Bill > SB574

This bill modifies the longevity pay system for state employees by establishing an annual inflation-based adjustment mechanism. Currently set at a flat $20 for every two years of lifetime service credit, the bill directs the comptroller to calculate an annual increase based on a consumer purchasing power index. Starting September 1, 2025, the longevity pay will be calculated as $20 plus an additional amount proportional to the index's percentage change. The comptroller must publish the new longevity pay amount in the Texas Register and on their website by August 1 each year, with the new rate effective for the following 12-month period. For the specific fiscal year beginning September 1, 2025, there is a special calculation method that will expire on September 1, 2026. The bill will take effect immediately if it receives a two-thirds vote in the Texas legislature, or otherwise will take effect on September 1, 2025. This change aims to help state employees' longevity pay keep pace with inflation and maintain its real-world value over time.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB574