BILL ANALYSIS

H.B. 3161

By: Villalobos

Pensions, Investments & Financial Services

Committee Report (Unamended)

BACKGROUND AND PURPOSE

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.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 3161 amends the Government Code to include a rate of eight percent of an employee's compensation among the contribution rates from which each municipality that has one or more departments participating in the Texas Municipal Retirement System (TMRS) must elect to designate by ordinance for TMRS member contributions.

EFFECTIVE DATE

September 1, 2025.