TX HB4837

Modifies the formula for employer contributions to the Teacher Retirement System (TRS) when retirees return to work at public schools, changing from a sum-based calculation to a difference-based calculation

Requires employers to contribute the difference between: (1) the sum of what the retiree would contribute as an active member plus the state's contribution, and (2) a percentage of the retiree's compensation equal to the retirement system's estimated normal cost

Eliminates the employer contribution requirement entirely if the normal cost percentage exceeds the combined member and state contribution amounts

The TRS actuary determines the normal cost percentage based on aggregate annual compensation of all retirement system members

Changes apply beginning with the 2025-2026 school year, with immediate effect upon two-thirds legislative approval or September 1, 2025