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  S.B. No. 10
 
 
 
 
AN ACT
  relating 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 824.703 to read as follows:
         Sec. 824.703.  COST-OF-LIVING ADJUSTMENT:  JANUARY 2024.
  (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 Subsection (c) and except as provided by
  Subsection (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
  annuity payment;
               (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);
               (4)  an annuity payment under Section 824.502; or
               (5)  an alternate payee annuity payment under Section
  804.005.
         (c)  If the annuitant:
               (1)  is a retiree, or is a beneficiary under an optional
  service or disability retirement payment plan, to be eligible for
  the adjustment under this section:
                     (A)  the annuitant must be living on the effective
  date of the adjustment; and
                     (B)  the effective date of the retirement of the
  member of the retirement system on whose service the annuity is
  based must have been on or before August 31, 2020;
               (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
  date of the adjustment; and
                     (B)  the date of death of the member of the
  retirement system on whose service the annuity is based must have
  been on or before August 31, 2020; or
               (3)  is an alternate payee under Section 804.005, to be
  eligible for the adjustment:
                     (A)  the annuitant must be living on the effective
  date of the adjustment; and
                     (B)  the effective date of the annuitant's
  election to receive the annuity payment was on or before August 31,
  2020.
         (d)  An adjustment made under this section does not apply to
  payments under:
               (1)  Section 824.203(d), relating to retirees who
  receive a standard service retirement annuity in an amount fixed by
  statute;
               (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
  statute;
               (4)  Section 824.404(a), relating to active member
  survivor beneficiaries who receive a survivor annuity in an amount
  fixed by statute;
               (5)  Section 824.501(a), relating to retiree survivor
  beneficiaries who receive a survivor annuity in an amount fixed by
  statute; or
               (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 must be made beginning
  with an annuity payable for the month of January 2024.
         (f)  The amount of the adjustment provided under this section
  is calculated by multiplying the amount of the monthly benefit
  subject to the adjustment by the following percentage rate, as
  applicable:
               (1)  for annuitants described by Subsection (c)(1):
                     (A)  if the retiree's effective date of retirement
  was on or before August 31, 2001, six percent;
                     (B)  if the retiree's effective date of retirement
  was after August 31, 2001, but on or before August 31, 2013, four
  percent; and
                     (C)  if the retiree's effective date of retirement
  was after August 31, 2013, but on or before August 31, 2020, two
  percent;
               (2)  for annuitants described by Subsection (c)(2):
                     (A)  if the member's date of death was on or before
  August 31, 2001, six percent;
                     (B)  if the member's date of death was after
  August 31, 2001, but on or before August 31, 2013, four percent; and 
                     (C)  if the member's date of death was after
  August 31, 2013, but on or before August 31, 2020, two percent; and
               (3)  for annuitants described by Subsection (c)(3):
                     (A)  if the effective date of the annuitant's
  election was on or before August 31, 2001, six percent; 
                     (B)  if the effective date of the annuitant's
  election was after August 31, 2001, but on or before August 31,
  2013, four percent; and
                     (C)  if the effective date of the annuitant's
  election was after August 31, 2013, but on or before August 31,
  2020, two percent.
         (g)  The board of trustees shall determine the eligibility
  for and the amount of any adjustment in monthly annuities in
  accordance with this section.
         SECTION 2.  (a) Subject to Subsections (e) and (i) of this
  section and Section 821.006, Government Code, and except as
  provided by Subsection (g) of this section, the Teacher 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 not later than
  September 2023 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:
               (1)  $7,500, if the annuitant is at least 75 years of
  age on any day of the calendar month before the calendar month in
  which the Teacher Retirement System of Texas issues the
  supplemental payment; or
               (2)  $2,400, if the annuitant is:
                     (A)  at least 70 years of age but younger than 75
  years of age on any day of the calendar month before the calendar
  month in which the Teacher Retirement System of Texas issues the
  supplemental payment; and
                     (B)  not subject to Subdivision (1) of this
  subsection.
         (d)  The supplemental payment is payable without regard to
  any forfeiture of benefits under Section 824.601, Government Code.
  The Teacher 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 and not in lieu of 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 calendar month immediately prior to the calendar
  month in which the Teacher Retirement System of Texas issues the
  one-time supplemental payment in accordance with Subsection (b) of
  this section, an annuitant who is:
               (1)  at least 70 years of age; and
               (2)  eligible to receive:
                     (A)  a standard retirement annuity payment;
                     (B)  an optional retirement annuity payment as
  either a retiree or beneficiary;
                     (C)  a life annuity payment under Section
  824.402(a)(4), Government Code;
                     (D)  an annuity for a guaranteed period of 60
  months under Section 824.402(a)(3), Government Code; or
                     (E)  an alternate payee annuity payment under
  Section 804.005, Government Code.
         (f)  The supplemental payment is in addition to the
  guaranteed number of payments under Section 824.204(c)(3) or (4),
  Section 824.308(c)(3) or (4), or Section 824.402(a)(3), 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 824.304(a), Government Code, relating to
  disability retirees with less than 10 years of service credit;
               (2)  Section 824.804(b), Government Code, relating to
  participants in the deferred retirement option plan with regard to
  payments from their deferred retirement option plan accounts;
               (3)  Section 824.501(a), Government Code, relating to
  retiree survivor beneficiaries who receive a survivor annuity in an
  amount fixed by statute; or
               (4)  Section 824.404(a), Government Code, relating to
  active member survivor beneficiaries who receive a survivor annuity
  in an amount fixed by statute.
         (h)  The board of trustees of the Teacher 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 Teacher 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 Teacher Retirement System of
  Texas finds that the legislature appropriated money to the
  retirement system in an amount sufficient to provide the
  supplemental payment. The amount appropriated by the legislature
  to provide the supplemental payment must be in addition to the
  amount the state is required to contribute to the retirement system
  under Section 825.404, Government Code.
         (j)  If the board of trustees of the Teacher Retirement
  System of Texas determines that the appropriation provided by the
  legislature for the one-time supplemental payment of benefits under
  this section is different from the amount required to issue the
  supplemental payment, the comptroller, after the end of the fiscal
  year, shall make adjustments in the teacher retirement fund and the
  general revenue fund so that the total transfers during the year
  equal the total amount of the funds required for the supplemental
  payment. This transfer of funds is in addition to and separate from
  the amount the state is required to contribute to the retirement
  system under Section 825.404, Government Code.
         SECTION 3.  (a)  Except as provided by Subsection (b) of this
  section, 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, 2023.
         (b)  Section 1 of this Act takes effect January 1, 2024, but
  only if the constitutional amendment proposed by the 88th
  Legislature, Regular Session, 2023, authorizing the 88th
  Legislature to provide a cost-of-living adjustment to certain
  annuitants of the Teacher Retirement System of Texas is approved by
  the voters. If that constitutional amendment is not approved by the
  voters, Section 1 of this Act has no effect.
 
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 10 passed the Senate on
  March 29, 2023, by the following vote:  Yeas 31, Nays 0;
  May 4, 2023, Senate refused to concur in House amendments and
  requested appointment of Conference Committee; May 5, 2023, House
  granted request of the Senate; May 27, 2023, Senate adopted
  Conference Committee Report by the following vote:  Yeas 31,
  Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 10 passed the House, with
  amendments, on May 1, 2023, by the following vote:  Yeas 144,
  Nays 0, one present not voting; May 5, 2023, House granted request
  of the Senate for appointment of Conference Committee;
  May 28, 2023, House adopted Conference Committee Report by the
  following vote:  Yeas 145, Nays 0, one present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
             Date
 
 
  ______________________________ 
            Governor