The bill, H.B. No. 2163, proposes amendments to the Teacher Retirement System of Texas, specifically introducing two new sections: 824.7015 and 824.704. Section 824.7015 establishes a one-time 10 percent adjustment to monthly service retirement, disability retirement, or death benefits, which will be recalculated by the board of trustees. Section 824.704 mandates a four percent annual cost-of-living adjustment for these benefits, also to be recalculated annually by the board. Both adjustments are designed to enhance the financial support provided to retirees and beneficiaries under the system.

Additionally, the bill outlines a supplemental payment to be made in January 2026, which will be the greater of $2,000 or the gross amount of the regular annuity payment for December 2025. Eligibility for this supplemental payment is contingent upon being an annuitant in December 2025, with specific conditions regarding the retirement date for retirees and beneficiaries. The bill specifies that the supplemental payment will not apply to certain categories of retirees and will be funded from the retired reserve account, with provisions for transferring additional funds if necessary. The new provisions will take effect on September 1, 2025.

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