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 by Section 825.405(a)(1), (2), or (3). The contribution rates are structured to vary over time: for the period from September 2014 to August 2015, the contribution is set at 1.5% of the statutory minimum salary. From September 2015 to August 2019, the contribution will be the lesser of 1.5% or a percentage reduced based on the state contribution rate. Starting September 2019, the contribution will again be the lesser of a specified percentage or a reduced percentage based on the state contribution rate.

The bill is set to take effect for the 2025-2026 school year and will become effective immediately if it receives a two-thirds vote from both houses of the Texas Legislature; otherwise, it will take effect on September 1, 2025. The amendments aim to ensure that employer contributions are aligned with the statutory minimum salary and the state's fiscal contributions, thereby providing a structured approach to funding the Teacher Retirement System.

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