H.B. No. 1393
  relating to an optional service retirement annuity that provides an
  increasing annuity under the Employees Retirement System of Texas.
         SECTION 1.  Subchapter B, Chapter 814, Government Code, is
  amended by adding Section 814.110 to read as follows:
         Sec. 814.110.  INCREASING ANNUITY OPTION. (a) A member who
  is eligible for a service retirement annuity not reduced because of
  age may select a standard retirement annuity or an optional service
  retirement annuity described by Section 814.108 together with the
  option for an increasing annuity as described by this section.
         (b)  The retirement system shall provide the increasing
  annuity option by reducing the member's annuity for an appropriate
  implementation period beginning immediately after the member's
  retirement and annually increasing the amount of the annuity by two
  percent or by another percentage rate, as determined by the system
  under Subsection (c), for each year during the applicable
  implementation period.
         (c)  The retirement system may offer other increasing
  annuity options similar to the option described by Subsection (b),
  including increasing annuity options providing a different
  percentage rate of increase or a different implementation period.
         (d)  If a member elects to receive an increasing annuity
  option under this section, the member's annuity must be calculated
  to reflect the option selected and be actuarially equivalent to a
  standard or optional service retirement annuity, as applicable,
  that the member would have been entitled to had the member not
  elected to receive the option. The annuity must be computed to
  result in no actuarial loss to the retirement system.
         (e)  The increasing annuity option under this section may be
  elected only once by a member and may not be elected by a retiree. A
  member retiring under the proportionate retirement program under
  Chapter 803 is not eligible for the option.
         (f)  This section does not apply to:
               (1)  a disability retirement annuity; or
               (2)  an annuity based on service credited in the
  elected class.
         (g)  Before a retiring member selects an increasing annuity
  option under this section, the retirement system must provide a
  written notice to the member of the amount by which the member's
  annuity will be reduced and the implementation period applicable
  because of that selection. The retirement system shall maintain a
  copy of the notice required under this subsection that is signed by
  the member.
         (h)  The board of trustees may adopt rules for the
  implementation of this section.
         SECTION 2.  Section 814.110, Government Code, as added by
  this Act, applies only to a retirement that occurs on or after
  September 1, 2024.
         SECTION 3.  This Act takes effect September 1, 2023.
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
         I certify that H.B. No. 1393 was passed by the House on April
  26, 2023, by the following vote:  Yeas 148, Nays 0, 1 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 1393 on May 17, 2023, by the following vote:  Yeas 143, Nays 0,
  1 present, not voting.
  Chief Clerk of the House   
         I certify that H.B. No. 1393 was passed by the Senate, with
  amendments, on May 15, 2023, by the following vote:  Yeas 31, Nays
  Secretary of the Senate   
  APPROVED: __________________