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. 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, 2018.