Mandatory Retirement Plan Contributions
Other Considerations
Firefighters
Firefighters save for retirement under the Texas Emergency Services Retirement System.
Return-to-Work Retirees
Agencies that hire a person who retires under ERS rules on or after Sept. 1, 2009, will pay a surcharge of 9.50 percent of what would be retirement-eligible wages to ERS for each month the return-to-work retiree is employed by their agency. There are no appropriations for this surcharge. A state agency cannot hire a person who retired under ERS rules until at least 90 days after the retirement date.
It is our understanding that the ERS retirement annuity will not be affected for employees returning to state employment after they retire.
ERS retirees who return to work at an agency subject to ERS will no longer contribute a portion of their monthly pay to an ERS retirement account. Therefore, they are not eligible to receive a second retirement from the ERS.
LECOS Deduction
Effective Sept. 1, 2009, employees covered under ERS whose positions are included in the Law Enforcement and Custodial Officers Supplemental (LECOS) retirement fund are required to make additional contributions as outlined below:
| Retirement System | Eligible Participants | Percent of Monthly Compensation |
|---|---|---|
| Employees Retirement System (ERS) groups 1, 2 and 3 | State employees whose positions are included in LECOS, who were active or former members of ERS, and who did not withdraw their account before Sept. 1, 2022 | 0.5 |
| Employees Retirement System (ERS) group 4 | State employees whose positions are included in LECOS and who became members after Aug. 31, 2022 | 2.0 |
Sources
Texas Government Code, Sections 812.003(a)–(b), 815.402(a)(1), 820.002, 820.101, 821.001(8), 821.001(12), 822.001, 822.002(a), 825.402(5), 825.403(a), 830.002(b), 830.003, 830.101(a), 830.102(a), 830.201(a), 830.202, 830.202(a), 832.001(a–c), 835.101(a), 835.103, 837.001(a–c), 840.102(a), (b)(1), (g), 840.105(a–b); 34 Texas Administrative Code Sections 25.25(a), 25.171, 25.172(e), 69.1(2).