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A BILL TO BE ENTITLED
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AN ACT
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relating to certain employer contributions to the Teacher |
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Retirement System of Texas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 825.4035(c), Government Code, is amended |
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to read as follows: |
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(c) An [If a member is entitled to the minimum salary for |
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certain school personnel under Section 21.402, Education Code, or |
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if a member would have been entitled to the minimum salary for |
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certain school personnel under former Section 16.056, Education |
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Code, as that section existed on January 1, 1995, the] employer |
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shall, in addition to any contributions required under Section |
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825.405, contribute monthly to the retirement system for each |
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[such] member described by Section 825.405(a)(1), (2), or (3): |
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(1) for the period beginning with the report month of |
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September 2014 and ending with the report month of August 2015, an |
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amount equal to 1.5 percent of the statutory minimum salary |
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determined under Section 825.405(b); |
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(2) beginning with the report month for September 2015 |
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and ending with the report month of August 2019, an amount equal to |
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the lesser of: |
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(A) 1.5 percent of the statutory minimum salary |
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determined under Section 825.405(b); or |
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(B) a percentage of the statutory minimum salary |
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determined under Section 825.405(b) equal to 1.5 percent reduced by |
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one-tenth of one percent for each one-tenth of one percent that the |
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state contribution rate for the fiscal year to which the report |
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month relates is less than the state contribution rate established |
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for the 2015 fiscal year; and |
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(3) beginning with the report month of September 2019 |
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and for each subsequent report month, an amount equal to the lesser |
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of: |
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(A) a percentage of the statutory minimum salary |
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determined under Section 825.405(b) equal to the rate of |
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contribution provided for the applicable fiscal year under |
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Subsection (e); or |
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(B) a percentage of the statutory minimum salary |
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determined under Section 825.405(b) equal to the percentage |
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provided by Paragraph (A) reduced by one-tenth of one percent for |
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each one-tenth of one percent that the state contribution rate for |
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the fiscal year to which the report month relates is less than the |
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state contribution rate established for that fiscal year under |
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Section 825.404(a-2). |
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SECTION 2. (a) Subject to Subsection (b), this Act applies |
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beginning with the 2025-2026 school year. |
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(b) The Teacher Retirement System of Texas is required to |
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implement this Act only if the board of trustees of the Teacher |
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Retirement System of Texas finds that the legislature appropriated |
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money to the retirement system in an amount sufficient to cover any |
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increase in the unfunded actuarial liabilities of the retirement |
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system caused by the implementation of this Act. The amount |
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appropriated by the legislature to cover any increase in unfunded |
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actuarial liabilities caused by the implementation of this Act must |
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be in addition to any amounts the state is required to contribute to |
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the retirement system under Subchapter E, Chapter 825, Government |
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Code. If the board of trustees of the Teacher Retirement System of |
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Texas finds that the legislature did not appropriate money in an |
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amount sufficient to cover the cost of implementation without |
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increasing the unfunded actuarial liabilities of the retirement |
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system, the retirement system may not implement this Act. |
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SECTION 3. 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, 2025. |