The bill would amend the Government Code as it relates to member contributions to the Texas Municipal Retirement System. No significant impact to the state is anticipated from implementing the provisions of the bill.
According to the Texas Municipal Retirement System (TMRS), the bill would provide cities participating in TMRS with an 8 percent employee contribution rate option in addition to the current options of 5 percent, 6 percent, and 7 percent. The impact on TMRS as a system to implement the provisions of the bill would not be significant.
According to TMRS, there would be a significant cost and negative actuarial impact to a participating city that chose to adopt the new 8 percent rate.