Bill > HB2319

This bill establishes a new mechanism for providing 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 annually determine an inflation adjustment rate based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which is the same index used for Social Security benefit increases. The board will set this rate during the last week of October each year for the following calendar year. However, the board can only implement the increase if the retirement system is actuarially sound and has sufficient funds, and if funds are limited, they must calculate the largest possible adjustment that maintains the system's financial stability. The bill applies to service retirement, disability retirement, and death benefits, and will take effect for benefits paid on or after January 1, 2026, with the legislation itself becoming effective on September 1, 2025. This approach aims to help protect the purchasing power of retirement benefits for Texas teachers by providing a structured, financially responsible method for adjusting benefits to account for inflation.

Labor and Employment

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB2319