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A BILL TO BE ENTITLED
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AN ACT
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relating to cost-of-living increases applicable to benefits paid by |
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the Teacher Retirement System of Texas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter H, Chapter 824, Government Code, is |
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amended by adding Section 824.703 to read as follows: |
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Sec. 824.703. COST-OF-LIVING ADJUSTMENTS FOR INFLATION; |
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ANNUAL DETERMINATION. (a) Notwithstanding any other law, the |
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amount of a service retirement benefit, disability retirement |
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benefit, or death benefit paid under this chapter is adjusted in |
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accordance with this section as necessary to reflect inflation. |
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(b) Each year, during the last seven days of October, the |
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board of trustees shall set the rate of the adjustment for the next |
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calendar year to equal the annual percentage increase, if any, in |
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the Consumer Price Index for Urban Wage Earners and Clerical |
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Workers (CPI-W) published by the Bureau of Labor Statistics of the |
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United States Department of Labor as determined by the commissioner |
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of social security under 42 U.S.C. Section 415(i) for purposes of |
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providing an annual cost-of-living increase to social security |
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benefit payments payable in the next calendar year. |
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(c) Subject to Subsection (d), the board of trustees shall |
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increase the amount of a benefit payable under this chapter by |
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applying the adjustment rate set by the board of trustees under |
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Subsection (b) to the amount otherwise required to be paid as |
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determined in accordance with the other applicable provisions of |
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this chapter. |
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(d) The board of trustees may not pay a benefit increase |
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under this section in any calendar year unless the board finds that |
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the retirement system is actuarially sound and has money available |
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to pay increased benefits in that year. If the board of trustees |
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finds that the retirement system is actuarially sound, but that the |
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amount of money available is not sufficient to pay the full amount |
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of the adjustment under Subsection (b), the board shall compute the |
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largest rate of adjustment possible for the amount of money |
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available while maintaining the actuarial soundness of the system |
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and shall use that rate in increasing benefits under Subsection (c) |
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for that calendar year. |
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SECTION 2. This Act applies only to a benefit paid by the |
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Teacher Retirement System of Texas on or after January 1, 2024. |
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SECTION 3. This Act takes effect September 1, 2023. |