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). The amendments clarify that, during each payroll period, employers must contribute amounts based on the retiree's salary, which includes the current contribution amounts that would be made if the retiree were an active member. Additionally, the bill specifies that employers must contribute to the Texas Public School Employees Group Insurance Program for retirees, with the contribution amount determined by the retirement system.

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. 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)