Texas 2025 - 89th Regular

Texas Senate Bill SB2472 Compare Versions

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

Old	New	Differences
1	1	89R9325 RDR-D
2	2	By: Menéndez S.B. No. 2472
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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 Employees Retirement System of Texas.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Subchapter G, Chapter 814, Government Code, is
14	14	amended by adding Section 814.605 to read as follows:
15	15	Sec. 814.605. COST-OF-LIVING ADJUSTMENT: JANUARY 2026. (a)
16	16	The amount of a service retirement, disability retirement, death,
17	17	or other monthly benefit paid under this chapter or Chapter 804 to
18	18	an annuitant based on service credited in the employee class is
19	19	increased to include a cost-of-living adjustment in accordance with
20	20	this section.
21	21	(b) Subject to Subsections (c) and (d), to be eligible for
22	22	the adjustment, a person must be, for the month of December 2025, an
23	23	annuitant eligible to receive:
24	24	(1) a standard retirement annuity payment;
25	25	(2) an optional service retirement annuity payment as
26	26	either a retiree or beneficiary under Section 814.108;
27	27	(3) a standard or occupational disability retirement
28	28	annuity payment;
29	29	(4) a death benefit annuity payment under Section
30	30	814.301, 814.302, or 814.305; or
31	31	(5) an alternate payee annuity payment under Section
32	32	804.005.
33	33	(c) The adjustment does not apply to benefit payments:
34	34	(1) based on service credited in the elected class; or
35	35	(2) under a subtitle other than this subtitle except
36	36	as provided by Subsection (b)(5).
37	37	(d) If the annuitant:
38	38	(1) is a retiree, or is a beneficiary under an optional
39	39	service or disability retirement payment plan, to be eligible for
40	40	the adjustment under this section:
41	41	(A) the annuitant must be living on the effective
42	42	date of the adjustment; and
43	43	(B) the effective date of the retirement of the
44	44	member of the retirement system on whose service the annuity is
45	45	based must have been before September 1, 2024;
46	46	(2) is a person eligible to receive a death benefit
47	47	annuity described by Subsection (b)(4), to be eligible for the
48	48	adjustment:
49	49	(A) the annuitant must be living on the effective
50	50	date of the adjustment; and
51	51	(B) the date of death of the member of the
52	52	retirement system on whose service the annuity is based must have
53	53	been before September 1, 2025; or
54	54	(3) is an alternate payee under Section 804.005, to be
55	55	eligible for the adjustment:
56	56	(A) the annuitant must be living on the effective
57	57	date of the adjustment; and
58	58	(B) the effective date of the annuitant's
59	59	election to receive the annuity payment must have been before
60	60	September 1, 2025.
61	61	(e) An adjustment under this section must be made beginning
62	62	with an annuity payable for the month of January 2026.
63	63	(f) The amount of the adjustment provided under this section
64	64	is calculated by multiplying the amount of the monthly benefit
65	65	subject to the adjustment by the following percentage rate, as
66	66	applicable:
67	67	(1) for annuitants described by Subsection (d)(1):
68	68	(A) if the effective date of retirement of the
69	69	member of the retirement system on whose service the annuity is
70	70	based was before January 1, 2007, eight percent;
71	71	(B) if the effective date of retirement of the
72	72	member of the retirement system on whose service the annuity is
73	73	based was on or after January 1, 2007, but before January 1, 2019,
74	74	six percent;
75	75	(C) if the effective date of retirement of the
76	76	member of the retirement system on whose service the annuity is
77	77	based was on or after January 1, 2019, but before January 1, 2024,
78	78	four percent; and
79	79	(D) if the effective date of retirement of the
80	80	member of the retirement system on whose service the annuity is
81	81	based was on or after January 1, 2024, two percent;
82	82	(2) for annuitants described by Subsection (d)(2):
83	83	(A) if the date of the death of the member of the
84	84	retirement system on whose service the annuity is based was before
85	85	January 1, 2007, eight percent;
86	86	(B) if the date of the death of the member of the
87	87	retirement system on whose service the annuity is based was on or
88	88	after January 1, 2007, but before January 1, 2019, six percent;
89	89	(C) if the date of the death of the member of the
90	90	retirement system on whose service the annuity is based was on or
91	91	after January 1, 2019, but before January 1, 2024, four percent; and
92	92	(D) if the date of the death of the member of the
93	93	retirement system on whose service the annuity is based was on or
94	94	after January 1, 2024, two percent; and
95	95	(3) for annuitants described by Subsection (d)(3):
96	96	(A) if the effective date of the annuitant's
97	97	election was before January 1, 2007, eight percent;
98	98	(B) if the effective date of the annuitant's
99	99	election was on or after January 1, 2007, but before January 1,
100	100	2019, six percent;
101	101	(C) if the effective date of the annuitant's
102	102	election was on or after January 1, 2019, but before January 1,
103	103	2024, four percent; and
104	104	(D) if the effective date of the annuitant's
105	105	election was on or after January 1, 2024, two percent.
106	106	(g) The board of trustees shall recompute the amount of an
107	107	annuity paid monthly under this chapter or Chapter 804, as
108	108	applicable, by applying the adjustment required under Subsection
109	109	(f) to the monthly amount otherwise required to be paid under the
110	110	applicable chapter. The adjustment under this section is in
111	111	addition to the adjustment, if any, granted under Section 814.604
112	112	or any other law.
113	113	(h) The board of trustees shall determine the eligibility
114	114	for and the amount of any adjustment in monthly annuities in
115	115	accordance with this section.
116	116	SECTION 2. (a) Subject to Section 811.006, Government
117	117	Code, the Employees Retirement System of Texas shall make a
118	118	one-time supplemental payment of a service retirement, disability
119	119	retirement, death, or other monthly benefit, as provided by this
120	120	section.
121	121	(b) The supplemental payment is payable in January 2026 and,
122	122	to the extent practicable, on a date or dates that coincide with the
123	123	regular annuity payment payable to each eligible annuitant.
124	124	(c) The amount of the supplemental payment is equal to:
125	125	(1) $10,000, if the effective date of retirement of
126	126	the member of the retirement system on whose service the annuity is
127	127	based was before January 1, 2007;
128	128	(2) $7,500, if the effective date of retirement of the
129	129	member of the retirement system on whose service the annuity is
130	130	based was on or after January 1, 2007, but before January 1, 2019;
131	131	(3) $5,000, if the effective date of retirement of the
132	132	member of the retirement system on whose service the annuity is
133	133	based was on or after January 1, 2019, but before January 1, 2024;
134	134	and
135	135	(4) $2,500, if the effective date of retirement of the
136	136	member of the retirement system on whose service the annuity is
137	137	based was on or after January 1, 2024.
138	138	(d) The Employees Retirement System of Texas shall make
139	139	applicable tax withholding and other legally required deductions
140	140	before disbursing the supplemental payment. A supplemental payment
141	141	under this section is in addition to the regular monthly annuity
142	142	payment to which the eligible annuitant is otherwise entitled.
143	143	(e) Subject to Subsection (f) of this section, to be
144	144	eligible for the supplemental payment, a person must be, for the
145	145	month of December 2025, an annuitant eligible to receive based on
146	146	service credited in the employee class:
147	147	(1) a standard retirement annuity payment;
148	148	(2) an optional service retirement annuity payment as
149	149	either a retiree or beneficiary under Section 814.108, Government
150	150	Code;
151	151	(3) a standard or occupational disability retirement
152	152	annuity payment;
153	153	(4) a death benefit annuity payment under Section
154	154	814.305, Government Code; or
155	155	(5) an alternate payee annuity payment under Section
156	156	804.005, Government Code.
157	157	(f) If the annuitant is a retiree or a beneficiary under an
158	158	optional retirement payment plan, to be eligible for the
159	159	supplemental payment, the effective date of the retirement of the
160	160	member of the Employees Retirement System of Texas must have been on
161	161	or before September 1, 2024. The supplemental payment shall be made
162	162	to an alternate payee who is an annuitant under Section 804.005,
163	163	Government Code, only if the annuity payment to the alternate payee
164	164	commenced on or before September 1, 2024. The supplemental payment
165	165	is in addition to the guaranteed number of payments under Section
166	166	814.108, Government Code, and may not be counted as one of the
167	167	guaranteed monthly payments.
168	168	(g) The supplemental payment does not apply to payments:
169	169	(1) based on service credited in the elected class; or
170	170	(2) under a subtitle other than Subtitle B, Title 8,
171	171	Government Code, except as provided by Subsection (e)(5) of this
172	172	section.
173	173	(h) Except as provided by this section, the board of
174	174	trustees of the Employees Retirement System of Texas shall
175	175	determine the eligibility for and the amount and timing of a
176	176	supplemental payment and the manner in which the payment is made.
177	177	SECTION 3. Section 814.605, Government Code, as added by
178	178	this Act, applies only to a monthly benefit payment made by the
179	179	Employees Retirement System of Texas on or after January 1, 2026.
180	180	SECTION 4. The Employees Retirement System of Texas is
181	181	required to make a cost-of-living adjustment under Section 814.605,
182	182	Government Code, as added by this Act, or a one-time supplemental
183	183	payment of benefits under Section 2 of this Act only if the board of
184	184	trustees of the Employees Retirement System of Texas finds that the
185	185	legislature appropriated money to the retirement system in an
186	186	amount sufficient to provide the adjustment or payment without
187	187	increasing the unfunded actuarial liabilities of the retirement
188	188	system. The amount appropriated by the legislature to provide the
189	189	adjustment or payment must be in addition to any amounts the state
190	190	is required to contribute to the retirement system under Subchapter
191	191	E, Chapter 815, Government Code. If the board of trustees of the
192	192	Employees Retirement System of Texas finds that the legislature did
193	193	not appropriate money in an amount sufficient to provide the
194	194	cost-of-living adjustment or one-time supplemental payment without
195	195	increasing the unfunded actuarial liabilities of the retirement
196	196	system, the retirement system may not make the adjustment or
197	197	payment.
198	198	SECTION 5. This Act takes effect September 1, 2025.