The Attorney General of Texas
December 28, 1979
MARK WHITE
Attorney General
Honorable Hal H. Hood Opinion No. N1+118
Firemen’s Pension Commissioner
503-F Sam HoustonState Office Bldg. Re: Whether or not income from
Austin, Texas 78701 invested funds of the pension fund
under article 6243e.3 may be used
to pay for the cost of an actuarial
study.
Dear Mr. Hood:
You have requested our opinion as to whether income derived from the
Fire Fighters’ Relief and Retirement Fund may be used to finance a biennial
actuarial study required by statute.
Article 6243e.3, V.T.C.S., enacted in 1977, created, on behalf of
volunteer firemen, a statewide Fire Fighters’ Relief and Retirement Fund,
to be administered by the Firemen’s Pension Commissioner and a Six-
member state board of trustees. Sections 18-21. Section 24 provides:
The commissioner and state board of trustees shall
certify the actuarial and financial soundness of the
fund every two years The state board shall employ a
qualified actuary and a certified public accountant to
assist in the required certification.
You explain that the 1979 session of the legislature failed to make a separate
appropriation for the purpose of financing this actuarial study. You ask
whether income derived from the Fund may be expended for this purpose.
Section 14(e) of the statute provides:
No portion of the cotpus or income of the fund may
be used for purposes other than the benefit of
member fire fighters and their beneficiaries.
In our opinion, the state board of trustees should determine whether the
actuarial study will accrue to the “benefit of member fire fighters and their
beneficiaries.” The state board is empowered to “establish rules and
regulations necessary for the administration of the fund” Section 21(b). -See
P. 372
Honorable Hal H. Hood - Page Two (~~-118)
Attorny General Opinions H-1093 (1977); H-896 (1976). In this csse, the boardis directed
by the legislature to “employ a qualified actuary and a certified public accountant to
assist in the required certification. ” Sec. 24. If the board reasonably concludes that the
use of income from the Fund to finance the actuarial study would be of benefit to member
fire fighters and their beneficiaries, it may expend a portion of that income for such
purpose. See Attorney General Opinion II-1152 (l978).
SUMMARY
If the state board of trustees of the Fire Fighters! Relief and
Retirement Fund determines that the use of income from the Fund
to finance a statutorily required actuarial study would be of benefit
to member fire fighters and their beneficiaries, it may expend a
portion of that income for such purpose.
xg
MARK WHITE
Attorney General of Texas
JOHN W. FAINTER, JR.
First Assistant Attorney General
TED L. HARTLEY
Executive Assistant Attorney General
Prepared by Les King
and Rick Gilpin
Assistant Attorneys General
APPROVED:
OPINION COMMITTEE
C. Robert Heath, Chairman
David B. Brooks
Bob Gammage
Susan Garrison
Rick Gilpin
Les King
Eva King Loutzenhiser
P. 373