HB3221 - Relating to certain employer contributions to the Teacher Retirement System of Texas.

      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.