BILL ANALYSIS

H.B. 4802

By: Cook

Pensions, Investments & Financial Services

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Current law provides for two judicial retirement systems in Texas: the Judicial Retirement System of Texas Plan One (JRS-1), which encompasses all judges who began their service before September 1, 1985, and the Judicial Retirement System of Texas Plan Two (JRS-2), which encompasses all judges who assumed office after that date. The bill author has informed the committee that while the state increased salaries for certain judges in 2019, JRS-1 does not have any active judges, and JRS-1 retirees did not receive an accompanying retirement increase. The bill author has further informed the committee that JRS-2 retirees have not received an annuity increase of any kind since 2005, largely due to unfunded liability requirements. H.B. 4802 seeks to address the long-deferred need to acknowledge the years of inflationary impact on retired judges and eligible annuitants by providing for increases in certain JRS-1 and JRS-2 retirement annuities for each year of the 2026-2027 state fiscal biennium.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 4802 requires the Employees Retirement System of Texas, on September 1, 2025, and again on September 1, 2026, to recompute certain service or disability retirement annuities and death benefit annuities being paid to an annuitant under provisions governing the Judicial Retirement System of Texas Plan One (JRS-1) and the Judicial Retirement System of Texas Plan Two (JRS-2) by multiplying the amount of the monthly annuity being paid by 7.5 percent.

H.B. 4802 establishes that its provisions apply to an annuitant under JRS-1or JRS-2 who is eligible to receive certain service or disability retirement annuities that are based on an effective date of retirement that occurred on or before September 1, 2024, or certain death benefit annuities that are based on a death that occurred on or before September 1, 2024.

H.B. 4802 establishes that the adjustment of benefits required under its provisions applies only to an annuity payment that becomes payable on or after the bill's effective date.

EFFECTIVE DATE

September 1, 2025.