By: Frank H.B. No. 1393
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to an optional service retirement annuity of the Employees
  Retirement System of Texas.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 814, Government Code, is
  amended by adding Section 814.109 to read as follows:
         Sec. 814.109.  COST-OF-LIVING ADJUSTMENTS OPTION. (a) A
  member who is eligible for an unreduced service retirement annuity
  may select a standard retirement annuity or an optional service
  retirement annuity described by Section 814.108 together with the
  option for cost-of-living adjustments as described by this section.
         (b)  The retirement system shall provide the cost-of-living
  adjustments by reducing benefits for an appropriate period
  beginning immediately after the member's retirement and
  periodically increasing the amount of the benefits, as determined
  by the system, during the period the member or designated
  beneficiary is entitled to service retirement benefits.
         (c)  The service retirement annuity selected by the member
  must be calculated to reflect the cost-of-living adjustments to be
  provided under this section and be actuarially equivalent to a
  standard or optional service retirement annuity, as applicable.
  The annuity and adjustments must be computed to result in no
  actuarial loss to the retirement system.
         (d)  The cost-of-living adjustments option under this
  section may be elected only once by a member and may not be elected
  by a retiree. A member retiring under the proportionate retirement
  program under Chapter 803 is not eligible for the partial lump-sum
  option.
         (e)  This section does not apply to a disability retirement
  annuity.
         (f)  Before a retiring member selects the cost-of-living
  adjustments option under this section, the retirement system must
  provide a written notice to the member of the amount by which the
  member's annuity will be reduced and the period of the reduction
  because of that selection. The retirement system shall maintain a
  copy of the notice under this subsection signed by the member.
         (g)  The board of trustees may adopt rules for the
  implementation of this section.
         SECTION 2.  Section 814.109, Government Code, as added by
  this Act, applies only to a retirement that occurs on or after
  January 1, 2022.
         SECTION 3.  This Act takes effect September 1, 2023.