TX HB4161

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

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

Limits benefit increases to years when the board finds the retirement system is actuarially sound and has available funds to pay increased benefits

Allows partial adjustments if funds are insufficient for the full COLA, requiring the board to calculate the largest possible adjustment while maintaining actuarial soundness

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