By: Eckhardt S.B. No. 27
A BILL TO BE ENTITLED
AN ACT
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.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter G, Chapter 814, Government Code, is
amended by adding Section 814.605 to read as follows:
Sec. 814.605. ONE-TIME ADJUSTMENT TO BENEFITS. (a) The
amount of a monthly service retirement benefit, disability
retirement benefit, or death benefit paid under this chapter to a
retiree or beneficiary for service credited in the employee class
is increased to include a one-time 10 percent adjustment in
accordance with this section.
(b) The board of trustees shall recompute the amount of a
benefit paid monthly under this chapter by applying the 10 percent
adjustment to the monthly amount otherwise required to be paid as
determined in accordance with this chapter.
SECTION 2. Subchapter F, Chapter 815, Government Code, is
amended by adding Section 815.5105 to read as follows:
Sec. 815.5105. 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. Section 814.604, Government Code, is repealed.
SECTION 4. Section 814.605, Government Code, as added by
this Act, applies only to a monthly benefit payment made by the
Employees Retirement System of Texas on or after September 1, 2024.
SECTION 5. This Act takes effect September 1, 2024.