JOHN L. HILL 

Attorney General 

The Attorney General of Texas 

January 12, 1978 

Honorable M. L. Brockette 

Commissioner of Education 

Texas Education Agency 

201 East Eleventh Street 

Austin, Texas 78701 

Honorable Jess M. Irwin, Jr. 

Commissioner 

Texas Rehabilitation Commission 

7745 Chevy Chase Drive 

Austin, Texas 78752 

Gentlemen: 

Opinion No. H- 1114 

Re: Payment of insurance premiums 

of retired e@yees. 

You inquire whether your respective agencies have statutory authority 

to pay the full cost of group life and health insurance premiums for former 

employees retired under the Teacher Retirement Act. You direct our 

attention to article 3.51-5, enacted in 1975, which provides in part: 

The costs of group life and health insurance premiums to persons retired under the Teacher Retirement Act, who at the time of their retirement were 

employed by the Texas Central Education Agency, the 

Texas Rehabilitation Commission . . . shall be fully 

paid’from the funds of such agency. . . . 

Ins. Code art. 3.51-5(a); Acts 1975, 64th Leg., ch. 408, at 1062. 

Article 3.51-5 of the Insurance Code must be read together with other 

legislation on insurance for retired employees. Article 3.50-2 of the 

Insurance Code provides for life, accident and health insurance for State 

employees. “Employee” includes 

an employee who is retired or retires and is an 

annuitant under the jurisdiction of the Teacher Retirement Sytem of Texas. . . whose last employment with 

the state prior to retirement was or is as an employee 

of . . . the Texas Rehabilitation Commission, the 

Central Education Agency. . . . 

P. 4558 
Honorable M. L. Brockette 

Honorable Jess M. Irwin, Jr. - Page 2 (H-1114 1 

Ins. Code art. 3.50-2, 5 3(al(5l(AXi); Acts 1977, 65th Leg., ch. 797, S 2, at 1996. 

Active and retired employees are to be included in the group insurance plan 

established under article 3.50-2. Sec. 5, 13. Section 14, as amended in 1977, 

provides for payment of the State’s contribution to the insurance premiums: 

Payment of Premiums. (a) The State of Texas shall 

contribute monthly to the cost of each insured employee’s 

group insurance such amount as shall be appropriated 

therefor by the legislature in the General Appropriations 

Act. A like amount for each employee shall be appropriated 

by the governing board of state departments in their 

respective official operating budgets if their employees are 

compensated from funds appropriated by such budgets rather 

than by the General Appropriations Act. 

Acts 1977, 65th Leg., ch. 797, S 8, at 1998. Thus any agency, whether its funds 

derive from appropriations or from other sources, must contribute the amount set 

out in the General Appropriations Act. The current act limits the contribution to 

not more than fifteen dollars per active or retired employee per month. General 

Appropriations Act, Acts 1977, 65th Leg., ch. 872, art. III, at 64. 

Statutes which deal with the same subject, as do article 3.50-2, section 14, 

and article 3.51-5, are in pari materia and must be harmonized, if possible. 

Goldman v. State, 277 S.W.2d 217 (Tex. Civ. App. - Amarillo 1954, writ ref’d n.r.e.1. 

Where they conflict, article 3.50-2, section 14 prevails as the latest expression of 

Legislative intent. Berger v. Kirby, 140 S.W. 334, 336 (Tex. 1911); see also V.T.C.S. 

art. 5429b-2, S 3.05(a). 

In our opinion the statute authorizes the Rehabilitation Commission and the 

Education Agency to contribute on behalf of retirees only the amount of money 

stated in the appropriations act, which is limited under the present act to not more 

than fifteen dollars per month. 

We do not believe article 3.51-5 can be held to prevail as a more specific 

statute controlline over a general statute. since both article 3.51-5 and article 3.50- 

Z expwJq w-g-& +n~km-tkr. =sm&-&~~'d y-ulr. w$mjp,E c&red qumuant. ta the 

Teacher’s Retirement Act. See Trinity Universal Ins. Co. v. McLaughlin, 373 

S.W.2d 66 (Tex. Civ. App. - Aii& 1963, no writ). Indeed, the caption to the 1977 

amendment to section -14 of article 3.50-2 of the Insurance Code specifically 

indicated that the bill was designed to equalize the employer% share of premium 

payment. In our opinion, your agencies lack the authority to pay in full the 

insurance premiums of the stated retirees when the Legislature has directed in the 

appropriations act that the contribution be limited to a lesser amount. 

SUMMARY 

The Education Agency and the Rehabilitation Commission 

may not pay the full cost of group and health insurance 

P. 4559 
. - 

Honorable M. L. Brockette 

Honorable Jesa M. Irwin, Jr. - Page 3 (H-1114) 

premiums for certain retired employees where the Appropriations Act, pursuant to article 3.50-2, section 14, of the 

Insurance Code, has limited the agency’s contribution to a 

lesser amount. 

Very truly yours, 

/..;JOHN L. HILL 

(/’ Attorney General of Texas 

APPROVED: 

jst 

P. 4560