Smithee’s bill giving retired teachers an extra January check

The text as introduced · 1,343 words

89R14137 RDR-F

By: Smithee
H.B. No. 5191

A BILL TO BE ENTITLED

AN ACT

relating to providing a one-time supplemental payment and a

cost-of-living adjustment applicable to certain 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 Section 824.704 to read as follows:

Sec. 824.704. COST-OF-LIVING ADJUSTMENT: JANUARY 2026.

(a) Notwithstanding any other section of this subchapter, the

retirement system shall make a one-time cost-of-living adjustment

payable to annuitants receiving a monthly death or retirement

benefit annuity, as provided by this section.

(b) Subject to Subsections (c) and (d), to be eligible for

the adjustment, a person must be, on the effective date of the

adjustment and disregarding any forfeiture of benefits under

Section 824.601, an annuitant eligible to receive:

(1) a standard service or disability retirement

annuity payment;

(2) an optional service or disability retirement

annuity payment as either a retiree or beneficiary;

(3) an annuity payment under Section 824.402(a)(3) or

(4);

(4) an annuity payment under Section 824.502; or

(5) an alternate payee annuity payment under Section

804.005.

(c) If the annuitant:

(1) is a retiree, or is a beneficiary under an optional

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 must have been after August 31,

2020, but before January 1, 2025;

(2) is a beneficiary under Section 824.402(a)(3) or

(4) or 824.502, 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 must have been after August 31, 2020, but before

January 1, 2025; or

(3) is an alternate payee under Section 804.005, the

annuitant is eligible for the adjustment only if the effective date

of the election to receive the annuity payment was after August 31,

2020, but before January 1, 2025.

(d) An adjustment made under this section does not apply to

payments under:

(1) Section 824.203(d), relating to retirees who

receive a standard service retirement annuity in an amount fixed by

statute;

(2) Section 824.304(a), relating to disability

retirees with less than 10 years of service credit;

(3) Section 824.304(b)(2), relating to disability

retirees who receive a disability annuity in an amount fixed by

statute;

(4) Section 824.404(a), relating to active member

survivor beneficiaries who receive a survivor annuity in an amount

fixed by statute;

(5) Section 824.501(a), relating to retiree survivor

beneficiaries who receive a survivor annuity in an amount fixed by

statute; or

(6) Section 824.804(b), relating to participants in

the deferred retirement option plan with regard to payments from

their deferred retirement option plan accounts.

(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 calculated by multiplying the amount of the monthly benefit

subject to the adjustment by two percent. The adjustment under this

section is in addition to the adjustments, if any, granted under

Sections 824.702 and 824.703, or any other law.

(g) 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. (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

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 December 31, 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 December 31, 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 December

31, 2024. The supplemental payment is in addition to the guaranteed

number of payments under Section 824.204(c)(3) or (4) or

824.402(a)(3), 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.

SECTION 3. Section 824.704, Government Code, as added by

this Act, applies only to a monthly benefit payment made by the

Teacher Retirement System of Texas on or after January 1, 2026.

SECTION 4. The Teacher Retirement System of Texas is

required to make a cost-of-living adjustment under Section 824.704,

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

payment of benefits under Section 2 of this Act only if the board of

trustees of the Teacher Retirement System of Texas finds that the

legislature appropriated money to the retirement system 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 Section

825.404, Government Code. If the board of trustees of the Teacher

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.