CHAPTER 606. SOCIAL SECURITY - Texas Statutes

GOVERNMENT CODE

TITLE 6. PUBLIC OFFICERS AND EMPLOYEES

SUBTITLE A. PROVISIONS GENERALLY APPLICABLE TO PUBLIC OFFICERS

AND EMPLOYEES

CHAPTER 606. SOCIAL SECURITY

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 606.001. DEFINITIONS. In this chapter:

(1) "Social security coverage" means federal old-age, survivors,

and disability insurance benefits under 42 U.S.C. Chapter 7,

Subchapter II.

(2) "Federal Insurance Contributions Act" means 26 U.S.C.

Chapter 21.

(3) "Political subdivision" includes:

(A) a county;

(B) a municipality; or

(C) an instrumentality of the state, of another political

subdivision, or of the state and another political subdivision:

(i) that is a juristic entity that is legally separate and

distinct from the state or political subdivision; and

(ii) whose employees are not employees of the state or political

subdivision.

(4) "Retirement system" means the Employees Retirement System of

Texas.

(5) "Secretary" means the United States Secretary of Health and

Human Services or an individual designated by the secretary to

administer coverage of the Social Security Act to employees of a

state and its political subdivisions.

(6) "Social Security Act" means Chapter 7, Title 42, United

States Code (42 U.S.C. Section 301 et seq.), including

regulations and requirements adopted under that chapter.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 606.002. ADMINISTRATION OF CHAPTER. The executive director

of the retirement system shall direct and administer the

functions of the retirement system under this chapter.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 606.003. AGREEMENTS WITH SECRETARY. (a) The retirement

system may enter into agreements with the secretary to obtain

social security coverage for employees of the state or a

political subdivision.

(b) An agreement between the retirement system and the secretary

may contain any appropriate provision, including a provision

relating to coverage, benefits, contributions, effective date,

modification, and administration.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

SUBCHAPTER B. COVERAGE FOR EMPLOYEES OF POLITICAL SUBDIVISIONS

Sec. 606.021. DEFINITIONS. In this subchapter:

(1) "Employee" includes an officer of a political subdivision.

(2) "Employment" means service performed by an employee of a

political subdivision except service:

(A) that in the absence of an agreement under this subchapter

would constitute employment under the Social Security Act;

(B) that under the Social Security Act may not be included in an

agreement between the retirement system and the secretary; or

(C) as a police officer in a position that, at the time the

agreement is made, is subject to another retirement system of a

municipality with a population of 250,000 or more, according to

the most recent federal census before the date of the agreement.

(3) "Wages" means all remuneration for employment, including the

cash value of all remuneration paid other than by cash. The term

does not include remuneration that does not constitute "wages"

under the Federal Insurance Contributions Act.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 606.022. AGREEMENTS WITH POLITICAL SUBDIVISIONS. (a) The

retirement system and the governing body of a political

subdivision that is eligible under the Social Security Act may

enter into an agreement to obtain social security coverage for

the employees of the political subdivision.

(b) An agreement between the retirement system and the governing

body:

(1) must include a provision that an action of the federal

government may not impair or impede a retirement program of this

state or a political subdivision; and

(2) may include any other appropriate provision, including a

provision relating to coverage benefits, contributions, effective

date, modification of the agreement, and administration.

(c) The retirement system shall prescribe the terms of

agreements necessary to:

(1) carry out this subchapter; and

(2) insure the financial responsibility of the participating

political subdivisions.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 606.023. RULES. The retirement system shall adopt rules

that it finds necessary to govern the application for and the

eligibility of employees of a political subdivision to obtain

social security coverage.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 606.024. PLAN FOR COVERAGE. (a) To obtain social security

coverage for its employees, a political subdivision must submit a

plan for approval by the retirement system.

(b) The retirement system shall approve a plan if the retirement

system finds that the plan:

(1) conforms to the retirement system's rules;

(2) conforms to federal law and agreements made between the

federal government and the states;

(3) specifies the source of funds from which payments will be

made and guarantees that this source will be adequate;

(4) provides methods for proper and efficient administration by

the political subdivision that are found by the retirement system

to be necessary;

(5) provides that the political subdivision will:

(A) report information at a time and in a form required by the

retirement system; and

(B) comply with requirements of the retirement system or federal

authorities for the receipt, correctness, and verification of

reports; and

(6) specifies the personnel of the political subdivision who are

responsible for making assessments, collections, and reports.

(c) The retirement system may not refuse to approve a submitted

plan unless the retirement system gives the submitting political

subdivision reasonable notice and an opportunity for a hearing.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 606.025. GUARANTEES FOR PAYMENT. The retirement system by

rule may require guarantees to create adequate security that a

political subdivision will be financially responsible for its

payments for at least the minimum period required by federal

requirements to precede social security coverage cancellation.

The guarantees may be in the form of:

(1) surety bonds;

(2) advance payments into an escrow account;

(3) detailed representations and assurances of priority

dedication; or

(4) another legal undertaking.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 606.026. CONTRIBUTIONS BY POLITICAL SUBDIVISION. (a) The

governing body of a political subdivision may make contributions

under an agreement to obtain social security coverage.

(b) The maximum compensation provided by statute for a county

employee is not exceeded by the payment of a matching

contribution by a political subdivision to obtain social security

coverage for the employee.

(c) An instrumentality of the state that receives a direct

legislative appropriation may contribute, for employees covered

under Subtitle C, Title 8, only funds specifically appropriated

for social security coverage.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 606.027. PROCEDURE FOR MAKING CONTRIBUTIONS. (a) In

accordance with state and federal requirements, a political

subdivision that has an approved plan for social security

coverage shall:

(1) make deductions from wages of employees whose services are

covered by the plan; and

(2) pay matching contributions from the funds from which covered

employees receive their compensation.

(b) The employment or continued employment of an employee

covered by an approved plan of a political subdivision is

consideration for the deductions.

(c) An employee or a political subdivision is not relieved from

liability for a contribution if the political subdivision fails

to deduct the contribution from the employee's wages.

(d) The county treasurer, or the person who acts as treasurer in

a political subdivision other than a county, shall assess and

collect the required contributions and transmit the contributions

in accordance with federal requirements for the filing of reports

and the payment of contributions.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 606.028. ADMINISTRATIVE EXPENSES. (a) As agreed by the

retirement system and the governing body of a political

subdivision that has an approved plan, the retirement system

shall require the political subdivision to pay the subdivision's

proportionate share of the state administrative expenses for this

subchapter by:

(1) an annual fee for the political subdivision;

(2) an annual fee for each employee covered;

(3) an amount equal to a percentage of the contributions made to

federal authorities; or

(4) any other equitable measure.

(b) A political subdivision may make payment for administrative

expenses under this section from any available fund not otherwise

dedicated.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 606.029. DELINQUENT PAYMENTS. (a) The retirement system

may require in an agreement with a political subdivision that

interest be paid on delinquent payments.

(b) The retirement system may bring suit to collect a delinquent

payment and interest on the payment.

(c) The retirement system may direct the comptroller to deduct a

delinquent payment and interest from funds payable by the state

to the delinquent political subdivision that are expressly

subject to deduction. The comptroller shall send to the

retirement system in trust the amount deducted for the

contribution of the delinquent political subdivision.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 8.39, eff.

Sept. 1, 1997.

Sec. 606.030. SOCIAL SECURITY ADMINISTRATION FUND. (a) The

social security administration fund is outside the treasury. The

comptroller is the custodian of the fund and shall administer the

fund separately from other funds as directed by the retirement

system. Credits of money in the fund are not state funds or

subject to legislative appropriation.

(b) The retirement system shall deposit in the fund all money

collected for administrative expenses under Section 606.028.

(c) The comptroller shall issue warrants for disbursements from

the fund under sworn vouchers executed by the executive director

of the retirement system or a person designated by the director.

(d) The fund may be used to pay:

(1) interest assessed as a penalty by the United States

secretary of the treasury because of delinquent payment of

contributions under this subchapter; or

(2) any expense necessary for the retirement system to

administer this subchapter.

(e) A salary or expenditure paid from the fund shall be

consistent with a comparable item in and the general provisions

of the General Appropriations Act.

(f) The retirement system, at the end of each fiscal year, shall

pay from the social security administration fund to the

comptroller for deposit in the general revenue fund at least 10

percent of the contributions collected for administrative

expenses in the preceding year. Payment under this subsection may

continue only until the amount appropriated to the retirement

system from the state for administering this subchapter has been

reimbursed in full.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 8.40, eff.

Sept. 1, 1997.

Sec. 606.031. EXPENDITURES. The retirement system may employ

personnel, purchase equipment, and make other expenditures as

necessary to administer this subchapter.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

SUBCHAPTER C. COVERAGE FOR STATE EMPLOYEES

Sec. 606.061. DEFINITIONS. In this subchapter:

(1) "Employee tax" means the tax imposed by Section 3101 of the

Internal Revenue Code of 1986 (26 U.S.C. Section 3101).

(2) "Employment" means service performed by a state employee

except service:

(A) that in the absence of an agreement under this subchapter

would constitute employment under the Social Security Act; or

(B) that under the Social Security Act may not be included in an

agreement between the retirement system and the secretary.

(3) "State agency" means:

(A) a department, commission, board, office, or other agency in

the executive or legislative branch created by the constitution

or a statute of this state;

(B) the supreme court, the court of criminal appeals, a court of

appeals, or the Texas Judicial Council; or

(C) a university system or an institution of higher education as

defined by Section 61.003, Education Code.

(4) "State employee" includes an elected or appointed state

officer but does not include an individual who:

(A) is compensated by fees; or

(B) is in a position eligible for membership in the Teacher

Retirement System of Texas unless the person is employed by a

state department, agency, or institution.

(5) "Wages" means all remuneration for employment, including the

cash value of all remuneration paid other than by cash, except

for remuneration that does not constitute "wages" under the

Federal Insurance Contributions Act.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 606.062. DUTY OF EXECUTIVE DIRECTOR. The executive

director of the retirement system shall negotiate the best

possible contract for social security coverage for state

employees.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 606.063. CONTRIBUTIONS BY STATE AGENCY. A state agency may

pay contributions on social security coverage of the agency's

state employees who are paid from the state treasury as required

by an agreement with the secretary from funds appropriated to the

comptroller for that purpose. A contribution made under this

section is not considered compensation to the employee under any

state law.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 606.064. EMPLOYEE CONTRIBUTIONS. (a) Each state employee,

including a judge paid by the state, for whom an agreement for

social security coverage is in effect under this subchapter shall

pay contributions on wages in the amount of the employee tax.

(b) The obligation provided by this section is a condition of

employment or of holding office.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1995, 74th Leg., ch. 417, Sec. 1, eff. Dec.

1, 1995.

Sec. 606.066. COLLECTION OF EMPLOYEE'S CONTRIBUTION. (a) On

the authorization of the head of a state agency, the disbursing

officer of the department shall deduct from each payroll of a

state employee with social security coverage the amount of the

employee's contribution paid by the employee under this

subchapter. The total amount deducted shall be paid in accordance

with federal requirements.

(b) The head of a state agency shall, for each payroll:

(1) certify to the comptroller in the manner prescribed by the

comptroller:

(A) the amount of a state employee's contribution to be deducted

from the employee's salary; and

(B) the total amount to be deducted from all salaries; and

(2) include the total amount in the payroll voucher.

(c) If an amount less than the amount of the employee's

contribution under this subchapter is deducted from a state

employee's salary for the employee's contribution, the employee

is liable for the difference between the amount deducted and the

correct amount of the contribution.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 606.067. COLLECTION OF STATE CONTRIBUTION FOR EMPLOYEES

PAID FROM TREASURY. (a) For a state employee who is paid from

the state treasury, the legislature shall appropriate, from the

same fund from which the employee is paid, an amount equal to the

state's contributions under Section 606.063.

(b) The state agency shall certify at the end of each payroll

period to the comptroller in a manner prescribed by the

comptroller the total amount of the department's state

contributions for that period for employees paid from the state

treasury.

(c) A state agency having employees paid from the state treasury

shall include in the budget information the department submits to

the Legislative Budget Board and the budget division of the

governor's office a certification of the amount necessary to pay

contributions of the state for the following biennium. The

governor shall include this amount in the budget that the

governor submits to the legislature.

(d) All money appropriated to the comptroller for the

contributions of the state shall be allocated to the state agency

according to rules adopted by the comptroller.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1995, 74th Leg., ch. 417, Sec. 2, eff. Dec.

1, 1995.

Sec. 606.068. COLLECTION OF STATE CONTRIBUTION FOR EMPLOYEES NOT

PAID FROM TREASURY. (a) For state employees who are paid from

funds not in the state treasury, the head of a state agency shall

certify to the department's disbursing officer the total amount

of the state's contributions based on compensation paid the

employees.

(b) The disbursing officer of a state agency that has state

employees who are paid from funds not in the state treasury shall

pay the total amount of contributions of the state for employees

in accordance with federal requirements.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 606.069. METHOD OF MAKING CONTRIBUTIONS TO FEDERAL

GOVERNMENT. A state agency shall comply with federal

requirements for filing reports and paying contributions.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 606.070. RULES AND REPORTS. (a) The retirement system

may, as it finds necessary to the efficient administration of

this subchapter, adopt rules and require state agencies to file

reports.

(b) The retirement system shall certify to the comptroller any

state agency that has not filed a required report within the

specified time.

(c) The comptroller shall withhold salary or expense

reimbursement warrants to the head or an employee of a state

agency that the retirement system certifies under Subsection (b).

On notification from the retirement system that the report has

been filed, the comptroller shall release the warrants.

(d) If a state agency whose employees are not paid from funds in

the state treasury is notified that a required report is

delinquent, the disbursing officer may not pay a salary or an

expense reimbursement. A disbursing officer is liable both

personally and on the officer's official bond if the officer pays

a salary or an expense reimbursement after notification of a

delinquent report by the retirement system.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 606.071. EXPENDITURES. The retirement system may employ

personnel, including accountants and attorneys, purchase

equipment, and make other expenditures as necessary to administer

this subchapter.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 606.072. BENEFITS FOR STATE EMPLOYEES UNDER BOTH STATE AND

FEDERAL LAW. A state employee may receive benefits under both

Chapters 811 through 815 and the Social Security Act.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

SUBCHAPTER D. COVERAGE FOR STATE EMPLOYEES PAID FROM FEDERAL

FUNDS

Sec. 606.101. COVERAGE. Subchapter B applies to a state

employee or officer who is paid entirely from federal funds but

is classified as a state employee by the federal government.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.