Texas teachers who retired on or before Dec. 31, 2018, are set to receive a one-time supplemental annuity payment this month, according to the Teacher Retirement System of Texas.
The additional stipend will be either the amount of their monthly annuity payment or $2,000, whichever is less, as a result of Senate Bill 12 that was passed this year by the 86th Texas Legislature.
The bill was sponsored by Senator Joan Huffman and Representative Greg Bonnan.
Teachers should note that the supplemental payment is taxable.
“The supplemental payment is fully taxable, and Teachers Retirement System will withhold taxes from the supplemental payment in accordance with IRS rules,” reads the TRS website.
Senate Bill 12 has been lauded for making the Teacher Retirement System pension fund financially healthy.
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