| 1 | 1 | | By: Eckhardt S.B. No. 27 |
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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 Employees Retirement System of Texas and a |
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| 8 | 8 | | biennial study on providing additional adjustments based on the |
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| 9 | 9 | | effects of increased inflation. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Subchapter G, Chapter 814, Government Code, is |
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| 12 | 12 | | amended by adding Section 814.605 to read as follows: |
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| 13 | 13 | | Sec. 814.605. ONE-TIME ADJUSTMENT TO BENEFITS. (a) The |
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| 14 | 14 | | amount of a monthly service retirement benefit, disability |
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| 15 | 15 | | retirement benefit, or death benefit paid under this chapter to a |
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| 16 | 16 | | retiree or beneficiary for service credited in the employee class |
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| 17 | 17 | | is increased to include a one-time 10 percent adjustment in |
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| 18 | 18 | | accordance with this section. |
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| 19 | 19 | | (b) The board of trustees shall recompute the amount of a |
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| 20 | 20 | | benefit paid monthly under this chapter by applying the 10 percent |
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| 21 | 21 | | adjustment to the monthly amount otherwise required to be paid as |
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| 22 | 22 | | determined in accordance with this chapter. |
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| 23 | 23 | | SECTION 2. Subchapter F, Chapter 815, Government Code, is |
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| 24 | 24 | | amended by adding Section 815.5105 to read as follows: |
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| 25 | 25 | | Sec. 815.5105. BIENNIAL STUDY AND REPORT ON PROVIDING |
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| 26 | 26 | | ADDITIONAL COST-OF-LIVING ADJUSTMENTS BASED ON EFFECTS OF |
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| 27 | 27 | | INFLATION. Not later than January 1 of each odd-numbered year, the |
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| 28 | 28 | | retirement system shall: |
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| 29 | 29 | | (1) conduct a study to evaluate and identify the |
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| 30 | 30 | | effects, if any, that increased inflation has had on annuitants of |
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| 31 | 31 | | the system: |
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| 32 | 32 | | (A) during the preceding state fiscal biennium; |
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| 33 | 33 | | and |
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| 34 | 34 | | (B) if applicable, since annuitants last |
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| 35 | 35 | | received a cost-of-living adjustment; and |
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| 36 | 36 | | (2) submit a written report to the legislature |
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| 37 | 37 | | containing: |
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| 38 | 38 | | (A) findings of the study; and |
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| 39 | 39 | | (B) if appropriate, recommendations for |
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| 40 | 40 | | potential legislation to address any adverse effects of inflation |
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| 41 | 41 | | identified under Subdivision (1), including specific |
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| 42 | 42 | | recommendations regarding whether and in what amount the |
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| 43 | 43 | | legislature would need to provide a cost-of-living adjustment to |
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| 44 | 44 | | the benefits of annuitants to remedy those effects. |
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| 45 | 45 | | SECTION 3. Section 814.604, Government Code, is repealed. |
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| 46 | 46 | | SECTION 4. Section 814.605, Government Code, as added by |
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| 47 | 47 | | this Act, applies only to a monthly benefit payment made by the |
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| 48 | 48 | | Employees Retirement System of Texas on or after September 1, 2024. |
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| 49 | 49 | | SECTION 5. This Act takes effect September 1, 2024. |
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