HB 5171

relating to providing a one-time supplemental payment and an annual
cost-of-living adjustment applicable to certain benefits paid by
the Judicial Retirement System of Texas Plan One and Judicial
Retirement System of Texas Plan Two.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Chapter 834, Government Code, is amended by
adding Subchapter E to read as follows:
SUBCHAPTER E.  INCREASES IN BENEFITS
Sec. 834.401.  ANNUAL COST-OF-LIVING ADJUSTMENT.  (a)  The
amount of a service retirement, disability retirement, or death
benefit paid under this chapter to an annuitant based on service
credited in the retirement system is increased to include a three
percent annual cost-of-living adjustment in accordance with this
(b)  On September 1 of each year beginning September 2026,
the board of trustees shall recompute the amount of a benefit paid
monthly under this chapter by applying the three percent adjustment
to the monthly amount otherwise required to be paid as determined in
SECTION 2.  Subchapter E, Chapter 839, Government Code, is
amended by adding Section 839.402 to read as follows:
Sec. 839.402.  ANNUAL COST-OF-LIVING ADJUSTMENT.  (a)  The
amount of a service retirement, disability retirement, or death
benefit paid under this chapter to an annuitant based on service
credited in the retirement system is increased to include a three
percent annual cost-of-living adjustment in accordance with this
(b)  On September 1 of each year beginning September 2026,
the board of trustees shall recompute the amount of a benefit paid
monthly under this chapter by applying the three percent adjustment
to the monthly amount otherwise required to be paid as determined in
SECTION 3.  (a)  The Employees Retirement System of Texas
shall make a one-time supplemental payment of a service retirement,
disability retirement, or death benefit to each annuitant of the
Judicial Retirement System of Texas Plan One and the Judicial
Retirement System of Texas Plan Two as provided by this section.
(b)  The supplemental payment is payable in September 2025
and, to the extent practicable, on a date or dates that coincide
with the regular annuity payment payable to each eligible
(c)  The amount of the supplemental payment is equal to the
gross amount of the regular annuity payment to which the eligible
annuitant is otherwise entitled for the month of August 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)  To be eligible for the supplemental payment, a person
must be, for the month of August 2025, an annuitant eligible to
receive based on service credited in the Judicial Retirement System
of Texas Plan One or the Judicial Retirement System of Texas Plan
Two, any of the following benefits under Chapter 834 or 839,
(1)  a standard retirement annuity payment;
(2)  an optional service retirement annuity payment as
either a retiree or beneficiary;
(3)  a disability retirement annuity payment; or
(4)  a death benefit annuity payment.
(f)  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
(g)  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.
SECTION 4.  The Employees Retirement System of Texas is
required to make a cost-of-living adjustment under Section 834.401
or 839.402, Government Code, as added by this Act, or a one-time
supplemental payment of benefits under Section 3 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
adjustment or payment without increasing the unfunded actuarial
liabilities of the retirement system.  The amount appropriated by
the legislature to provide the adjustment or payment 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 adjustment or one-time supplemental payment without
increasing the unfunded actuarial liabilities of the retirement
system, the retirement system may not make the adjustment or
SECTION 5.  This Act takes effect September 1, 2025.