Relating to the resumption of employment by certain retirees under the Texas Municipal Retirement System.

SB 3042 allows certain retirees from Texas municipal jobs to return to work for their former employer and have their retirement benefits adjusted if they resume employment within 120 days of retirement. If they return within that window, they can restore their full membership and service credit, and upon final retirement, their annuity will be recomputed to include both service periods (with an adjustment for benefits already received). Retirees returning after 120 days will simply resume their original annuity amount without recomputation. The bill applies to all Texas Municipal Retirement System retirees regardless of when they retired and takes effect September 1, 2025.