The Texas Legislature passed Senate Bill 10 this session, which will provide a cost-of-living adjustment (COLA) to the Texas Teacher Retirement System (TRS) at the start of the new year. The bill will become law unless vetoed by Gov. Greg Abbott before June 18.
Once the bill becomes law, it will mandate an immediate one-time payment of $2,400 for TRS retirees and beneficiaries who are at least 70 years old. This payment will be increased to $7,500 for those who are 75 and older.
According to the Texas Retired Teachers Association (TRTA), 186,000 TRS retirees will receive $7,500 and 104,000 TRS retirees will receive $2,400. The total cost of these payments is estimated at $1.636 billion, according to the Legislative Budget Board.
The COLA is a welcome relief for many TRS retirees, who have seen their benefits eroded by inflation in recent years. The payments will help to offset the rising cost of living and provide much-needed financial assistance to these retirees.
The passage of Senate Bill 10 is a victory for TRS retirees and their families. It is a sign that the state government is committed to supporting those who have dedicated their careers to educating Texas children.
Texas Teachers to Vote on Cost-of-Living Adjustment
The Texas Legislature passed Senate Bill 10 this session, which would provide a cost-of-living adjustment (COLA) to the Texas Teacher Retirement System (TRS). However, the final decision on whether to provide the COLA will be up to voters in November.
The COLA would be funded by a constitutional amendment that will be on the ballot in November. The exact wording of the amendment has not yet been released, but it is expected to provide for a one-time COLA payment to TRS retirees and beneficiaries who began receiving benefits before September 2020.
The amount of the COLA payment would depend on when the benefits began. For example, retirees who began receiving benefits before September 2013 would receive a COLA payment equal to 2% of their monthly benefit. Retirees who began receiving benefits after September 2013 would receive a COLA payment equal to 1% of their monthly benefit.
The COLA is a welcome relief for many TRS retirees, who have seen their benefits eroded by inflation in recent years. The payments would help to offset the rising cost of living and provide much-needed financial assistance to these retirees.
The passage of Senate Bill 10 is a victory for TRS retirees and their families. It is a sign that the state government is committed to supporting those who have dedicated their careers to educating Texas children.
Voters to Decide
The decision of whether to provide the COLA will ultimately be up to voters in November. If the amendment is approved, it would provide much-needed financial assistance to TRS retirees and their families. However, if the amendment is rejected, TRS retirees would not receive a COLA payment.
The COLA is a complex issue with no easy answers. However, it is an important issue for TRS retirees and their families. Voters will have the opportunity to weigh the pros and cons of the COLA and decide whether to provide it in November.
| Date of benefits | Adjustment | Number of retirees* |
| Between Sept. 1, 2013 and August 31, 2020 | 2% | 150,000 |
| Between Sept. 1, 2001 and August 31, 2013 | 4% | 195,000 |
| Before or on August 31, 2001 | 6% | 75,000 |
TRTA Provides Retirement Benefits to Over 1 Million Texans
The Texas Retired Teachers Association (TRTA) provides retirement benefits to over 1 million Texans. The organization was founded in 1920 and has since grown to become one of the largest retirement systems in the country.
TRTA members include retired teachers, school administrators, and other education professionals. The organization provides a variety of benefits to its members, including retirement income, health insurance, and long-term care insurance.
In 2022, TRTA paid out over $10 billion in benefits to its members. The organization’s expenses are funded by a combination of member contributions and state funding.
The Legislative Budget Board (LBB) estimates that the state will need to provide $3.354 billion in funding to TRTA in 2023. This funding will be used to pay for benefits such as retirement income, health insurance, and long-term care insurance.
The LBB’s estimate is based on a number of factors, including the number of TRTA members, the average age of TRTA members, and the cost of health care.
The state’s funding for TRTA is a significant investment in the retirement security of Texas teachers. The organization’s benefits help to ensure that retired teachers can live comfortably and independently after they leave the workforce.
The Future of TRTA
TRTA is facing a number of challenges in the coming years. The organization’s membership is aging, and the cost of health care is rising. TRTA is working to address these challenges by increasing member contributions and by exploring new ways to reduce costs.
TRTA is committed to providing its members with the retirement benefits they deserve. The organization is confident that it will be able to meet the challenges of the future and continue to provide secure retirement benefits to Texas teachers.
Will Texas retired teachers get an extra check this year?
Nearly 300,000 retired teachers would also receive an extra payout, known as a 13th check, under the plan approved by the Legislature: those 75 and older will receive $7,500, while those between 70 and 75 will receive $2,400.
When will benefits increase for retired Texas teachers?
Benefits for retired Texas teachers could increase in January 2024, if Senate Bill 10 is signed into law by Governor Greg Abbott. The bill passed the Texas Legislature on May 25, 2023.
How much will benefits increase for retired Texas teachers?
Retired Texas teachers who are at least 70 years old will receive a one-time payment of $2,400. Those who are 75 years old or older will receive a one-time payment of $7,500.
How many retired Texas teachers will benefit from the increase?
The Texas Retired Teachers Association (TRTA) estimates that 186,000 TRS retirees will receive $7,500 and 104,000 TRS retirees will receive $2,400.
Why are benefits increasing for retired Texas teachers?
Benefits are increasing for retired Texas teachers because of inflation. The cost of living has increased in recent years, and this has made it difficult for retired teachers to make ends meet. The increase in benefits will help retired teachers to cover their basic expenses.
What are the next steps for this legislation?
Senate Bill 10 is now on Governor Greg Abbott’s desk. He has until June 18, 2023 to sign the bill into law or veto it. If he signs the bill, it will become law. If he vetoes the bill, it will die.
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