### TEEA~ORNEY GENERAL OFTEXAS
AUUTIN I,.'Ikxan

April 6, 

### 1959

Mr. Frank M. Jackson Opinion No. nn-589 Executive Secretary TeacherRetirement System Re: Does theBoard of of Texas Trustees of the Austin, Texas Teacher Retirement System have the suthority to require one year of creditable service under the
. TeacherRetirement Law for survivor benefits 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 theBoard of Trustees on November 21, 1956,Mr. L. P. Sturgeon explasined that itwas the Intentof the law to require one year of service under the new bill before survivor benefits were in effect for anyone. At thismeeting theBoard of Trustees advised the staff of the TeacherRetirement System to follow the intent of the law and require that a member render at least one year of creditable service before survivor benefits are In effect.
"A tsaoherwho has retired under thenew law without any crealtable service since the lawwent into effect is insistingon naming a beneficiary for the $500.00 clali under death an& survivor benefits. Does the Board of Trustees have ths authority to require one year of orealtable service under the new law for survivorbenefits to be in effect after retirement?" The payment of death an& survivorbenefits 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 teacherswho die before retirement as follows:Mr. Frank M. Jackson, page 2 

### (W-589)

"After a teachermember shallhave oomuleted one year of creditable service after the effective date of thisAct, ifhe shall die before retirement,his designated beneficiary (if eligibile and otherwise entitled to a death benefit other than return of the accumulated contributionsof themember), may elect, in lieu of the applicable death benefit authorizedunder the preceding subsections, to receive the applicable of the following survivor benefits plus a lump-sumpayment of Five Hundred Dollars ($500.00),viz:" (EmphasisAdded) !fhe payment of survivor benefits to the designatedbeneficiary 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 survivinghim shall be entitled to the ssme survivorbenefits as are authorized to be paid to designatedbeneficiarieswho survivemembers who are in active service at death; andmoreover, any benefit payable to the designatedbeneficiary under the service retirement option elected by the deceased shall not be forfeited or changed because of any election as to survivor benefits selected by such designated beneficiary; and provided further,that the lump-sum paymentof Five Hundred Dollars ($500.00)shall be paid to such designated beneficiary regardless of eligibility for survivor benefits, or for any other death benefit payments."
It isnoted from a reading of the Section tiediately preceding, that the designated beneficiary of a member who dies subsequent to retirement "shall be entitled to the same survivorbenefits as are authorized to be paid to designatedbeneficiarieswho survivemembers 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 theAct before his designatedbeneficiary shall be entitled. to survivorbenefits. We believe that the Legislaturehas required that one year of creditable service after the effective date of theAct is applicable tomembers who die either prior or subsequent to retirement. This construction is in accordancewith theRetirementBoard's construction and application of these provisions since the effectivedate of theAct.

It isnoted 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 survivorbenefits, or for any other death benefit payment. We believe the effect of thisprovision isJ

.

Mr. Frank M. Jackson, page 

### 3 (~-589)

not to render a designated beneficiary eligibile for the lump-sumpayment where themember has not completed one year of creditable service after the effective date of theAct, but such designatedbeneficiary ismerely rendered eliglbile for the lump-sumpayment even thoughhe may not bear the relatfonshlp 'cothe deceasedmember required by Subsection 3(l) and 

### 3(z).
You are thereforeadvised 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 survivorbenefits, including the Five HundredDollars ($500.00) lump-sum settlement, to be payable to his designatedbeneficiary. This would apply regardless of whether themember died either prior or subsequent to retirement.

The Board of Trustees of the Teacher Retirement System is authorized to require one year of creditable serviceby a member under the Teacher RetirementAct, in order for survivorbenefits, including the Five Hundred Dollars ($500.00) impsum settlement, to be payable to his designated beneficiary. This would apply regard?-ss of whether themember died either prior or subsequent to retirement. Very truly yours,
WILL WILsom Attorney General of Texas

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 BYLeonard Passmore Assistant