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HB 1292

Relating to a cost-of-living increase applicable to death benefits paid under the workers' compensation system.

89th Legislature (2025) Introduced by Terry Meza

Texas HB 1292 establishes automatic cost-of-living adjustments for workers' compensation death benefits, preserving survivor payments' purchasing power against inflation.

Referred to s/c on Workforce by Speaker
#labor--workers'compensation(i0470) #workforcecommission #texas(v0470)
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Bill Summary · HB 1292

Legislative bill overview

HB 1292 proposes implementing a cost-of-living adjustment (COLA) mechanism for death benefits paid to dependents of workers who die from work-related injuries or illnesses under Texas's workers' compensation system. The bill would automatically adjust these benefits to account for inflation, ensuring that survivor payments maintain purchasing power over time.

Why is this important

Death benefits in workers' compensation are typically one-time or fixed payments to families who lose their primary earner due to workplace fatalities. Without inflation adjustments, these benefits lose real value year after year, potentially leaving surviving spouses and children with inadequate financial support decades after the worker's death. This bill directly affects the economic security of worker families and the adequacy of the Texas workers' compensation safety net.

Potential points of contention

  • Cost to employers and insurers: Adding automatic COLA increases to death benefits will raise the long-term cost of workers' compensation insurance, potentially increasing premiums for businesses or reducing insurer profitability
  • Defining the COLA mechanism: Questions remain about which inflation index would be used (CPI, wage growth, etc.), adjustment frequency, and whether there would be caps on annual increases
  • Retroactive application: Whether COLA adjustments apply only to future deaths or also to existing benefit recipients, which would significantly impact overall program costs and fairness considerations

Compiled from official sources — confirm details with the bill’s official record.

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