Case Information
*1 The Attorney General of Texas August 31, 1982 MARK WHITE
Attorney General
Supreme P. 0. Box 12546 Austin. 5121475.2501 Telex Telecopier 9101674-1367 TX. 76711- Court Building 5121475.0266 [2546] El Paso, Texas 79901 Room 201 City-County Building El Paso County Attorney Honorable George N. Rodriguez, Jr. Opinion No.~w-510 men, policemen and fire alarm Re: Alteration of city fire- operators pension fund 1607 Main St., Suite Dallas, 2141742-6944 TX. 75201.4709 [1400]
Dear Mr. Rodriguez: operators pension fund which operates a policemen's division and a You asked whether a city's firemen, policemen and fire alarm
firemen's division may be altered to make changes in the operation of 4624 Alberta Ave.. Suite 160 the policemen's division without making changes in the firemen's El Paso, TX. 79905.2793 division or vice versa. 9151533.3464
You state that the city of El Paso has a Firemen, Policemen and 1220 Dallas Ave., Suite 202 Fire Alarm Operators Pension Fund established pursuant to article Houston, TX. 77002-6986 6243b, V.T.C.S. This fund has a separate policemen's division and a 713/650-0666 firemen's division as provided in section 16 of the article. The
number of policemen making contributions to the fund far exceeds the number of firemen making contributions to the fund. From time to time 606 Broadway, Suite 312 modifications have been made as provided in section 10A. All of the Lubbock, TX. 79401.3479 6061747-5238 changes must sequentially comply with provisions of article 6243b,
section lOA which provides: 4309 N. Tenth, Suite B (b) None of the changes made under Subsection McA,,en, TX. 78501.1685 (a) of this section may be made unless all of the 5121682.4547
following conditions are ~sequentiallycomplied with: 200 Main Plaza. Suite 400 San Antonio, TX. 78205-2797 (1) the change must be approved by a qualified 5121225.4191 actuary selected by a four-fifths vote of the Board; the actuary, if an individual, must be a An Equal OpportunityI Fellow of the Society of Actuaries or a Fellow of Affirmative Action Employer the Conference of Actuaries in Public Practice or
a Member of the American Academy of Actuaries; the findings upon which the properly selected and qualified actuary's approval are based are not subject to judicial review; *2 Honorable George N. Rodriguez, Jr. - Page 2 (MW-510)
(2) the change must be approved by a majority of all persons then making contributions to the fund, voting by secret ballot at an election held after ten (10) days' notice given by posting at a prominent place in every fire station, every police station and substation, and in the city hall;
(3) whether the fund for the police and the fund for the firemen and fire alarm operators z operated as separate funds or as one fund, all changes shall be uniform for both departments and contributing members of both departments shall have the right to vote;
(4) the changes, except changes made under the provisions of Subdivision (l), Subsection (a), of this section, shall apply only to active member employees who are members of the departments at the time the change becomes effective and those who enter the department thereafter; and (5) the changes shall not deprive any person, without his written consent, of any right to receive a pension or benefits which have already become vested and matured. ~(Emphasis added).
Article 6243b, section lOA(b)(3) states clearly that the policemen's division of a city's firemen, policemen and firefighters pension fund may not be changed without a uniform change in the firemen's division;
It has been suggested that one division of the fund might be placed at a disadvantage simply because it has fewer members. The law, however, is clear. We note that the State Pension Review Board has the power and duty to conduct a continuing review of public retirement systems, to conduct studies of potential problems that threaten the actuarial soundness of or inhibit an equitable distribution of benefits in one or more public retirement systems, to provide information and technical assistance on pension planning to public retirement systems on request, and to recommend policies, practice, and legislation to public retirement systems and appropriate governmental entities. V.T.C.S. Title llOB, Public Retirements Systems, §11.202 (1981 Pamphlet).
SUMMARY Neither division of the firemen, policemen, and fire operators fund established pursuant to *3 . -
Honorable George N. Rodriguez, Jr. - Page 3 (Mw-510)
article 6243b, V.T.C.S., may be changed without a uniform change in the other division. WHITE
MARK Attorney General of Texas JOHN W. FAINTER, JR.
First Assistant Attorney General
RICHARD E. GRAY III
Executive Assistant Attorney General
Prepared by Jean Cornelius
Assistant Attorney General
APPROVED:
OPINION COMMITTEE
Susan L. Garrison, Chairman
Jon Bible
Jean Cornelius
Rick Gilpin
Patricia Hinojosa
Jim Moellinger
Bruce Youngblood