TX HB3857

Requires the Teacher Retirement System (TRS) board of trustees to set biennial cost-of-living adjustment (COLA) rates during the last seven days of October in odd-numbered years, based on the sum of annual percentage increases in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the current and previous years

Applies COLA increases to service retirement benefits, disability retirement benefits, and death benefits paid by TRS, with adjustments taking effect for benefits paid on or after January 1, 2026

Conditions benefit increases on the board's finding that the retirement system is actuarially sound and has sufficient funds; if funds are insufficient for the full adjustment, the board must calculate the largest possible adjustment while maintaining actuarial soundness

Mandates TRS conduct a biennial study by January 1 of each even-numbered year evaluating inflation's effects on annuitants during the preceding biennium and since the last COLA was provided

Requires TRS to submit a written report to the legislature with study findings and recommendations for potential legislation, including specific recommendations on whether and in what amount a COLA would be needed to remedy adverse inflation effects