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 suthority to require one 

year of creditable 

service under the . 

Teacher Retirement 

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 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 meeting 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 benefits 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 benefits. Does the Board of Trustees have ths authority 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 designated 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 Hundred Dollars ($500.00), viz:" (Emphasis Added) 

!fhe payment 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 survivor 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 designated 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 retirement "shall be entitled to the same survivor benefits as are authorized 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 'co the 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 benefits, 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) impsum 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 

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 

BY 

Leonard Passmore 

Assistant