SB2472 - Relating to providing a one-time supplemental payment and a cost-of-living adjustment applicable to certain benefits paid by the Employees Retirement System of Texas.

  89R9325 RDR-D     By: Menéndez S.B. No. 2472       A BILL TO BE ENTITLED   AN ACT   relating to providing a one-time supplemental payment and a   cost-of-living adjustment applicable to certain benefits paid by   the Employees Retirement System of Texas.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter G, Chapter 814, Government Code, is   amended by adding Section 814.605 to read as follows:           Sec.   814.605.     COST-OF-LIVING ADJUSTMENT: JANUARY 2026.   (a)     The amount of a service retirement, disability retirement, death,   or other monthly benefit paid under this chapter or Chapter 804 to   an annuitant based on service credited in the employee class is   increased to include a cost-of-living adjustment in accordance with   this section.           (b)     Subject to Subsections (c) and (d), to be eligible for   the adjustment, a person must be, for the month of December 2025, an   annuitant eligible to receive:                 (1)  a standard retirement annuity payment;                 (2)     an optional service retirement annuity payment as   either a retiree or beneficiary under Section 814.108;                 (3)     a standard or occupational disability retirement   annuity payment;                 (4)     a death benefit annuity payment under Section   814.301, 814.302, or 814.305; or                 (5)     an alternate payee annuity payment under Section   804.005.           (c)  The adjustment does not apply to benefit payments:                 (1)  based on service credited in the elected class; or                 (2)     under a subtitle other than this subtitle except   as provided by Subsection (b)(5).           (d)  If the annuitant:                 (1)     is a retiree, or is a beneficiary under an optional   service or disability retirement payment plan, to be eligible for   the adjustment under this section:                       (A)     the annuitant must be living on the effective   date of the adjustment; and                       (B)     the effective date of the retirement of the   member of the retirement system on whose service the annuity is   based must have been before September 1, 2024;                 (2)     is a person eligible to receive a death benefit   annuity described by Subsection (b)(4), to be eligible for the   adjustment:                       (A)     the annuitant must be living on the effective   date of the adjustment; and                       (B)     the date of death of the member of the   retirement system on whose service the annuity is based must have   been before September 1, 2025; or                 (3)     is an alternate payee under Section 804.005, to be   eligible for the adjustment:                       (A)     the annuitant must be living on the effective   date of the adjustment; and                       (B)     the effective date of the annuitant's   election to receive the annuity payment must have been before   September 1, 2025.           (e)     An adjustment under this section must be made beginning   with an annuity payable for the month of January 2026.           (f)     The amount of the adjustment provided under this section   is calculated by multiplying the amount of the monthly benefit   subject to the adjustment by the following percentage rate, as   applicable:                 (1)  for annuitants described by Subsection (d)(1):                       (A)     if the effective date of retirement of the   member of the retirement system on whose service the annuity is   based was before January 1, 2007, eight percent;                       (B)     if the effective date of retirement of the   member of the retirement system on whose service the annuity is   based was on or after January 1, 2007, but before January 1, 2019,   six percent;                         (C)     if the effective date of retirement of the   member of the retirement system on whose service the annuity is   based was on or after January 1, 2019, but before January 1, 2024,   four percent; and                       (D)     if the effective date of retirement of the   member of the retirement system on whose service the annuity is   based was on or after January 1, 2024, two percent;                 (2)  for annuitants described by Subsection (d)(2):                       (A)     if the date of the death of the member of the   retirement system on whose service the annuity is based was before   January 1, 2007, eight percent;                       (B)     if the date of the death of the member of the   retirement system on whose service the annuity is based was on or   after January 1, 2007, but before January 1, 2019, six percent;                       (C)     if the date of the death of the member of the   retirement system on whose service the annuity is based was on or   after January 1, 2019, but before January 1, 2024, four percent; and                       (D)     if the date of the death of the member of the   retirement system on whose service the annuity is based was on or   after January 1, 2024, two percent; and                 (3)  for annuitants described by Subsection (d)(3):                       (A)     if the effective date of the annuitant's   election was before January 1, 2007, eight percent;                       (B)     if the effective date of the annuitant's   election was on or after January 1, 2007, but before January 1,   2019, six percent;                       (C)     if the effective date of the annuitant's   election was on or after January 1, 2019, but before January 1,   2024, four percent; and                       (D)     if the effective date of the annuitant's   election was on or after January 1, 2024, two percent.           (g)     The board of trustees shall recompute the amount of an   annuity paid monthly under this chapter or Chapter 804, as   applicable, by applying the adjustment required under Subsection   (f) to the monthly amount otherwise required to be paid under the   applicable chapter.   The adjustment under this section is in   addition to the adjustment, if any, granted under Section 814.604   or any other law.           (h)     The board of trustees shall determine the eligibility   for and the amount of any adjustment in monthly annuities in   accordance with this section.          SECTION 2.  (a)  Subject to Section 811.006, Government   Code, the Employees Retirement System of Texas shall make a   one-time supplemental payment of a service retirement, disability   retirement, death, or other monthly benefit, as provided by this   section.          (b)  The supplemental payment is payable in January 2026 and,   to the extent practicable, on a date or dates that coincide with the   regular annuity payment payable to each eligible annuitant.          (c)  The amount of the supplemental payment is equal to:                (1)  $10,000, if the effective date of retirement of   the member of the retirement system on whose service the annuity is   based was before January 1, 2007;                (2)  $7,500, if the effective date of retirement of the   member of the retirement system on whose service the annuity is   based was on or after January 1, 2007, but before January 1, 2019;                (3)  $5,000, if the effective date of retirement of the   member of the retirement system on whose service the annuity is   based was on or after January 1, 2019, but before January 1, 2024;   and                (4)  $2,500, if the effective date of retirement of the   member of the retirement system on whose service the annuity is   based was on or after January 1, 2024.          (d)  The Employees Retirement System of Texas shall make   applicable tax withholding and other legally required deductions   before disbursing the supplemental payment. A supplemental payment   under this section is in addition to the regular monthly annuity   payment to which the eligible annuitant is otherwise entitled.          (e)  Subject to Subsection (f) of this section, to be   eligible for the supplemental payment, a person must be, for the   month of December 2025, an annuitant eligible to receive based on   service credited in the employee class:                (1)  a standard retirement annuity payment;                (2)  an optional service retirement annuity payment as   either a retiree or beneficiary under Section 814.108, Government   Code;                (3)  a standard or occupational disability retirement   annuity payment;                (4)  a death benefit annuity payment under Section   814.305, Government Code; or                (5)  an alternate payee annuity payment under Section   804.005, Government Code.          (f)  If the annuitant is a retiree or a beneficiary under an   optional retirement payment plan, to be eligible for the   supplemental payment, the effective date of the retirement of the   member of the Employees Retirement System of Texas must have been on   or before September 1, 2024. The supplemental payment shall be made   to an alternate payee who is an annuitant under Section 804.005,   Government Code, only if the annuity payment to the alternate payee   commenced on or before September 1, 2024.  The supplemental payment   is in addition to the guaranteed number of payments under Section   814.108, Government Code, and may not be counted as one of the   guaranteed monthly payments.          (g)  The supplemental payment does not apply to payments:                (1)  based on service credited in the elected class; or                (2)  under a subtitle other than Subtitle B, Title 8, [Text truncated for display. Full text available on LegiScan.]