What is the FRS COLA?
The cost-of-living adjustment (COLA) is an annual increase applied to an FRS Pension Plan benefit each July 1. Unlike the pension formula itself — years of service × class percentage × AFC — the COLA is applied after retirement, to the benefit you are already receiving. How much of an adjustment you receive depends on when your service was earned, and, beginning in 2026, on whether you qualify for the new Special Risk floor.
The prorated COLA formula
For FRS members, the standard COLA is based on service earned before July 1, 2011. The formula prorates: (pre-2011 years of service ÷ total years of service) × 3%. A member whose service is entirely before July 1, 2011 receives the full 3% each year. A member with no pre-2011 service receives no adjustment under the proration formula. Everyone in between receives a percentage scaled to how much of their career predates July 2011 — for example, 10 pre-2011 years out of a 30-year career prorates to 1%.
What is the 2026 FRS COLA?
There is no single 2026 COLA percentage that applies to every FRS retiree — each member’s adjustment comes from the proration formula above, so two retirees can receive different percentages. What changed in 2026 is the arrival of a floor for one group: HB 5205E (2026 Special Session E), signed June 29, 2026 and effective July 1, 2026, creates a minimum 1.5% annual adjustment for eligible Special Risk Class retirees. For everyone else, the prorated formula continues to operate exactly as before.
The Special Risk COLA floor (HB 5205E)
The floor is codified as new s. 121.101(5), Florida Statutes. Beginning with the July 1, 2026 adjustment, and starting after the fifth anniversary of retirement, an eligible Special Risk Class retiree receives the greater of their prorated COLA or 1.5% of their benefit. It is a floor layered on top of existing law, not a replacement — a retiree whose prorated COLA already meets or exceeds 1.5% sees no change. Eligibility is limited to Special Risk Class members whose effective retirement date is on or after July 1, 2011: members initially enrolled in the FRS before July 1, 2011 need at least 72 calendar months (6 years) of Special Risk creditable service, and members initially enrolled on or after July 1, 2011 need at least 96 calendar months (8 years). PensionForge’s projections model this floor.
Does COLA apply during DROP?
Yes — but only on the portion of service earned before July 1, 2011. The same prorated formula applies during DROP participation: a member with all pre-2011 service receives a full 3% COLA each July 1 while in DROP, and a member with no pre-2011 service receives no COLA during DROP.
Does the Health Insurance Subsidy get a COLA?
No. The Health Insurance Subsidy (HIS) is a flat $7.50 per month per year of creditable service and does not receive an annual cost-of-living adjustment. The HIS dollar rate is set in statute and changes only when the Legislature amends it — as it did on July 1, 2023, when the per-year rate rose and the monthly cap moved from $150 to $225.