The bill adds eight percent as a new option for the employee contribution rate that cities in the Texas Municipal Retirement System can choose. It touches cities that take part in the system and the city workers whose paychecks fund their pensions. Starting September 1, 2025, a city could require its employees to put eight percent of their pay into the retirement system, up from the current top choice of seven percent.
Labels
Labels: BACK FROM THE DEAD. Same text as a bill filed before that died: 88R HB 3441 by Rep. Hunter (Died in committee). Filed in 2 sessions, counting this one. Checked against 88R only.TRY NO. 2. Filed in 2 sessions: 88R and 89R. Checked against 88R only.
relating to member contributions to the Texas Municipal Retirement
System.
WHAT IT DOES
Cities get one more employee rate to choose.
The bill adds eight percent as a new option for the employee contribution rate that cities in the Texas Municipal Retirement System can choose. It touches cities that take part in the system and the city workers whose paychecks fund their pensions. Starting September 1, 2025, a city could require its employees to put eight percent of their pay into the retirement system, up from the current top choice of seven percent.
89R9327 RDR-F
By: Hinojosa of Nueces
S.B. No. 1544
A BILL TO BE ENTITLED
AN ACT
relating to member contributions to the Texas Municipal Retirement
System.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 855.401(a), Government Code, is amended
to read as follows:
(a) Each municipality that has one or more departments
participating in the retirement system by ordinance shall designate
the rate of member contributions for employees. The municipality
shall elect a rate of five, six, [ or ] seven , or eight percent of the
employees' compensation. All departments of a participating
municipality must have the same employee contribution rate, except
that any municipality that before September 1, 1991, has elected to
have different rates of member contributions in different
departments may continue member contributions in accordance with
its existing ordinances until the municipality elects to equalize
the rates.
SECTION 2. This Act takes effect September 1, 2025.