TX SB3042

Allows Texas Municipal Retirement System retirees who return to work for their former municipality within 120 days of their initial retirement to elect to restore their membership and all prior service credits

Retirees who make this election and later retire again will have their annuity recomputed based on service before and after the initial retirement, with an actuarial reduction reflecting benefits already received

Creates an alternative to the existing resumption process, which resumes the original suspended annuity amount without recalculation when employment ends

Retirees choosing the new restoration option receive credit for all current service with required contributions made during the period of reemployment

Applies to all Texas Municipal Retirement System retirees regardless of when they retired, with an effective date of September 1, 2025