CHAPTER 821. GENERAL PROVISIONS - Texas Statutes

GOVERNMENT CODE

TITLE 8. PUBLIC RETIREMENT SYSTEMS

SUBTITLE C. TEACHER RETIREMENT SYSTEM OF TEXAS

CHAPTER 821. GENERAL PROVISIONS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 821.001. DEFINITIONS. In this subtitle:

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

member's individual account in the member savings 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) "Actuarial equivalent" of a benefit means a benefit of equal

monetary value computed on the basis of annuity or mortality

tables and on an interest or discount rate that is adopted by the

board of trustees for the purpose from time to time and that is

in force on the effective date of the benefit.

(3) "Actuarially reduced" means reduced to the actuarial

equivalent.

(4) "Annual compensation" means the compensation to a member of

the retirement system for service during a school year that is

reportable and subject to contributions as provided by Section

822.201.

(5) "Board of trustees" means the board appointed under this

subtitle to administer the retirement system.

(6) "Employee" means a person who is employed, as determined by

the retirement system, on other than a temporary basis by an

employer for at least one-half time at a regular rate of pay

comparable to that of other persons employed in similar

positions.

(7) "Employer" means any agents or agencies in the state

responsible for public education, including the governing board

of any school district created under the laws of this state, any

county school board, the board of trustees, the board of regents

of any college or university, or any other legally constituted

board or agency of any public school, but excluding the State

Board of Education, the Texas Education Agency, and the State

Board for Educator Certification.

(8) "Faculty member" means a person who is employed by an

institution of higher education on a full-time basis as:

(A) a member of the faculty whose duties include teaching or

research;

(B) an administrator responsible for teaching and research

faculty;

(C) a member of the administrative staff of the Texas Higher

Education Coordinating Board; or

(D) a professional librarian, a president, a chancellor, a

vice-president, a vice-chancellor, or other professional staff

person whose national mobility requirements are similar to those

of faculty members and who fills a position that is the subject

of nationwide searches in the academic community.

(9) "Governing board" means the body responsible for policy

direction of an institution of higher education.

(10) "Institution of higher education" has the meaning provided

for that term in Section 61.003, Education Code.

(11) "Membership service" means service during a time that a

person is both an employee and a member of the retirement system.

(12) "Public school" means an educational institution or

organization in this state that is entitled by law to be

supported in whole or in part by state, county, school district,

or other municipal corporation funds.

(13) "Retirement" means the withdrawal from service with a

retirement benefit granted under this subtitle.

(14) "Retirement system" means the Teacher Retirement System of

Texas.

(15) "School year" means:

(A) a 12-month period beginning approximately September 1 and

ending approximately August 31 of the next calendar year; or

(B) for a member whose contract or oral or written work

agreement begins after June 30 and continues after August 31 of

the same calendar year, a period not to include more than 12

months beginning on the date the contract or agreement begins.

(16) "Service" means the time a person is an employee.

(17) "Service credit" means the amount of prior, membership,

military, or equivalent membership service credited to a person's

account in the retirement system.

(18) "Alternate payee" has the meaning assigned that term by

Section 804.001.

(19) "Beneficiary" means the person or entity who, under a valid

written designation or by law, is entitled to receive benefits

payable by the retirement system on the death of a member or

annuitant.

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

1981. Amended by Acts 1981, 67th Leg., 1st C.S., p. 202, ch. 18,

Sec. 18, eff. Nov. 10, 1981; Acts 1985, 69th Leg., ch. 556, Sec.

1, eff. Aug. 26, 1985; Acts 1985, 69th Leg., ch. 832, Sec. 1,

eff. June 15, 1985; Acts 1987, 70th Leg., 2nd C.S., ch. 58, Sec.

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

110B, Sec. 31.001 and amended by Acts 1989, 71st Leg., ch. 179,

Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1993, 73rd Leg., ch.

812, Sec. 1, eff. Sept. 1, 1993; Acts 1995, 74th Leg., ch. 260,

Sec. 34, eff. May 30, 1995; Acts 1995, 74th Leg., ch. 555, Sec.

1, eff. Sept. 1, 1995; Acts 1999, 76th Leg., ch. 62, Sec. 8.15,

eff. Sept. 1, 1999.

Sec. 821.002. 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 membership in and 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.

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

1989.

Sec. 821.003. RETIREMENT SYSTEM. The retirement system is a

public entity. Except as provided by Section 825.304, the

Teacher Retirement System of Texas is the name by which all

business of the retirement system 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 1981, 67th Leg., 1st C.S., p. 202, ch. 18,

Sec. 19, eff. Nov. 10, 1981. Renumbered from Vernon's Ann.Civ.St.

Title 110B, Sec. 31.003 and amended by Acts 1989, 71st Leg., ch.

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

Amended by:

Acts 2005, 79th Leg., Ch.

1359, Sec. 7, eff. September 1, 2005.

Sec. 821.004. 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.

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

1989.

Sec. 821.005. EXEMPTION FROM EXECUTION. All retirement

allowances, annuities, refunded contributions, optional benefits,

money in the various retirement system accounts, and rights

accrued or accruing under this subtitle to any person are exempt

from garnishment, attachment, state and municipal taxation, sale,

levy, and any other process, and are unassignable.

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

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

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

1989.

Sec. 821.006. ACTION INCREASING AMORTIZATION PERIOD. (a) A

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

the rate of a fee 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. 7, eff. Sept. 1,

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

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

Sept. 1, 1989.

Sec. 821.007. CONTROL OF HOME OFFICE FACILITIES. The buildings

comprising the home office of the retirement system are under the

control and custodianship of the retirement system, but the

retirement system shall:

(1) comply with space use regulations provided by Section

2165.104; the General Appropriations Act; or other state law; and

(2) lease to other persons at fair market value all significant

unused space in the buildings.

Added by Acts 1995, 74th Leg., ch. 555, Sec. 2, eff. Sept. 1,

1995. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 17.19(20),

eff. Sept. 1, 1997.

Sec. 821.008. PURPOSE OF RETIREMENT SYSTEM. The purpose of the

retirement system is to invest and protect funds of the

retirement system and to deliver the benefits provided by

statute, not to advocate or influence legislative action or

inaction or to advocate higher benefits.

Added by Acts 1995, 74th Leg., ch. 555, Sec. 3, eff. Sept. 1,

1995.

Sec. 821.009. 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. 3, eff. September 1, 2005.

Sec. 821.010. 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. 7, eff. September 1, 2009.

SUBCHAPTER B. PENAL PROVISIONS

Sec. 821.101. CONVERSION OF FUNDS; FRAUD. (a) A person commits

an offense if the person knowingly or intentionally confiscates,

misappropriates, or converts funds that represent deductions from

a member's salary or that belong to the retirement system.

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

intentionally makes or permits the making of a false record for

or statement to the retirement system in an attempt to defraud

the retirement system.

(c) A member commits an offense if the member intentionally

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 a requirement of this subtitle other than

ones 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.

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

Sept. 1, 1989.

Sec. 821.102. PENALTIES. (a) An offense under Section

821.101(a) or 821.101(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 821.101(c) is a misdemeanor

punishable by a fine of not less than $100 nor more than $500.

(c) An offense under Section 821.101(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.

31.102 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. 25.084, eff. September 1, 2009.

Sec. 821.103. CANCELLATION OF TEACHER CERTIFICATE. (a) After

receiving notice from the board of trustees of an offense under

Section 821.101 and after complying with Chapter 2001 and rules

adopted by the State Board for Educator Certification, the State

Board for Educator Certification may cancel the teacher

certificate of a person if the State Board for Educator

Certification determines that the person committed the offense.

(b) The executive director of the State Board for Educator

Certification may enter into an agreed sanction.

(c) A criminal prosecution of an offender under Section 821.101

is not a prerequisite to action by the State Board for Educator

Certification or its executive director.

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

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

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

Sept. 1, 1989. Amended by Acts 2001, 77th Leg., ch. 1229, Sec. 2,

eff. Sept. 1, 2001.