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A BILL TO BE ENTITLED
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AN ACT
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relating to providing a one-time supplemental payment and an annual |
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cost-of-living adjustment applicable to certain benefits paid by |
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the Judicial Retirement System of Texas Plan One and Judicial |
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Retirement System of Texas Plan Two. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 834, Government Code, is amended by |
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adding Subchapter E to read as follows: |
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SUBCHAPTER E. INCREASES IN BENEFITS |
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Sec. 834.401. ANNUAL COST-OF-LIVING ADJUSTMENT. (a) The |
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amount of a service retirement, disability retirement, or death |
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benefit paid under this chapter to an annuitant based on service |
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credited in the retirement system is increased to include a three |
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percent annual cost-of-living adjustment in accordance with this |
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section. |
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(b) On September 1 of each year beginning September 2026, |
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the board of trustees shall recompute the amount of a benefit paid |
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monthly under this chapter by applying the three percent adjustment |
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to the monthly amount otherwise required to be paid as determined in |
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accordance with this chapter. |
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SECTION 2. Subchapter E, Chapter 839, Government Code, is |
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amended by adding Section 839.402 to read as follows: |
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Sec. 839.402. ANNUAL COST-OF-LIVING ADJUSTMENT. (a) The |
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amount of a service retirement, disability retirement, or death |
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benefit paid under this chapter to an annuitant based on service |
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credited in the retirement system is increased to include a three |
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percent annual cost-of-living adjustment in accordance with this |
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section. |
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(b) On September 1 of each year beginning September 2026, |
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the board of trustees shall recompute the amount of a benefit paid |
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monthly under this chapter by applying the three percent adjustment |
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to the monthly amount otherwise required to be paid as determined in |
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accordance with this chapter. |
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SECTION 3. (a) The Employees Retirement System of Texas |
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shall make a one-time supplemental payment of a service retirement, |
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disability retirement, or death benefit to each annuitant of the |
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Judicial Retirement System of Texas Plan One and the Judicial |
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Retirement System of Texas Plan Two as provided by this section. |
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(b) The supplemental payment is payable in September 2025 |
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and, to the extent practicable, on a date or dates that coincide |
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with the regular annuity payment payable to each eligible |
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annuitant. |
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(c) The amount of the supplemental payment is equal to the |
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gross amount of the regular annuity payment to which the eligible |
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annuitant is otherwise entitled for the month of August 2025. |
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(d) The Employees Retirement System of Texas shall make |
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applicable tax withholding and other legally required deductions |
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before disbursing the supplemental payment. A supplemental payment |
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under this section is in addition to the regular monthly annuity |
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payment to which the eligible annuitant is otherwise entitled. |
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(e) To be eligible for the supplemental payment, a person |
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must be, for the month of August 2025, an annuitant eligible to |
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receive based on service credited in the Judicial Retirement System |
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of Texas Plan One or the Judicial Retirement System of Texas Plan |
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Two, any of the following benefits under Chapter 834 or 839, |
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Government Code: |
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(1) a standard retirement annuity payment; |
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(2) an optional service retirement annuity payment as |
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either a retiree or beneficiary; |
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(3) a disability retirement annuity payment; or |
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(4) a death benefit annuity payment. |
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(f) The supplemental payment is in addition to the |
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guaranteed number of payments under Section 814.108, Government |
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Code, and may not be counted as one of the guaranteed monthly |
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payments. |
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(g) Except as provided by this section, the board of |
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trustees of the Employees Retirement System of Texas shall |
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determine the eligibility for and the amount and timing of a |
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supplemental payment and the manner in which the payment is made. |
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SECTION 4. The Employees Retirement System of Texas is |
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required to make a cost-of-living adjustment under Section 834.401 |
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or 839.402, Government Code, as added by this Act, or a one-time |
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supplemental payment of benefits under Section 3 of this Act only if |
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the board of trustees of the Employees Retirement System of Texas |
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finds that the legislature appropriated money to the Judicial |
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Retirement System of Texas Plan One and the Judicial Retirement |
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System of Texas Plan Two in an amount sufficient to provide the |
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adjustment or payment without increasing the unfunded actuarial |
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liabilities of the retirement system. The amount appropriated by |
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the legislature to provide the adjustment or payment must be in |
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addition to any amounts the state is required to contribute to the |
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retirement system under Subchapter B, Chapter 835, or Subchapter B, |
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Chapter 840, Government Code. If the board of trustees of the |
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Employees Retirement System of Texas finds that the legislature did |
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not appropriate money in an amount sufficient to provide the |
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cost-of-living adjustment or one-time supplemental payment without |
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increasing the unfunded actuarial liabilities of the retirement |
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system, the retirement system may not make the adjustment or |
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payment. |
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SECTION 5. This Act takes effect September 1, 2025. |