HB 5205E — 2026–27 FRS employer contribution rates

HB 5205E (2026 Special Session E), sponsored by Representative Maggard, amends subsections (4) and (5) of s. 121.71, Florida Statutes, to set the required FRS employer retirement contribution rates for each membership class and subclass for fiscal year 2026–27. As passed (conference committee amendment 688691), the bill is broader than employer rates alone: the same bill also creates the Special Risk COLA floor (new s. 121.101(5)), the elected-officer DROP-in-office provision (s. 121.053(7)) and DROP recoupment (s. 121.091), and revised investment-plan allocations (ss. 121.73 and 121.735). See the "Special Risk COLA floor" entry.

A note on versions: the bill as originally filed on May 5, 2026 was a rates-only measure that showed a net employer-contribution decrease (the House staff analysis on that version estimated about $231.4 million statewide). The version that passed — produced by Senate delete-all amendment 123090 and conference committee amendment 688691 — raises the Special Risk rates to help fund the COLA floor, so the final Special Risk rate is higher than both the prior year and the filed version.

The combined employer contribution rates in the version that passed (normal cost under s. 121.71(4) plus the unfunded-actuarial-liability component under s. 121.71(5), excluding the separate 2% Health Insurance Subsidy contribution and the 0.04% administrative fee), which would take effect July 1, 2026 (compared with July 1, 2025) if the bill becomes law, are: Regular Class 11.53% (was 11.97%); Special Risk Class 35.68% (was 33.13%, an increase); Special Risk Administrative Support Class 39.73% (was 37.42%); Elected Officers' Class — Legislators/Governor/Cabinet/State Attorneys/Public Defenders 61.73% (was 60.60%); Elected Officers' Class — Justices/Judges 43.94% (was 44.08%); Elected Officers' Class — County Officers 52.94% (was 52.51%); Senior Management Service Class 30.54% (was 31.18%); and DROP 20.12% (was 20.02%).

Status: HB 5205E passed both chambers in the 2026 Special Session E (initial passage May 12, 2026; conference report adopted May 29, 2026) and was enrolled on May 29, 2026. As of this update it is awaiting the Governor's action and has not been signed; no Laws of Florida chapter number has been assigned. If signed, the bill takes effect July 1, 2026.

What this would change in PensionForge's projections: Employer contribution rates fund the system; they do not enter an individual member's defined-benefit pension calculation (creditable service, average final compensation, and the class multiplier), and Investment Plan account allocations are governed by a separate statute (s. 121.72). The rate revisions alone therefore do not change PensionForge's member benefit projections. The COLA floor created by the same bill would change Special Risk Pension Plan projections if it becomes law; that change is described in the "Special Risk COLA floor" entry.

Current engine behavior: PensionForge projects defined-benefit pensions from service, average final compensation, and the class multiplier, and projects Investment Plan balances from statutory allocation rates. Neither depends on the s. 121.71 employer contribution rates, so the rate revisions leave current projections unchanged; the COLA-floor change is handled in the COLA entry.