Hayes Bill Gives Retired Judges 3 Percent Yearly Raises

The text as introduced · 806 words

89R16031 RDR-F

By: Hayes
H.B. No. 5171

A BILL TO BE ENTITLED

AN ACT

relating to providing a one-time supplemental payment and an annual

cost-of-living adjustment applicable to certain benefits paid by

the Judicial Retirement System of Texas Plan One and Judicial

Retirement System of Texas Plan Two.

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

SECTION 1. Chapter 834, Government Code, is amended by

adding Subchapter E to read as follows:

SUBCHAPTER E. INCREASES IN BENEFITS

Sec. 834.401. ANNUAL COST-OF-LIVING ADJUSTMENT. (a) The

amount of a service retirement, disability retirement, or death

benefit paid under this chapter to an annuitant based on service

credited in the retirement system is increased to include a three

percent annual cost-of-living adjustment in accordance with this

section.

(b) On September 1 of each year beginning September 2026,

the board of trustees shall recompute the amount of a benefit paid

monthly under this chapter by applying the three percent adjustment

to the monthly amount otherwise required to be paid as determined in

accordance with this chapter.

SECTION 2. Subchapter E, Chapter 839, Government Code, is

amended by adding Section 839.402 to read as follows:

Sec. 839.402. ANNUAL COST-OF-LIVING ADJUSTMENT. (a) The

amount of a service retirement, disability retirement, or death

benefit paid under this chapter to an annuitant based on service

credited in the retirement system is increased to include a three

percent annual cost-of-living adjustment in accordance with this

section.

(b) On September 1 of each year beginning September 2026,

the board of trustees shall recompute the amount of a benefit paid

monthly under this chapter by applying the three percent adjustment

to the monthly amount otherwise required to be paid as determined in

accordance with this chapter.

SECTION 3. (a) The Employees Retirement System of Texas

shall make a one-time supplemental payment of a service retirement,

disability retirement, or death benefit to each annuitant of the

Judicial Retirement System of Texas Plan One and the Judicial

Retirement System of Texas Plan Two as provided by this section.

(b) The supplemental payment is payable in September 2025

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

gross amount of the regular annuity payment to which the eligible

annuitant is otherwise entitled for the month of August 2025.

(d) The Employees 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 the regular monthly annuity

payment to which the eligible annuitant is otherwise entitled.

(e) To be eligible for the supplemental payment, a person

must be, for the month of August 2025, an annuitant eligible to

receive based on service credited in the Judicial Retirement System

of Texas Plan One or the Judicial Retirement System of Texas Plan

Two, any of the following benefits under Chapter 834 or 839,

Government Code:

(1) a standard retirement annuity payment;

(2) an optional service retirement annuity payment as

either a retiree or beneficiary;

(3) a disability retirement annuity payment; or

(4) a death benefit annuity payment.

(f) The supplemental payment is in addition to the

guaranteed number of payments under Section 814.108, Government

Code, and may not be counted as one of the guaranteed monthly

payments.

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

trustees of the Employees 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.

SECTION 4. The Employees Retirement System of Texas is

required to make a cost-of-living adjustment under Section 834.401

or 839.402, Government Code, as added by this Act, or a one-time

supplemental payment of benefits under Section 3 of this Act only if

the board of trustees of the Employees Retirement System of Texas

finds that the legislature appropriated money to the Judicial

Retirement System of Texas Plan One and the Judicial Retirement

System of Texas Plan Two in an amount sufficient to provide the

adjustment or payment without increasing the unfunded actuarial

liabilities of the retirement system. The amount appropriated by

the legislature to provide the adjustment or payment must be in

addition to any amounts the state is required to contribute to the

retirement system under Subchapter B, Chapter 835, or Subchapter B,

Chapter 840, Government Code. If the board of trustees of the

Employees Retirement System of Texas finds that the legislature did

not appropriate money in an amount sufficient to provide the

cost-of-living adjustment or one-time supplemental payment without

increasing the unfunded actuarial liabilities of the retirement

system, the retirement system may not make the adjustment or

payment.

SECTION 5. This Act takes effect September 1, 2025.