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 specifically deletes the option for municipalities to set a contribution rate of "or seven" and adds the option for "or eight percent" to the contribution rates. This change aims to provide municipalities with greater flexibility in determining employee contribution rates while ensuring consistency across departments. The provisions of this act will take effect on September 1, 2025.

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