TEEA~ORNEY GENERAL
OFTEXAS
AUUTIN I,. 'Ikxan
April 6, 1959
Mr. Frank M. Jackson Opinion No. nn-589
Executive Secretary
Teacher Retirement System Re: Does the Board of
of Texas Trustees of the
Aus tin, Texas Teacher Retirement
System have the suth-
ority to require one
year of creditable
service under the .
Teacher Retirement
Law for survivor bene-
fits to be in effect
after the retirement of
Dear Mr. Jackson: a teacher,
Ye quote frmn your request for an opinion as follows:
“At a meeting of the Board of Trustees on
November 21, 1956, Mr. L. P. Sturgeon explasined
that it was the Intent of the law to require one
year of service under the new bill before survivor
benefits were in effect for anyone. At this meet-
ing the Board of Trustees advised the staff of the
Teacher Retirement System to follow the intent of
the law and require that a member render at least
one year of creditable service before survivor bene-
fits are In effect.
"A tsaoher who has retired under the new law
without any crealtable service since the law went
into effect is insisting on naming a beneficiary
for the $500.00 clali under death an& survivor bene-
fits. Does the Board of Trustees have ths auth-
ority to require one year of orealtable service
under the new law for survivor benefits to be in
effect after retirement?"
The payment of death an& survivor benefits is provided by Subsection
3 Of Section 7 of Article 2g22-lof Vernon's Civil Statutes. Subsection 3(a)
provides for the payment of survivor benefits to the designated beneficiaries
of teachers who die before retirement as follows:
Mr. Frank M. Jackson, page 2 (W-589)
"After a teacher member shall have oomuleted one
year of creditable service after the effective date of
this Act, if he shall die before retirement, his desig-
nated beneficiary (if eligibile and otherwise entitled
to a death benefit other than return of the accumulated
contributions of the member), may elect, in lieu of the
applicable death benefit authorized under the preceding
subsections, to receive the applicable of the following
survivor benefits plus a lump-sum payment of Five Hun-
dred Dollars ($500.00), viz:" (Emphasis Added)
!fhepayment of survivor benefits to the designated beneficiary of
members who die subsequent to retirement is covered by Subsection 3(c)of
Section 7 and reads as follows:
"If a member shall die subsequent to his retirement,
the designated beneficiary surviving him shall be entitled
to the ssme survivor benefits as are authorized to be
paid to designated beneficiaries who survive members who
are in active service at death; and moreover, any benefit
payable to the designated beneficiary under the service
retirement option elected by the deceased shall not be
forfeited or changed because of any election as to sur-
vivor benefits selected by such designated beneficiary;
and provided further,that the lump-sum payment of Five
Hundred Dollars ($500.00) shall be paid to such desig-
nated beneficiary regardless of eligibility for survivor
benefits, or for any other death benefit payments."
It is noted from a reading of the Section tiediately preceding,
that the designated beneficiary of a member who dies subsequent to re-
tirement "shall be entitled to the same survivor benefits as are auth-
orized to be paid to designated beneficiaries who survive members who
are in active service at death." Subsection 3(a) provides that a member
shall'have completed one year of creditable service after the effective
date of the Act before his designated beneficiary shall be entitled.to
survivor benefits. We believe that the Legislature has required that
one year of creditable service after the effective date of the Act is
applicable to members who die either prior or subsequent to retirement.
This construction is in accordance with the Retirement Board's construction
and application of these provisions since the effective date of the Act.
It is noted that Subsection 3(c)further provides that the lump-sum
payment of Five Hundred Dollars ($500.00) shall be paid to such design-ated
beneficiary regardless of eligibility for survivor benefits, or for any
other death benefit payment. We believe the effect of this provision is
J .
Mr. Frank M. Jackson, page 3 (~-589)
not to render a designated beneficiary eligibile for the lump-sum payment
where the member has not completed one year of creditable service after
the effective date of the Act, but such designated beneficiary is merely
rendered eliglbile for the lump-sum payment even though he may not bear
the relatfonshlp 'cothe deceased member required by Subsection 3(l) and
3(z).
You are therefore advised that the Board of Trustees of the Teacher
Retirement System is authorized to require one year of creditable service
by a member under the Teacher Retirement Act, in order for survivor bene-
fits, including the Five Hundred Dollars ($500.00) lump-sum settlement,
to be payable to his designated beneficiary. This would apply regardless
of whether the member died either prior or subsequent to retirement.
The Board of Trustees of the Teacher Retirement
System is authorized to require one year of
creditable service by a member under the Teacher
Retirement Act, in order for survivor benefits,
including the Five Hundred Dollars ($500.00) imp-
sum settlement, to be payable to his designated
beneficiary. This would apply regard?-ss of
whether the member died either prior or subsequent
to retirement.
Very truly yours,
WILL WILsom
Attorney General of Texas
BY
Leonard Passmore
Assistant
IP:rm:me
APPROVRD
OPlRIOR coMMITlEF2
Geo. P. Blackburn, Chairman
Marvin H. Brown, Jr.
ThomasBurrus
W. Ray Scruggs
Jot Hodges, Jr.
RRKEWKDFGR?REATDXUC%YGRRRRAL
BY: W. V. Geppert