The opinion
The Attorney General of Texas
August 31, 1982
MARK WHITE
Attorney General
Supreme Court Building Honorable George N. Rodriguez, Jr. Opinion No.~w-510
P. 0. Box 12546
El Paso County Attorney
Austin. TX. 76711- 2546
5121475.2501
Room 201 City-County Building Re: Alteration of city fire-
Telex 9101674-1367 El Paso, Texas 79901 men, policemen and fire alarm
Telecopier 5121475.0266 operators pension fund
Dear Mr. Rodriguez:
1607 Main St., Suite 1400
Dallas, TX. 75201.4709
2141742-6944 You asked whether a city's firemen, policemen and fire alarm
operators pension fund which operates a policemen's division and a
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
9151533.3464 division or vice versa.
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
713/650-0666
6243b, V.T.C.S. This fund has a separate policemen's division and a
firemen's division as provided in section 16 of the article. The
number of policemen making contributions to the fund far exceeds the
606 Broadway, Suite 312 number of firemen making contributions to the fund. From time to time
Lubbock, TX. 79401.3479 modifications have been made as provided in section 10A. All of the
6061747-5238
changes must sequentially comply with provisions of article 6243b,
section lOA which provides:
4309 N. Tenth, Suite B
McA,,en, TX. 78501.1685 (b) None of the changes made under Subsection
5121682.4547 (a) of this section may be made unless all of the
following conditions are ~sequentiallycomplied
200 Main Plaza. Suite 400 with:
San Antonio, TX. 78205-2797
5121225.4191 (1) the change must be approved by a qualified
actuary selected by a four-fifths vote of the
An Equal OpportunityI
Board; the actuary, if an individual, must be a
Affirmative Action Employer Fellow of the Society of Actuaries or a Fellow of
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;
p. 1841
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
p. 1842
. -
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.
MARK WHITE
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
p. 1843