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A BILL TO BE ENTITLED
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AN ACT
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relating to providing a cost-of-living adjustment applicable to |
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certain benefits paid by the Employees Retirement System of Texas. |
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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. COST-OF-LIVING ADJUSTMENT FOR CERTAIN |
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ANNUITANTS: JANUARY 2026. (a) The amount of a death benefit paid |
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under this chapter to an annuitant based on service credited in the |
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employee class is increased to include a cost-of-living adjustment |
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in accordance with this section. |
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(b) Subject to Subsections (c) and (d), to be eligible for |
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the adjustment: |
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(1) a person must be: |
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(A) for the month of December 2025, an annuitant |
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eligible to receive a death benefit annuity payment under Section |
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814.301, 814.302, or 814.305; and |
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(B) the surviving spouse or the guardian of the |
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surviving minor children of the deceased member on whose service |
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the annuity is based; and |
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(2) the deceased member described by Subdivision |
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(1)(B) must have been employed by the state as a law enforcement |
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officer at the time of the member's death which must have been an |
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occupational death, as determined by the executive director. |
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(c) The adjustment does not apply to benefit payments based |
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on service credited in the elected class. |
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(d) To be eligible for the adjustment under this section: |
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(1) the annuitant described by Subsection (b) must be |
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living on the effective date of the adjustment; and |
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(2) the date of death of the member of the retirement |
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system on whose service the annuity is based must have been before |
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September 1, 2025. |
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(e) An adjustment under this section must be made beginning |
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with an annuity payable for the month of January 2026. |
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(f) The amount of the adjustment provided under this section |
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is computed by multiplying the amount of the monthly benefit |
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subject to the adjustment by the following percentage rate, as |
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applicable: |
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(1) if the date of the death of the member of the |
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retirement system on whose service the annuity is based was on or |
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before August 31, 2014, seven percent; and |
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(2) if the date of the death of the member of the |
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retirement system on whose service the annuity is based was after |
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August 31, 2014, four percent. |
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(g) The board of trustees shall recompute the amount of a |
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death benefit annuity paid monthly under this chapter by applying |
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the adjustment required under Subsection (f) to the monthly amount |
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otherwise required to be paid. The adjustment under this section is |
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in addition to the adjustment, if any, granted under Section |
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814.604 or any other law. |
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(h) The board of trustees shall determine the eligibility |
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for and the amount of any adjustment in monthly annuities in |
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accordance with this section. |
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SECTION 2. 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 January 1, 2026. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2025. |