Tex.
Gov't Code Section 825.4092
Employer Contributions for Employed Retirees
(a)
This section applies to an employer who reports to the retirement system the employment of a retiree.(b)
Except as provided by Subsection (e), during each payroll period for which a retiree is reported, the employer shall contribute to the retirement system for each retiree reported an amount based on the retiree’s salary equal to the sum of:(1)
the current contribution amount that would be contributed by the retiree if the retiree were an active, contributing member; and(2)
the current contribution amount authorized by the General Appropriations Act that the state would contribute for that retiree if the retiree were an active, contributing member.(c)
Except as provided by Subsection (e), each payroll period, for each retiree who is enrolled in the Texas Public School Employees Group Insurance Program under Chapter 1575 (Texas Public School Employees Group Benefits Program), Insurance Code, the employer who reports the employment of a retiree shall contribute to the trust fund established under that chapter an amount established by the retirement system. In determining the amount to be contributed by the employer under this subsection, the retirement system shall consider the amount a retiree is required to pay for the retiree and any enrolled dependents to participate in the group program and the cost of the retiree’s and enrolled dependents’ participation in the group program. If more than one employer reports the retiree to the retirement system during a month, the amount of the required payment shall be prorated among the employers.(d)
Contributions under this section are subject to the requirements of Section 825.408 (Interest on Contributions and Fees; Deposits in Trust).(e)
The amounts required to be paid under Subsections (b) and (c) are not required to be paid by a reporting employer for a retiree who retired from the retirement system before September 1, 2005.(f)
A reporting employer is ultimately responsible for payment of the amounts required to be contributed under Subsections (b) and (c). The employer may not directly or indirectly pass that cost on to the retiree through payroll deduction, by imposition of a fee, or by any other means designed to recover the cost.(g)
Notwithstanding any other provision of this section, the amounts required to be paid under Subsections (b) and (c) are not required to be paid by a reporting employer for a retiree who retired from the retirement system on or after September 1, 2005, and is employed in a position described by Section 824.6021(a). This subsection expires February 1, 2025.
Source:
Section 825.4092 — Employer Contributions for Employed Retirees, https://statutes.capitol.texas.gov/Docs/GV/htm/GV.825.htm#825.4092 (accessed Jun. 5, 2024).
