S.B. No. 1544 amends Section 855.401(a) of the Government Code regarding member contributions to the Texas Municipal Retirement System. The bill 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. It also stipulates that all departments within a participating municipality must maintain the same employee contribution rate, with an exception for municipalities that had different rates established before September 1, 1991, which may continue to operate under their existing ordinances until they choose to equalize the rates.

The bill will take effect on September 1, 2025. The key change in the legislation is the addition of the option for municipalities to set an employee contribution rate of eight percent, while removing the option to set a rate of "or" seven percent. This change aims to provide municipalities with greater flexibility in determining contribution rates for their employees participating in the retirement system.

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