TX HB2087

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

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

Conditions benefit increases on the retirement system being actuarially sound with available funds to pay the increases

Allows partial COLA payments if full adjustment funds are unavailable, with the board calculating the largest possible adjustment rate while maintaining actuarial soundness

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