TX HB3870

Provides a one-time 10% permanent increase to monthly retirement, disability, and death benefits for Employees Retirement System of Texas annuitants in the employee class, beginning in calendar year 2026

Establishes an annual cost-of-living adjustment (COLA) tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), matching the same measure used for Social Security increases

Requires the board of trustees to set the annual COLA rate during the last seven days of October each year, with adjustments contingent on the retirement system being actuarially sound with available funds

Authorizes a one-time supplemental payment in January 2026 equal to the lesser of $2,000 or the annuitant's gross December 2025 benefit amount, for those whose retirement was effective on or before September 1, 2024

Excludes benefits based on service in the elected class (such as legislators and certain officials) from the supplemental payment and requires legislative appropriation before payments can be made