Texas House Bill HB118

Texas 2021 - 87th 3rd C.S.

Caption

Relating to a cost-of-living adjustment applicable to certain benefits paid by the Teacher Retirement System of Texas.

Impact

If enacted, HB118 would amend the Government Code by introducing Section 824.703, enabling the retirement system to offer a one-time cost-of-living adjustment. The adjustment will be contingent on specific eligibility criteria, primarily focusing on annuitants who have been receiving benefits since before a specified cut-off date, August 31, 2019. This approach indicates an intent to provide relief to those most in need, particularly older annuitants who may have been living on fixed incomes for extended periods.

Summary

House Bill 118 aims to introduce a cost-of-living adjustment for certain benefits paid by the Teacher Retirement System of Texas. The bill proposes a one-time adjustment for annuitants who are receiving monthly benefits as part of retirement or death benefits, targeting those who have been retired prior to an effective eligibility cut-off date. The adjustment aims to alleviate the financial pressures that retirees face, particularly in light of increasing living costs, thus providing a measure of support for retired teachers and their beneficiaries.

Contention

There may be concerns regarding the scope and equity of the proposed adjustments. Critics could argue that while the intention is commendable, the bill's eligibility restrictions could exclude a segment of retirees who also deserve financial support. Furthermore, limiting the adjustments to specific groups may result in disparities among different classes of annuitants, which could trigger discussions on fairness and the adequacy of retirement benefits as a whole. The implications of these eligibility guidelines will likely be a point of contention during legislative debates.