Senate Bill 10 Offers Stipend and the First Cost-of-Living Adjustment: See Who Qualifies

Texas lawmakers supported Senate Bill 10 Sunday which offers retired teachers the first cost-of-living adjustment in 20 years as well as a stipend.

Texas lawmakers supported Senate Bill 10 which offers retired teachers the first cost-of-living adjustment in 20 years. (Photo: Texas Tribune)

Senate Bill 10

Senate Bill 10, proposed by state Sen. Joan Huffman, R-Houston, offers a COLA (cost-of-living adjustment) as well as a stipend for certain former educators.

According to Cleburne Times-Review, the bill allocates the $5 billion investment set aside in the state’s budget.

According to Tim Lee, the executive director of the Texas Retired Teachers Association, the proposal of Senate Bill 10 is a significant win for all (Teacher Retirement System of Texas) retirees across the state. He added that Senate Bill 10 is going to go a long way to help retired teachers who desperately need it.

Sen. Joan Huffman said the passage of Senate Bill 10 is great news for Texas teacher retirees.

Advocacy groups of retired teachers have been consistently calling on lawmakers to use a portion of the state’s $33 billion surplus to address this issue. According to the advocates, the average monthly TRS check is about $2,100.

If a teacher or a retiree does not have other income or savings, would have to use that money to cover everyday costs such as rent, groceries, gas, medical bills, internet services, and other daily expenses.

With increasing inflation, the buying power of retired teachers has been further negatively impacted.

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Senate Bill 10 Stipend and COLA

Senate Bill 10 offers a $7,500 check as a stipend to eligible retirees who are 75 years of age and older, affecting about 186,000 annuitants.

It also provides a $2,400 stipend to eligible retirees between the ages of 70 and 74, impacting about 104,000 annuitants. Qualifying teachers can expect the check in September.

Senate Bill 10 also includes:

• 2% COLA for those retired teachers between Sep. 1, 2013, and Aug. 31, 2020
• 4% COLA for those retired teachers  between Sept. 1, 2001, and Aug. 31, 2013
• 6% COLA for those retired teachers  on and before Aug. 31, 2001

The COLAs are not yet assured as they are pending voter approval in November.

Senate Bill 10 is now heading to the governor’s desk.

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