paragraph may not be a product of less than 2.
41 Section 2. The Legislature finds that a proper and
42 legitimate state purpose is served when employees and retirees
43 of the state and its political subdivisions, and the dependents,
44 survivors, and beneficiaries of such employees and retirees, are
45 extended the basic protections afforded by governmental
46 retirement systems. These persons must be provided benefits that
47 are fair and adequate and that are managed, administered, and
48 funded in an actuarially sound manner, as required by s. 14,
49 Article X of the State Constitution and part VII of chapter 112,
50 Florida Statutes. Therefore, the Legislature determines and
51 declares that this act fulfills an important state interest.
52 Section 3. This act shall take effect July 1, 2021.

Statutes affected:
S 1310 Filed: 121.101