HB 886

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
(2)  the gross amount of the regular annuity payment to
which the eligible annuitant is otherwise entitled for the month of
(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,
(3)  a standard or occupational disability retirement
(4)  a death benefit annuity payment under Section
814.305 or 820.054, Government Code; or
(5)  an alternate payee annuity payment under Section
(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
(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
(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.