THE ATTORNEY GENERAL
OF TEXAS
July 6, 1989
Honorable Bill Reimer Opinion No. JM-1068
Coma1 County Attorney
150 N. Seguin, Suite 318 Re: Validity of a contract
New Braunfels, Texas 78130 between an appraisal district
and a retirement plan (RQ-1732)
Dear Mr. Reimer:
You ask whether the Coma1 Appraisal District is
authorized to enter into a contract with a private associa-
tion under which the district would, for the benefit of
district employees, adopt and contribute district funds to a
"private retirement plan" offered by the association.
An appraisal district is a political subdivision of the
state established in each county to appraise property in the
district for ad valorem tax purposes of the state and taxing
entities in the district. Tax Code 5 6.01 et sea.
Having reviewed the constitutional and statutory scheme
for the establishment of retirement plans for public
employees in Texas, we conclude that an appraisal district
is not authorized to enter into the contract you describe.
Article XVI, section 67, of the Texas Constitution
provides in part that the legislature may enact general laws
establishing retirement programs for public officers and
employees. The provisions also require that the legislature
establish retirement systems for various categories of
public officers and employees. Article XVI, section
67(c) (1) (B), of the constitution provides that the
legislature shall provide for 'Ia statewide system of
benefits for the officers and employees of counties or other
political subdivisions of the state in which counties or
other political subdivisions may voluntarily participate."
The latter provision would apply to appraisal districts.
By statute, V.T.C.S. Title llOB, the legislature has
provided for the Employees Retirement System for state
officers and employees, section 21.001 et sea.: the Teacher
Retirement System, section 31.001 et sea.; the Municipal
Retirement System for officers and employees of cities and
P. 5564
Honorable Bill Reimer - Page 2 (JM-1068)
towns, section 61.001 et sea.: a Judicial Retirement System,
sections 41.001 et sea. and 71.001 et sea.; and the County
and District Retirement System for counties and certain
other political subdivisions of the state, section 51.001
et sea. See also V.T.C.S. Title llOB, ch. 36 (participation
in private retirement program for higher education faculty
authorized under Optional Retirement Program).
The legislature has also provided, in V.T.C.S. articles
62283 and 6243k, that counties and cities or towns respec-
tively may, pursuant to an election, create local retirement
programs for their officers and employees. See also
V.T.C.S. arts. 6243a, 624313, 6243d-1, 6243e, 6243e-2, 6243f
(provisions for retirement programs for firemen and
policemen).
An appraisal district would appear to fall under the
definition of "subdivision" in section 51.001 of the
provisions of Title llOB, V.T.C.S., for the County and
District Retirement System and thus be eligible to
participate in that system. We understand that the "private
retirement plan" which you ask about is not part of the
County and District Retirement System.1
We find no provision either in the constitution or
statutes authorizing a subdivision such as an appraisal
district to participate in any retirement plan other than
the public County and District Retirement System provided
for in sections 51.001 et sea. of V.T.C.S. Title 1lOB. In
view of the detailed provisions made by the legislature in
Title 1lOB for statewide retirement systems for education
personnel, and state, county and district, and city officers
and employees, and the specific authorization for the
establishment of local programs for county and city
personnel and policemen and firemen in V.T.C.S. articles
62283, 6243k, 6243a, etc., we conclude that the absence of
provisions for a subdivision such as an appraisal district
to participate in a retirement plan other than the County
and District Retirement System under Title llOB, indicates
that the legislature did not intend to authorize such
districts to contract and expend district funds for a
private retirement plan.
1. Please note also that we find no provisions of law
authorizing the operation of such a "private retirement
plan" as part of the County and District Retirement System.
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Honorable Bill Reimer - Page 3 (JM-1068)
You also raise an issue in your request as to the
applicability of the federal Employees Retirement Income
Securities Act (ERISA), found in chapter 18 of Title 29,
U.S.C., to such a private retirement plan. Since we have
concluded that, under state law, the appraisal district is
unauthorized to contract for such a plan, we need not
address the applicability of ERISA to such a plan.
SUMMARY
The Coma1 Appraisal District is not
authorized to enter into a contract with a
private association under which the district
would, for the benefit of its employees,
adopt and contribute district funds to a
private retirement plan offered by the
association.
JIM MATTOX
Attorney General of Texas
MARY KELLER
First Assistant Attorney General
LOU MCCREARY
Executive Assistant Attorney General
JUDGE ZOLLIE STEAKLEY
Special Assistant Attorney General
RICK GILPIN
Chairman, Opinion Committee
Prepared by William Walker
Assistant Attorney General
P. 5566
Untitled Texas Attorney General Opinion
Combined Opinion