Florida House Bill 5205E (2026 Special Session E) proposes to create a new Florida Statute subsection establishing an alternative cost-of-living adjustment (COLA) framework for certain Special Risk Class retirees in the Florida Retirement System (FRS) Pension Plan.

If enacted, the bill would take effect starting July 1, 2026, and would introduce a minimum annual COLA adjustment of 1.5%, functioning as a floor layered onto the existing prorated COLA structure, not a replacement.

The bill has passed both chambers but has not yet been signed into law. The Governor has until mid-June 2026 to act. 

Key Provisions

Beginning July 1, 2026, and each July 1 thereafter, an eligible retiree who has been retired for at least five (5) years will receive an annual COLA increase of not less than 1.5%. 

Eligible retirees will receive an annual benefit adjustment equal to: 

• The greater of: 

  • The retiree’s existing prorated COLA, or

  • 1.5% of the benefit.

This creates a guaranteed minimum COLA of 1.5% for affected retirees. Retirees whose current prorated COLA already exceeds 1.5% will see no change.

Eligibility is limited to the Special Risk Class members (Police Officers and Firefighters) whose effective retirement date is on or after July 1, 2011. Eligibility is limited to retirees who have completed a minimum of six (6) years of Special Risk Class creditable service if initially enrolled in FRS prior to July 1, 2011, or eight (8) years if initially enrolled in FRS on or after July 1, 2011. 

Conclusion

HB 5205E represents an enhancement to retirement benefits for FRS Special Risk retirees. While its direct application is limited to FRS, the policy introduces a shift toward guaranteed minimum COLA growth and adjustments, which is likely to influence expectations and policy discussions across Florida’s existing municipal pension plans.

Municipal pension boards of trustees should proactively evaluate and negotiate the strategic, actuarial, and labor-related implications of this development and be prepared for an added focus on COLA-related discussions involving increases and adjustment adequacy for its members and beneficiaries.