Bill > SB573

This bill provides a cost-of-living adjustment (COLA) for certain retirement benefits paid by the Employees Retirement System of Texas, effective January 2026. The adjustment applies to various types of monthly benefits, including standard retirement, disability retirement, death benefits, and alternate payee annuities, for individuals who were receiving these benefits in December 2025. Eligibility depends on specific conditions, such as the date of retirement or death, and whether the recipient is still living. The percentage of the adjustment varies: retirees or beneficiaries whose retirement or death occurred on or before August 31, 2014, will receive a 7% increase, while those with later effective dates will receive a 4% increase. The adjustment is calculated by multiplying the current monthly benefit by the applicable percentage rate and is independent of any previous adjustments. The bill requires the board of trustees of the retirement system to recompute and apply these adjustments, which will be implemented for monthly benefits paid on or after January 1, 2026. The bill takes effect immediately if it receives a two-thirds vote in the Texas Legislature, or otherwise becomes effective on September 1, 2025.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB573