Relating to a one-time supplemental payment of benefits under the Employees Retirement System of Texas.

89(R) HB 886 - Engrossed version - Bill Text

89R2180 RDR-D

By: Vasut, Lambert, Plesa, Talarico, Guillen,

H.B. No. 886

et al.

A BILL TO BE ENTITLED

AN ACT

relating to a one-time supplemental payment of benefits under the

Employees Retirement System of Texas.

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

SECTION 1. (a) Subject to Subsection (i) of this section

and Section 811.006, Government Code, the Employees Retirement

System of Texas shall make a one-time supplemental payment of a

retirement or death 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 the

lesser of:

(1) $2,000; or

(2) the gross amount of the regular annuity payment to

which the eligible annuitant is otherwise entitled for the month of

December 2025.

(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 Subsections (f) and (g) 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:

(1) a standard retirement annuity payment;

(2) an optional service retirement annuity payment as

either a retiree or beneficiary under Section 814.108 or 820.0535,

Government Code;

(3) a standard or occupational disability retirement

annuity payment;

(4) a death benefit annuity payment under Section

814.305 or 820.054, 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 or 820.0535, Government Code, and may not be counted as one

of the guaranteed monthly payments.

(g) The supplemental payment does not apply to payments

under:

(1) Section 814.103, 814.205, 820.053(a)(3), or

820.054, Government Code, relating to retirees or disability

retirees from the elected class of membership;

(2) a subtitle other than Subtitle B, Title 8,

Government Code, except as provided by Subsection (e)(5) of this

section; or

(3) Section 814.304 or 820.054, Government Code,

relating to retiree survivor beneficiaries who receive a survivor

annuity as the surviving spouse of a member of the elected class.

(h) Except as provided by this section, the board of

trustees of the Employees Retirement System of Texas shall

determine the eligibility for and the amount and timing of a

supplemental payment and the manner in which the payment is made.

(i) The Employees Retirement System of Texas is required to

make a one-time supplemental payment of benefits under this section

only if the board of trustees of the Employees Retirement System of

Texas finds that the legislature appropriated money to the

retirement system in an amount sufficient to provide the payment

without increasing the unfunded actuarial liabilities of the

retirement system. The amount appropriated by the legislature to

provide the payment must be in addition to any amounts the state is

required to contribute to the retirement system under Subchapter E,

Chapter 815, 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 a one-time

supplemental payment of benefits under this section without

increasing the unfunded actuarial liabilities of the retirement

system, the retirement system may not make the payment.

SECTION 2. This Act takes effect September 1, 2025.