Texas 2025 - 89th Regular

Texas House Bill HB5171 Compare Versions

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

Old	New	Differences
1	1	89R16031 RDR-F
2	2	By: Hayes H.B. No. 5171
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to providing a one-time supplemental payment and an annual
10	10	cost-of-living adjustment applicable to certain benefits paid by
11	11	the Judicial Retirement System of Texas Plan One and Judicial
12	12	Retirement System of Texas Plan Two.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Chapter 834, Government Code, is amended by
15	15	adding Subchapter E to read as follows:
16	16	SUBCHAPTER E. INCREASES IN BENEFITS
17	17	Sec. 834.401. ANNUAL COST-OF-LIVING ADJUSTMENT. (a) The
18	18	amount of a service retirement, disability retirement, or death
19	19	benefit paid under this chapter to an annuitant based on service
20	20	credited in the retirement system is increased to include a three
21	21	percent annual cost-of-living adjustment in accordance with this
22	22	section.
23	23	(b) On September 1 of each year beginning September 2026,
24	24	the board of trustees shall recompute the amount of a benefit paid
25	25	monthly under this chapter by applying the three percent adjustment
26	26	to the monthly amount otherwise required to be paid as determined in
27	27	accordance with this chapter.
28	28	SECTION 2. Subchapter E, Chapter 839, Government Code, is
29	29	amended by adding Section 839.402 to read as follows:
30	30	Sec. 839.402. ANNUAL COST-OF-LIVING ADJUSTMENT. (a) The
31	31	amount of a service retirement, disability retirement, or death
32	32	benefit paid under this chapter to an annuitant based on service
33	33	credited in the retirement system is increased to include a three
34	34	percent annual cost-of-living adjustment in accordance with this
35	35	section.
36	36	(b) On September 1 of each year beginning September 2026,
37	37	the board of trustees shall recompute the amount of a benefit paid
38	38	monthly under this chapter by applying the three percent adjustment
39	39	to the monthly amount otherwise required to be paid as determined in
40	40	accordance with this chapter.
41	41	SECTION 3. (a) The Employees Retirement System of Texas
42	42	shall make a one-time supplemental payment of a service retirement,
43	43	disability retirement, or death benefit to each annuitant of the
44	44	Judicial Retirement System of Texas Plan One and the Judicial
45	45	Retirement System of Texas Plan Two as provided by this section.
46	46	(b) The supplemental payment is payable in September 2025
47	47	and, to the extent practicable, on a date or dates that coincide
48	48	with the regular annuity payment payable to each eligible
49	49	annuitant.
50	50	(c) The amount of the supplemental payment is equal to the
51	51	gross amount of the regular annuity payment to which the eligible
52	52	annuitant is otherwise entitled for the month of August 2025.
53	53	(d) The Employees Retirement System of Texas shall make
54	54	applicable tax withholding and other legally required deductions
55	55	before disbursing the supplemental payment. A supplemental payment
56	56	under this section is in addition to the regular monthly annuity
57	57	payment to which the eligible annuitant is otherwise entitled.
58	58	(e) To be eligible for the supplemental payment, a person
59	59	must be, for the month of August 2025, an annuitant eligible to
60	60	receive based on service credited in the Judicial Retirement System
61	61	of Texas Plan One or the Judicial Retirement System of Texas Plan
62	62	Two, any of the following benefits under Chapter 834 or 839,
63	63	Government Code:
64	64	(1) a standard retirement annuity payment;
65	65	(2) an optional service retirement annuity payment as
66	66	either a retiree or beneficiary;
67	67	(3) a disability retirement annuity payment; or
68	68	(4) a death benefit annuity payment.
69	69	(f) The supplemental payment is in addition to the
70	70	guaranteed number of payments under Section 814.108, Government
71	71	Code, and may not be counted as one of the guaranteed monthly
72	72	payments.
73	73	(g) Except as provided by this section, the board of
74	74	trustees of the Employees Retirement System of Texas shall
75	75	determine the eligibility for and the amount and timing of a
76	76	supplemental payment and the manner in which the payment is made.
77	77	SECTION 4. The Employees Retirement System of Texas is
78	78	required to make a cost-of-living adjustment under Section 834.401
79	79	or 839.402, Government Code, as added by this Act, or a one-time
80	80	supplemental payment of benefits under Section 3 of this Act only if
81	81	the board of trustees of the Employees Retirement System of Texas
82	82	finds that the legislature appropriated money to the Judicial
83	83	Retirement System of Texas Plan One and the Judicial Retirement
84	84	System of Texas Plan Two in an amount sufficient to provide the
85	85	adjustment or payment without increasing the unfunded actuarial
86	86	liabilities of the retirement system. The amount appropriated by
87	87	the legislature to provide the adjustment or payment must be in
88	88	addition to any amounts the state is required to contribute to the
89	89	retirement system under Subchapter B, Chapter 835, or Subchapter B,
90	90	Chapter 840, Government Code. If the board of trustees of the
91	91	Employees Retirement System of Texas finds that the legislature did
92	92	not appropriate money in an amount sufficient to provide the
93	93	cost-of-living adjustment or one-time supplemental payment without
94	94	increasing the unfunded actuarial liabilities of the retirement
95	95	system, the retirement system may not make the adjustment or
96	96	payment.
97	97	SECTION 5. This Act takes effect September 1, 2025.