Relating to cost-of-living adjustments applicable to certain benefits paid by the Teacher Retirement System of Texas and a biennial study on providing additional cost-of-living adjustments based on the effects of increased inflation.

HB 3857 requires the Teacher Retirement System of Texas to adjust certain retirement benefits annually based on changes in the Consumer Price Index for Urban Wage Earners (CPI-W), using data from the U.S. Bureau of Labor Statistics. The system must apply this adjustment rate to benefits only if it is financially stable and has sufficient funds available to cover the increase. Additionally, the bill mandates a biennial study (every even-numbered year) to evaluate how inflation has affected retirees since their last cost-of-living adjustment, reporting findings to the legislature. This directly impacts Texas public school retirees receiving benefits under the Teacher Retirement System. The bill focuses on aligning benefit payments with inflation while ensuring system financial stability.