THEA~-~oRNI~Y GENERAL
OFTEXAS
November 24, 1959
Honorable Frank M. Jackson
Executive Secretary
Teacher Retirement System of Texas
Austin, Texas
Opinion No. WW-740
Re: Questions as to amounts of
the salaries paid to em-'
ployees subject to the
Teacher Retirement Law,
which must be withheld and
paid monthly to the Retire-
Dear Mr. Jackson: ment System.
Your recent request for an opinion states that the
Board of Trustees of the Teacher Retirement System has ruled
that the full six per cent (6%) of the salaries paid to em-
ployees subject to the Teacher Retirement Law must be withheld
and submitted monthly to the Retirement System until the employee
has received a salary of $8,400, of which the aggregate sum of
$504 has been withheld and submitted to the Retirement System.
You ask if this procedure by the Board is in accordance with the
Teacher Retirement Act.
Subsection 1 (b) of Section 10 of Article 2922-1,
Vernon's Texas Civil Statutes, provides as follows:
"Each employer on each of its payrolls
shall cause to be deducted from the salary
of each member, five per cent (5%) of his
earnable compensation for each payroll period
prior to September L, 1957, and six per cent
(6%) of his earnable compensation for each
payroll period thereafter; provided that the
sum of the deductions made during any one year
shall not exceed five per cent (5%) of the
member's annual compensation, or One Hundred
Eighty Dollars ($180.00), whichever is the
lesser, for any year ending on or before August
31, 1957, nor more than six per cent (6%) of
his annual compensation, or Five Hundred Four
- ..
Honorable Frank M. Jackson, page 2 (W-740)
Dollars ($504.00), whichever is the lesser,
for any year ending after September 1, 1957.
In determining the amount earnable by a mem-
ber within a payroll period, the State Board
of Trustees may consider the rate of annual
compensation payable to such member on the
first day of the payroll period as continuing
throughout such period, and it may omit deduc-
tion from compensation for any period less
than a full payroll period if the person was
not a member on the first day of such period,
and to facilitate the making of deductions, it
may modify the deduction required of any member
by such an amount as shall not exceed one-tenth
(l/10) of such one per centum (l$) of the annual
compensation upon the basis of which such deduc-
tion is to be made."
Subsections l(a) and (b) of Section 11, provide as
follows:
"1. The collection of members' contribu-
tions shall be as follows:
"(a) Each employer shall cause to be deduct-
ed on each and every psyroll of a member for each
and every pay roll period subsequent to the date
of establishment of the Retirement System the con-
tributions payable by such member, as provided in
this Act. Each employer shall certify to the treas-
urer of said employer on each and every pay roll a
statement as vouchers for the amount so deducted.
"(b) The treasurer or proper disbursing of-
ficer of each employer on authority from the em-
ployer shall make deductions from salaries of
members as provided in this Act, and shall trans-
mit monthly, or at such time as the State Board of
Trustees shall designate, a certified copy of the
pay roll, and the amount specified to be deducted
shall be paid to the Executive Secretary of the
State Board of Trustees; and after making a record
of all receipts, the said Board shall pay them to
the Treasurer of the State of Texas, and by him be
credited to Teacher Savings Fund, and such funds
shall be deemed as appropriated for use according
to the provisions of this Act. . , .'
Honorable Frank M. Jackson, page 3 (w-740)
The above quoted provisions of the Teacher Retirement
Act clearly provide that on and after September 1, 1957, that
there shall cause to be deducted from the salary of each member
six per cent (6%) of his earnable compensation for each payroll
period; provided, however, that the sum of the deductions made
during any one year shall not exceed six per cent (6%) of the
member's annual compensation or $504.00, whichever is the lesser,
for any year ending after September 1, 1957. Accordingly, mem-
bers whose annual compensations exceed $8,400.00 should have de-
ducted from their pay a full six per cent (6%) of his earnable
compensation for each payroll period until the sum of such deduc-
tions for any one year shall equal $504.00, after which the deduc-
tions for such year shall cease.
You are therefore advised that it is our opinion that
the Board of Trustees of the Teacher Retirement System has cor-
rectly construed and applied the law in this respect.
SUMMARY
The full six per cent (6%) of the salaries
for each payroll period paid to employees
subject to the Teacher Retirement Act, should
be withheld and remitted to the Teacher Re-
tirement System; provided, however, that the
sum of deductions for any year ending after
September 1, 1957, shall not exceed six per
cent (6%) of the member's annual compensation
or $504.00, whichever is the lesser.
Yours very truly,
WILL WILSON
Attorney General of Texas
LP:me:zt
APPROVED: - Leonard Passmore
OPINION COMMITTEE Assistant
W.V.Geppert, Chairman
J.C.Davis, Jr.
Houghton Brownlee, Jr.
Paul Floyd
Ray Loftin
REVIEWED FOR THE ATTORNEY GENERAL
BY: Morgan Nesbitt