On May 25, the Texas Legislature took the final vote to send a constitutional amendment to the ballot that would authorize the legislature to provide for cost-of-living adjustments (COLA) for certain annuitants, who meet criteria provided by law, of the Teacher Retirement System of Texas. The amendment also authorizes the legislature to allocate money from the general fund to pay for the adjustment.
The amendment, House Joint Resolution 2 (HJR 2), passed the state House by a vote of 147-0 with three not voting on April 28. The state Senate passed an amended version of HJR 2 on May 22 by a vote of 31-0. The state House concurred on May 25 by a vote of 140-0 with nine not voting.
The implementing legislation, Senate Bill 10 (SB 10), passed the state Senate, was amended by the state House, and is headed to a conference between the chambers after the Senate did not concur with the House amendments. Under the House amended version of SB 10, annuitants would receive an annual gain sharing cost-of-living adjustment not to exceed 2% annually and contingent upon a five-year average pension fund investment return of 7%. The gain-sharing cost-of-living adjustment would take effect in Sept. 2028 and apply to annuitants who have been retired for at least three state fiscal years. The amended bill would also provide for a one-time cost-of-living adjustment in Jan. 2024. The rate would vary by the amount of time an annuitant has been retired ranging from 2% to 6% of a cost-of-living adjustment.
