Enrolled Bill Summary

Senate Bill 10	Senate Author:  Huffman et al.
Effective:  See below	House Sponsor:  Bonnen et al.

            Senate Bill 10 amends the Government Code to provide for two types of benefit enhancements to eligible retirees, beneficiaries, and alternate payees who are receiving a monthly annuity from the Teacher Retirement System of Texas (TRS). The first, in a bill provision effective June 14, 2023, is a one‑time stipend for eligible annuitants who have reached age 70 by August 31, 2023. The second, in a bill provision effective January 1, 2024, but only if House Joint Resolution 2, 88th Legislature, Regular Session, 2023, is approved by voters, is a cost‑of‑living adjustment (COLA) for eligible annuitants who retired on or before August 31, 2020. Accordingly, the bill provides the following:

·        the one time stipend is to be paid no later than the end of September 2023 and, as follows:

o   an annuitant will receive the one time stipend for the eligible amount based on the annuitant's age;

o   the amount of the stipend is the same regardless of the annuitant's monthly annuity amount or retirement date;

o   the stipend amounts are as follows: $7,500 for eligible annuitants 75 years of age and older and $2,400 for eligible annuitants aged 70 to 74; and

o   annuitants must be eligible to receive a TRS annuity in August 2023 and meet the qualifying age on or before August 31, 2023; and

·        the COLA is to be made as follows:

o   a two percent COLA for eligible retirees who retired between September 1, 2013, through August 31, 2020, or eligible beneficiaries receiving a monthly annuity if the member's date of death occurred between those dates;

o   a four percent COLA for eligible retirees who retired between September 1, 2001, through August 31, 2013, or eligible beneficiaries receiving a monthly annuity if the member's date of death occurred between those dates; and

o   a six percent COLA for eligible retirees who retired on or before August 31, 2001, or eligible beneficiaries receiving a monthly annuity if the member's date of death occurred before September 1, 2001.