TX HB1596

Establishes annual cost-of-living adjustments (COLAs) for Teacher Retirement System of Texas benefits, including service retirement, disability retirement, and death benefits

Requires the TRS board of trustees to set the adjustment rate during the last seven days of October each year, based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) used for Social Security benefit increases

Conditions benefit increases on the board finding that the retirement system is actuarially sound and has sufficient funds available to pay the increases

Allows for partial adjustments if full CPI-W increases cannot be funded while maintaining actuarial soundness of the system

Applies to benefits paid on or after January 1, 2026, with the act taking effect September 1, 2025