2005 Texas Government Code CHAPTER 851. GENERAL PROVISIONS

GOVERNMENT CODE

SUBTITLE G. TEXAS MUNICIPAL RETIREMENT SYSTEM

CHAPTER 851. GENERAL PROVISIONS

SUBCHAPTER A. GENERAL PROVISIONS


	§ 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, § 1, eff. Sept. 
1, 1981.  Amended by Acts 1981, 67th Leg., 1st C.S., p. 218, ch. 18, 
§ 65, 66, eff. Jan. 1, 1982;  Acts 1987, 70th Leg., ch. 183, § 
1, eff. Aug. 31, 1987;  Acts 1989, 71st Leg., ch. 462, § 1, eff. 
Sept. 1, 1989.  Renumbered from Vernon's Ann.Civ.St. Title 110B, 
§ 61.001 and amended by Acts 1989, 71st Leg., ch. 179, § 1, 
eff. Sept. 1, 1989.  Amended by Acts 1991, 72nd Leg., ch. 16, § 
11.01(a), eff. Aug. 26, 1991;  Acts 1993, 73rd Leg., ch. 57, § 1, 
eff. Jan. 1, 1994;  Acts 1995, 74th Leg., ch. 514, § 1, eff. Sept. 
1, 1995;  Acts 1997, 75th Leg., ch. 76, § 1, eff. Sept. 1, 1997;  
Acts 1999, 76th Leg., ch. 83, § 1, eff. Dec. 31, 1999;  Acts 2001, 
77th Leg., ch. 121, § 1, eff. Sept. 1, 2001;  Acts 2003, 78th 
Leg., ch. 599, § 1, eff. Jan. 1, 2004.


	§ 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, § 1, eff. Sept. 
1, 1981.  Renumbered from Vernon's Ann.Civ.St. Title 110B, § 
61.002 by Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 1989.  
Amended by Acts 2003, 78th Leg., ch. 599, § 2, eff. Jan. 1, 2004.


	§ 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, § 1, eff. Sept. 1, 1981.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 61.003 by 
Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 1989.


	§ 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, § 1, eff. Sept. 1, 1981.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 61.004 by 
Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 1989.


	§ 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, § 1, eff. Sept. 1, 1981.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 61.005 by 
Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 1989.


	§ 851.006. EXEMPTION FROM EXECUTION.  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.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 61.006 by 
Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 1989.

SUBCHAPTER B. PENAL PROVISIONS


	§ 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, § 1, eff. Sept. 1, 1981.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 61.101 by 
Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 1989.