This year, retired Texas teachers may get both a 13th check and a cost of living adjustment based on two different priority bills filed in the Texas Legislature. Teacher pensions have been a priority for several lawmakers this year, noting the issues that retired teachers face financially. 

Senate bill 10 would create a cost of living adjustment (COLA) at 4% for retirees who have been retired for more than 10 years. For teachers and school workers who have been retired anywhere from 2 to 9 years, the cost-of-living adjustment (COLA) would be at 2%. Additionally, the bill would give retired teachers above the age of 75 a 13th check of $7,500. The Senate bill would not cost current teachers, who pay into the Teacher Retirement Fund, anything. According to the bill, the state would pay 4.7 billion toward the initiative.

Senate Bill 10, written by state senator Joan Huffman, has already been approved by all 31 senators signing on as joint authors. “Because of our major pension reform in 2019 which led the pension fund to actuarial soundness, we now have the ability to give our retired educators a much-deserved COLA, which will be paid for by the Legislature and not financed by the fund. This is absolutely a priority for me, the Lt. Governor, and the entire Senate. I look forward to working with my colleagues to get it passed,” said Senator Huffman

House Bill 600, written by state representative Greg Bonnen, seeks to create a cost of living adjustment based on how many years former teachers have been retired. It also creates a gainsharing option to raise those benefits that would start in 2028.

HB 600 states that for those who have been retired for 20 or more years, there would be a 6% COLA. For those who have been retired for more than 10 years, but under 20, a 4% COLA. For those who have been retired for more than three years, but less than 10, a 2% COLA. 

HB 600 would give a $5,000 cash payment to retirees 70 and older. This bill would cost the state 3.5 billion but would require current teacher contributions to increase by .75% of what they already pay into the pension. 

The gain share option in HB 600 would start September 1, 2028. According to the Austin American Statesman, the gain share option would “provide an annual cost-of-living adjustment for retired teachers, contingent upon whether the Texas Retirement System pension fund’s average return over the previous five fiscal years reaches or exceeds 7%.” The gain share would provide a 2% cap raise of COLA each year. 

The Teacher Retirement System is the financial security for retired teachers in Texas. 96% of retired teachers do not have social security. This is due to the fact that usually teachers cannot pay into the federal system. 

Retired teachers in Texas make a couple thousand on average monthly from the Texas retirement system. Retired teachers in Texas have no cost of living adjustment either and that has been something voiced to the Texas Legislature to make happen.