# The Attorney General of Texas August 31, 1982 MARK WHITE Attorney General

Supreme Court Building P. 0. Box 12546 Austin. TX. 76711- 2546 5121475.2501 Telex 9101674-1367 Telecopier 5121475.0266

1607 Main St., Suite 1400 Dallas, TX. 75201.4709 2141742-6944

4624 Alberta Ave.. Suite 160 El Paso, TX. 79905.2793 9151533.3464

1220 Dallas Ave., Suite 202 Houston, TX. 77002-6986 713/650-0666

606 Broadway, Suite 312 Lubbock, TX. 79401.3479 6061747-5238

4309 N. Tenth, Suite B McA,,en, TX. 78501.1685 5121682.4547

200 Main Plaza. Suite 400 San Antonio, TX. 78205-2797 5121225.4191

An Equal OpportunityI Affirmative Action Employer HonorableGeorgeN. Rodriguez,Jr. El Paso CountyAttorney Room 201 City-CountyBuilding El Paso, Texas 79901 OpinionNo.~w-510 Re: Alteration of city firemen, policemen and fire alarm operatorspension fund Dear Mr. Rodriguez: You asked whether a city's firemen, policemen and fire alarm operators pension fund which operates a policemen's division and a firemen'sdivisionmay be altered to make changes in the operation of the policemen's division without making changes in the firemen's divisionorvice versa. You state that the city of El Paso has a Firemen, Policemen and Fire Alarm Operators Pension Fund established pursuant to article 6243b, V.T.C.S. This fund has a separatepolicemen'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 number of firemenmaking contributionsto the fund. From time to time modificationshave been made as provided in section 10A. All of the changes must sequentially comply with provisions of article 6243b, section lOA which provides:

(b) None of the changesmade under Subsection (a) of this sectionmay be made unless all of the following conditions are ~sequentiallycomplied with: (1) the changemust be approvedby a qualified actuary selected by a four-fifths vote of the Board; the actuary, if an individual,must be a Fellow of the Society of Actuaries or a Fellow of the Conference of Actuaries in Public Practice or a Member of theAmericanAcademy ofActuaries; the findings upon which the properly selected and qualified actuary's approval are based are not subject to judicial review;

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(2) the changemust be approved by a majority of all persons then making contributions to the fund,voting by secretballot at an electionheld 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 tovote; (4) the changes,except changesmade 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 becomevested andmatured. ~(Emphasisadded). 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'sdivision; 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 distributionof 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 legislationto public retirement systemsand appropriate governmental entities. V.T.C.S. Title llOB, Public Retirements Systems, §11.202 (1981Pamphlet). SUMMARY Neither division of the firemen,policemen,and fire operators fund established pursuant to

p. 1842. - HonorableGeorgeN. Rodriguez,Jr. - Page 3 (Mw-510)

article 6243b, V.T.C.S.,may be changedwithout a uniform change in the other division.

MARK WHITE Attorney General of Texas JOHNW. FAINTER,JR. FirstAssistantAttorneyGeneral RICHARD E. GRAY III ExecutiveAssistantAttorney General Preparedby Jean Cornelius AssistantAttorney General APPROVED: OPINION COMMITTEE SusanL. Garrison,Chairman Jon Bible Jean Cornelius Rick Gilpin PatriciaHinojosa JimMoellinger BruceYoungblood

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