Florida Senate - 2018                                     SB 722
       By Senator Garcia
       36-00792-18                                            2018722__
    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.
    9  Be It Enacted by the Legislature of the State of Florida:
   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, 2018.