Texas Government Code 814.604 – Cost-of-Living Adjustment
(a) The retirement system shall grant a one-time cost-of-living adjustment as provided by Subsections (b) and (c) on a finding by the board of trustees that, as determined by an actuarial valuation:
(1) the amortization period for the unfunded actuarial liabilities of the retirement system does not exceed 30 years by one or more years; and
(2) as a result of paying the adjustment, the time required to amortize the unfunded actuarial liabilities of the retirement system would not be increased to a period that exceeds 30 years by one or more years.
(b) The retirement system shall pay the cost-of-living adjustment under this section to a retiree who has been retired for 20 years or more on the date the board of trustees makes the finding in Subsection (a), or to a beneficiary of the retiree, as an increase to a monthly service retirement benefit, disability retirement benefit, or death benefit, as applicable, paid under this chapter for service credited in the employee class.
Terms Used In Texas Government Code 814.604
- Amortization: Paying off a loan by regular installments.
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Month: means a calendar month. See Texas Government Code 312.011
(c) A cost-of-living adjustment under this section is limited to the lesser of:
(1) an amount equal to three percent of the monthly benefit subject to the increase; or
(2) $100 a month.