The bill, S.B. No. 573, 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. The new Section 814.605 outlines that eligible annuitants must be receiving benefits as of December 2025 to qualify for the adjustment, which will take effect in January 2026. The adjustment will vary based on the retirement date or the date of death of the member on whose service the annuity is based, with specified percentage increases of either four or seven percent depending on these dates.

Additionally, the bill clarifies that the COLA does not apply to certain benefit payments, including those related to the elected class of membership and survivor beneficiaries. The board of trustees is tasked with determining eligibility and recalculating the monthly annuity amounts based on the new adjustment criteria. The bill 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.

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