The bill, S.B. No. 1128, amends Section 825.4035(c) of the Government Code to adjust employer contributions to the Teacher Retirement System of Texas. The new language specifies that employers must contribute monthly for certain members described in Section 825.405(a)(1), (2), or (3). The contribution rates are structured over different periods: for the 2014-2015 school year, employers will contribute 1.5% of the statutory minimum salary; for the 2015-2019 period, the contribution will be the lesser of 1.5% or a percentage reduced based on the state contribution rate; and from September 2019 onward, contributions will be based on the applicable fiscal year's rate, with similar reductions applied.

The bill is set to take effect for the 2025-2026 school year, with immediate effect possible if it receives a two-thirds vote from both houses of the legislature. If not, the provisions will be implemented starting September 1, 2025. The amendments aim to ensure that employer contributions are aligned with the statutory minimum salary and the state's contribution rates, thereby providing a structured approach to funding the Teacher Retirement System.

Statutes affected:
Introduced: Government Code 825.4035 (Government Code 825)