The bill proposes a one-time supplemental payment of benefits to eligible annuitants under the Employees Retirement System of Texas, scheduled for January 2026. The amount of the supplemental payment will be the lesser of $2,000 or the gross amount of the regular annuity payment for December 2025. To qualify for this payment, individuals must be annuitants receiving specific types of retirement or death benefits as of December 2025, with additional eligibility criteria for retirees and beneficiaries based on their retirement date. The bill specifies that the supplemental payment is in addition to regular monthly annuity payments and outlines the necessary tax withholdings and deductions.

Furthermore, the bill stipulates that the supplemental payment will only be made if the board of trustees of the Employees Retirement System determines that sufficient funds have been appropriated by the legislature to cover the payment without increasing the system's unfunded actuarial liabilities. The bill also clarifies that certain categories of payments, such as those related to elected class membership or survivor beneficiaries, are excluded from this supplemental payment. The act is set to take effect on September 1, 2025.