Bill > HB5156

This bill modifies the Texas Teacher Retirement System by adding two new sections to establish cost-of-living adjustments (COLAs) for retirement benefits. Specifically, the bill provides a one-time 6% adjustment for annuitants (pension recipients) starting in January 2026, with eligibility restricted to those whose retirement or member's death occurred before January 1, 2025. The bill also creates an annual inflation-based adjustment mechanism where the board of trustees will determine the COLA rate each October based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), similar to Social Security's annual adjustment process. However, these adjustments are contingent on the retirement system being actuarially sound and having sufficient funds, and the legislature must appropriate additional money specifically for the adjustment without increasing the system's unfunded liabilities. The bill ensures that these new adjustments are in addition to any previous COLAs and applies only to benefit payments made on or after January 1, 2026, with the act taking effect on September 1, 2025.

Labor and Employment

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB5156