Texas 2025 - 89th Regular

Texas Senate Bill SB573 Compare Versions

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

Old	New	Differences
1	1	89R1551 RDR-D
2	2	By: Eckhardt, Zaffirini S.B. No. 573
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to providing a cost-of-living adjustment applicable to
10	10	certain benefits paid by the Employees Retirement System of Texas.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subchapter G, Chapter 814, Government Code, is
13	13	amended by adding Section 814.605 to read as follows:
14	14	Sec. 814.605. COST-OF-LIVING ADJUSTMENT: JANUARY 2026. (a)
15	15	The amount of a service retirement, disability retirement, death,
16	16	or other monthly benefit paid under this chapter, Chapter 820, or
17	17	Chapter 804 to an annuitant based on service credited in the
18	18	employee class is increased to include a cost-of-living adjustment
19	19	in accordance with this section.
20	20	(b) Subject to Subsections (c) and (d), to be eligible for
21	21	the adjustment, a person must be, for the month of December 2025, an
22	22	annuitant eligible to receive:
23	23	(1) a standard retirement annuity payment;
24	24	(2) an optional service retirement annuity payment as
25	25	either a retiree or beneficiary under Section 814.108 or 820.0535;
26	26	(3) a standard or occupational disability retirement
27	27	annuity payment;
28	28	(4) a death benefit annuity payment under Section
29	29	814.301, 814.302, 814.305, or 820.054; or
30	30	(5) an alternate payee annuity payment under Section
31	31	804.005.
32	32	(c) The adjustment does not apply to benefit payments under:
33	33	(1) Section 814.103, 814.205, 820.053(a)(3), or
34	34	820.054 relating to retirees or disability retirees from the
35	35	elected class of membership;
36	36	(2) a subtitle other than Subtitle B, Title 8, except
37	37	as provided by Subsection (b)(5); or
38	38	(3) Section 814.304 or 820.054 relating to retiree
39	39	survivor beneficiaries who receive a survivor annuity as the
40	40	surviving spouse of a member of the elected class.
41	41	(d) If the annuitant:
42	42	(1) is a retiree or beneficiary under an optional
43	43	service or disability retirement payment plan, to be eligible for
44	44	the adjustment under this section:
45	45	(A) the annuitant must be living on the effective
46	46	date of the adjustment; and
47	47	(B) the effective date of the retirement of the
48	48	member of the retirement system on whose service the annuity is
49	49	based must have been before September 1, 2024;
50	50	(2) is a person eligible to receive a death benefit
51	51	annuity described by Subsection (b)(4), to be eligible for the
52	52	adjustment:
53	53	(A) the annuitant must be living on the effective
54	54	date of the adjustment; and
55	55	(B) the date of death of the member of the
56	56	retirement system on whose service the annuity is based must have
57	57	been before September 1, 2025; or
58	58	(3) is an alternate payee under Section 804.005, to be
59	59	eligible for the adjustment:
60	60	(A) the annuitant must be living on the effective
61	61	date of the adjustment; and
62	62	(B) the effective date of the annuitant's
63	63	election to receive the annuity payment must have been before
64	64	September 1, 2025.
65	65	(e) An adjustment under this section must be made beginning
66	66	with an annuity payable for the month of January 2026.
67	67	(f) The amount of the adjustment provided under this section
68	68	is computed by multiplying the amount of the monthly benefit
69	69	subject to the adjustment by the following percentage rate, as
70	70	applicable:
71	71	(1) for annuitants described by Subsection (d)(1):
72	72	(A) if the effective date of retirement of the
73	73	member of the retirement system on whose service the annuity is
74	74	based was on or before August 31, 2014, seven percent; and
75	75	(B) 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 after August 31, 2014, four percent;
78	78	(2) for annuitants described by Subsection (d)(2):
79	79	(A) if the date of the death of the member of the
80	80	retirement system on whose service the annuity is based was on or
81	81	before August 31, 2014, seven percent; and
82	82	(B) if the date of the death of the member of the
83	83	retirement system on whose service the annuity is based was after
84	84	August 31, 2014, four percent; and
85	85	(3) for annuitants described by Subsection (d)(3):
86	86	(A) if the effective date of the annuitant's
87	87	election was on or before August 31, 2014, seven percent; and
88	88	(B) if the effective date of the annuitant's
89	89	election was after August 31, 2014, four percent.
90	90	(g) The board of trustees shall recompute the amount of an
91	91	annuity paid monthly under this chapter, Chapter 820, or Chapter
92	92	804, as applicable, by applying the adjustment required under
93	93	Subsection (f) to the monthly amount otherwise required to be paid
94	94	under the applicable chapter. The adjustment under this section is
95	95	in addition to the adjustment, if any, granted under Section
96	96	814.604 or any other law.
97	97	(h) The board of trustees shall determine the eligibility
98	98	for and the amount of any adjustment in monthly annuities in
99	99	accordance with this section.
100	100	SECTION 2. Section 814.605, Government Code, as added by
101	101	this Act, applies only to a monthly benefit payment made by the
102	102	Employees Retirement System of Texas on or after January 1, 2026.
103	103	SECTION 3. This Act takes effect immediately if it receives
104	104	a vote of two-thirds of all the members elected to each house, as
105	105	provided by Section 39, Article III, Texas Constitution. If this
106	106	Act does not receive the vote necessary for immediate effect, this
107	107	Act takes effect September 1, 2025.