Florida's New FRS Special Risk COLA Starts July 1, 2026 — But Retirees Must Wait 5 Years to Receive It

Florida lawmakers have approved a major retirement benefit enhancement for eligible Florida Retirement System (FRS) Special Risk members, restoring a minimum 1.5% annual Cost-of-Living Adjustment (COLA) for qualifying retirees beginning July 1, 2026. (Here is a link to the bill)

The change has been widely welcomed by law enforcement officers, firefighters, correctional officers, and other Special Risk employees who have watched inflation erode purchasing power in retirement.

However, a key provision in the legislation is generating questions among current and future retirees.

The New Special Risk COLA

Under the new law, eligible Special Risk retirees will receive an annual benefit increase equal to the greater of:

• Their existing COLA calculation, or
• A minimum annual COLA of 1.5%

The legislation represents one of the most significant retirement benefit enhancements for Special Risk Pension Plan members in years and is expected to affect thousands of current and future retirees across Florida.

The Detail Many Members Are Missing

While many retirees initially interpreted the legislation as providing an immediate 1.5% COLA upon retirement, the actual language of the law contains an additional requirement, to receive the new COLA, an eligible Special Risk member must have been retired for at least five years. That means retirees who leave service after July 1, 2026, will not begin receiving the new COLA immediately after retirement. Instead, eligibility begins once they reach their fifth retirement anniversary.

For example:

• Retire July 2026 → First eligible COLA in July 2031
• Retire July 2027 → First eligible COLA in July 2032
• Retire July 2028 → First eligible COLA in July 2033

For many FRS members planning retirement, this distinction could significantly affect long-term retirement income projections.

Who Qualifies?

The legislation establishes minimum Special Risk service requirements.

Members Initially Enrolled Before July 1, 2011

• At least 72 months of Special Risk service

Members Initially Enrolled On or After July 1, 2011

• At least 96 months of Special Risk service

Members who meet these requirements and satisfy the five-year retirement condition become eligible for the enhanced COLA provisions.

Why This Matters for Retirement Planning

Inflation often remains one of the largest factors when planning retirement income. Cost-of-living adjustments help retirees maintain purchasing power as prices rise over time. The new 1.5% minimum COLA provides a meaningful positive impact for eligible Special Risk retirees, but understanding when that protection begins is critical. Retirees who assume the COLA starts immediately could overestimate future retirement income during the first several years of retirement.

How Does This Compare to the Pre-2011 COLA?

While the new legislation restores a minimum annual COLA of 1.5% for eligible Special Risk retirees, it is important to note that the benefit remains significantly lower than the COLA previously available to FRS Pension Plan members before July 1, 2011. Prior to the 2011 retirement reforms, eligible FRS Pension Plan retirees generally received an automatic annual 3% Cost-of-Living Adjustment. That increase was applied each year and helped retirees maintain purchasing power throughout retirement. The 2011 changes eliminated the traditional 3% COLA for service earned on or after July 1, 2011, creating a system in which many newer retirees receive little or no COLA protection. As a result, the new 1.5% minimum COLA for eligible Special Risk retirees represents a great improvement over current law, but it still provides only half of the annual adjustment that many longtime FRS retirees received under the pre-2011 system.

Bottom Line

Florida's new Special Risk COLA law is a significant victory for eligible FRS members and retirees. But despite widespread discussion surrounding the return of a 1.5% COLA, the benefit is not available immediately upon retirement. Under the legislation, eligible Special Risk retirees must first reach five years in retirement before the enhanced COLA provision takes effect.