bill giving state retirees a one-time pension raise

The text as introduced · 847 words

89R1551 RDR-D

By: Eckhardt, Zaffirini
S.B. No. 573

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.