HB886 - Relating to a one-time supplemental payment of benefits under the Employees Retirement System of Texas.

  89R2180 RDR-D     By: Vasut, Lambert, Plesa, Talarico, Guillen, H.B. No. 886       et al.       A BILL TO BE ENTITLED   AN ACT   relating to a one-time supplemental payment of benefits under the   Employees Retirement System of Texas.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  (a)  Subject to Subsection (i) of this section   and Section 811.006, Government Code, the Employees Retirement   System of Texas shall make a one-time supplemental payment of a   retirement or death benefit, as provided by this section.          (b)  The supplemental payment is payable in January 2026 and,   to the extent practicable, on a date or dates that coincide with the   regular annuity payment payable to each eligible annuitant.          (c)  The amount of the supplemental payment is equal to the   lesser of:                (1)  $2,000; or                (2)  the gross amount of the regular annuity payment to   which the eligible annuitant is otherwise entitled for the month of   December 2025.          (d)  The Employees Retirement System of Texas shall make   applicable tax withholding and other legally required deductions   before disbursing the supplemental payment. A supplemental payment   under this section is in addition to the regular monthly annuity   payment to which the eligible annuitant is otherwise entitled.          (e)  Subject to Subsections (f) and (g) of this section, to   be eligible for the supplemental payment, 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,   Government Code;                (3)  a standard or occupational disability retirement   annuity payment;                (4)  a death benefit annuity payment under Section   814.305 or 820.054, Government Code; or                (5)  an alternate payee annuity payment under Section   804.005, Government Code.          (f)  If the annuitant is a retiree or a beneficiary under an   optional retirement payment plan, to be eligible for the   supplemental payment, the effective date of the retirement of the   member of the Employees Retirement System of Texas must have been on   or before September 1, 2024. The supplemental payment shall be made   to an alternate payee who is an annuitant under Section 804.005,   Government Code, only if the annuity payment to the alternate payee   commenced on or before September 1, 2024.  The supplemental payment   is in addition to the guaranteed number of payments under Section   814.108 or 820.0535, Government Code, and may not be counted as one   of the guaranteed monthly payments.          (g)  The supplemental payment does not apply to payments   under:                (1)  Section 814.103, 814.205, 820.053(a)(3), or   820.054, Government Code, relating to retirees or disability   retirees from the elected class of membership;                (2)  a subtitle other than Subtitle B, Title 8,   Government Code, except as provided by Subsection (e)(5) of this   section; or                (3)  Section 814.304 or 820.054, Government Code,   relating to retiree survivor beneficiaries who receive a survivor   annuity as the surviving spouse of a member of the elected class.          (h)  Except as provided by this section, the board of   trustees of the Employees Retirement System of Texas shall   determine the eligibility for and the amount and timing of a   supplemental payment and the manner in which the payment is made.          (i)  The Employees Retirement System of Texas is required to   make a one-time supplemental payment of benefits under this section   only if the board of trustees of the Employees Retirement System of   Texas finds that the legislature appropriated money to the   retirement system in an amount sufficient to provide the payment   without increasing the unfunded actuarial liabilities of the   retirement system.  The amount appropriated by the legislature to   provide the payment must be in addition to any amounts the state is   required to contribute to the retirement system under Subchapter E,   Chapter 815, Government Code. If the board of trustees of the   Employees Retirement System of Texas finds that the legislature did   not appropriate money in an amount sufficient to provide a one-time   supplemental payment of benefits under this section without   increasing the unfunded actuarial liabilities of the retirement   system, the retirement system may not make the payment.          SECTION 2.  This Act takes effect September 1, 2025.