S.B. No. 10
AN ACT
relating 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 824.703 to read as follows:
Sec. 824.703. COST-OF-LIVING ADJUSTMENT: JANUARY 2024.
(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 Subsection (c) and except as provided by
Subsection (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
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 on or before August 31, 2020;
(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 on whose service the annuity is based must have
been on or before August 31, 2020; 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 was on or before August 31,
2020.
(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 must be made beginning
with an annuity payable for the month of January 2024.
(f) The amount of the adjustment provided under this section
is calculated 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 (c)(1):
(A) if the retiree's effective date of retirement
was on or before August 31, 2001, six percent;
(B) if the retiree's effective date of retirement
was after August 31, 2001, but on or before August 31, 2013, four
percent; and
(C) if the retiree's effective date of retirement
was after August 31, 2013, but on or before August 31, 2020, two
percent;
(2) for annuitants described by Subsection (c)(2):
(A) if the member's date of death was on or before
August 31, 2001, six percent;
(B) if the member's date of death was after
August 31, 2001, but on or before August 31, 2013, four percent; and
(C) if the member's date of death was after
August 31, 2013, but on or before August 31, 2020, two percent; and
(3) for annuitants described by Subsection (c)(3):
(A) if the effective date of the annuitant's
election was on or before August 31, 2001, six percent;
(B) if the effective date of the annuitant's
election was after August 31, 2001, but on or before August 31,
2013, four percent; and
(C) if the effective date of the annuitant's
election was after August 31, 2013, but on or before August 31,
2020, two percent.
(g) 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. (a) Subject to Subsections (e) and (i) of this
section and Section 821.006, Government Code, and except as
provided by Subsection (g) of this section, the Teacher Retirement
System of Texas shall make a one-time supplemental payment of a
retirement or death benefit, as provided by this section.
(b) The supplemental payment is payable not later than
September 2023 and, to the extent practicable, on a date or dates
that coincide with the regular annuity payment payable to each
eligible annuitant.
(c) The amount of the supplemental payment is equal to:
(1) $7,500, if the annuitant is at least 75 years of
age on any day of the calendar month before the calendar month in
which the Teacher Retirement System of Texas issues the
supplemental payment; or
(2) $2,400, if the annuitant is:
(A) at least 70 years of age but younger than 75
years of age on any day of the calendar month before the calendar
month in which the Teacher Retirement System of Texas issues the
supplemental payment; and
(B) not subject to Subdivision (1) of this
subsection.
(d) The supplemental payment is payable without regard to
any forfeiture of benefits under Section 824.601, Government Code.
The Teacher Retirement System of Texas shall make applicable tax
withholding and other legally required deductions before
disbursing the supplemental payment. A supplemental payment under
this section is in addition to and not in lieu of the regular
monthly annuity payment to which the eligible annuitant is
otherwise entitled.
(e) To be eligible for the supplemental payment, a person
must be, for the calendar month immediately prior to the calendar
month in which the Teacher Retirement System of Texas issues the
one-time supplemental payment in accordance with Subsection (b) of
this section, an annuitant who is:
(1) at least 70 years of age; and
(2) eligible to receive:
(A) a standard retirement annuity payment;
(B) an optional retirement annuity payment as
either a retiree or beneficiary;
(C) a life annuity payment under Section
824.402(a)(4), Government Code;
(D) an annuity for a guaranteed period of 60
months under Section 824.402(a)(3), Government Code; or
(E) an alternate payee annuity payment under
Section 804.005, Government Code.
(f) The supplemental payment is in addition to the
guaranteed number of payments under Section 824.204(c)(3) or (4),
Section 824.308(c)(3) or (4), or Section 824.402(a)(3), Government
Code, and may not be counted as one of the guaranteed monthly
payments.
(g) The supplemental payment does not apply to payments
under:
(1) Section 824.304(a), Government Code, relating to
disability retirees with less than 10 years of service credit;
(2) Section 824.804(b), Government Code, relating to
participants in the deferred retirement option plan with regard to
payments from their deferred retirement option plan accounts;
(3) Section 824.501(a), Government Code, relating to
retiree survivor beneficiaries who receive a survivor annuity in an
amount fixed by statute; or
(4) Section 824.404(a), Government Code, relating to
active member survivor beneficiaries who receive a survivor annuity
in an amount fixed by statute.
(h) The board of trustees of the Teacher Retirement System
of Texas shall determine the eligibility for and the amount and
timing of a supplemental payment and the manner in which the payment
is made.
(i) The Teacher Retirement System of Texas is required to
make a one-time supplemental payment of benefits under this section
only if the board of trustees of the Teacher Retirement System of
Texas finds that the legislature appropriated money to the
retirement system in an amount sufficient to provide the
supplemental payment. The amount appropriated by the legislature
to provide the supplemental payment must be in addition to the
amount the state is required to contribute to the retirement system
under Section 825.404, Government Code.
(j) If the board of trustees of the Teacher Retirement
System of Texas determines that the appropriation provided by the
legislature for the one-time supplemental payment of benefits under
this section is different from the amount required to issue the
supplemental payment, the comptroller, after the end of the fiscal
year, shall make adjustments in the teacher retirement fund and the
general revenue fund so that the total transfers during the year
equal the total amount of the funds required for the supplemental
payment. This transfer of funds is in addition to and separate from
the amount the state is required to contribute to the retirement
system under Section 825.404, Government Code.
SECTION 3. (a) Except as provided by Subsection (b) of this
section, 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.
(b) Section 1 of this Act takes effect January 1, 2024, but
only if the constitutional amendment proposed by the 88th
Legislature, Regular Session, 2023, authorizing the 88th
Legislature to provide a cost-of-living adjustment to certain
annuitants of the Teacher Retirement System of Texas is approved by
the voters. If that constitutional amendment is not approved by the
voters, Section 1 of this Act has no effect.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 10 passed the Senate on
March 29, 2023, by the following vote: Yeas 31, Nays 0;
May 4, 2023, Senate refused to concur in House amendments and
requested appointment of Conference Committee; May 5, 2023, House
granted request of the Senate; May 27, 2023, Senate adopted
Conference Committee Report by the following vote: Yeas 31,
Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 10 passed the House, with
amendments, on May 1, 2023, by the following vote: Yeas 144,
Nays 0, one present not voting; May 5, 2023, House granted request
of the Senate for appointment of Conference Committee;
May 28, 2023, House adopted Conference Committee Report by the
following vote: Yeas 145, Nays 0, one present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor