The bill, H.B. No. 343, proposes a cost-of-living adjustment (COLA) for certain benefits paid by the Employees Retirement System of Texas, specifically for service retirement, disability retirement, death, or other monthly benefits. A new section, 814.605, is added to the Government Code, which outlines the eligibility criteria for the adjustment, effective from January 2026. To qualify, individuals must be annuitants receiving specific types of benefits as of December 2025, and the adjustment will not apply to certain benefit payments, including those related to the elected class of membership or other specified sections.

The adjustment amount will be calculated based on the annuitant's retirement date or the date of death of the member on whose service the annuity is based, with different percentage rates (7% or 4%) 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 annuity payments accordingly. The bill stipulates that the new provisions will only apply to monthly benefit payments made on or after January 1, 2026, and it will take effect immediately if it receives a two-thirds vote from both houses; otherwise, it will take effect on September 1, 2025.

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