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