Bill > HB2087

This bill establishes a new mechanism for providing annual cost-of-living adjustments (COLAs) to retirement benefits for teachers in Texas. Specifically, the bill requires the Teacher Retirement System's board of trustees to determine an annual inflation adjustment each October based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which is the same metric used for Social Security benefit increases. The board can only implement these increases if the retirement system is actuarially sound and has sufficient funds, and if funding is limited, they must calculate the largest possible adjustment that maintains the system's financial stability. The increases will apply to service retirement, disability retirement, and death benefits, and will take effect starting January 1, 2026, with the bill itself becoming effective on September 1, 2025. This approach provides a transparent, standardized method for helping retired teachers maintain their purchasing power in the face of inflation, while also ensuring the long-term fiscal health of the retirement system.

Labor and Employment

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB2087