Bill > HB1596

This bill establishes a new cost-of-living adjustment (COLA) mechanism for benefits paid by the Teacher Retirement System of Texas, which will automatically adjust retirement, disability, and death benefits to reflect inflation. Each year in late October, the board of trustees will determine the annual adjustment rate based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which is the same index used for calculating Social Security benefit increases. The board can only implement these increases if the retirement system is actuarially sound and has sufficient funds, and if funds are limited, they will calculate the largest possible adjustment that maintains the system's financial stability. The new COLA provisions will apply to benefits paid on or after January 1, 2026, and the bill itself will take effect on September 1, 2025. This legislation aims to help retired teachers maintain the purchasing power of their retirement benefits by providing a mechanism to incrementally increase benefits in line with inflation.

Labor and Employment

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB1596