The bill amends the Government Code to introduce two new sections, 824.7015 and 824.704, which establish adjustments to benefits paid by the Teacher Retirement System of Texas. Section 824.7015 mandates a one-time 10 percent increase in monthly service retirement, disability retirement, or death benefits, effective for payments made on or after September 1, 2025. Section 824.704 provides for an annual cost-of-living adjustment of four percent to these benefits, which will also take effect on the same date. The board of trustees is tasked with recalculating the benefit amounts to incorporate these adjustments.

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 defined, requiring that the annuitant must have been eligible for certain types of annuity payments as of December 2025, with specific conditions regarding the retirement date or the date of death of the member. The bill specifies that the supplemental payment will not apply to certain categories of retirees and will be funded from the retired reserve account of the Teacher Retirement System.

Statutes affected:
Introduced: ()