HB2163 - Relating to benefits paid by the Teacher Retirement System of Texas.

  89R4243 RDR-D     By: Allen H.B. No. 2163       A BILL TO BE ENTITLED   AN ACT   relating to benefits paid by the Teacher Retirement System of   Texas.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter H, Chapter 824, Government Code, is   amended by adding Sections 824.7015 and 824.704 to read as follows:           Sec.   824.7015.     ONE-TIME ADJUSTMENT TO BENEFITS.   (a)     Notwithstanding any other provision of this subchapter, the amount   of a monthly service retirement benefit, disability retirement   benefit, or death benefit paid under this chapter is increased to   include a one-time 10 percent adjustment in accordance with this   section.           (b)     The board of trustees shall recompute the amount of a   benefit paid monthly under this chapter by applying the 10 percent   adjustment to the monthly amount otherwise required to be paid as   determined in accordance with the other applicable provisions of   this chapter and other law.           Sec.   824.704.     ANNUAL ADJUSTMENT FOR COST OF LIVING.   (a)     Notwithstanding any other provision of this subchapter, the amount   of a monthly service retirement benefit, disability retirement   benefit, or death benefit paid under this chapter is increased to   include a four percent annual cost-of-living adjustment in   accordance with this section.           (b)     On January 1 of each year, the board of trustees shall   recompute the amount of a benefit paid monthly under this chapter by   applying the four percent adjustment to the monthly amount   otherwise required to be paid as determined in accordance with the   other applicable provisions of this chapter and other law.          SECTION 2.  (a)  The Teacher Retirement System of Texas   shall make a 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   greater 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 supplemental payment is payable without regard to   any forfeiture of benefits under Section 824.601, Government Code.   The Teacher 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 and not in lieu of the regular   monthly annuity payment to which the eligible annuitant is   otherwise entitled.          (e)  Subject to Subsection (f) of this section, to be   eligible for the supplemental payment, a person must be, for the   month of December 2025, and disregarding any forfeiture of benefits   under Section 824.601, Government Code, an annuitant eligible to   receive:                (1)  a standard retirement annuity payment;                (2)  an optional retirement annuity payment as either a   retiree or beneficiary;                (3)  a life annuity payment under Section   824.402(a)(4), Government Code;                (4)  an annuity for a guaranteed period of 60 months   under Section 824.402(a)(3), 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 Teacher Retirement System of Texas must have been   before September 1, 2024. If the annuitant is a beneficiary under   Section 824.402(a)(3) or (4), Government Code, to be eligible for   the supplemental payment, the date of death of the member of the   retirement system must have been 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 before September   1, 2024. The supplemental payment is in addition to the guaranteed   number of payments under Section 824.402(a)(3) or 824.204(c)(3) or   (4), 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 824.304(a), Government Code, relating to   disability retirees with less than 10 years of service credit;                (2)  Section 824.304(b)(2), Government Code, relating   to disability retirees who receive a disability annuity in an   amount fixed by statute;                (3)  Section 824.804(b), Government Code, relating to   participants in the deferred retirement option plan with regard to   payments from their deferred retirement option plan accounts;                (4)  Section 824.501(a), Government Code, relating to   retiree survivor beneficiaries who receive a survivor annuity in an   amount fixed by statute; or                (5)  Section 824.404(a), Government Code, relating to   active member survivor beneficiaries who receive a survivor annuity   in an amount fixed by statute.          (h)  Except as provided by this section, the board of   trustees of the Teacher 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 Teacher Retirement System of Texas shall pay the   supplemental payment made under this section from the retired   reserve account and may transfer to that account from the state   contribution account any portion of the amount that exceeds the   amount in the retired reserve account available to finance the   supplemental payment and that is actuarially determined to be   necessary to finance the supplemental payment. The supplemental   payment under this section must comply with Section 821.006,   Government Code.          SECTION 3.  Sections 824.7015 and 824.704, Government Code,   as added by this Act, apply only to a monthly benefit payment made   by the Teacher Retirement System of Texas on or after September 1,   2025.          SECTION 4.  This Act takes effect September 1, 2025.