CHAPTER 851. GENERAL PROVISIONS - Texas Statutes

GOVERNMENT CODE

TITLE 8. PUBLIC RETIREMENT SYSTEMS

SUBTITLE G. TEXAS MUNICIPAL RETIREMENT SYSTEM

CHAPTER 851. GENERAL PROVISIONS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 851.001. DEFINITIONS. In this subtitle:

(1) "Accumulated contributions" means the sum of all

contributions made by a member and credited to the member's

individual account in the employees saving fund, plus interest

allowed on the account as provided by this subtitle.

(2) "Actuarial equivalent" means a benefit that, at the time it

is entered upon, has the same present value as the benefit it

replaces, based on interest and on a mortality table recommended

by the actuary and adopted by the board of trustees.

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

installments at the end of each month for a period determined

under this subtitle.

(4) "Annuity reserve" means the present value, computed on the

basis of annuity or mortality tables adopted by the board of

trustees, with interest, of all payments to be made under an

annuity.

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

subtitle to administer the retirement system.

(6) "Compensation" means the sum of payments made to an employee

for performance of personal services, as certified on a written

payroll of an employing department, that does not exceed any rate

of compensation fixed by a governing body as the maximum salary

on which member contributions to the retirement system may be

based and does not exceed the amount established by board rule,

which may not exceed the limit provided by Section 401(a)(17) of

the Internal Revenue Code of 1986 (26 U.S.C. Section 401), as

indexed in the manner provided by that section, and includes

amounts by which payment for earnings is reduced by reason of:

(A) employer pick-up of employee contributions to the retirement

system under Section 855.402(j);

(B) deferral of compensation under benefit plans adopted by the

employer pursuant to Section 401(k) or 457 of the Internal

Revenue Code of 1986 (26 U. S.C. Sections 401, 457);

(C) cost of benefits furnished under qualified cafeteria plans

adopted by the employer pursuant to Section 125 of the Internal

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

(D) cost of tax-sheltered annuities acquired for the employee

under Section 403(b) of the Internal Revenue Code of 1986 (26

U.S.C. Section 403); and

(E) deductions for Federal Insurance Contribution Act taxes,

federal income taxes, or other obligations of the employee.

(7) "Department" means a recognized division performing a

governmental or proprietary function of a municipality.

(8) "Employee" means a person, including a person serving a

period of probationary employment, who receives compensation from

and is certified by a municipality as being regularly engaged in

the performance of duties of:

(A) an appointive office or position that normally requires

services from the person for not less than 1,000 hours a year; or

(B) an elective office that normally requires services from the

person for not less than 1,000 hours a year, in a municipality

that began participating in the retirement system after December

31, 1981, or that has adopted a membership requirement under

Section 852.107.

(9) "Municipality" means any incorporated city or town in this

state.

(10) "Rate of compensation" means the rate at which payments to

an employee are computed, as certified by the employing

municipality, converted into compensation for any period on the

assumption that 2,400 hours, 300 days, 52 weeks, 12 months, and 1

year are equivalents.

(11) "Retirement" means withdrawal from service with a

retirement benefit granted under this subtitle.

(12) "Retirement system" means the Texas Municipal Retirement

System.

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

(14) "Credited service" means the number of months of prior and

current service ascribed to a member in the retirement system or

included in a prior service certificate in effect for the member.

(15) "Amortization period" means, as to a particular

municipality, the time ending with the later of:

(A) the expiration of 25 years after the effective date of the

municipality's participation in the retirement system;

(B) the expiration of 25 years after the most recent actuarial

valuation date for the municipality; or

(C) the period determined under Section 855.407(h).

(16) "Member" means a person for whom an account has been

established in the employees saving fund and whose membership has

not terminated under Section 852.104.

(17) "Beneficiary" means a person designated by a member,

annuitant, or by statute to receive a benefit payable under this

subtitle as a result of the death of a member or annuitant.

(18) "Director" means the person appointed executive director

under Section 855.201.

(19) "Vested member" means a member who may withdraw from

employment with all participating municipalities, leave the

member's accumulated contributions on deposit with the retirement

system and, on meeting the age and length of service

requirements, file an application for retirement and begin to

receive a service retirement benefit.

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

Sept. 1, 1981. Amended by Acts 1981, 67th Leg., 1st C.S., p. 218,

ch. 18, Sec. 65, 66, eff. Jan. 1, 1982; Acts 1987, 70th Leg., ch.

183, Sec. 1, eff. Aug. 31, 1987; Acts 1989, 71st Leg., ch. 462,

Sec. 1, eff. Sept. 1, 1989. Renumbered from Vernon's Ann.Civ.St.

Title 110B, Sec. 61.001 and amended by Acts 1989, 71st Leg., ch.

179, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1991, 72nd Leg.,

ch. 16, Sec. 11.01(a), eff. Aug. 26, 1991; Acts 1993, 73rd Leg.,

ch. 57, Sec. 1, eff. Jan. 1, 1994; Acts 1995, 74th Leg., ch. 514,

Sec. 1, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 76, Sec. 1,

eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 83, Sec. 1, eff.

Dec. 31, 1999; Acts 2001, 77th Leg., ch. 121, Sec. 1, eff. Sept.

1, 2001; Acts 2003, 78th Leg., ch. 599, Sec. 1, eff. Jan. 1,

2004.

Sec. 851.002. PURPOSE OF SUBTITLE. The purpose of this subtitle

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

their beneficiaries and to establish rules for the management and

operation of the retirement system. The assets of the retirement

system are held in trust for the exclusive benefit of the

members, the retirees, and their beneficiaries and may not be

diverted. The retirement system may not apply a forfeiture to

increase a benefit that any person would otherwise receive under

this subtitle.

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

Sept. 1, 1981. Renumbered from Vernon's Ann.Civ.St. Title 110B,

Sec. 61.002 by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept.

1, 1989. Amended by Acts 2003, 78th Leg., ch. 599, Sec. 2, eff.

Jan. 1, 2004.

Sec. 851.003. RETIREMENT SYSTEM. The Texas Municipal Retirement

System is continued in existence and is the name by which the

business of the retirement system shall be transacted, all its

funds invested, and all its cash and other property held.

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

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

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

1989.

Sec. 851.004. 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.

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

1989.

Sec. 851.005. ACTION FOR ACCOUNTING. (a) The retirement system

or the board of trustees may initiate, or cause to be initiated

on its behalf, an action against a participating municipality, a

board of the municipality, or individual officers of the

municipality, to compel an accounting of sums due to the

retirement system or to require the withholding and accounting of

sums due from members.

(b) The venue of an action brought under this section is in

either Travis County or a county in which the municipality is

situated.

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

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

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

1989.

Sec. 851.006. EXEMPTION FROM EXECUTION. (a) Except as provided

by Subsection (b), all retirement annuity payments, other benefit

payments, and a member's accumulated contributions are

unassignable and are exempt from execution, garnishment,

attachment, and state and local taxation.

(b) The board of trustees by rule may authorize the retirement

system to make distributions to pay the qualified health

insurance premiums of a public safety officer in accordance with

the provisions of Section 845, Pension Protection Act of 2006,

Pub. L. No. 109-280.

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

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

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

1989.

Amended by:

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

293, Sec. 1, eff. January 1, 2008.

SUBCHAPTER B. PENAL PROVISIONS

Sec. 851.101. OFFENSES; PENALTY. (a) A person commits an

offense if the person knowingly makes a false statement in a

report or application to the retirement system in an attempt to

defraud the retirement system.

(b) A person commits an offense if the person knowingly makes a

false certificate of an official report to the retirement system.

(c) An offense under this section is a misdemeanor punishable by

a fine of not less than $100 nor more than $1,000, confinement in

jail for not less than 30 days nor more than one year, or both.

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

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

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

1989.