HB2130 - Relating to the payment of certain employer contributions for retirees of the Teacher Retirement System of Texas who resume service.

  89R4912 RDR-D     By: Dean H.B. No. 2130       A BILL TO BE ENTITLED   AN ACT   relating to the payment of certain employer contributions for   retirees of the Teacher Retirement System of Texas who resume   service.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 825.408(a), Government Code, is amended   to read as follows:          (a)   An [ Except as provided by Subsection (a-1), an ] employer   that fails to remit, before the seventh day after the last day of a   month, all member and employer deposits and documentation of the   deposits required by this subchapter to be remitted by the employer   for the month shall pay to the retirement system, in addition to the   deposits, interest on the unpaid amounts at an annual rate   compounded monthly and a late fee in an amount determined by the   retirement system that is based on the size of the employer and may   not exceed $1,000 for each business day after the deadline imposed   by this subsection that the employer fails to submit the   documentation of the deposits. The cumulative amount of late fees   assessed against an employer under this subsection may not exceed   $25,000 per reporting period. The rate of interest is the rate   established under Section 825.313(b)(1), plus two percent.   Interest and late fees required under this section are creditable   to the interest account. On request, the retirement system may   grant a waiver of the deadline imposed by this subsection based on   an employer's financial or technological resources. The retirement   system may establish a process for filing an appeal to reduce or   waive a late fee imposed under this subsection.          SECTION 2.  Sections 825.4092(e) and (f), Government Code,   are amended to read as follows:          (e)  The amounts required to be paid under Subsection   [ Subsections (b) and ] (c) are not required to be paid by a reporting   employer for a retiree who retired from the retirement system   before September 1, 2005.          (f)  A reporting employer is ultimately responsible for   payment of the amounts required to be contributed under Subsection     [ Subsections (b) and ] (c). The employer may not directly or   indirectly pass that cost on to the retiree through payroll   deduction, by imposition of a fee, or by any other means designed to   recover the cost.          SECTION 3.  The following provisions of the Government Code   are repealed:                (1)  Sections 825.408(a-1) and (a-2); and                (2)  Sections 825.4092(b) and (d).          SECTION 4.  The changes in law made by this Act apply   beginning with the 2025-2026 school year.          SECTION 5.  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.