Tex. Gov't Code Section 824.702
Cost-of-living Adjustment


(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 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 (Loss of Monthly Benefits), 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 (Benefits on Death of Active Member)(a)(3) or (4);

(4)

an annuity payment under Section 824.502 (Benefits on Death of Disability Retiree); or

(5)

an alternate payee annuity payment under Section 804.005 (Payment in Certain Circumstances in Lieu of Benefits Awarded by Qualified Domestic Relations Order).

(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 Teacher Retirement System of Texas must have been on or before August 31, 2004;

(2)

is a beneficiary under Section 824.402 (Benefits on Death of Active Member)(a)(3) or (4) or 824.502 (Benefits on Death of Disability Retiree), 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 before August 31, 2004; or

(3)

is an alternate payee under Section 804.005 (Payment in Certain Circumstances in Lieu of Benefits Awarded by Qualified Domestic Relations Order), the annuitant is eligible for the adjustment only if the effective date of the election to receive the annuity payment was on or before August 31, 2004.

(d)

An adjustment made under this section does not apply to payments under:

(1)

Section 824.203 (Standard Service Retirement Benefits)(d), relating to retirees who receive a standard service retirement annuity in an amount fixed by statute;

(2)

Section 824.304 (Disability Retirement Benefits)(a), relating to disability retirees with less than 10 years of service credit;

(3)

Section 824.304 (Disability Retirement Benefits)(b)(2), relating to disability retirees who receive a disability annuity in an amount fixed by statute;

(4)

Section 824.404 (Survivor Benefits)(a), relating to active member survivor beneficiaries who receive a survivor annuity in an amount fixed by statute;

(5)

Section 824.501 (Survivor Benefits)(a), relating to retiree survivor beneficiaries who receive a survivor annuity in an amount fixed by statute; or

(6)

Section 824.804 (Benefits Under Plan)(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 2013; 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.
Added by Acts 2013, 83rd Leg., R.S., Ch. 1214 (S.B. 1458), Sec. 2, eff. September 1, 2013.
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 (Loss of Monthly Benefits), 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 (Benefits on Death of Active Member)(a)(3) or (4);

(4)

an annuity payment under Section 824.502 (Benefits on Death of Disability Retiree); or

(5)

an alternate payee annuity payment under Section 804.005 (Payment in Certain Circumstances in Lieu of Benefits Awarded by Qualified Domestic Relations Order).

(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 (Benefits on Death of Active Member)(a)(3) or (4) or 824.502 (Benefits on Death of Disability Retiree), 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 (Payment in Certain Circumstances in Lieu of Benefits Awarded by Qualified Domestic Relations Order), 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 (Standard Service Retirement Benefits)(d), relating to retirees who receive a standard service retirement annuity in an amount fixed by statute;

(2)

Section 824.304 (Disability Retirement Benefits)(a), relating to disability retirees with less than 10 years of service credit;

(3)

Section 824.304 (Disability Retirement Benefits)(b)(2), relating to disability retirees who receive a disability annuity in an amount fixed by statute;

(4)

Section 824.404 (Survivor Benefits)(a), relating to active member survivor beneficiaries who receive a survivor annuity in an amount fixed by statute;

(5)

Section 824.501 (Survivor Benefits)(a), relating to retiree survivor beneficiaries who receive a survivor annuity in an amount fixed by statute; or

(6)

Section 824.804 (Benefits Under Plan)(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.
Added by Acts 2023, 88th Leg., R.S., Ch. 902 (S.B. 10), Sec. 1, eff. January 1, 2024.

Source: Section 824.702 — Cost-of-living Adjustment, https://statutes.­capitol.­texas.­gov/Docs/GV/htm/GV.­824.­htm#824.­702 (accessed Jun. 5, 2024).

824.001
Types of Benefits
824.002
Effective Date of Retirement
824.003
When Benefits Are Payable
824.004
Waiver of Benefits
824.005
Revocation of Retirement
824.006
Payment of Annuity on Death of Member or Retiree
824.007
Deductions from Service or Disability Retirement Annuity
824.008
Deductions from Amounts Payable by the Retirement System
824.009
Certain Employees and Annuitants Ineligible for Retirement Annuity
824.0071
Deductions from Service or Disability Retirement Annuity for Certain University Insurance Program Contributions
824.101
Designation of Beneficiary
824.102
Trust as Beneficiary
824.103
Absence of Beneficiary
824.104
Failure of Beneficiary to Claim Benefits
824.105
Beneficiary Causing Death of Member or Annuitant
824.106
Simultaneous Death of Member and Beneficiary
824.201
Application for Service Retirement Benefits
824.202
Eligibility for Service Retirement
824.203
Standard Service Retirement Benefits
824.204
Optional Service Retirement Benefits
824.205
Deductions from Service Retirement Annuity
824.206
Change of Service Retirement Annuity Payment Plan
824.301
Application for Disability Retirement Benefits
824.302
Eligibility for Disability Retirement
824.303
Certification of Disability
824.304
Disability Retirement Benefits
824.305
Medical Examination of Disability Retiree
824.307
Restoration of Disability Retiree to Membership
824.308
Optional Disability Retirement Benefits
824.309
Change of Disability Retirement Payment Plan
824.310
Purpose of Disability Benefit
824.401
Availability of Annuity
824.402
Benefits on Death of Active Member
824.403
Benefits on Death of Inactive Member
824.404
Survivor Benefits
824.405
Tables for Determination of Death Benefit Annuity
824.406
Benefits for Survivors of Certain Members
824.407
Guaranteed Return of Amount Equal to Contributions
824.501
Survivor Benefits
824.502
Benefits on Death of Disability Retiree
824.503
Return of Excess Contributions
824.504
Benefits for Survivors of Certain Retirees
824.505
Other Amounts Payable on Death of Retiree
824.601
Loss of Monthly Benefits
824.602
Exceptions
824.603
Exclusion from Credit
824.604
Rules
824.701
Application of Annuity Increases to Certain Annuities
824.702
Cost-of-living Adjustment
824.801
Definition
824.802
Participation in Plan
824.803
Computation of Participant’s Service and Annuity
824.804
Benefits Under Plan
824.805
Termination of Participation in Plan
824.806
Benefits for Service After Plan Participation
824.807
Interest
824.1011
Designation of Beneficiary After Retirement
824.1012
Post-retirement Change in Retirement Payment Plan for Certain Retirement Benefit Options
824.1013
Change of Beneficiary After Retirement
824.2031
Benefit Improvements
824.2045
Partial Lump-sum Option
824.4041
Benefits for Certain Surviving Spouses
824.6022
Required Reports
824.8011
Deadline to Elect to Participate

Accessed:
Jun. 5, 2024

§ 824.702’s source at texas​.gov