Texas 2025 - 89th Regular

Texas House Bill HB2163 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R4243 RDR-D
2	2	By: Allen H.B. No. 2163
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to benefits paid by the Teacher Retirement System of
10	10	Texas.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subchapter H, Chapter 824, Government Code, is
13	13	amended by adding Sections 824.7015 and 824.704 to read as follows:
14	14	Sec. 824.7015. ONE-TIME ADJUSTMENT TO BENEFITS. (a)
15	15	Notwithstanding any other provision of this subchapter, the amount
16	16	of a monthly service retirement benefit, disability retirement
17	17	benefit, or death benefit paid under this chapter is increased to
18	18	include a one-time 10 percent adjustment in accordance with this
19	19	section.
20	20	(b) The board of trustees shall recompute the amount of a
21	21	benefit paid monthly under this chapter by applying the 10 percent
22	22	adjustment to the monthly amount otherwise required to be paid as
23	23	determined in accordance with the other applicable provisions of
24	24	this chapter and other law.
25	25	Sec. 824.704. ANNUAL ADJUSTMENT FOR COST OF LIVING. (a)
26	26	Notwithstanding any other provision of this subchapter, the amount
27	27	of a monthly service retirement benefit, disability retirement
28	28	benefit, or death benefit paid under this chapter is increased to
29	29	include a four percent annual cost-of-living adjustment in
30	30	accordance with this section.
31	31	(b) On January 1 of each year, the board of trustees shall
32	32	recompute the amount of a benefit paid monthly under this chapter by
33	33	applying the four percent adjustment to the monthly amount
34	34	otherwise required to be paid as determined in accordance with the
35	35	other applicable provisions of this chapter and other law.
36	36	SECTION 2. (a) The Teacher Retirement System of Texas
37	37	shall make a supplemental payment of a retirement or death benefit,
38	38	as provided by this section.
39	39	(b) The supplemental payment is payable in January 2026 and,
40	40	to the extent practicable, on a date or dates that coincide with the
41	41	regular annuity payment payable to each eligible annuitant.
42	42	(c) The amount of the supplemental payment is equal to the
43	43	greater of:
44	44	(1) $2,000; or
45	45	(2) the gross amount of the regular annuity payment to
46	46	which the eligible annuitant is otherwise entitled for the month of
47	47	December 2025.
48	48	(d) The supplemental payment is payable without regard to
49	49	any forfeiture of benefits under Section 824.601, Government Code.
50	50	The Teacher Retirement System of Texas shall make applicable tax
51	51	withholding and other legally required deductions before
52	52	disbursing the supplemental payment. A supplemental payment under
53	53	this section is in addition to and not in lieu of the regular
54	54	monthly annuity payment to which the eligible annuitant is
55	55	otherwise entitled.
56	56	(e) Subject to Subsection (f) of this section, to be
57	57	eligible for the supplemental payment, a person must be, for the
58	58	month of December 2025, and disregarding any forfeiture of benefits
59	59	under Section 824.601, Government Code, an annuitant eligible to
60	60	receive:
61	61	(1) a standard retirement annuity payment;
62	62	(2) an optional retirement annuity payment as either a
63	63	retiree or beneficiary;
64	64	(3) a life annuity payment under Section
65	65	824.402(a)(4), Government Code;
66	66	(4) an annuity for a guaranteed period of 60 months
67	67	under Section 824.402(a)(3), Government Code; or
68	68	(5) an alternate payee annuity payment under Section
69	69	804.005, Government Code.
70	70	(f) If the annuitant is a retiree or a beneficiary under an
71	71	optional retirement payment plan, to be eligible for the
72	72	supplemental payment, the effective date of the retirement of the
73	73	member of the Teacher Retirement System of Texas must have been
74	74	before September 1, 2024. If the annuitant is a beneficiary under
75	75	Section 824.402(a)(3) or (4), Government Code, to be eligible for
76	76	the supplemental payment, the date of death of the member of the
77	77	retirement system must have been before September 1, 2024. The
78	78	supplemental payment shall be made to an alternate payee who is an
79	79	annuitant under Section 804.005, Government Code, only if the
80	80	annuity payment to the alternate payee commenced before September
81	81	1, 2024. The supplemental payment is in addition to the guaranteed
82	82	number of payments under Section 824.402(a)(3) or 824.204(c)(3) or
83	83	(4), Government Code, and may not be counted as one of the
84	84	guaranteed monthly payments.
85	85	(g) The supplemental payment does not apply to payments
86	86	under:
87	87	(1) Section 824.304(a), Government Code, relating to
88	88	disability retirees with less than 10 years of service credit;
89	89	(2) Section 824.304(b)(2), Government Code, relating
90	90	to disability retirees who receive a disability annuity in an
91	91	amount fixed by statute;
92	92	(3) Section 824.804(b), Government Code, relating to
93	93	participants in the deferred retirement option plan with regard to
94	94	payments from their deferred retirement option plan accounts;
95	95	(4) Section 824.501(a), Government Code, relating to
96	96	retiree survivor beneficiaries who receive a survivor annuity in an
97	97	amount fixed by statute; or
98	98	(5) Section 824.404(a), Government Code, relating to
99	99	active member survivor beneficiaries who receive a survivor annuity
100	100	in an amount fixed by statute.
101	101	(h) Except as provided by this section, the board of
102	102	trustees of the Teacher Retirement System of Texas shall determine
103	103	the eligibility for and the amount and timing of a supplemental
104	104	payment and the manner in which the payment is made.
105	105	(i) The Teacher Retirement System of Texas shall pay the
106	106	supplemental payment made under this section from the retired
107	107	reserve account and may transfer to that account from the state
108	108	contribution account any portion of the amount that exceeds the
109	109	amount in the retired reserve account available to finance the
110	110	supplemental payment and that is actuarially determined to be
111	111	necessary to finance the supplemental payment. The supplemental
112	112	payment under this section must comply with Section 821.006,
113	113	Government Code.
114	114	SECTION 3. Sections 824.7015 and 824.704, Government Code,
115	115	as added by this Act, apply only to a monthly benefit payment made
116	116	by the Teacher Retirement System of Texas on or after September 1,
117	117	2025.
118	118	SECTION 4. This Act takes effect September 1, 2025.