88R3550 JCG-D
By: Dean H.B. No. 1284
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. Section 825.4092(e), Government Code, is 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.
SECTION 3. Section 825.4092(f), Government Code, as added
by Chapter 546 (S.B. 202), Acts of the 87th Legislature, Regular
Session, 2021, is amended to read as follows:
(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 4. Section 825.4092(f), Government Code, as added
by Chapter 511 (S.B. 288), Acts of the 87th Legislature, Regular
Session, 2021, is redesignated as Section 825.4092(g), Government
Code, and amended to read as follows:
(g) [(f)] Notwithstanding any other provision of this
section, 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 on or
after September 1, 2005, and is employed in a position described by
Section 824.6021(a). This subsection expires February 1, 2025.
SECTION 5. 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 6. The changes in law made by this Act apply
beginning with the 2023-2024 school year.
SECTION 7. To the extent of any conflict, this Act prevails
over another Act of the 88th Legislature, Regular Session, 2023,
relating to nonsubstantive additions to and corrections in enacted
codes.
SECTION 8. 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, 2023.