BILL ANALYSIS

Senate Research Center	H.B. 3161
89R9327 RDR-F	By: Villalobos; Simmons (Hinojosa, Adam)
	Finance
	5/15/2025
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Under current law, municipalities participating in the Texas Municipal Retirement System (TMRS) may elect a member contribution rate that ranges from five to seven percent of employees' compensation to fund retirement benefits. The bill author has informed the committee that municipalities should have greater flexibility to set contribution rates to better align contributions with the municipality's financial needs and workforce goals, especially in a competitive job market. H.B. 3161 seeks to provide this flexibility by allowing municipalities participating in TMRS to elect a contribution rate of eight percent.

H.B. 3161 amends current law relating to member contributions to the Texas Municipal Retirement System.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 855.401(a), Government Code, to require a municipality to elect a rate of member contributions into the Texas Municipal Retirement System of five, six, seven or eight percent of the employees' compensation and to make nonsubstantive changes.

SECTION 2. Effective date: September 1, 2025.