TX HB2554

Authorizes the Teacher Retirement System of Texas (TRS) to waive all or part of the employer contributions required for employed retirees, including both retirement system contributions and group insurance program contributions

Currently, employers must contribute to TRS for each employed retiree an amount equal to what the retiree would contribute as an active member plus the state's contribution rate

Employers of retirees enrolled in the Texas Public School Employees Group Insurance Program must also contribute to that program's trust fund based on costs established by TRS

The waiver authority applies for one or more fiscal years at the retirement system's discretion, and employers are not required to pay any amounts waived by TRS

Takes effect beginning with the 2025-2026 school year, with immediate effect upon two-thirds legislative vote or September 1, 2025