HB 284 — Relating to providing a cost-of-living adjustment applicable to certain benefits paid by the Employees Retirement System of Texas.

Bill Text

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This bill amends 1 section(s) of the Texas statutes: Section 814.605, Government Code.

• Section 814.605, Government Code

  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 un

  added

Action History

1. August 21, 2025

   Filed

Sponsors

• John Bucy III · Primary

Subjects