HB5171 - Relating to providing a one-time supplemental payment and an annual cost-of-living adjustment applicable to certain benefits paid by the Judicial Retirement System of Texas Plan One and Judicial Retirement System of Texas Plan Two.

  89R16031 RDR-F     By: Hayes H.B. No. 5171       A BILL TO BE ENTITLED   AN ACT   relating to providing a one-time supplemental payment and an annual   cost-of-living adjustment applicable to certain benefits paid by   the Judicial Retirement System of Texas Plan One and Judicial   Retirement System of Texas Plan Two.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 834, Government Code, is amended by   adding Subchapter E to read as follows:   SUBCHAPTER E.   INCREASES IN BENEFITS           Sec.   834.401.     ANNUAL COST-OF-LIVING ADJUSTMENT. (a) The   amount of a service retirement, disability retirement, or death   benefit paid under this chapter to an annuitant based on service   credited in the retirement system is increased to include a three   percent annual cost-of-living adjustment in accordance with this   section.           (b)     On September 1 of each year beginning September 2026,   the board of trustees shall recompute the amount of a benefit paid   monthly under this chapter by applying the three percent adjustment   to the monthly amount otherwise required to be paid as determined in   accordance with this chapter.          SECTION 2.  Subchapter E, Chapter 839, Government Code, is   amended by adding Section 839.402 to read as follows:           Sec.   839.402.     ANNUAL COST-OF-LIVING ADJUSTMENT. (a) The   amount of a service retirement, disability retirement, or death   benefit paid under this chapter to an annuitant based on service   credited in the retirement system is increased to include a three   percent annual cost-of-living adjustment in accordance with this   section.           (b)     On September 1 of each year beginning September 2026,   the board of trustees shall recompute the amount of a benefit paid   monthly under this chapter by applying the three percent adjustment   to the monthly amount otherwise required to be paid as determined in   accordance with this chapter.          SECTION 3.  (a)  The Employees Retirement System of Texas   shall make a one-time supplemental payment of a service retirement,   disability retirement, or death benefit to each annuitant of the   Judicial Retirement System of Texas Plan One and the Judicial   Retirement System of Texas Plan Two as provided by this section.          (b)  The supplemental payment is payable in September 2025   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   gross amount of the regular annuity payment to which the eligible   annuitant is otherwise entitled for the month of August 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)  To be eligible for the supplemental payment, a person   must be, for the month of August 2025, an annuitant eligible to   receive based on service credited in the Judicial Retirement System   of Texas Plan One or the Judicial Retirement System of Texas Plan   Two, any of the following benefits under Chapter 834 or 839,   Government Code:                (1)  a standard retirement annuity payment;                (2)  an optional service retirement annuity payment as   either a retiree or beneficiary;                (3)  a disability retirement annuity payment; or                (4)  a death benefit annuity payment.          (f)  The supplemental payment is in addition to the   guaranteed number of payments under Section 814.108, Government   Code, and may not be counted as one of the guaranteed monthly   payments.          (g)  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.          SECTION 4.  The Employees Retirement System of Texas is   required to make a cost-of-living adjustment under Section 834.401   or 839.402, Government Code, as added by this Act, or a one-time   supplemental payment of benefits under Section 3 of this Act only if   the board of trustees of the Employees Retirement System of Texas   finds that the legislature appropriated money to the Judicial   Retirement System of Texas Plan One and the Judicial Retirement   System of Texas Plan Two in an amount sufficient to provide the   adjustment or payment without increasing the unfunded actuarial   liabilities of the retirement system.  The amount appropriated by   the legislature to provide the adjustment or payment must be in   addition to any amounts the state is required to contribute to the   retirement system under Subchapter B, Chapter 835, or Subchapter B,   Chapter 840, 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 the   cost-of-living adjustment or one-time supplemental payment without   increasing the unfunded actuarial liabilities of the retirement   system, the retirement system may not make the adjustment or   payment.          SECTION 5.  This Act takes effect September 1, 2025.