Menéndez Bill Gives Retired Teachers A One-Time 3 Percent Raise

The text as introduced · 588 words

90R3207 EMS-F

By: Menéndez
S.B. No. 107

A BILL TO BE ENTITLED

AN ACT

relating to 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: SEPTEMBER 2027.

(a) 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 before January 1,

2027;

(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 before January 1, 2027; 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 before January 1,

2027.

(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 who receive a

disability annuity in an amount fixed by statute;

(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:

(1) must be made beginning with an annuity payable for

the month of September 2027; and

(2) is limited to the lesser of:

(A) an amount equal to three percent of the

monthly benefit subject to the increase; or

(B) $200 a month.

(f) 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. 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, 2027.