The bill amends Section 825.4092 of the Government Code regarding employer contributions for employed retirees of the Teacher Retirement System of Texas. It specifies that, during each payroll period, employers must contribute an amount based on the retiree's salary, which includes the current contribution amount that would be made if the retiree were an active member, as well as the state contribution amount. Additionally, for retirees enrolled in the Texas Public School Employees Group Insurance Program, employers are required to contribute to the trust fund based on the costs associated with the retiree's participation in the program.

A significant addition to the law is Subsection (h), which allows the retirement system to waive all or part of the required contributions for one or more fiscal years, meaning employers would not be obligated to pay any amounts waived. The changes 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)