Texas House Bill HB1086

Texas 2025 - 89th Regular

• Filed: 11/12/24

Caption

Relating to a cost-of-living adjustment applicable to certain benefits paid by the Employees Retirement System of Texas.

Impact

The provisions of HB 1086 will take effect on September 1, 2025, meaning that any retirement benefits disbursed after this date will include this 10% adjustment. The bill's intention aligns with broader legislative efforts to enhance the financial security and well-being of retirees relying on fixed income sources. Existing statutory language in Chapter 814 of the Government Code will be amended to accommodate this adjustment, which could influence future budgetary considerations for the retirement system.

Summary

House Bill 1086 proposes a significant change to the retirement benefits provided to certain retirees within the Employees Retirement System of Texas. The bill mandates a one-time cost-of-living adjustment (COLA) that amounts to a 10% increase in the monthly service retirement benefits, disability retirement benefits, or death benefits for eligible retirees or their beneficiaries. This adjustment aims to address inflation impacts and ensure that the benefits provided can better meet the living costs faced by retirees.

Contention

While the bill is designed to benefit retirees, discussions around its fiscal implications could lead to contention. Lawmakers may debate the long-term sustainability of such adjustments and their potential impact on the pension fund's solvency. Advocates for the bill argue that the increase is crucial and justifiable in light of economic conditions, while opponents might raise concerns regarding how this change could strain the financial resources of the Employees Retirement System over time.

Texas Constitutional Statutes Affected

Government Code

• Chapter 814. Benefits
  • Section: New Section

• Chapter 820. Cash Balance Benefit
  • Section: New Section