Sec. 825.4035. EMPLOYER CONTRIBUTIONS FOR CERTAIN EMPLOYED MEMBERS FOR WHOM THE EMPLOYER IS NOT MAKING CONTRIBUTIONS TO THE FEDERAL OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE PROGRAM. (a) This section:
(1) applies to an employer who reports to the retirement system under Section 825.403 the employment of a member for whom the employer is not making contributions to the federal Old-Age, Survivors, and Disability Insurance program; and
(2) does not apply to an employer that is an institution of higher education.
(b) Except as provided in Subsection (c), for each member the employer reports to the retirement system and for whom the employer is not making contributions to the federal Old-Age, Survivors, and Disability Insurance program, the employer shall contribute monthly to the retirement system for each such member:
(1) for the period beginning with the report month of September 2014 and ending with the report month of August 2015, an amount equal to 1.5 percent of the member's compensation; and
(2) beginning with the report month for September 2015, an amount equal to the lesser of:
(A) 1.5 percent of the member's compensation; or
(B) a percentage of the member's compensation equal to 1.5 percent reduced by one-tenth of one percent for each one-tenth of one percent that the state contribution rate for the fiscal year to which the report month relates is less than the state contribution rate established for the 2015 fiscal year.
(c) If a member is entitled to the minimum salary for certain school personnel under Section 21.402, Education Code, or if a member would have been entitled to the minimum salary for certain school personnel under former Section 16.056, Education Code, as that section existed on January 1, 1995, the employer shall, in addition to any contributions required under Section 825.405, contribute monthly to the retirement system for each such member:
(1) for the period beginning with the report month of September 2014 and ending with the report month of August 2015, an amount equal to 1.5 percent of the statutory minimum salary determined under Section 825.405(b); and
(2) beginning with the report month for September 2015, an amount equal to the lesser of:
(A) 1.5 percent of the statutory minimum salary determined under Section 825.405(b); or
(B) a percentage of the statutory minimum salary determined under Section 825.405(b) equal to 1.5 percent reduced by one-tenth of one percent for each one-tenth of one percent that the state contribution rate for the fiscal year to which the report month relates is less than the state contribution rate established for the 2015 fiscal year.
(d) Contributions under this section:
(1) are subject to the requirements of Section 825.408; and
(2) must be used to fund the normal cost of the retirement system.
Added by Acts 2013, 83rd Leg., R.S., Ch. 1214 (S.B. 1458), Sec. 7, eff. September 1, 2014.
Section: Previous 825.312 825.3121 825.313 825.314 825.315 825.402 825.403 825.4035 825.404 825.4041 825.405 825.406 825.407 825.4071 825.408 NextLast modified: September 28, 2016