| 1 | 1 | | 86R13659 TSR-F |
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| 2 | 2 | | By: Dominguez H.B. No. 4025 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the state contributions to the Teacher Retirement |
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| 8 | 8 | | System of Texas. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 825.404, Government Code, is amended by |
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| 11 | 11 | | amending Subsections (a) and (a-1) and adding Subsection (a-2) to |
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| 12 | 12 | | read as follows: |
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| 13 | 13 | | (a) Except as provided by Subsection (a-1) and subject to |
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| 14 | 14 | | Subsection (a-2), during each fiscal year, the state shall |
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| 15 | 15 | | contribute to the retirement system an amount equal to at least six |
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| 16 | 16 | | and not more than 10 percent of the aggregate annual compensation of |
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| 17 | 17 | | all members of the retirement system during that fiscal year. |
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| 18 | 18 | | (a-1) In computing the amount owed by the state under this |
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| 19 | 19 | | section [Subsection (a)], the compensation of members who are |
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| 20 | 20 | | employed by public junior colleges or public junior college |
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| 21 | 21 | | districts shall be included in the aggregate annual compensation as |
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| 22 | 22 | | follows: |
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| 23 | 23 | | (1) 50 percent of the eligible creditable compensation |
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| 24 | 24 | | of employees who: |
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| 25 | 25 | | (A) otherwise are eligible for membership in the |
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| 26 | 26 | | retirement system; and |
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| 27 | 27 | | (B) are instructional or administrative |
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| 28 | 28 | | employees whose salaries may be fully paid from funds appropriated |
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| 29 | 29 | | under the General Appropriations Act, regardless of whether such |
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| 30 | 30 | | salaries are actually paid from appropriated funds; and |
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| 31 | 31 | | (2) none of the eligible creditable compensation of |
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| 32 | 32 | | all other employees who: |
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| 33 | 33 | | (A) do not meet the requirements of Subdivision |
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| 34 | 34 | | (1)(B) but are otherwise eligible for membership in the retirement |
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| 35 | 35 | | system; or |
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| 36 | 36 | | (B) cannot be included as a qualifying employee |
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| 37 | 37 | | under Subdivision (1) by application of Subsection (b-1). |
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| 38 | 38 | | (a-2) The state contribution required by Subsection (a) is: |
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| 39 | 39 | | (1) for the fiscal year beginning on September 1, |
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| 40 | 40 | | 2019, seven percent of the aggregate annual compensation of all |
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| 41 | 41 | | members of the retirement system during that fiscal year; |
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| 42 | 42 | | (2) for the fiscal year beginning on September 1, |
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| 43 | 43 | | 2020, 7.2 percent of the aggregate annual compensation of all |
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| 44 | 44 | | members of the retirement system during that fiscal year; |
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| 45 | 45 | | (3) for the fiscal year beginning on September 1, |
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| 46 | 46 | | 2021, 7.4 percent of the aggregate annual compensation of all |
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| 47 | 47 | | members of the retirement system during that fiscal year; |
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| 48 | 48 | | (4) for the fiscal year beginning on September 1, |
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| 49 | 49 | | 2022, 7.6 percent of the aggregate annual compensation of all |
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| 50 | 50 | | members of the retirement system during that fiscal year; |
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| 51 | 51 | | (5) for the fiscal year beginning on September 1, |
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| 52 | 52 | | 2023, 7.8 percent of the aggregate annual compensation of all |
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| 53 | 53 | | members of the retirement system during that fiscal year; and |
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| 54 | 54 | | (6) for the fiscal year beginning on September 1, |
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| 55 | 55 | | 2024, and each subsequent fiscal year, eight percent of the |
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| 56 | 56 | | aggregate annual compensation of all members of the retirement |
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| 57 | 57 | | system during that fiscal year. |
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| 58 | 58 | | SECTION 2. This Act takes effect September 1, 2019. |
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