| 1 | 1 | | By: Menéndez S.B. No. 106 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to a cost-of-living adjustment applicable to certain |
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| 7 | 7 | | benefits paid by the Teacher Retirement System of Texas. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Subchapter H, Chapter 824, Government Code, is |
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| 10 | 10 | | amended by adding Section 824.703 to read as follows: |
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| 11 | 11 | | Sec. 824.703. ADDITIONAL COST-OF-LIVING ADJUSTMENT. |
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| 12 | 12 | | (a) Notwithstanding Section 824.702, the retirement system shall |
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| 13 | 13 | | make a one-time cost-of-living adjustment payable to annuitants |
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| 14 | 14 | | receiving a monthly death or retirement benefit annuity, as |
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| 15 | 15 | | provided by this section. |
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| 16 | 16 | | (b) Subject to Subsections (c) and (d), to be eligible for |
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| 17 | 17 | | the adjustment, a person must be, on the effective date of the |
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| 18 | 18 | | adjustment and disregarding any forfeiture of benefits under |
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| 19 | 19 | | Section 824.601, an annuitant eligible to receive: |
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| 20 | 20 | | (1) a standard service or disability retirement |
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| 21 | 21 | | annuity payment; |
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| 22 | 22 | | (2) an optional service or disability retirement |
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| 23 | 23 | | annuity payment as either a retiree or beneficiary; |
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| 24 | 24 | | (3) an annuity payment under Section 824.402(a)(3) or |
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| 25 | 25 | | (4); |
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| 26 | 26 | | (4) an annuity payment under Section 824.502; or |
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| 27 | 27 | | (5) an alternate payee annuity payment under Section |
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| 28 | 28 | | 804.005. |
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| 29 | 29 | | (c) If the annuitant: |
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| 30 | 30 | | (1) is a retiree or is a beneficiary under an optional |
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| 31 | 31 | | retirement payment plan, to be eligible for the adjustment under |
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| 32 | 32 | | this section: |
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| 33 | 33 | | (A) the annuitant must be living on the effective |
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| 34 | 34 | | date of the adjustment; and |
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| 35 | 35 | | (B) the effective date of the retirement of the |
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| 36 | 36 | | member of the retirement system must have been on or after August |
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| 37 | 37 | | 31, 2010, and on or before August 31, 2021; |
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| 38 | 38 | | (2) is a beneficiary under Section 824.402(a)(3) or |
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| 39 | 39 | | (4) or 824.502, to be eligible for the adjustment: |
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| 40 | 40 | | (A) the annuitant must be living on the effective |
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| 41 | 41 | | date of the adjustment; and |
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| 42 | 42 | | (B) the date of death of the member of the |
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| 43 | 43 | | retirement system must have been on or after August 31, 2010, and on |
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| 44 | 44 | | or before August 31, 2021; or |
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| 45 | 45 | | (3) is an alternate payee under Section 804.005, the |
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| 46 | 46 | | annuitant is eligible for the adjustment only if the effective date |
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| 47 | 47 | | of the election to receive the annuity payment was on or after |
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| 48 | 48 | | August 31, 2010, and on or before August 31, 2021. |
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| 49 | 49 | | (d) An adjustment made under this section does not apply to |
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| 50 | 50 | | payments under: |
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| 51 | 51 | | (1) Section 824.203(d), relating to retirees who |
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| 52 | 52 | | receive a standard service retirement annuity in an amount fixed by |
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| 53 | 53 | | statute; |
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| 54 | 54 | | (2) Section 824.304(a), relating to disability |
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| 55 | 55 | | retirees with less than 10 years of service credit; |
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| 56 | 56 | | (3) Section 824.304(b)(2), relating to disability |
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| 57 | 57 | | retirees who receive a disability annuity in an amount fixed by |
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| 58 | 58 | | statute; |
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| 59 | 59 | | (4) Section 824.404(a), relating to active member |
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| 60 | 60 | | survivor beneficiaries who receive a survivor annuity in an amount |
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| 61 | 61 | | fixed by statute; |
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| 62 | 62 | | (5) Section 824.501(a), relating to retiree survivor |
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| 63 | 63 | | beneficiaries who receive a survivor annuity in an amount fixed by |
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| 64 | 64 | | statute; or |
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| 65 | 65 | | (6) Section 824.804(b), relating to participants in |
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| 66 | 66 | | the deferred retirement option plan with regard to payments from |
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| 67 | 67 | | their deferred retirement option plan accounts. |
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| 68 | 68 | | (e) An adjustment under this section: |
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| 69 | 69 | | (1) must be made beginning with an annuity payable for |
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| 70 | 70 | | the month of September 2021; and |
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| 71 | 71 | | (2) is limited to the lesser of: |
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| 72 | 72 | | (A) an amount equal to three percent of the |
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| 73 | 73 | | monthly benefit subject to the increase; or |
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| 74 | 74 | | (B) $100 a month. |
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| 75 | 75 | | (f) The board of trustees shall determine the eligibility |
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| 76 | 76 | | for and the amount of any adjustment in monthly annuities in |
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| 77 | 77 | | accordance with this section. |
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| 78 | 78 | | SECTION 2. This Act takes effect immediately if it receives |
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| 79 | 79 | | a vote of two-thirds of all the members elected to each house, as |
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| 80 | 80 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 81 | 81 | | Act does not receive the vote necessary for immediate effect, this |
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| 82 | 82 | | Act takes effect September 1, 2021. |
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