The bill, H.B. No. 3161, amends Section 855.401(a) of the Government Code regarding member contributions to the Texas Municipal Retirement System. It allows municipalities to designate the rate of member contributions for employees at a rate of five, six, seven, or eight percent of the employees' compensation. This change replaces the previous provision that only allowed rates of five, six, or seven percent. Additionally, it maintains the requirement that all departments within a participating municipality must have the same employee contribution rate, with an exception for municipalities that had different rates established before September 1, 1991.

The bill is set to take effect on September 1, 2025, providing municipalities with the flexibility to adjust their contribution rates to better align with their financial strategies and employee compensation structures.

Statutes affected:
Introduced: Government Code 855.401 (Government Code 855)