teacher retirees get 10 percent, then 4 percent every year

The text as introduced · 937 words

89R4243 RDR-D

By: Allen
H.B. No. 2163

A BILL TO BE ENTITLED

AN ACT

relating to benefits paid by the Teacher Retirement System of

Texas.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter H, Chapter 824, Government Code, is

amended by adding Sections 824.7015 and 824.704 to read as follows:

Sec. 824.7015. ONE-TIME ADJUSTMENT TO BENEFITS. (a)

Notwithstanding any other provision of this subchapter, the amount

of a monthly service retirement benefit, disability retirement

benefit, or death benefit paid under this chapter is increased to

include a one-time 10 percent adjustment in accordance with this

section.

(b) The board of trustees shall recompute the amount of a

benefit paid monthly under this chapter by applying the 10 percent

adjustment to the monthly amount otherwise required to be paid as

determined in accordance with the other applicable provisions of

this chapter and other law.

Sec. 824.704. ANNUAL ADJUSTMENT FOR COST OF LIVING. (a)

Notwithstanding any other provision of this subchapter, the amount

of a monthly service retirement benefit, disability retirement

benefit, or death benefit paid under this chapter is increased to

include a four percent annual cost-of-living adjustment in

accordance with this section.

(b) On January 1 of each year, the board of trustees shall

recompute the amount of a benefit paid monthly under this chapter by

applying the four percent adjustment to the monthly amount

otherwise required to be paid as determined in accordance with the

other applicable provisions of this chapter and other law.

SECTION 2. (a) The Teacher Retirement System of Texas

shall make a supplemental payment of a retirement or death benefit,

as provided by this section.

(b) The supplemental payment is payable in January 2026 and,

to the extent practicable, on a date or dates that coincide with the

regular annuity payment payable to each eligible annuitant.

(c) The amount of the supplemental payment is equal to the

greater of:

(1) $2,000; or

(2) the gross amount of the regular annuity payment to

which the eligible annuitant is otherwise entitled for the month of

December 2025.

(d) The supplemental payment is payable without regard to

any forfeiture of benefits under Section 824.601, Government Code.

The Teacher Retirement System of Texas shall make applicable tax

withholding and other legally required deductions before

disbursing the supplemental payment. A supplemental payment under

this section is in addition to and not in lieu of the regular

monthly annuity payment to which the eligible annuitant is

otherwise entitled.

(e) Subject to Subsection (f) of this section, to be

eligible for the supplemental payment, a person must be, for the

month of December 2025, and disregarding any forfeiture of benefits

under Section 824.601, Government Code, an annuitant eligible to

receive:

(1) a standard retirement annuity payment;

(2) an optional retirement annuity payment as either a

retiree or beneficiary;

(3) a life annuity payment under Section

824.402(a)(4), Government Code;

(4) an annuity for a guaranteed period of 60 months

under Section 824.402(a)(3), Government Code; or

(5) an alternate payee annuity payment under Section

804.005, Government Code.

(f) If the annuitant is a retiree or a beneficiary under an

optional retirement payment plan, to be eligible for the

supplemental payment, the effective date of the retirement of the

member of the Teacher Retirement System of Texas must have been

before September 1, 2024. If the annuitant is a beneficiary under

Section 824.402(a)(3) or (4), Government Code, to be eligible for

the supplemental payment, the date of death of the member of the

retirement system must have been before September 1, 2024. The

supplemental payment shall be made to an alternate payee who is an

annuitant under Section 804.005, Government Code, only if the

annuity payment to the alternate payee commenced before September

1, 2024. The supplemental payment is in addition to the guaranteed

number of payments under Section 824.402(a)(3) or 824.204(c)(3) or

(4), Government Code, and may not be counted as one of the

guaranteed monthly payments.

(g) The supplemental payment does not apply to payments

under:

(1) Section 824.304(a), Government Code, relating to

disability retirees with less than 10 years of service credit;

(2) Section 824.304(b)(2), Government Code, relating

to disability retirees who receive a disability annuity in an

amount fixed by statute;

(3) Section 824.804(b), Government Code, relating to

participants in the deferred retirement option plan with regard to

payments from their deferred retirement option plan accounts;

(4) Section 824.501(a), Government Code, relating to

retiree survivor beneficiaries who receive a survivor annuity in an

amount fixed by statute; or

(5) Section 824.404(a), Government Code, relating to

active member survivor beneficiaries who receive a survivor annuity

in an amount fixed by statute.

(h) Except as provided by this section, the board of

trustees of the Teacher Retirement System of Texas shall determine

the eligibility for and the amount and timing of a supplemental

payment and the manner in which the payment is made.

(i) The Teacher Retirement System of Texas shall pay the

supplemental payment made under this section from the retired

reserve account and may transfer to that account from the state

contribution account any portion of the amount that exceeds the

amount in the retired reserve account available to finance the

supplemental payment and that is actuarially determined to be

necessary to finance the supplemental payment. The supplemental

payment under this section must comply with Section 821.006,

Government Code.

SECTION 3. Sections 824.7015 and 824.704, Government Code,

as added by this Act, apply only to a monthly benefit payment made

by the Teacher Retirement System of Texas on or after September 1,

2025.

SECTION 4. This Act takes effect September 1, 2025.