HB 945 revises the Florida Retirement System’s annual cost-of-living adjustment (COLA) for retirement benefits. For retirees and beneficiaries whose effective retirement date is before July 1, 2025, the bill keeps the existing COLA structure but changes the calculation so that, beginning July 1, 2025, the COLA factor may not be less than 2 percent. For members retiring on or after July 1, 2025, the bill creates a new, simpler COLA formula that provides a 2 percent annual adjustment to benefits, with the first adjustment prorated based on the number of months the retiree has received benefits.
The bill also includes a declaration that the Legislature considers the measure to serve an important state interest, tying the change to the constitutional requirement that public retirement systems be fair, adequate, and actuarially sound. Its effective date is July 1, 2025. In practical terms, the bill would affect state retirement benefits for Florida Retirement System members, retirees, annuitants, and beneficiaries, and would require the Department of Management Services to apply the revised adjustment formulas under section 121.101, Florida Statutes.
The general sentiment reflected in the available context is limited, because there were no recorded committee transcripts or votes provided. The bill’s title and structure suggest it was presented as a retirement-benefit enhancement or stabilization measure, but it ultimately did not advance and died in the Government Operations Subcommittee on June 16, 2025.
The main point of potential contention is fiscal and actuarial impact. By guaranteeing a minimum 2 percent COLA for certain current retirees and setting a fixed 2 percent COLA for future retirees, the bill could increase long-term retirement system costs and affect funding assumptions. Supporters would likely emphasize predictability and protection against inflation for retirees, while opponents or cautious reviewers would likely focus on the effect on actuarial soundness, employer contributions, and the state’s retirement liabilities.
HB 945 amends section 121.101, Florida Statutes, governing cost-of-living adjustments for Florida Retirement System benefits. It changes the COLA calculation for certain retirees already in the system by establishing a 2 percent floor beginning July 1, 2025, and it creates a separate 2 percent annual COLA formula for members retiring on or after July 1, 2025. The bill would directly affect the Department of Management Services’ administration of retirement benefits and would apply to retirees, annuitants, and beneficiaries under the state retirement system.
No committee debate or vote record was provided, so the available context does not show detailed support or opposition. The bill appears to have been framed as a retirement benefit adjustment with an emphasis on protecting retirees from inflation, but it did not progress beyond the Government Operations Subcommittee and died there. That outcome suggests the measure did not secure enough legislative support to advance.
The likely contention centers on cost and long-term funding effects versus retiree benefit adequacy. A guaranteed 2 percent minimum COLA and a fixed 2 percent annual adjustment for future retirees could improve benefit predictability and inflation protection, which would appeal to retirees and public employee advocates. However, legislators concerned with actuarial soundness, employer contribution rates, and the fiscal health of the Florida Retirement System may have viewed the change as increasing liabilities or reducing flexibility in managing the pension system.