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A BILL TO BE ENTITLED
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AN ACT
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relating to a cost-of-living adjustment applicable to certain |
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benefits paid by the Employees Retirement System of Texas and a |
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biennial study on providing additional adjustments based on the |
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effects of increased inflation. |
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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. 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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SECTION 2. Subchapter F, Chapter 815, Government Code, is |
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amended by adding Section 815.5105 to read as follows: |
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Sec. 815.5105. BIENNIAL STUDY AND REPORT ON PROVIDING |
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ADDITIONAL COST-OF-LIVING ADJUSTMENTS BASED ON EFFECTS OF |
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INFLATION. Not later than January 1 of each odd-numbered year, the |
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retirement system shall: |
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(1) conduct a study to evaluate and identify the |
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effects, if any, that increased inflation has had on annuitants of |
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the system: |
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(A) during the preceding state fiscal biennium; |
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and |
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(B) if applicable, since annuitants last |
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received a cost-of-living adjustment; and |
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(2) submit a written report to the legislature |
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containing: |
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(A) findings of the study; and |
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(B) if appropriate, recommendations for |
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potential legislation to address any adverse effects of inflation |
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identified under Subdivision (1), including specific |
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recommendations regarding whether and in what amount the |
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legislature would need to provide a cost-of-living adjustment to |
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the benefits of annuitants to remedy those effects. |
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SECTION 3. Section 814.604, Government Code, is repealed. |
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SECTION 4. 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 September 1, 2023. |
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SECTION 5. This Act takes effect September 1, 2023. |