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Austin (KXAN) — Texas legislature passed Senate Bill 10 This session set the stage for the Texas Teachers Retirement System (TRS) cost of living adjustment at the beginning of the new year.
It will become law in Texas unless Governor Greg Abbott vetoes it by June 18.
If enacted, the measure would require TRS retirees and beneficiaries age 70 and older to make an immediate lump sum payment of $2,400. If you are 75 or older, this payment will increase to $7,500 for her.
according to Texas Retired Teachers Association (TRTA)186,000 TRS retirees will receive $7,500 and 104,000 TRS retirees will receive $2,400.
These payments are estimated to total $1,636 million. According to the Legislative and Budget Committee.
Voters Decide Cost of Living Adjustments
SB 10 also establishes the legal basis for cost-of-living adjustments to TRS pensions. But voters have the final say on whether to use state funds for that purpose.
On Election Day in November, a constitutional amendment to approve the funding will be put to vote. I don’t know the exact wording yet.
This cost of living adjustment only affects TRS retirees and beneficiaries who began receiving benefits before September 2020. The target tax rate depends on when the benefit starts.
|Benefit date||adjustment||Number of retirees*|
|From September 1, 2013 to August 31, 2020||2%||150,000|
|Between September 1, 2001 and August 31, 2013||Four%||195,000|
|Before or after August 31, 2001||6%||75,000|
According to the Legislative and Budget Committee, the specific amount required from the state budget for this is an estimated $3.354 billion.