88R12965 BDP-D
 
  By: Bucy H.B. No. 3761
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a cost-of-living adjustment applicable to certain
  benefits paid by the Employees Retirement System of Texas and a
  biennial study on providing additional adjustments based on the
  effects of increased inflation.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter G, Chapter 814, Government Code, is
  amended by adding Section 814.605 to read as follows:
         Sec. 814.605.  ONE-TIME ADJUSTMENT TO BENEFITS.  (a)  The
  amount of a monthly service retirement benefit, disability
  retirement benefit, or death benefit paid under this chapter to a
  retiree or beneficiary for service credited in the employee class
  is increased to include a one-time 10 percent adjustment in
  accordance with this section.
         (b)  The board of trustees shall recompute the amount of a
  benefit paid monthly under this chapter by applying the 10 percent
  adjustment to the monthly amount otherwise required to be paid as
  determined in accordance with this chapter.
         SECTION 2.  Subchapter F, Chapter 815, Government Code, is
  amended by adding Section 815.5105 to read as follows:
         Sec. 815.5105.  BIENNIAL STUDY AND REPORT ON PROVIDING
  ADDITIONAL COST-OF-LIVING ADJUSTMENTS BASED ON EFFECTS OF
  INFLATION.  Not later than January 1 of each odd-numbered year, the
  retirement system shall:
               (1)  conduct a study to evaluate and identify the
  effects, if any, that increased inflation has had on annuitants of
  the system:
                     (A)  during the preceding state fiscal biennium;
  and
                     (B)  if applicable, since annuitants last
  received a cost-of-living adjustment; and
               (2)  submit a written report to the legislature
  containing:
                     (A)  findings of the study; and 
                     (B)  if appropriate, recommendations for
  potential legislation to address any adverse effects of inflation
  identified under Subdivision (1), including specific
  recommendations regarding whether and in what amount the
  legislature would need to provide a cost-of-living adjustment to
  the benefits of annuitants to remedy those effects.
         SECTION 3.  Section 814.604, Government Code, is repealed.
         SECTION 4.  Section 814.605, Government Code, as added by
  this Act, applies only to a monthly benefit payment made by the
  Employees Retirement System of Texas on or after September 1, 2023.
         SECTION 5.  This Act takes effect September 1, 2023.