Bill Text: TX HB343 | 2025-2026 | 89th Legislature | Introduced

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Bill Title: Relating to providing a cost-of-living adjustment applicable to certain benefits paid by the Employees Retirement System of Texas.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-11-12 - Filed [HB343 Detail]

Download: Texas-2025-HB343-Introduced.html

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89R1551 RDR-D
By: Bucy H.B. No. 343

A BILL TO BE ENTITLED
AN ACT
relating to providing a cost-of-living adjustment applicable to
certain benefits paid by the Employees Retirement System of Texas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter G, Chapter 814, Government Code, is
amended by adding Section 814.605 to read as follows:
Sec. 814.605. COST-OF-LIVING ADJUSTMENT: JANUARY 2026. (a)
The amount of a service retirement, disability retirement, death,
or other monthly benefit paid under this chapter, Chapter 820, or
Chapter 804 to an annuitant based on service credited in the
employee class is increased to include a cost-of-living adjustment
in accordance with this section.
(b) Subject to Subsections (c) and (d), to be eligible for
the adjustment, a person must be, for the month of December 2025, an
annuitant eligible to receive:
(1) a standard retirement annuity payment;
(2) an optional service retirement annuity payment as
either a retiree or beneficiary under Section 814.108 or 820.0535;
(3) a standard or occupational disability retirement
annuity payment;
(4) a death benefit annuity payment under Section
814.301, 814.302, 814.305, or 820.054; or
(5) an alternate payee annuity payment under Section
804.005.
(c) The adjustment does not apply to benefit payments under:
(1) Section 814.103, 814.205, 820.053(a)(3), or
820.054 relating to retirees or disability retirees from the
elected class of membership;
(2) a subtitle other than Subtitle B, Title 8, except
as provided by Subsection (b)(5); or
(3) Section 814.304 or 820.054 relating to retiree
survivor beneficiaries who receive a survivor annuity as the
surviving spouse of a member of the elected class.
(d) If the annuitant:
(1) is a retiree or beneficiary under an optional
service or disability retirement payment plan, to be eligible for
the adjustment under this section:
(A) the annuitant must be living on the effective
date of the adjustment; and
(B) the effective date of the retirement of the
member of the retirement system on whose service the annuity is
based must have been before September 1, 2024;
(2) is a person eligible to receive a death benefit
annuity described by Subsection (b)(4), to be eligible for the
adjustment:
(A) the annuitant must be living on the effective
date of the adjustment; and
(B) the date of death of the member of the
retirement system on whose service the annuity is based must have
been before September 1, 2025; or
(3) is an alternate payee under Section 804.005, to be
eligible for the adjustment:
(A) the annuitant must be living on the effective
date of the adjustment; and
(B) the effective date of the annuitant's
election to receive the annuity payment must have been before
September 1, 2025.
(e) An adjustment under this section must be made beginning
with an annuity payable for the month of January 2026.
(f) The amount of the adjustment provided under this section
is computed by multiplying the amount of the monthly benefit
subject to the adjustment by the following percentage rate, as
applicable:
(1) for annuitants described by Subsection (d)(1):
(A) if the effective date of retirement of the
member of the retirement system on whose service the annuity is
based was on or before August 31, 2014, seven percent; and
(B) if the effective date of retirement of the
member of the retirement system on whose service the annuity is
based was after August 31, 2014, four percent;
(2) for annuitants described by Subsection (d)(2):
(A) if the date of the death of the member of the
retirement system on whose service the annuity is based was on or
before August 31, 2014, seven percent; and
(B) if the date of the death of the member of the
retirement system on whose service the annuity is based was after
August 31, 2014, four percent; and
(3) for annuitants described by Subsection (d)(3):
(A) if the effective date of the annuitant's
election was on or before August 31, 2014, seven percent; and
(B) if the effective date of the annuitant's
election was after August 31, 2014, four percent.
(g) The board of trustees shall recompute the amount of an
annuity paid monthly under this chapter, Chapter 820, or Chapter
804, as applicable, by applying the adjustment required under
Subsection (f) to the monthly amount otherwise required to be paid
under the applicable chapter. The adjustment under this section is
in addition to the adjustment, if any, granted under Section
814.604 or any other law.
(h) The board of trustees shall determine the eligibility
for and the amount of any adjustment in monthly annuities in
accordance with this section.
SECTION 2. Section 814.605, Government Code, as added by
this Act, applies only to a monthly benefit payment made by the
Employees Retirement System of Texas on or after January 1, 2026.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.