, 

# 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 ofpremium is due-to university Your letter ofMarch 28, 1973, sets forth the following facts:

“On May 1, 1969, Antoinette Daleo, then employed by%t University ofTexas atAustin became a participant in the Optional Retirement Program for Institutions ofHigher Education. She continued participation in the program as an employee of The University of Texas atAustin until Janua\sy 1972. She was employed by Bee County College from January 15, 1972, toAugust 15, 1972, a period of 

### seven months. “ On behalf of Bee County College, you ask our opinion onthe following question: “Dots Bet County College have an obligation

toobtain refunds onthe State’s matching portion of the Optional Retirement Program for the period from January 15, 1972, toAugust 15, 1972?” Article 51.353 (a) of the Texas Education Code provides as follows:

p. 451The 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 ofactive mtmbtrship in the retirement 

### system. The governing boards ofall institutions ofhigher 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 ofbenefits after one **year** ofparticipation in

### oneo* more plans operating pursuant to this Act in **one** or more institutions ofhigher education. ” This statute was amended in 1971by adding the words “in 

### one or more plans operating pursuant tothis act in one or more institutions of higher education” at the end ofthe stctind sentence. Prior tothis amendment, Attorney General Opinion M-420 (1969) held that vesting required participation for 

### onecalendar year in a single institution. Itis now the opinion of this office that the amendment noted above had the 

### effect ofallowing vesting after participation in a plan for 

### one calendar 

### year eventhough said year ofparticipation is at mgrt than 

### one institution ofhigher education, and further that, once vested, all future contributions by the 

### same employee art similarly vested 

### even though made through different institutions ofhigher learning. 

### The facts ofyour 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 ofthe 

### state’s matching portion of the optional rttirtment program for the period from January 15, 1972, toAugust 15, 1972. SUMMARY Funds contributed toan optional retirement fund by an tmptoytt ofan institutidn ofhigher

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

education under Article 51.353ofthe Texas Education Code vest after 

### oneyear ofparticipation 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 ofhigher education. Yours 

### very truly,

// Attorney General of Texas

DAVID M. KENDAL.L, Chairman Opinion Committee

p. 453