, THE AITORNEY GENERAL 

OFTEXAS 

Awemm, TEXAN 78711 

September 12. 1973 

Honorable Bevington Reed, Commissioner Opinion No. H- 99 

Coordinating Board 

Texas College & University System 

P. 0. Box 12788 

Austin. Texas 78711 

Dear Commissioner Reed: 

Re: Construction of 

$51.353, Texas 

Education Code, 

with reference to 

circumstances 

under which a 

refund of premium 

is due-to university 

Your letter of March 28, 1973, sets forth the following facts: 

“On May 1, 1969, Antoinette Daleo, then 

employed by %t University of Texas at Austin 

became a participant in the Optional Retirement 

Program for Institutions of Higher Education. 

She continued participation in the program as an 

employee of The University of Texas at Austin 

until Janua\sy 1972. She was employed by Bee 

County College from January 15, 1972, to August 

15, 1972, a period of seven months. “ 

On behalf of Bee County College, you ask our opinion on the following 

question: 

“Dots Bet County College have an obligation 

to obtain refunds on the State’s matching portion of 

the Optional Retirement Program for the period from 

January 15, 1972, to August 15, 1972? ” 

Article 51. 353 (a) of the Texas Education Code provides as follows: 

p. 451 
The Honorable Btvington Reed, page 2 (H-99) 

“(a) There is hereby established an optional 

retirement program. Participation in the optional 

retirement program is in lieu of active mtmbtrship in the retirement system. The governing 

boards of all institutions of higher education shall 

make available to all faculty members in their 

component institutions. agencies, and units the 

optional retirement program which shall provide 

for the vesting of benefits after one year of participation in one o* more plans operating pursuant 

to this Act in one or more institutions of higher 

education. ” 

This statute was amended in 1971 by adding the words “in one or 

more plans operating pursuant to this act in one or more institutions of 

higher education” at the end of the stctind sentence. 

Prior to this amendment, Attorney General Opinion M-420 (1969) 

held that vesting required participation for one calendar year in a single 

institution. 

It is now the opinion of this office that the amendment noted above 

had the effect of allowing vesting after participation in a plan for one 

calendar year even though said year of participation is at mgrt than one 

institution of higher education, and further that, once vested, all future 

contributions by the same employee art similarly vested even though made 

through different institutions of higher learning. 

The facts of your letter indicate that the subject employee participated 

in the fund for considerably more than one year. Accordingly, all contributed 

funds vested in said employee and Bet County College has no obligation or 

right to obtain a refund of the state’s matching portion of the optional rttirtment program for the period from January 15, 1972, to August 15, 1972. 

SUMMARY 

Funds contributed to an optional retirement 

fund by an tmptoytt of an institutidn of higher 

p. 452 
The Honorable Bevington Reed, page 3 (H-99) 

education under Article 51. 353 of the Texas Education 

Code vest after one year of participation whether or 

not the employee has been employed by more than a . 

single such institution, and, once vested, all future 

contributions made by the same employee vest although 

made through different institutions of higher education. 

Yours very truly, 

// Attorney General of Texas 

DAVID M. KENDAL.L, Chairman 

Opinion Committee 

p. 453