The bill, S.B. No. 174, proposes a one-time cost-of-living adjustment for annuitants receiving monthly death or retirement benefit annuities from the Teacher Retirement System of Texas, effective September 2025. The new section added to the Government Code, Section 824.704, outlines the eligibility criteria for this adjustment, which includes being a living annuitant on the effective date and having a retirement or death date prior to January 1, 2025. The adjustment will not apply to certain payments specified in existing law, such as those fixed by statute for specific categories of retirees and beneficiaries.

The adjustment amount is capped at the lesser of three percent of the monthly benefit or $200 per month, and it will begin with annuities payable for September 2025. The board of trustees of the retirement system is tasked with determining the eligibility and amount of the adjustments in accordance with the new provisions. The bill 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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