FL H1011

Amends Florida Statutes section 121.101 to revise cost-of-living adjustment (COLA) methods for Florida Retirement System retirees and annuitants effective July 1, 2016.

For retirees with effective retirement dates before July 1, 2011: beginning July 1, 2016, annual COLA adjustments shall be 3 percent or the percentage change in the Consumer Price Index for Americans 62 years and older (CPI-E), whichever is greater.

For retirees with effective retirement dates on or after July 1, 2011: COLA adjustments are limited to 3 percent multiplied by a factor equal to the ratio of pre-July 1, 2011 service credit to total service credit earned.

The reduced COLA formula for post-2011 retirees expires June 30, 2016, subject to the Legislature enacting sufficient employer contributions for funding, after which those retirees return to the standard COLA method.

Declares that extending fair and adequate benefits to state employees and retirees managed in an actuarially sound manner serves an important state interest; effective July 1, 2016.