Florida League of Cities

Cost-of-living Adjustment of Retirement Benefits (Monitor) – Passed

CS/HB 151 (Busatta Cabrera) and SB 242 (Hooper) create an unfunded mandate for government entities that provide retirement benefits through the Florida Retirement System (FRS). Beginning on July 1, 2024, the cost-of-living benefit of each retiree and annuitant shall be adjusted without a requirement for the Legislature enacting sufficient funding. CS/HB 151 was amended to conduct a study on the feasibility and cost of providing a cost-of-living adjustment for employees initially enrolled in the FRS after July 1, 2011. The amendment also includes adjustments to the employee contribution levels to the FRS in order to meet actuarial projections. CS/HB 151 was amended to increase the employer contribution rates for regular class, special risk class and judiciary. Language was also added to limit the ability of retirees who are re-employed to receive both retirement benefits and salary for a period of six months. The language in this bill was included in the General Appropriations Act. (Chapman)