bill lets TRS waive contributions for rehired retirees

The text as introduced · 419 words

89R5952 RDR-F

By: Allen
H.B. No. 2554

A BILL TO BE ENTITLED

AN ACT

relating to the payment of certain employer contributions for

employed retirees of the Teacher Retirement System of Texas.

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

SECTION 1. Section 825.4092, Government Code, is amended by

amending Subsections (b) and (c) and adding Subsection (h) to read

as follows:

(b) Except as provided by Subsections [ Subsection ] (e) and

(h) , during each payroll period for which a retiree is reported, the

employer shall contribute to the retirement system for each retiree

reported an amount based on the retiree's salary equal to the sum

of:

(1) the current contribution amount that would be

contributed by the retiree if the retiree were an active,

contributing member; and

(2) the current contribution amount authorized by the

General Appropriations Act that the state would contribute for that

retiree if the retiree were an active, contributing member.

(c) Except as provided by Subsections [ Subsection ] (e) and

(h) , each payroll period, for each retiree who is enrolled in the

Texas Public School Employees Group Insurance Program under Chapter

1575, Insurance Code, the employer who reports the employment of a

retiree shall contribute to the trust fund established under that

chapter an amount established by the retirement system. In

determining the amount to be contributed by the employer under this

subsection, the retirement system shall consider the amount a

retiree is required to pay for the retiree and any enrolled

dependents to participate in the group program and the cost of the

retiree's and enrolled dependents' participation in the group

program. If more than one employer reports the retiree to the

retirement system during a month, the amount of the required

payment shall be prorated among the employers.

(h) Notwithstanding Section 821.006, the retirement system

may waive all or part of the amounts required to be contributed

under Subsection (b) or (c), or both subsections, for one or more

fiscal years. An employer is not required to pay any amount waived

by the retirement system under this subsection.

SECTION 2. The changes in law made by this Act apply

beginning with the 2025-2026 school year.

SECTION 3. 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.