bill lowers school payments for rehired retired teachers

The text as introduced · 343 words

89R16026 RDR-F

By: Anchía
H.B. No. 4837

A BILL TO BE ENTITLED

AN ACT

relating to employer contributions for retirees of the Teacher

Retirement System of Texas who resume certain employment with a

public school.

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

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

amending Subsection (b) and adding Subsection (b-1) to read as

follows:

(b) Except as provided by Subsection (e) and subject to

Subsection (b-1) , 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 difference between [ sum of ]:

(1) the sum of:

(A) the current contribution amount that would be

contributed by the retiree if the retiree were an active,

contributing member; and

(B) [ (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 ; and

(2) as determined by the actuary of the retirement

system, an amount equal to a percentage of the retiree's

compensation attributable to the payroll period where the

percentage is the estimated normal cost of the retirement system

for the current year expressed as a percentage of aggregate annual

compensation of all members of the retirement system .

(b-1) Subsection (b) applies only if the amount under

Subsection (b)(1) exceeds the amount under Subsection (b)(2). If

during a payroll period the amount under Subsection (b)(2) exceeds

the amount under Subsection (b)(1), the employer is not required to

make a contribution under Subsection (b).

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.