Relating to certain benefits payable by the Judicial Retirement System of Texas Plan One and the Judicial Retirement System of Texas Plan Two.

89(R) HB 4802 - Engrossed version - Bill Text

By: Cook, Longoria, Smithee, Spiller, Leach,

H.B. No. 4802

et al.

A BILL TO BE ENTITLED

AN ACT

relating to certain benefits payable by the Judicial Retirement

System of Texas Plan One and the Judicial Retirement System of Texas

Plan Two.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. (a) This section applies to an annuitant under

the Judicial Retirement System of Texas Plan One or the Judicial

Retirement System of Texas Plan Two who is eligible to receive:

(1) a service or disability retirement annuity under

Section 834.102, 834.103, 834.203, 839.102, 839.103, or 839.203,

Government Code, that is based on an effective date of retirement

that occurred on or before September 1, 2024; or

(2) a death benefit annuity under Section 834.301,

834.302, 839.301, or 839.302, Government Code, that is based on a

death that occurred on or before September 1, 2024.

(b) Notwithstanding any other law:

(1) on September 1, 2025, the Employees Retirement

System of Texas shall recompute each annuity being paid an

annuitant under Section 834.102, 834.103, 834.203, 834.301,

834.302, 839.102, 839.103, 839.203, 839.301, or 839.302,

Government Code, by multiplying the amount of the monthly annuity

being paid under those sections by five percent and applying the

adjustment to the amount otherwise being paid under those sections;

and

(2) on September 1, 2026, the Employees Retirement

System of Texas shall recompute each annuity being paid an

annuitant under the sections of law described in Subdivision (1) of

this subsection, by multiplying the amount of the monthly annuity

being paid under those sections by five percent and applying the

adjustment to the amount otherwise being paid under those sections.

SECTION 2. The Employees Retirement System of Texas is

required to make the cost-of-living adjustments under Section 1 of

this Act only if the board of trustees of the Employees Retirement

System of Texas finds that the legislature appropriated money to

the Judicial Retirement System of Texas Plan One and the Judicial

Retirement System of Texas Plan Two in an amount sufficient to

provide the adjustments without increasing the unfunded actuarial

liabilities of the retirement system. The amount appropriated by

the legislature to provide the adjustments must be in addition to

any amounts the state is required to contribute to the retirement

system under Subchapter B, Chapter 835, or Subchapter B, Chapter

840, Government Code. If the board of trustees of the Employees

Retirement System of Texas finds that the legislature did not

appropriate money in an amount sufficient to provide the

cost-of-living adjustments without increasing the unfunded

actuarial liabilities of the retirement system, the retirement

system may not make the adjustments.

SECTION 3. The adjustment of benefits required under

Section 1 of this Act applies only to an annuity payment that

becomes payable on or after the effective date of this Act.

SECTION 4. This Act takes effect September 1, 2025.