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TRS-ActiveCare Reconnect: HB3126

Information and FAQs

During the 87th Regular Legislative Session (2021), the Texas Legislature passed Senate Bill 1444 (SB 1444), which was designed to give TRS-ActiveCare employers more flexibility while protecting the stability of the plan. 

Under this law, an employer in TRS-ActiveCare may choose to leave, but if they do so, they must remain outside the plan for at least five years. Prior to SB 1444, state law did not allow employers to opt out of TRS-ActiveCare. 

The 89th Texas Legislature (2025) passed House Bill 3126 to allow employers that left effective Sept. 1, 2022— the first year that SB 1444 took effect— to return one year early. This one-time opportunity provides more flexibility for employers to re-enter, subject to a risk stabilization fee in addition to the plan rates.

Employers that discontinued participation in TRS-ActiveCare on Sept. 1, 2022, are eligible to rejoin under this bill.

Eligible employers must provide written notice to TRS by Dec. 31, 2025, of their intent to rejoin effective Sept. 1, 2026. 

Yes. For the plan year beginning Sept. 1, 2026, TRS will include a risk stabilization fee (RSF) to the premiums of rejoining employers.

The amount will be determined by TRS and the exact amount will be shared with rejoining employers in Apil 2026. This information will not be available at the time that the decision to rejoin needs to be made. The RSF will only apply for one plan year. 

TRS has a responsibility to lessen the financial risk associated with a sizable number of eligible employers with unknown health costs into the health plan in PY 2026-27.

The RSF will be dependent on how many districts rejoin the plan for that plan year. TRS will be unable to calculate the fee until commitments are made (the deadline is Dec. 31, 2025). 

While TRS is unable to provide exact amounts of the RSF until after commitments are made, we plan to provide more information about how the fee will be determined this fall to assist with decision-making. 

Employers that rejoin under this bill must remain in the program until Sept. 1, 2031.

An eligible employer can choose to rejoin TRS-ActiveCare on their fifth anniversary of leaving TRS-ActiveCare or any year thereafter, if they provide a notice of intent by Dec 31 on the year before the new plan year begins.