Relating to providing a cost-of-living adjustment applicable to certain benefits paid by the Employees Retirement System of Texas.

SB 573 establishes a cost-of-living adjustment (COLA) for specific retirement benefits paid by the Employees Retirement System of Texas, effective January 2026. It directly affects retirees and beneficiaries receiving service retirement, disability retirement, death benefits, or alternate payee annuities under certain chapters of the Texas Government Code. The COLA applies only to those eligible under specific membership classes (excluding elected class retirees) and requires eligibility based on retirement or death dates before specified cutoffs (e.g., before September 1, 2024 for service retirement). The adjustment is calculated as a percentage of the base benefit amount and begins with payments for January 2026. This is a concrete policy change to help offset inflation for qualifying retirees.