I just wanted to provide everyone with a TMRS Legislative Update. I’m disappointed to report that the TMRS-sponsored bill (HB 4609) did not materialize. The bill passed in the House but did not get a hearing scheduled in the Senate Finance Committee. As your GFOAT representative for the TMRS Stakeholder Advisory Committee, I can tell you that the Committee spent a lot of time vetting and recommending the components of the proposed legislation. The Committee as a whole supported this proposed legislation and again, very disappointing. It’s a moot point but as a refresher of what all was included in this proposed legislation, this document summarizes the proposed changes. NOTE: As a result of HB 4609 not being passed, the non-retro COLA option will expire December 31, 2025. Starting in 2026, cities can only adopt a retro COLA.
On a related note, HB 3161 was approved by the Legislature and will become effective September 1, 2025, unless vetoed by the Governor. The Governor has until June 22nd to sign or veto the bill. This bill adds an 8% employee contribution rate to TMRS’ current 5%, 6%, and 7% options. Cities who choose to adopt the new 8% employee contribution rate will have immediate and potentially significant costs. This bill was not a TMRS-sponsored bill.
As always, please let me know if you have any questions.
Casey