H.B. No. 2554 amends Section 825.4092 of the Government Code regarding employer contributions for employed retirees of the Teacher Retirement System of Texas. The bill modifies Subsections (b) and (c) and introduces a new Subsection (h). Under the amended provisions, employers are required to contribute to the retirement system based on the retiree's salary, which includes the current contribution amounts that would be made if the retiree were an active member. Additionally, for retirees enrolled in the Texas Public School Employees Group Insurance Program, employers must contribute to the trust fund based on the costs associated with the retiree's participation in the program.

The new Subsection (h) allows the retirement system to waive all or part of the required contributions under Subsections (b) or (c) for one or more fiscal years, meaning employers would not be obligated to pay any amounts waived by the retirement system. The changes enacted by this bill will take effect starting with the 2025-2026 school year, and the bill will become effective immediately if it receives a two-thirds vote from both houses; otherwise, it will take effect on September 1, 2025.

Statutes affected:
Introduced: Government Code 825.4092 (Government Code 825)