85R2501 LED-F     By: Arévalo H.B. No. 4234       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.          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, 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 on or 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 on or 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 on or 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 beginning with an annuity payable for   the month of September 2017; 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.  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, 2017.