The bill, S.B. No. 574, proposes an annual adjustment for inflation to the monthly amount of longevity pay for state employees in Texas. It amends Section 659.044 of the Government Code by removing the fixed amount of $20 for every two years of service credit and instead allows the comptroller to set the longevity pay amount based on an index that reflects annual changes in the purchasing power of the dollar. The comptroller is required to publish the adjusted amount by August 1 each year, with the new amount taking effect on September 1.
Additionally, the bill includes a specific provision for the state fiscal year beginning September 1, 2025, which mandates that the longevity pay be set at a minimum of $20 plus an inflation adjustment based on the same index. This provision will expire on September 1, 2026, after which the comptroller will revert to the annual adjustment process outlined in the amended law. The bill is set to take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if that threshold is not met.
Statutes affected: Introduced: Government Code 659.044 (Government Code 659)