HB343 - Relating to providing a cost-of-living adjustment applicable to certain benefits paid by the Employees Retirement System of Texas.

  89R1551 RDR-D     By: Bucy H.B. No. 343       A BILL TO BE ENTITLED   AN ACT   relating to providing a cost-of-living adjustment applicable to   certain benefits paid by the Employees Retirement System of Texas.          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.     COST-OF-LIVING ADJUSTMENT: JANUARY 2026.   (a)     The amount of a service retirement, disability retirement, death,   or other monthly benefit paid under this chapter, Chapter 820, or   Chapter 804 to an annuitant based on service credited in the   employee class is increased to include a cost-of-living adjustment   in accordance with this section.           (b)     Subject to Subsections (c) and (d), to be eligible for   the adjustment, a person must be, for the month of December 2025, an   annuitant eligible to receive:                 (1)  a standard retirement annuity payment;                 (2)     an optional service retirement annuity payment as   either a retiree or beneficiary under Section 814.108 or 820.0535;                 (3)     a standard or occupational disability retirement   annuity payment;                 (4)     a death benefit annuity payment under Section   814.301, 814.302, 814.305, or 820.054; or                 (5)     an alternate payee annuity payment under Section   804.005.           (c)  The adjustment does not apply to benefit payments under:                 (1)     Section 814.103, 814.205, 820.053(a)(3), or   820.054 relating to retirees or disability retirees from the   elected class of membership;                 (2)     a subtitle other than Subtitle B, Title 8, except   as provided by Subsection (b)(5); or                 (3)     Section 814.304 or 820.054 relating to retiree   survivor beneficiaries who receive a survivor annuity as the   surviving spouse of a member of the elected class.           (d)  If the annuitant:                 (1)     is a retiree or beneficiary under an optional   service or disability retirement payment plan, to be eligible for   the adjustment under this section:                       (A)     the annuitant must be living on the effective   date of the adjustment; and                       (B)     the effective date of the retirement of the   member of the retirement system on whose service the annuity is   based must have been before September 1, 2024;                 (2)     is a person eligible to receive a death benefit   annuity described by Subsection (b)(4), to be eligible for the   adjustment:                       (A)     the annuitant must be living on the effective   date of the adjustment; and                       (B)     the date of death of the member of the   retirement system on whose service the annuity is based must have   been before September 1, 2025; or                 (3)     is an alternate payee under Section 804.005, to be   eligible for the adjustment:                       (A)     the annuitant must be living on the effective   date of the adjustment; and                       (B)     the effective date of the annuitant's   election to receive the annuity payment must have been before   September 1, 2025.           (e)     An adjustment under this section must be made beginning   with an annuity payable for the month of January 2026.           (f)     The amount of the adjustment provided under this section   is computed by multiplying the amount of the monthly benefit   subject to the adjustment by the following percentage rate, as   applicable:                 (1)  for annuitants described by Subsection (d)(1):                       (A)     if the effective date of retirement of the   member of the retirement system on whose service the annuity is   based was on or before August 31, 2014, seven percent; and                       (B)     if the effective date of retirement of the   member of the retirement system on whose service the annuity is   based was after August 31, 2014, four percent;                 (2)  for annuitants described by Subsection (d)(2):                       (A)     if the date of the death of the member of the   retirement system on whose service the annuity is based was on or   before August 31, 2014, seven percent; and                       (B)     if the date of the death of the member of the   retirement system on whose service the annuity is based was after   August 31, 2014, four percent; and                 (3)  for annuitants described by Subsection (d)(3):                       (A)     if the effective date of the annuitant's   election was on or before August 31, 2014, seven percent; and                       (B)     if the effective date of the annuitant's   election was after August 31, 2014, four percent.           (g)     The board of trustees shall recompute the amount of an   annuity paid monthly under this chapter, Chapter 820, or Chapter   804, as applicable, by applying the adjustment required under   Subsection (f) to the monthly amount otherwise required to be paid   under the applicable chapter. The adjustment under this section is   in addition to the adjustment, if any, granted under Section   814.604 or any other law.           (h)     The board of trustees shall determine the eligibility   for and the amount of any adjustment in monthly annuities in   accordance with this section.          SECTION 2.  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 January 1, 2026.          SECTION 3.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution. If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2025.