Relating to certain employer contributions to the Teacher Retirement System of Texas.

89(R) HB 3221 - Engrossed version - Bill Text

By: Tepper, Leo Wilson, Gervin-Hawkins

H.B. No. 3221

A BILL TO BE ENTITLED

AN ACT

relating to certain employer contributions to the Teacher

Retirement System of Texas.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 825.4035(c), Government Code, is amended

to read as follows:

(c)
An
[
If a member is entitled to the minimum salary for

certain school personnel under Section 21.402, Education Code, or

if a member would have been entitled to the minimum salary for

certain school personnel under former Section 16.056, Education

Code, as that section existed on January 1, 1995, the
] employer

shall, in addition to any contributions required under Section

825.405, contribute monthly to the retirement system for each

[
such
] member
described by Section 825.405(a)(1), (2), or (3)
:

(1) for the period beginning with the report month of

September 2014 and ending with the report month of August 2015, an

amount equal to 1.5 percent of the statutory minimum salary

determined under Section 825.405(b);

(2) beginning with the report month for September 2015

and ending with the report month of August 2019, an amount equal to

the lesser of:

(A) 1.5 percent of the statutory minimum salary

determined under Section 825.405(b); or

(B) a percentage of the statutory minimum salary

determined under Section 825.405(b) equal to 1.5 percent reduced by

one-tenth of one percent for each one-tenth of one percent that the

state contribution rate for the fiscal year to which the report

month relates is less than the state contribution rate established

for the 2015 fiscal year; and

(3) beginning with the report month of September 2019

and for each subsequent report month, an amount equal to the lesser

of:

(A) a percentage of the statutory minimum salary

determined under Section 825.405(b) equal to the rate of

contribution provided for the applicable fiscal year under

Subsection (e); or

(B) a percentage of the statutory minimum salary

determined under Section 825.405(b) equal to the percentage

provided by Paragraph (A) reduced by one-tenth of one percent for

each one-tenth of one percent that the state contribution rate for

the fiscal year to which the report month relates is less than the

state contribution rate established for that fiscal year under

Section 825.404(a-2).

SECTION 2. (a) Subject to Subsection (b), this Act applies

beginning with the 2025-2026 school year.

(b) The Teacher Retirement System of Texas is required to

implement this Act only if the board of trustees of the Teacher

Retirement System of Texas finds that the legislature appropriated

money to the retirement system in an amount sufficient to cover any

increase in the unfunded actuarial liabilities of the retirement

system caused by the implementation of this Act. The amount

appropriated by the legislature to cover any increase in unfunded

actuarial liabilities caused by the implementation of this Act must

be in addition to any amounts the state is required to contribute to

the retirement system under Subchapter E, Chapter 825, Government

Code. If the board of trustees of the Teacher Retirement System of

Texas finds that the legislature did not appropriate money in an

amount sufficient to cover the cost of implementation without

increasing the unfunded actuarial liabilities of the retirement

system, the retirement system may not implement this Act.

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.