SB 174

relating to a cost-of-living adjustment applicable to certain
benefits paid by the Teacher Retirement System of Texas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subchapter H, Chapter 824, Government Code, is
amended by adding Section 824.704 to read as follows:
Sec. 824.704.  COST-OF-LIVING ADJUSTMENT: SEPTEMBER 2025.
(a)  The retirement system shall make a one-time cost-of-living
adjustment payable to annuitants receiving a monthly death or
retirement benefit annuity, as provided by this section.
(b)  Subject to Subsections (c) and (d), to be eligible for
the adjustment, a person must be, on the effective date of the
adjustment and disregarding any forfeiture of benefits under
Section 824.601, an annuitant eligible to receive:
(1)  a standard service or disability retirement
(2)  an optional service or disability retirement
annuity payment as either a retiree or beneficiary;
(3)  an annuity payment under Section 824.402(a)(3) or
(4)  an annuity payment under Section 824.502; or
(5)  an alternate payee annuity payment under Section
(1)  is a retiree or is a beneficiary under an optional
retirement payment plan, to be eligible for the adjustment under
(A)  the annuitant must be living on the effective
(B)  the effective date of the retirement of the
member of the retirement system must have been before January 1,
(2)  is a beneficiary under Section 824.402(a)(3) or
(4) or 824.502, to be eligible for the adjustment:
(A)  the annuitant must be living on the effective
(B)  the date of death of the member of the
retirement system must have been before January 1, 2025; or
(3)  is an alternate payee under Section 804.005, the
annuitant is eligible for the adjustment only if the effective date
of the election to receive the annuity payment was before January 1,
(d)  An adjustment made under this section does not apply to
(1)  Section 824.203(d), relating to retirees who
receive a standard service retirement annuity in an amount fixed by
(2)  Section 824.304(a), relating to disability
retirees with less than 10 years of service credit;
(3)  Section 824.304(b)(2), relating to disability
retirees who receive a disability annuity in an amount fixed by
(4)  Section 824.404(a), relating to active member
survivor beneficiaries who receive a survivor annuity in an amount
(5)  Section 824.501(a), relating to retiree survivor
beneficiaries who receive a survivor annuity in an amount fixed by
(6)  Section 824.804(b), relating to participants in
the deferred retirement option plan with regard to payments from
their deferred retirement option plan accounts.
(e)  An adjustment under this section:
(1)  must be made beginning with an annuity payable for
the month of September 2025; and
(2)  is limited to the lesser of:
(A)  an amount equal to three percent of the
monthly benefit subject to the increase; or
(f)  The board of trustees shall determine the eligibility
for and the amount of any adjustment in monthly annuities in
SECTION 2.  This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution.  If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.