Untitled Texas Attorney General Opinion ( 1959 )

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