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A BILL TO BE ENTITLED
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AN ACT
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relating to providing a cost-of-living adjustment applicable to |
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certain benefits paid by the Employees 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 G, Chapter 814, Government Code, is |
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amended by adding Section 814.605 to read as follows: |
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Sec. 814.605. COST-OF-LIVING ADJUSTMENT: JANUARY 2026. (a) |
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The amount of a service retirement, disability retirement, death, |
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or other monthly benefit paid under this chapter, Chapter 820, or |
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Chapter 804 to an annuitant based on service credited in the |
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employee class is increased to include a cost-of-living adjustment |
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in accordance with this section. |
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(b) Subject to Subsections (c) and (d), to be eligible for |
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the adjustment, a person must be, for the month of December 2025, an |
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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 or 820.0535; |
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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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814.301, 814.302, 814.305, or 820.054; or |
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(5) an alternate payee annuity payment under Section |
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804.005. |
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(c) The adjustment does not apply to benefit payments under: |
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(1) Section 814.103, 814.205, 820.053(a)(3), or |
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820.054 relating to retirees or disability retirees from the |
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elected class of membership; |
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(2) a subtitle other than Subtitle B, Title 8, except |
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as provided by Subsection (b)(5); or |
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(3) Section 814.304 or 820.054 relating to retiree |
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survivor beneficiaries who receive a survivor annuity as the |
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surviving spouse of a member of the elected class. |
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(d) If the annuitant: |
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(1) is a retiree or beneficiary under an optional |
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service or disability retirement payment plan, to be eligible for |
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the adjustment under this section: |
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(A) the annuitant must be living on the effective |
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date of the adjustment; and |
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(B) the effective date of the retirement of the |
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member of the retirement system on whose service the annuity is |
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based must have been before September 1, 2024; |
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(2) is a person eligible to receive a death benefit |
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annuity described by Subsection (b)(4), to be eligible for the |
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adjustment: |
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(A) the annuitant must be living on the effective |
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date of the adjustment; and |
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(B) the date of death of the member of the |
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retirement system on whose service the annuity is based must have |
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been before September 1, 2025; or |
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(3) is an alternate payee under Section 804.005, to be |
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eligible for the adjustment: |
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(A) the annuitant must be living on the effective |
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date of the adjustment; and |
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(B) the effective date of the annuitant's |
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election to receive the annuity payment must have been before |
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September 1, 2025. |
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(e) An adjustment under this section must be made beginning |
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with an annuity payable for the month of January 2026. |
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(f) The amount of the adjustment provided under this section |
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is computed by multiplying the amount of the monthly benefit |
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subject to the adjustment by the following percentage rate, as |
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applicable: |
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(1) for annuitants described by Subsection (d)(1): |
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(A) if the effective date of retirement of the |
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member of the retirement system on whose service the annuity is |
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based was on or before August 31, 2014, seven percent; and |
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(B) if the effective date of retirement of the |
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member of the retirement system on whose service the annuity is |
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based was after August 31, 2014, four percent; |
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(2) for annuitants described by Subsection (d)(2): |
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(A) if the date of the death of the member of the |
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retirement system on whose service the annuity is based was on or |
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before August 31, 2014, seven percent; and |
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(B) if the date of the death of the member of the |
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retirement system on whose service the annuity is based was after |
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August 31, 2014, four percent; and |
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(3) for annuitants described by Subsection (d)(3): |
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(A) if the effective date of the annuitant's |
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election was on or before August 31, 2014, seven percent; and |
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(B) if the effective date of the annuitant's |
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election was after August 31, 2014, four percent. |
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(g) The board of trustees shall recompute the amount of an |
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annuity paid monthly under this chapter, Chapter 820, or Chapter |
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804, as applicable, by applying the adjustment required under |
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Subsection (f) to the monthly amount otherwise required to be paid |
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under the applicable chapter. The adjustment under this section is |
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in addition to the adjustment, if any, granted under Section |
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814.604 or any other law. |
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(h) The board of trustees shall determine the eligibility |
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for and the amount of any adjustment in monthly annuities in |
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accordance with this section. |
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SECTION 2. Section 814.605, Government Code, as added by |
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this Act, applies only to a monthly benefit payment made by the |
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Employees Retirement System of Texas on or after January 1, 2026. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2025. |