Bill > HB4161

This bill establishes a new mechanism for providing cost-of-living adjustments (COLAs) to benefits paid by the Teacher Retirement System of Texas, allowing for annual inflation-based increases. Specifically, the board of trustees will determine the adjustment rate each year in October based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which is the same index used for calculating Social Security benefit increases. The board can only implement these increases if the retirement system is actuarially sound and has sufficient funds, and if the system cannot fully fund the calculated adjustment, the board will determine the largest possible adjustment that can be made while maintaining the system's financial stability. The bill applies to benefits paid on or after January 1, 2026, and will take effect on September 1, 2025, ensuring that retired teachers receive benefit increases that help protect their purchasing power against inflation.

Labor and Employment

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB4161