H.B. No. 2319 proposes amendments to the Government Code regarding cost-of-living adjustments for benefits paid by the Teacher Retirement System of Texas. The bill introduces a new section, 824.704, which mandates that service retirement, disability retirement, and death benefits be adjusted annually to reflect inflation. The board of trustees is required to determine the adjustment rate based on the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) during the last week of October each year. This adjustment is intended to ensure that benefits keep pace with inflation and are adequate for retirees.

Additionally, the bill stipulates that any increase in benefits is contingent upon the board of trustees finding that the retirement system is actuarially sound and has sufficient funds to cover the increased benefits. If the available funds are insufficient to provide the full adjustment, the board must calculate the maximum possible adjustment rate while maintaining the system's actuarial soundness. This legislation will apply to benefits paid on or after January 1, 2026, and is set to take effect on September 1, 2025.

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