By: Darby, Guillen, Oliveira, Guerra, et al.	H.B. No. 80

	A BILL TO BE ENTITLED
	AN ACT
	relating to a cost-of-living adjustment applicable to certain
	benefits paid by the Teacher Retirement System of Texas, including
	a related study.
	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.  ADDITIONAL COST-OF-LIVING ADJUSTMENT.
	(a)  Notwithstanding Section 824.702 and subject to Section
	821.006, 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
	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
	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 must have been after August 31,
	2004, and on or before August 31, 2015;
	(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 must have been after August 31, 2004, and on or
	before August 31, 2015; 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 after August 31,
	2004, and on or before August 31, 2015.
	(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:
	(1)  must be made as soon as practicable after the board
	of trustees finds that payment of the adjustment would not violate
	Section 821.006; and
	(2)  is limited to the lesser of:
	(A)  an amount equal to three percent of the
	monthly benefit subject to the increase; or
	(B)  $100 a month.
	(f)  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)  Using existing resources, the Teacher
	Retirement System of Texas shall conduct a study on future
	cost-of-living adjustments payable to an annuitant receiving a
	monthly death or retirement annuity, including projections on
	future cost-of-living adjustments
	and a review of structural
	changes affecting cost-of-living adjustments, including the
	feasibility of offering an alternative annuity payment option to
	retirees under which the standard service retirement annuity
	provided under Subchapter C, Chapter 824, Government Code, is
	payable on a graduated scale with annuity payments increasing on an
	annual basis. In conducting a study under this section, the
	retirement system shall only consider alternative annuity payment
	options that are projected by the retirement system's actuary to
	have no fiscal impact to the state.
	(b)  Not later than September 1, 2018, the Teacher Retirement
	System of Texas shall submit to the legislature a written report on
	the results of the study and any recommendations for legislative or
	other action.
	(c)  This section expires September 1, 2019.
	SECTION 3.  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 December 1, 2017.