The bill amends Section 659.044 of the Government Code to establish an annual adjustment for inflation to the monthly amount of longevity pay for state employees. It introduces new provisions that require the comptroller to set the amount of longevity pay each year by considering the percentage increase in an index that reflects annual changes in the purchasing power of the dollar. Specifically, Subsection (a-1) mandates that the comptroller publish the adjusted amount and its effective period by August 1 each year, while Subsection (a-2) specifies that for the fiscal year beginning September 1, 2025, the longevity pay will be calculated based on a base amount of $20 plus any applicable inflation adjustment.

Additionally, the bill outlines that the comptroller will calculate the longevity pay for the fiscal year starting September 1, 2025, according to the new method established in Subsection (a-2), and will revert to the standard calculation method in subsequent years. The bill is set to take effect immediately upon receiving a two-thirds vote from both houses of the legislature; otherwise, it will become effective on September 1, 2025.

Statutes affected:
Introduced: Government Code 659.044 (Government Code 659)