The Attorney General of Texas
September 28, 1978
JOHN L. HILL
Attorney General
Honorable Leonard Prewitt Opinion No. Ii- 12 4 9
Executive Secretary
Teacher Retirement System of Texas Re: Whether local school dis-
1001 Trinity Street tricts are permitted to pay the
Austin, Texas 78701 required employee contribution
to the Teacher Retirement
System.
Dear Mr. Prewitt:
You have requested our opinion regarding whether a local school district
may pay the required employee contribution to the Teacher Retirement
System. You state that a recent ruling indicates the intention of the Internal
Revenue Service to exclude from gross income any portion of a teacher’s
contribution to a state pension plan which is “picked up” by the school
district.
Section 3.57(b) of the Education Code requires that every employer
shall deduct from the salary of each member [of the
Teacher Retirement System] 6.65 percent of his
compensation for each payroll period.
In our opinion, this provision clearly means that the member is liable for
payment of his own contribution. Other portions of section 3.57 support this
view:
(c) These deductions shall be made although they
reduce a member’s minimum compensations provided by
law. Every member shall be deemed to consent to the
deductions made and the payment of his compensation,
less said deductions, shall constitute a complete
release of all claims, except for benefits provided
under this chapter for service rendered by him during
the payment period.
. . . .
p. 4963
.
Honorable Leonard Prewitt - Page 2 (H-1249)
(g) If deductions which should have been made from any
member’s salary were not in fact made, the member must
pay these deductions, plus a five percent per annum fee on
the unpaid amount from the end of the school year such
deductions were due until the date of payment, on terms
prescribed by the State Board of Trustees. . . .
The Legislature has unequivocally expressed its intent that the member himself
make the required contribution. As a result, we do not believe the statute can be
construed, to permit an employer to assume that burden. We express no opinion as
to the validity or effect under the tax ruling of a proposal by which a district would
reimburse an employee for the deduction required by section 3.57(b).
SUMMARY
A local school district may not pay the required employee
contribution to the Teacher Retirement System.
Very truly yours,
/
Attorney General of Texas
APPROVED: w
/ h’
d&d
C. ROBERT HEATH. Chairman
Opinion Committee ’
p. 4964