| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to certain benefits paid by the Employees Retirement |
|
|
System of Texas. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Subchapter G, Chapter 814, Government Code, is |
|
|
amended by adding Sections 814.605 and 814.606 to read as follows: |
|
|
Sec. 814.605. ONE-TIME ADJUSTMENT TO BENEFITS. (a) The |
|
|
amount of a monthly service retirement benefit, disability |
|
|
retirement benefit, or death benefit paid under this chapter to a |
|
|
retiree or beneficiary for service credited in the employee class |
|
|
is increased to include a one-time 10 percent adjustment in |
|
|
accordance with this section. |
|
|
(b) The board of trustees shall recompute the amount of a |
|
|
benefit paid monthly under this chapter by applying the 10 percent |
|
|
adjustment to the monthly amount otherwise required to be paid as |
|
|
determined in accordance with this chapter. |
|
|
Sec. 814.606. ANNUAL COST-OF-LIVING ADJUSTMENT. (a) |
|
|
Notwithstanding Section 814.605, the amount of a monthly service |
|
|
retirement benefit, disability retirement benefit, or death |
|
|
benefit paid under this chapter to a retiree or beneficiary for |
|
|
service credited in the employee class is increased to include a |
|
|
four percent annual cost-of-living adjustment in accordance with |
|
|
this section. |
|
|
(b) On January 1 of each year, the board of trustees shall |
|
|
recompute the amount of a benefit paid monthly under this chapter by |
|
|
applying the four percent adjustment to the monthly amount |
|
|
otherwise required to be paid as determined in accordance with this |
|
|
chapter. |
|
|
SECTION 2. (a) The Employees Retirement System of Texas |
|
|
shall make a one-time supplemental payment of a retirement or death |
|
|
benefit, as provided by this section. |
|
|
(b) A supplemental payment is payable in January 2024, and, |
|
|
to the extent practicable, on a date or dates that coincide with the |
|
|
regular annuity payment payable to each eligible annuitant. |
|
|
(c) The amount of the supplemental payment is equal to the |
|
|
lesser of: |
|
|
(1) $2,000; or |
|
|
(2) the gross amount of the regular annuity payment to |
|
|
which the eligible annuitant is otherwise entitled for the month of |
|
|
December 2023. |
|
|
(d) The Employees Retirement System of Texas shall make |
|
|
applicable tax withholding and other legally required deductions |
|
|
before disbursing the supplemental payment. A supplemental payment |
|
|
under this section is in addition to and not in lieu of the regular |
|
|
monthly annuity payment to which the eligible annuitant is |
|
|
otherwise entitled. |
|
|
(e) Subject to Subsections (f) and (g) of this section, to |
|
|
be eligible for the supplemental payment, a person must be, for the |
|
|
month of December 2023, an annuitant eligible to receive: |
|
|
(1) a standard retirement annuity payment; |
|
|
(2) an optional service retirement annuity payment as |
|
|
either a retiree or beneficiary under Section 814.108, Government |
|
|
Code; |
|
|
(3) a standard or occupational disability retirement |
|
|
annuity payment; |
|
|
(4) a death benefit annuity payment under Section |
|
|
814.305, Government Code; or |
|
|
(5) an alternate payee annuity payment under Section |
|
|
804.005, Government Code. |
|
|
(f) If the annuitant is a retiree or a beneficiary under an |
|
|
optional retirement payment plan, to be eligible for the |
|
|
supplemental payment, the effective date of the retirement of the |
|
|
member of the Employees Retirement System of Texas must have been on |
|
|
or before September 1, 2022. The supplemental payment shall be made |
|
|
to an alternate payee who is an annuitant under Section 804.005, |
|
|
Government Code, only if the annuity payment to the alternate payee |
|
|
commenced on or before September 1, 2022. The supplemental payment |
|
|
is in addition to the guaranteed number of payments under Section |
|
|
814.108, Government Code, and may not be counted as one of the |
|
|
guaranteed monthly payments. |
|
|
(g) The supplemental payment does not apply to payments |
|
|
under: |
|
|
(1) Section 814.103 or 814.205, Government Code, |
|
|
relating to retirees or disability retirees from the elected class |
|
|
of membership; |
|
|
(2) a subtitle other than Subtitle B, Title 8, |
|
|
Government Code, except as provided by Subsection (e)(5) of this |
|
|
section; or |
|
|
(3) Section 814.304, Government Code, relating to |
|
|
retiree survivor beneficiaries who receive a survivor annuity as |
|
|
the surviving spouse of a member of the elected class. |
|
|
(h) Except as provided by this section, the board of |
|
|
trustees of the Employees Retirement System of Texas shall |
|
|
determine the eligibility for and the amount and timing of a |
|
|
supplemental payment and the manner in which the payment is made. |
|
|
(i) The supplemental payment is subject solely to the |
|
|
availability of appropriated funds. The supplemental payment must |
|
|
comply with Section 811.006, Government Code. |
|
|
SECTION 3. Section 814.604, Government Code, is repealed. |
|
|
SECTION 4. Sections 814.605 and 814.606, Government Code, |
|
|
as added by this Act, apply only to a monthly benefit payment made |
|
|
by the Employees Retirement System of Texas on or after September 1, |
|
|
2023. |
|
|
SECTION 5. This Act takes effect September 1, 2023. |