Bill > HB3857

This bill establishes a new mechanism for cost-of-living adjustments (COLAs) for benefits paid by the Teacher Retirement System of Texas, designed to help retirees keep pace with inflation. Every two years, during the last week of October in odd-numbered years, the retirement system's board of trustees will calculate a potential benefit adjustment based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures changes in the cost of living. The board can only implement the adjustment if the retirement system is actuarially sound and has sufficient funds, potentially adjusting the rate downward if full funding is not available. Additionally, the bill requires the retirement system to conduct a biennial study evaluating inflation's impact on annuitants (retirees), with a requirement to submit a report to the legislature by January 1 of each even-numbered year. This report must detail the effects of inflation on retirees and potentially recommend legislative actions to address any adverse financial impacts. The new cost-of-living adjustment provisions will begin applying to benefits paid on or after January 1, 2026, providing a forward-looking approach to protecting retirees' financial stability in the face of rising living costs.

Labor and Employment

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3857