86R13659 TSR-F
By: Dominguez H.B. No. 4025
A BILL TO BE ENTITLED
AN ACT
relating to the state contributions to the Teacher Retirement
System of Texas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 825.404, Government Code, is amended by
amending Subsections (a) and (a-1) and adding Subsection (a-2) to
read as follows:
(a) Except as provided by Subsection (a-1) and subject to
Subsection (a-2), during each fiscal year, the state shall
contribute to the retirement system an amount equal to at least six
and not more than 10 percent of the aggregate annual compensation of
all members of the retirement system during that fiscal year.
(a-1) In computing the amount owed by the state under this
section [Subsection (a)], the compensation of members who are
employed by public junior colleges or public junior college
districts shall be included in the aggregate annual compensation as
follows:
(1) 50 percent of the eligible creditable compensation
of employees who:
(A) otherwise are eligible for membership in the
retirement system; and
(B) are instructional or administrative
employees whose salaries may be fully paid from funds appropriated
under the General Appropriations Act, regardless of whether such
salaries are actually paid from appropriated funds; and
(2) none of the eligible creditable compensation of
all other employees who:
(A) do not meet the requirements of Subdivision
(1)(B) but are otherwise eligible for membership in the retirement
system; or
(B) cannot be included as a qualifying employee
under Subdivision (1) by application of Subsection (b-1).
(a-2) The state contribution required by Subsection (a) is:
(1) for the fiscal year beginning on September 1,
2019, seven percent of the aggregate annual compensation of all
members of the retirement system during that fiscal year;
(2) for the fiscal year beginning on September 1,
2020, 7.2 percent of the aggregate annual compensation of all
members of the retirement system during that fiscal year;
(3) for the fiscal year beginning on September 1,
2021, 7.4 percent of the aggregate annual compensation of all
members of the retirement system during that fiscal year;
(4) for the fiscal year beginning on September 1,
2022, 7.6 percent of the aggregate annual compensation of all
members of the retirement system during that fiscal year;
(5) for the fiscal year beginning on September 1,
2023, 7.8 percent of the aggregate annual compensation of all
members of the retirement system during that fiscal year; and
(6) for the fiscal year beginning on September 1,
2024, and each subsequent fiscal year, eight percent of the
aggregate annual compensation of all members of the retirement
system during that fiscal year.
SECTION 2. This Act takes effect September 1, 2019.