TX HB2163

Provides a one-time 10 percent increase to monthly service retirement, disability retirement, and death benefits paid by the Teacher Retirement System of Texas, effective September 1, 2025

Establishes an annual 4 percent cost-of-living adjustment to monthly TRS benefits, to be applied on January 1 of each year

Authorizes a one-time supplemental payment in January 2026 equal to the greater of $2,000 or the annuitant's gross December 2025 monthly payment

Limits supplemental payment eligibility to annuitants whose retirement or benefit effective date was before September 1, 2024, including retirees, beneficiaries under optional plans, life annuity recipients, and alternate payees

Excludes certain categories from the supplemental payment, including disability retirees with less than 10 years of service, those receiving fixed statutory amounts, and deferred retirement option plan account payments