88R2038 BDP-F
By: Bucy H.B. No. 160
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 and a
biennial study on providing additional cost-of-living adjustments
based on the effects of increased inflation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter H, Chapter 824, Government Code, is
amended by adding Section 824.703 to read as follows:
Sec. 824.703. ADDITIONAL COST-OF-LIVING ADJUSTMENT.
(a) Notwithstanding Section 824.702 and subject to Section
821.006, 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 on or before August
31, 2021;
(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 on or before August 31, 2021; 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 on or before
August 31, 2021.
(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:
(1) must be made beginning with an annuity payable for
the month of September 2023; and
(2) is limited to an amount equal to 10 percent of the
monthly benefit subject to the increase.
(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. Subchapter B, Chapter 825, Government Code, is
amended by adding Section 825.1085 to read as follows:
Sec. 825.1085. BIENNIAL STUDY AND REPORT ON PROVIDING
ADDITIONAL COST-OF-LIVING ADJUSTMENTS BASED ON EFFECTS OF
INFLATION. Not later than January 1 of each odd-numbered year, the
retirement system shall:
(1) conduct a study to evaluate and identify the
effects, if any, that increased inflation has had on annuitants of
the system:
(A) during the preceding state fiscal biennium;
and
(B) if applicable, since annuitants last
received a cost-of-living adjustment; and
(2) submit a written report to the legislature
containing:
(A) findings of the study; and
(B) if appropriate, recommendations for
potential legislation to address any adverse effects of inflation
identified under Subdivision (1), including specific
recommendations regarding whether and in what amount the
legislature would need to provide a cost-of-living adjustment to
the benefits of annuitants to remedy those effects.
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, 2023.