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A BILL TO BE ENTITLED
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AN ACT
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relating to the payment of certain employer contributions for |
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retirees of the Teacher Retirement System of Texas who resume |
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service. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 825.408(a), Government Code, is amended |
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to read as follows: |
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(a) An [Except as provided by Subsection (a-1), an] employer |
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that fails to remit, before the seventh day after the last day of a |
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month, all member and employer deposits and documentation of the |
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deposits required by this subchapter to be remitted by the employer |
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for the month shall pay to the retirement system, in addition to the |
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deposits, interest on the unpaid amounts at an annual rate |
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compounded monthly and a late fee in an amount determined by the |
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retirement system that is based on the size of the employer and may |
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not exceed $1,000 for each business day after the deadline imposed |
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by this subsection that the employer fails to submit the |
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documentation of the deposits. The cumulative amount of late fees |
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assessed against an employer under this subsection may not exceed |
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$25,000 per reporting period. The rate of interest is the rate |
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established under Section 825.313(b)(1), plus two percent. |
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Interest and late fees required under this section are creditable |
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to the interest account. On request, the retirement system may |
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grant a waiver of the deadline imposed by this subsection based on |
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an employer's financial or technological resources. The retirement |
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system may establish a process for filing an appeal to reduce or |
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waive a late fee imposed under this subsection. |
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SECTION 2. Section 825.4092(e), Government Code, is amended |
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to read as follows: |
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(e) The amounts required to be paid under Subsection |
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[Subsections (b) and] (c) are not required to be paid by a reporting |
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employer for a retiree who retired from the retirement system |
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before September 1, 2005. |
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SECTION 3. Section 825.4092(f), Government Code, as added |
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by Chapter 546 (S.B. 202), Acts of the 87th Legislature, Regular |
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Session, 2021, is amended to read as follows: |
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(f) A reporting employer is ultimately responsible for |
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payment of the amounts required to be contributed under Subsection |
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[Subsections (b) and] (c). The employer may not directly or |
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indirectly pass that cost on to the retiree through payroll |
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deduction, by imposition of a fee, or by any other means designed to |
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recover the cost. |
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SECTION 4. Section 825.4092(f), Government Code, as added |
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by Chapter 511 (S.B. 288), Acts of the 87th Legislature, Regular |
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Session, 2021, is redesignated as Section 825.4092(g), Government |
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Code, and amended to read as follows: |
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(g) [(f)] Notwithstanding any other provision of this |
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section, the amounts required to be paid under Subsection |
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[Subsections (b) and] (c) are not required to be paid by a reporting |
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employer for a retiree who retired from the retirement system on or |
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after September 1, 2005, and is employed in a position described by |
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Section 824.6021(a). This subsection expires February 1, 2025. |
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SECTION 5. The following provisions of the Government Code |
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are repealed: |
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(1) Sections 825.408(a-1) and (a-2); and |
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(2) Sections 825.4092(b) and (d). |
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SECTION 6. The changes in law made by this Act apply |
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beginning with the 2023-2024 school year. |
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SECTION 7. To the extent of any conflict, this Act prevails |
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over another Act of the 88th Legislature, Regular Session, 2023, |
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relating to nonsubstantive additions to and corrections in enacted |
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codes. |
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SECTION 8. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2023. |