The bill amends Section 825.4092 of the Government Code to modify employer contributions for retirees of the Teacher Retirement System of Texas who return to work in public schools. It introduces new provisions that require employers to contribute an amount based on the retiree's salary, which is determined by the difference between two calculations: the sum of the retiree's current contribution amount and the state's contribution amount, and a percentage of the retiree's compensation as determined by the retirement system's actuary. Additionally, a new subsection (b-1) specifies that the employer's contribution is only required if the first calculation exceeds the second; if the second exceeds the first, no contribution is necessary.

The changes outlined in this bill will take effect starting with the 2025-2026 school year. The bill also includes a provision for immediate effect if it receives a two-thirds vote from both houses of the legislature; otherwise, it will take effect on September 1, 2025.

Statutes affected:
Introduced: Government Code 825.4092 (Government Code 825)