Texas 2025 - 89th Regular

Texas House Bill HB5191 Compare Versions

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

Old	New	Differences
1	1	89R14137 RDR-F
2	2	By: Smithee H.B. No. 5191
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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 a
10	10	cost-of-living adjustment applicable to certain benefits paid by
11	11	the Teacher Retirement System of Texas.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Subchapter H, Chapter 824, Government Code, is
14	14	amended by adding Section 824.704 to read as follows:
15	15	Sec. 824.704. COST-OF-LIVING ADJUSTMENT: JANUARY 2026.
16	16	(a) Notwithstanding any other section of this subchapter, the
17	17	retirement system shall make a one-time cost-of-living adjustment
18	18	payable to annuitants receiving a monthly death or retirement
19	19	benefit annuity, as provided by this section.
20	20	(b) Subject to Subsections (c) and (d), to be eligible for
21	21	the adjustment, a person must be, on the effective date of the
22	22	adjustment and disregarding any forfeiture of benefits under
23	23	Section 824.601, an annuitant eligible to receive:
24	24	(1) a standard service or disability retirement
25	25	annuity payment;
26	26	(2) an optional service or disability retirement
27	27	annuity payment as either a retiree or beneficiary;
28	28	(3) an annuity payment under Section 824.402(a)(3) or
29	29	(4);
30	30	(4) an annuity payment under Section 824.502; or
31	31	(5) an alternate payee annuity payment under Section
32	32	804.005.
33	33	(c) If the annuitant:
34	34	(1) is a retiree, or is a beneficiary under an optional
35	35	retirement payment plan, to be eligible for the adjustment under
36	36	this section:
37	37	(A) the annuitant must be living on the effective
38	38	date of the adjustment; and
39	39	(B) the effective date of the retirement of the
40	40	member of the retirement system must have been after August 31,
41	41	2020, but before January 1, 2025;
42	42	(2) is a beneficiary under Section 824.402(a)(3) or
43	43	(4) or 824.502, to be eligible for the adjustment:
44	44	(A) the annuitant must be living on the effective
45	45	date of the adjustment; and
46	46	(B) the date of death of the member of the
47	47	retirement system must have been after August 31, 2020, but before
48	48	January 1, 2025; or
49	49	(3) is an alternate payee under Section 804.005, the
50	50	annuitant is eligible for the adjustment only if the effective date
51	51	of the election to receive the annuity payment was after August 31,
52	52	2020, but before January 1, 2025.
53	53	(d) An adjustment made under this section does not apply to
54	54	payments under:
55	55	(1) Section 824.203(d), relating to retirees who
56	56	receive a standard service retirement annuity in an amount fixed by
57	57	statute;
58	58	(2) Section 824.304(a), relating to disability
59	59	retirees with less than 10 years of service credit;
60	60	(3) Section 824.304(b)(2), relating to disability
61	61	retirees who receive a disability annuity in an amount fixed by
62	62	statute;
63	63	(4) Section 824.404(a), relating to active member
64	64	survivor beneficiaries who receive a survivor annuity in an amount
65	65	fixed by statute;
66	66	(5) Section 824.501(a), relating to retiree survivor
67	67	beneficiaries who receive a survivor annuity in an amount fixed by
68	68	statute; or
69	69	(6) Section 824.804(b), relating to participants in
70	70	the deferred retirement option plan with regard to payments from
71	71	their deferred retirement option plan accounts.
72	72	(e) An adjustment under this section must be made beginning
73	73	with an annuity payable for the month of January 2026.
74	74	(f) The amount of the adjustment provided under this section
75	75	is calculated by multiplying the amount of the monthly benefit
76	76	subject to the adjustment by two percent. The adjustment under this
77	77	section is in addition to the adjustments, if any, granted under
78	78	Sections 824.702 and 824.703, or any other law.
79	79	(g) The board of trustees shall determine the eligibility
80	80	for and the amount of any adjustment in monthly annuities in
81	81	accordance with this section.
82	82	SECTION 2. (a) The Teacher Retirement System of Texas
83	83	shall make a supplemental payment of a retirement or death benefit,
84	84	as provided by this section.
85	85	(b) The supplemental payment is payable in January 2026 and,
86	86	to the extent practicable, on a date or dates that coincide with the
87	87	regular annuity payment payable to each eligible annuitant.
88	88	(c) The amount of the supplemental payment is equal to the
89	89	gross amount of the regular annuity payment to which the eligible
90	90	annuitant is otherwise entitled for the month of December 2025.
91	91	(d) The supplemental payment is payable without regard to
92	92	any forfeiture of benefits under Section 824.601, Government Code.
93	93	The Teacher Retirement System of Texas shall make applicable tax
94	94	withholding and other legally required deductions before
95	95	disbursing the supplemental payment. A supplemental payment under
96	96	this section is in addition to and not in lieu of the regular
97	97	monthly annuity payment to which the eligible annuitant is
98	98	otherwise entitled.
99	99	(e) Subject to Subsection (f) of this section, to be
100	100	eligible for the supplemental payment, a person must be, for the
101	101	month of December 2025, and disregarding any forfeiture of benefits
102	102	under Section 824.601, Government Code, an annuitant eligible to
103	103	receive:
104	104	(1) a standard retirement annuity payment;
105	105	(2) an optional retirement annuity payment as either a
106	106	retiree or beneficiary;
107	107	(3) a life annuity payment under Section
108	108	824.402(a)(4), Government Code;
109	109	(4) an annuity for a guaranteed period of 60 months
110	110	under Section 824.402(a)(3), Government Code; or
111	111	(5) an alternate payee annuity payment under Section
112	112	804.005, Government Code.
113	113	(f) If the annuitant is a retiree or a beneficiary under an
114	114	optional retirement payment plan, to be eligible for the
115	115	supplemental payment, the effective date of the retirement of the
116	116	member of the Teacher Retirement System of Texas must have been
117	117	before December 31, 2024. If the annuitant is a beneficiary under
118	118	Section 824.402(a)(3) or (4), Government Code, to be eligible for
119	119	the supplemental payment, the date of death of the member of the
120	120	retirement system must have been before December 31, 2024. The
121	121	supplemental payment shall be made to an alternate payee who is an
122	122	annuitant under Section 804.005, Government Code, only if the
123	123	annuity payment to the alternate payee commenced before December
124	124	31, 2024. The supplemental payment is in addition to the guaranteed
125	125	number of payments under Section 824.204(c)(3) or (4) or
126	126	824.402(a)(3), Government Code, and may not be counted as one of the
127	127	guaranteed monthly payments.
128	128	(g) The supplemental payment does not apply to payments
129	129	under:
130	130	(1) Section 824.304(a), Government Code, relating to
131	131	disability retirees with less than 10 years of service credit;
132	132	(2) Section 824.304(b)(2), Government Code, relating
133	133	to disability retirees who receive a disability annuity in an
134	134	amount fixed by statute;
135	135	(3) Section 824.804(b), Government Code, relating to
136	136	participants in the deferred retirement option plan with regard to
137	137	payments from their deferred retirement option plan accounts;
138	138	(4) Section 824.501(a), Government Code, relating to
139	139	retiree survivor beneficiaries who receive a survivor annuity in an
140	140	amount fixed by statute; or
141	141	(5) Section 824.404(a), Government Code, relating to
142	142	active member survivor beneficiaries who receive a survivor annuity
143	143	in an amount fixed by statute.
144	144	(h) Except as provided by this section, the board of
145	145	trustees of the Teacher Retirement System of Texas shall determine
146	146	the eligibility for and the amount and timing of a supplemental
147	147	payment and the manner in which the payment is made.
148	148	SECTION 3. Section 824.704, Government Code, as added by
149	149	this Act, applies only to a monthly benefit payment made by the
150	150	Teacher Retirement System of Texas on or after January 1, 2026.
151	151	SECTION 4. The Teacher Retirement System of Texas is
152	152	required to make a cost-of-living adjustment under Section 824.704,
153	153	Government Code, as added by this Act, or a one-time supplemental
154	154	payment of benefits under Section 2 of this Act only if the board of
155	155	trustees of the Teacher Retirement System of Texas finds that the
156	156	legislature appropriated money to the retirement system in an
157	157	amount sufficient to provide the adjustment or payment without
158	158	increasing the unfunded actuarial liabilities of the retirement
159	159	system. The amount appropriated by the legislature to provide the
160	160	adjustment or payment must be in addition to any amounts the state
161	161	is required to contribute to the retirement system under Section
162	162	825.404, Government Code. If the board of trustees of the Teacher
163	163	Retirement System of Texas finds that the legislature did not
164	164	appropriate money in an amount sufficient to provide the
165	165	cost-of-living adjustment or one-time supplemental payment without
166	166	increasing the unfunded actuarial liabilities of the retirement
167	167	system, the retirement system may not make the adjustment or
168	168	payment.
169	169	SECTION 5. This Act takes effect September 1, 2025.