The Attorney General of Texas
January 12, 1978
JOHN L. HILL
Attorney General
Honorable M. L. Brockette Opinion No. H- 1114
Commissioner of Education
Texas Education Agency Re: Payment of insurance premiums
201 East Eleventh Street of retired e@yees.
Austin, Texas 78701
Honorable Jess M. Irwin, Jr.
Commissioner
Texas Rehabilitation Commission
7745 Chevy Chase Drive
Austin, Texas 78752
Gentlemen:
You inquire whether your respective agencies have statutory authority
to pay the full cost of group life and health insurance premiums for former
employees retired under the Teacher Retirement Act. You direct our
attention to article 3.51-5, enacted in 1975, which provides in part:
The costs of group life and health insurance pre-
miums to persons retired under the Teacher Retire-
ment Act, who at the time of their retirement were
employed by the Texas Central Education Agency, the
Texas Rehabilitation Commission . . . shall be fully
paid’from the funds of such agency. . . .
Ins. Code art. 3.51-5(a); Acts 1975, 64th Leg., ch. 408, at 1062.
Article 3.51-5 of the Insurance Code must be read together with other
legislation on insurance for retired employees. Article 3.50-2 of the
Insurance Code provides for life, accident and health insurance for State
employees. “Employee” includes
an employee who is retired or retires and is an
annuitant under the jurisdiction of the Teacher Retire-
ment Sytem of Texas. . . whose last employment with
the state prior to retirement was or is as an employee
of . . . the Texas Rehabilitation Commission, the
Central Education Agency. . . .
P. 4558
Honorable M. L. Brockette
Honorable Jess M. Irwin, Jr. - Page 2 (H-1114 1
Ins. Code art. 3.50-2, 5 3(al(5l(AXi); Acts 1977, 65th Leg., ch. 797, S 2, at 1996.
Active and retired employees are to be included in the group insurance plan
established under article 3.50-2. Sec. 5, 13. Section 14, as amended in 1977,
provides for payment of the State’s contribution to the insurance premiums:
Payment of Premiums. (a) The State of Texas shall
contribute monthly to the cost of each insured employee’s
group insurance such amount as shall be appropriated
therefor by the legislature in the General Appropriations
Act. A like amount for each employee shall be appropriated
by the governing board of state departments in their
respective official operating budgets if their employees are
compensated from funds appropriated by such budgets rather
than by the General Appropriations Act.
Acts 1977, 65th Leg., ch. 797, S 8, at 1998. Thus any agency, whether its funds
derive from appropriations or from other sources, must contribute the amount set
out in the General Appropriations Act. The current act limits the contribution to
not more than fifteen dollars per active or retired employee per month. General
Appropriations Act, Acts 1977, 65th Leg., ch. 872, art. III, at 64.
Statutes which deal with the same subject, as do article 3.50-2, section 14,
and article 3.51-5, are in pari materia and must be harmonized, if possible.
Goldman v. State, 277 S.W.2d 217 (Tex. Civ. App. - Amarillo 1954, writ ref’d n.r.e.1.
Where they conflict, article 3.50-2, section 14 prevails as the latest expression of
Legislative intent. Berger v. Kirby, 140 S.W. 334, 336 (Tex. 1911);see also V.T.C.S.
art. 5429b-2, S 3.05(a).
In our opinion the statute authorizes the Rehabilitation Commission and the
Education Agency to contribute on behalf of retirees only the amount of money
stated in the appropriations act, which is limited under the present act to not more
than fifteen dollars per month.
We do not believe article 3.51-5 can be held to prevail as a more specific
statute controlline over a general statute. since both article 3.51-5 and article 3.50-
Z expwJq w-g-& +n~km-tkr. =sm&-&~~'d y-ulr. w$mjp,E c&red qumuant. ta the
Teacher’s Retirement Act. See Trinity Universal Ins. Co. v. McLaughlin, 373
S.W.2d 66 (Tex. Civ. App. - Aii& 1963, no writ). Indeed, the caption to the 1977
amendment to section -14 of article 3.50-2 of the Insurance Code specifically
indicated that the bill was designed to equalize the employer% share of premium
payment. In our opinion, your agencies lack the authority to pay in full the
insurance premiums of the stated retirees when the Legislature has directed in the
appropriations act that the contribution be limited to a lesser amount.
SUMMARY
The Education Agency and the Rehabilitation Commission
may not pay the full cost of group and health insurance
P. 4559
. -
Honorable M. L. Brockette
Honorable Jesa M. Irwin, Jr. - Page 3 (H-1114)
premiums for certain retired employees where the Appropri-
ations Act, pursuant to article 3.50-2, section 14, of the
Insurance Code, has limited the agency’s contribution to a
lesser amount.
Very truly yours,
/..;JOHN L. HILL
(/’ Attorney General of Texas
APPROVED:
jst
P. 4560