TX SB2491

Modifies the formula for calculating employer contributions to the Teacher Retirement System (TRS) when retired teachers 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 and state would contribute if the retiree were an active member, and (2) a percentage of the retiree's compensation equal to the retirement system's estimated normal cost

Eliminates the employer contribution requirement entirely for payroll periods when the normal cost percentage exceeds the combined retiree/state contribution amounts

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

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