Texas House Bill HB28

Texas 2023 - 88th 4th C.S.

• Filed: 11/7/23

Caption

Relating to a cost-of-living adjustment applicable to certain benefits paid by the Employees Retirement System of Texas and a biennial study on providing additional adjustments based on the effects of increased inflation.

Impact

The proposed changes will result in immediate financial benefits for many retirees, as the one-time adjustment is expected to provide a significant boost in their monthly payments. Furthermore, by requiring regular assessments of the effects of inflation, the bill ensures that future legislative actions can be informed by concrete data, potentially leading to more responsive adjustments to retirement benefits in the long term. The incorporation of this periodic review may help safeguard the financial stability of Texas's retirees moving forward.

Summary

House Bill 28 aims to address the financial well-being of retirees by introducing a one-time adjustment of 10 percent to certain benefits paid by the Employees Retirement System of Texas. The bill specifically pertains to monthly service retirement, disability retirement, and death benefits for retirees or their beneficiaries. This adjustment is intended to alleviate some of the financial pressures that retirees face, particularly due to rising costs of living. Additionally, the bill mandates a biennial study to analyze the impacts of inflation on annuitants and to make recommendations for any necessary adjustments to benefits based on these findings.

Sentiment

Overall, the sentiment surrounding HB 28 appears to be positive. Supporters of the bill argue that it is a necessary step in addressing the urgent financial challenges faced by retirees, particularly in the current economic climate where inflation can significantly diminish purchasing power. Stakeholders within the retirement community have expressed gratitude for the proposed adjustment and the attention the bill brings to their needs. However, some concerns have been raised about the sustainability of funding such adjustments over time.

Contention

While the bill has garnered support from many quarters, there are discussions on the implications of increasing benefits amidst other financial constraints on the state budget. Critics have highlighted the need for careful fiscal management and have questioned the long-term financial viability of the proposed adjustments. Thus, the debate reflects a broader concern about balancing the immediate benefits for retirees against the fiscal health of the Employees Retirement System and the state as a whole.

Texas Constitutional Statutes Affected

Government Code

• Chapter 814. Benefits
  • Section: New Section

• Chapter 815. Administration
  • Section: New Section