HB 2554

relating to the payment of certain employer contributions for
employed retirees of the Teacher Retirement System of Texas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 825.4092, Government Code, is amended by
amending Subsections (b) and (c) and adding Subsection (h) to read
(b)  Except as provided by Subsections [Subsection] (e) and
(h), during each payroll period for which a retiree is reported, the
employer shall contribute to the retirement system for each retiree
reported an amount based on the retiree's salary equal to the sum
(1)  the current contribution amount that would be
contributed by the retiree if the retiree were an active,
(2)  the current contribution amount authorized by the
General Appropriations Act that the state would contribute for that
retiree if the retiree were an active, contributing member.
(c)  Except as provided by Subsections [Subsection] (e) and
(h), each payroll period, for each retiree who is enrolled in the
Texas Public School Employees Group Insurance Program under Chapter
1575, Insurance Code, the employer who reports the employment of a
retiree shall contribute to the trust fund established under that
chapter an amount established by the retirement system.  In
determining the amount to be contributed by the employer under this
subsection, the retirement system shall consider the amount a
retiree is required to pay for the retiree and any enrolled
dependents to participate in the group program and the cost of the
retiree's and enrolled dependents' participation in the group
program.  If more than one employer reports the retiree to the
retirement system during a month, the amount of the required
payment shall be prorated among the employers.
(h)  Notwithstanding Section 821.006, the retirement system
may waive all or part of the amounts required to be contributed
under Subsection (b) or (c), or both subsections, for one or more
fiscal years.  An employer is not required to pay any amount waived
by the retirement system under this subsection.
SECTION 2.  The changes in law made by this Act apply
beginning with the 2025-2026 school year.
SECTION 3.  This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution.  If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.