Required Minimum Distributions, commonly referred to as RMD's, are mandatory annual withdrawals for...
FRS COLA Still Not Returning in 2025: Another Year, Another Letdown for Retirees
For the third year in a row, Florida Retirement System (FRS) retirees hoping for the return of the pre-2011 annual Cost-of-Living Adjustment (COLA) are left disappointed. In 2025, HB 945—the latest legislative attempt to reinstate COLA for FRS pension plan members—was introduced with some momentum but ultimately withdrawn on May 3rd, before it could even reach a vote.
HB 945 would have provided:
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A minimum 2% COLA for retirees with pre-2011 service.
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A new COLA formula for retirees post-2025.
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Adjustments based on length of retirement or prior COLA eligibility.
But despite wide interest and growing concern among public employees, the bill was shelved—marking the third consecutive year without meaningful movement to reinstate COLA benefits that were effectively frozen in 2011.
Meanwhile, the financial health of the FRS pension fund has shown signs of strain:
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The most recent actuarial reports indicate that the plan is funded at around 80.7%, another year of contraction in funded ratio.
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Florida taxpayers continue to shoulder rising Unfunded Actuarial Liability (UAL) costs, which now total tens of billions in obligations.
This year’s failure underscores the increasing urgency to address inflation protection for retirees. Without a COLA, FRS pension checks can lose purchasing power every year—especially as inflation remains a real concern for older Floridians on fixed incomes.
For now, FRS pension retirees will have to wait—and advocate—for another attempt next year.
Sources:
https://www.flsenate.gov/Session/Bill/2025/945/?Tab=BillHistory
