bill ends employer contributions for rehired retired teachers

The text as introduced · 468 words

89R4912 RDR-D

By: Dean
H.B. No. 2130

A BILL TO BE ENTITLED

AN ACT

relating to the payment of certain employer contributions for

retirees of the Teacher Retirement System of Texas who resume

service.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 825.408(a), Government Code, is amended

to read as follows:

(a) An [ Except as provided by Subsection (a-1), an ] employer

that fails to remit, before the seventh day after the last day of a

month, all member and employer deposits and documentation of the

deposits required by this subchapter to be remitted by the employer

for the month shall pay to the retirement system, in addition to the

deposits, interest on the unpaid amounts at an annual rate

compounded monthly and a late fee in an amount determined by the

retirement system that is based on the size of the employer and may

not exceed $1,000 for each business day after the deadline imposed

by this subsection that the employer fails to submit the

documentation of the deposits. The cumulative amount of late fees

assessed against an employer under this subsection may not exceed

$25,000 per reporting period. The rate of interest is the rate

established under Section 825.313(b)(1), plus two percent.

Interest and late fees required under this section are creditable

to the interest account. On request, the retirement system may

grant a waiver of the deadline imposed by this subsection based on

an employer's financial or technological resources. The retirement

system may establish a process for filing an appeal to reduce or

waive a late fee imposed under this subsection.

SECTION 2. Sections 825.4092(e) and (f), Government Code,

are amended to read as follows:

(e) The amounts required to be paid under Subsection

[ Subsections (b) and ] (c) are not required to be paid by a reporting

employer for a retiree who retired from the retirement system

before September 1, 2005.

(f) A reporting employer is ultimately responsible for

payment of the amounts required to be contributed under Subsection

[ Subsections (b) and ] (c). The employer may not directly or

indirectly pass that cost on to the retiree through payroll

deduction, by imposition of a fee, or by any other means designed to

recover the cost.

SECTION 3. The following provisions of the Government Code

are repealed:

(1) Sections 825.408(a-1) and (a-2); and

(2) Sections 825.4092(b) and (d).

SECTION 4. The changes in law made by this Act apply

beginning with the 2025-2026 school year.

SECTION 5. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.