House Bill No. 343 proposes an amendment to the Government Code by adding Section 814.605, which establishes a cost-of-living adjustment (COLA) for certain benefits paid by the Employees Retirement System of Texas, effective January 2026. The bill specifies that eligible annuitants, including those receiving service retirement, disability retirement, death benefits, or other monthly benefits, will receive an adjustment based on their eligibility status as of December 2025. The adjustment will not apply to certain benefit payments, including those related to the elected class of membership or specific survivor beneficiaries.

The adjustment amount will be calculated based on the annuitant's retirement or death date, with different percentage rates (7% or 4%) applied depending on whether these dates fall before or after August 31, 2014. The board of trustees is tasked with determining eligibility and recalculating the monthly benefits accordingly. The bill stipulates that the new COLA will only apply to monthly benefit payments made on or after January 1, 2026, and it will be in addition to any adjustments previously granted under existing laws. The act will take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if such a vote is not achieved.

Statutes affected:
Introduced: ()