| § 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 paymentsto 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.
§ 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.
§ 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.
§ 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.
§ 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.
§ 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. |