CHAPTER 811. GENERAL PROVISIONS - Texas Statutes

GOVERNMENT CODE

TITLE 8. PUBLIC RETIREMENT SYSTEMS

SUBTITLE B. EMPLOYEES RETIREMENT SYSTEM OF TEXAS

CHAPTER 811. GENERAL PROVISIONS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 811.001. DEFINITIONS. In this subtitle:

(1) "Accumulated contributions" means the total of amounts in a

member's individual account in the employees saving account,

including:

(A) amounts deducted from the compensation of the member;

(B) other member deposits required to be placed in the member's

individual account; and

(C) interest credited to amounts in the member's individual

account.

(2) "Actuarially reduced annuity" means an annuity payable on

retirement or death occurring before a normal retirement age, the

amount of which is determined by computing, using the amount of

the member's service credit, the standard service retirement

annuity payable at a normal retirement age and reducing it, under

tables adopted by the board, by the factor applicable because of

the attained age of the member.

(3) "Annuity" means an amount of money payable in monthly

installments for a guaranteed period or for life, as determined

by this subtitle.

(4) "Appointed officer or employee" means a person who holds a

position that requires adherence to laws and rules of the state

applicable to its employees, and who is paid a salary from state

funds.

(5) "Board of trustees" means the persons appointed or elected

under Subchapter A of Chapter 815 to administer the retirement

system.

(6) "Combined retirement annuity" means the amount payable on

retirement for service credited as a member of the employee class

of membership plus any supplemental amount payable from the law

enforcement and custodial officer supplemental retirement fund.

(7) "Compensation" means the base salary of a person; amounts

that would otherwise qualify as compensation but are not received

directly by a person pursuant to a good faith, voluntary, written

salary reduction agreement in order to finance payments to a

deferred compensation or tax sheltered annuity program

specifically authorized by state law or to finance benefit

options under a cafeteria plan qualifying under Section 125 of

the Internal Revenue Code of 1986 (26 U.S.C. Section 125);

longevity and hazardous duty pay; nonmonetary compensation, the

value of which is determined by the retirement system; amounts by

which a person's salary is reduced under a salary reduction

agreement authorized by Chapter 610; and the benefit replacement

pay a person earns under Subchapter H, Chapter 659, as added by

Chapter 417, Acts of the 74th Legislature, 1995, except for the

benefit replacement pay a person earns as a result of a payment

made under Subchapter B, C, or D, Chapter 661. The term excludes

overtime pay and a cleaning or clothing allowance.

(8) "Custodial officer" means a member of the retirement system

who is employed by the Board of Pardons and Paroles or the Texas

Department of Criminal Justice as a parole officer or caseworker

or who is employed by the correctional institutions division of

the Texas Department of Criminal Justice and certified by the

department as having a normal job assignment that requires

frequent or infrequent regularly planned contact with, and in

close proximity to, inmates or defendants of the correctional

institutions division without the protection of bars, doors,

security screens, or similar devices and includes assignments

normally involving supervision or the potential for supervision

of inmates in inmate housing areas, educational or recreational

facilities, industrial shops, kitchens, laundries, medical areas,

agricultural shops or fields, or in other areas on or away from

property of the department. The term includes a member who

transfers from the Texas Department of Criminal Justice to the

managed health care unit of The University of Texas Medical

Branch or the Texas Tech University Health Sciences Center

pursuant to Section 9.01, Chapter 238, Acts of the 73rd

Legislature, 1993, elects at the time of transfer to retain

membership in the retirement system, and is certified by the

managed health care unit or the health sciences center as having

a normal job assignment described by this subdivision.

(8-a) "Good cause" means that a person's failure to act was not

because of a lack of due diligence the exercise of which would

have caused a reasonable person to take prompt and timely action.

A failure to act based on ignorance of the law or facts

reasonably discoverable through the exercise of due diligence

does not constitute good cause.

(9) "Law enforcement officer" means a member of the retirement

system who:

(A) has been commissioned as a law enforcement officer by the

Department of Public Safety, the Texas Alcoholic Beverage

Commission, the Parks and Wildlife Department, or the office of

inspector general at the Texas Youth Commission; and

(B) is recognized as a commissioned law enforcement officer by

the Commission on Law Enforcement Officer Standards and

Education.

(10) "Membership service" means service in a position included

in a class of membership, including service performed in the

position before holders of the position were eligible or required

to be members of the retirement system.

(11) "Normal retirement age" means an age at which a member is

entitled to receive a service retirement annuity without

reduction because of age.

(12) "Occupational disability" means disability from a sudden

and unexpected injury or disease that results solely from a

specific act or occurrence determinable by a definite time and

place and solely from an extremely dangerous risk of severe

physical or mental trauma or disease that is not common to the

public at large and that is peculiar to and inherent in a

dangerous duty that arises from the nature and in the course of a

person's state employment.

(12-a) "Occupational death" means death from an injury resulting

from an external force, an activity, or a disease caused by or

resulting from a line-of-duty accident or from an illness caused

by line-of-duty work under hazardous conditions. The term

includes death from accidents or illnesses that directly result

from an action a person is required or authorized by rule,

condition of employment, or law to perform, including an action

performed by the person at a social, ceremonial, athletic, or

other function to which the person is assigned by the person's

employer.

(13) "Position" means an office held by an elected or appointed

officer or a job or other regular employment held by an employee,

which office, job, or employment is included in a class of

membership.

(14) "Retiree" means a person who, except as provided by Section

812.203, receives an annuity based on service that was credited

to the person in a class of membership.

(15) "Retirement system" means the Employees Retirement System

of Texas.

(16) "Service credit" means the amount of membership and

military service ascribed to a person's account in the retirement

system for which all required contributions have been made to,

and are being held by, the retirement system.

(17) "Temporary employee" means a person who has a position only

until another person can be hired, only for the duration of a

project scheduled to end less than six months after the date of

hiring, only until a specific date less than six months after the

date of hiring, or only until a volume of work is completed that

is estimated to be completed in less than six months after the

date of hiring.

(18) "Parole officer" has the meaning assigned by Section

508.001.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Amended by Acts 1985, 69th Leg., ch. 91, Sec. 3, eff. Sept.

1, 1985; Acts 1985, 69th Leg., ch. 828, Sec. 1, eff. Sept. 1,

1985; Acts 1987, 70th Leg., ch. 204, Sec. 8, eff. Aug. 31, 1987;

Acts 1987, 70th Leg., ch. 944, Sec. 2, eff. June 20, 1987.

Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec. 21.001 and

amended by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept. 1,

1989. Amended by Acts 1993, 73rd Leg., ch. 988, Sec. 1.11, eff.

Sept. 1, 1993; Acts 1995, 74th Leg., ch. 76, Sec. 5.95(34), eff.

Sept. 1, 1995; Acts 1995, 74th Leg., ch. 688, Sec. 1, eff. Sept.

1, 1995; Acts 1997, 75th Leg., ch. 1035, Sec. 53, eff. Sept. 1,

1997; Acts 1997, 75th Leg., ch. 1048, Sec. 2, eff. Sept. 1, 1997;

Acts 1999, 76th Leg., ch. 1499, Sec. 1.10, eff. Sept. 1, 1999;

Acts 1999, 76th Leg., ch. 1541, Sec. 3, eff. Sept. 1, 1999; Acts

2001, 77th Leg., ch. 1231, Sec. 1, eff. Sept. 1, 2001; Acts 2003,

78th Leg., ch. 842, Sec. 6, eff. Sept. 1, 2003; Acts 2003, 78th

Leg., ch. 1111, Sec. 10, eff. Sept. 1, 2003.

Amended by:

Acts 2005, 79th Leg., Ch.

74, Sec. 1, eff. September 1, 2005.

Acts 2005, 79th Leg., Ch.

347, Sec. 3, eff. September 1, 2005.

Acts 2007, 80th Leg., R.S., Ch.

263, Sec. 21, eff. June 8, 2007.

Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 25.081, eff. September 1, 2009.

Sec. 811.002. PURPOSE OF SUBTITLE. The purpose of this subtitle

is to establish a program of benefits for members, retirees, and

other beneficiaries of the retirement system and to establish

rules for the management and operation of the retirement system.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.

21.002 by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept. 1,

1989.

Sec. 811.003. RETIREMENT SYSTEM. The retirement system is a

public entity. Except as provided by Section 815.304, the

Employees Retirement System of Texas is the name by which all its

business shall be transacted, all its funds invested, and all its

cash, securities, and other property held.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Amended by Acts 1987, 70th Leg., 2nd C.S., ch. 77, Sec. 1,

eff. Oct. 20, 1987. Renumbered from Vernon's Ann.Civ.St. Title

110B, Sec. 21.003 and amended by Acts 1989, 71st Leg., ch. 179,

Sec. 1, eff. Sept. 1, 1989.

Sec. 811.004. POWERS AND PRIVILEGES. The retirement system has

the powers, privileges, and immunities of a corporation, as well

as the powers, privileges, and immunities conferred by this

subtitle.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.

21.004 by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept. 1,

1989.

Sec. 811.005. EXEMPTION FROM EXECUTION. All retirement annuity

payments, optional benefit payments, member contributions, money

in the various retirement system funds, and rights accrued or

accruing under this subtitle to any person are exempt from

garnishment, attachment, state and local taxation, levies, sales,

and any other process, and are unassignable except as provided by

Section 813.103.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.

21.005 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff.

Sept. 1, 1989.

Sec. 811.006. ACTION INCREASING AMORTIZATION PERIOD. (a) A

rate of member or state contributions to or a rate of interest

required for the establishment of credit in the retirement system

may not be reduced or eliminated, a type of service may not be

made creditable in the retirement system, a limit on the maximum

permissible amount of a type of creditable service may not be

removed or raised, a new monetary benefit payable by the

retirement system may not be established, and the determination

of the amount of a monetary benefit from the system may not be

increased, if, as a result of the particular action, the time, as

determined by an actuarial valuation, required to amortize the

unfunded actuarial liabilities of the retirement system would be

increased to a period that exceeds 30 years by one or more years.

(b) If the amortization period for the unfunded actuarial

liabilities of the retirement system exceeds 30 years by one or

more years at the time an action described by Subsection (a) is

proposed, the proposal may not be adopted if, as a result of the

adoption, the amortization period would be increased, as

determined by an actuarial valuation.

Added by Acts 1985, 69th Leg., ch. 228, Sec. 6, eff. Sept. 1,

1985. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.

21.006 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff.

Sept. 1, 1989.

Sec. 811.007. IMMUNITY FROM LIABILITY. The board of trustees,

executive director, and employees of the retirement system are

not liable for any action taken or omission made or suffered by

them in good faith in the performance of any duty in connection

with any program or system administered by the retirement system.

Added by Acts 2003, 78th Leg., ch. 1111, Sec. 11, eff. Sept. 1,

2003; Acts 2003, 78th Leg., ch. 1310, Sec. 48, eff. June 20,

2003.

Sec. 811.008. INSURANCE. Notwithstanding any other law, the

board of trustees may self-insure or purchase any insurance in

amounts the board considers reasonable and prudent.

Added by Acts 2003, 78th Leg., ch. 1111, Sec. 11, eff. Sept. 1,

2003; Acts 2003, 78th Leg., ch. 1310, Sec. 48, eff. June 20,

2003.

Sec. 811.009. CERTAIN CONTRACTS FOR HEALTH CARE PURPOSES; REVIEW

BY ATTORNEY GENERAL. (a) This section applies to any contract

with a contract amount of $250 million or more:

(1) under which a person provides goods or services in

connection with the provision of medical or health care services,

coverage, or benefits; and

(2) entered into by the person and the retirement system.

(b) Notwithstanding any other law, before a contract described

by Subsection (a) may be entered into by the retirement system, a

representative of the office of the attorney general shall review

the form and terms of the contract and may make recommendations

to the retirement system for changes to the contract if the

attorney general determines that the office of the attorney

general has sufficient subject matter expertise and resources

available to provide this service.

(c) The retirement system must notify the office of the attorney

general at the time the system initiates the planning phase of

the contracting process. A representative of the office of the

attorney general or another attorney advising the agency under

Subsection (d) may participate in negotiations or discussions

with proposed contractors and may be physically present during

those negotiations or discussions.

(d) If the attorney general determines that the office of the

attorney general does not have sufficient subject matter

expertise or resources available to provide the services

described by this section, the office of the attorney general may

require the retirement system to enter into an interagency

agreement or to obtain outside legal services under Section

402.0212 for the provision of services described by this section.

(e) The retirement system shall provide to the office of the

attorney general any information the office of the attorney

general determines is necessary to administer this section.

Added by Acts 2005, 79th Leg., Ch.

1011, Sec. 2, eff. September 1, 2005.

Text of section as added by Acts 2009, 81st Leg., R.S., Ch.

232, Sec. 6

For text of section as added by Acts 2009, 81st Leg., R.S., Ch.

1308, Sec. 2, see other Sec. 811.010.

Sec. 811.010. PROVISION OF CERTAIN INFORMATION TO COMPTROLLER.

(a) Not later than June 1 of each year, the retirement system

shall provide to the comptroller, for the purpose of assisting

the comptroller in the identification of persons entitled to

unclaimed property reported to the comptroller, the name,

address, social security number, and date of birth of each

member, retiree, and beneficiary from the retirement system's

records.

(b) Information provided to the comptroller under this section

is confidential and may not be disclosed to the public.

(c) The retirement system shall provide the information in the

format prescribed by rule of the comptroller.

Added by Acts 2009, 81st Leg., R.S., Ch.

232, Sec. 6, eff. September 1, 2009.

Text of section as added by Acts 2009, 81st Leg., R.S., Ch.

1308, Sec. 2

For text of section as added by Acts 2009, 81st Leg., R.S., Ch.

232, Sec. 6, see other Sec. 811.010.

Sec. 811.010. VENUE. Subject to and without waiving the

retirement system's sovereign immunity or the official immunity

of the trustees, officers, and employees of the retirement

system, the venue for any action by or against the retirement

system, the trustees, officers, or employees of the retirement

system, or an administering firm, carrier, or other governmental

agency acting in cooperation with or on behalf of the retirement

system is in Travis County.

Added by Acts 2009, 81st Leg., R.S., Ch.

1308, Sec. 2, eff. September 1, 2009.

Sec. 811.011. STATUTE OF LIMITATIONS. Subject to and without

waiving the retirement system's sovereign immunity or the

official immunity of the trustees, officers, and employees of the

retirement system, unless specifically provided otherwise by

another statute, the statute of limitations for a claim against

the retirement system or a trustee, officer, or employee of the

retirement system is two years.

Added by Acts 2009, 81st Leg., R.S., Ch.

1308, Sec. 2, eff. September 1, 2009.

SUBCHAPTER B. PENAL PROVISIONS

Sec. 811.101. CONVERSION OF FUNDS; FRAUD. (a) A person commits

an offense if the person knowingly or intentionally confiscates,

misappropriates, or converts funds representing deductions from a

member's salary either before or after the funds are received by

the retirement system.

(b) A person commits an offense if the person knowingly or

intentionally makes a false statement or falsifies or permits to

be falsified any record of the retirement system in an attempt to

defraud the retirement system.

(c) A member commits an offense if the member knowingly receives

as a salary money that should have been deducted as provided by

this subtitle from the member's salary.

(d) A person commits an offense if the person knowingly or

intentionally violates an applicable requirement of this subtitle

other than one described by Subsection (a), (b), or (c).

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.

21.101 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff.

Sept. 1, 1989.

Sec. 811.102. PENALTIES. (a) An offense under Section

811.101(a) or 811.101(b) is a felony punishable by imprisonment

in the Texas Department of Criminal Justice for not less than one

nor more than five years.

(b) An offense under Section 811.101(c) is a misdemeanor

punishable by a fine of not less than $100 nor more than $5,000.

(c) An offense under Section 811.101(d) is a misdemeanor

punishable by a fine of not less than $100 nor more than $1,000.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.

21.102 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff.

Sept. 1, 1989.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 25.082, eff. September 1, 2009.