H.B. No. 284 proposes an amendment to the Government Code by adding Section 814.605, which establishes a cost-of-living adjustment (COLA) for certain benefits paid by the Employees Retirement System of Texas, effective January 2026. The bill specifies that eligible annuitants, including those receiving service retirement, disability retirement, death benefits, or other monthly benefits, will receive an increase in their monthly payments. To qualify for this adjustment, individuals must be living as of the effective date and meet specific criteria related to their retirement or the death of the member on whose service their annuity is based.

The adjustment will be calculated based on the effective date of retirement or death, with different percentage increases (either 7% or 4%) depending on whether these events occurred before or after August 31, 2014. The bill also clarifies that the COLA does not apply to certain benefit payments and mandates that the board of trustees will determine eligibility and the amount of adjustments. This legislation aims to enhance the financial security of retirees and beneficiaries by ensuring their benefits keep pace with inflation.

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