CW*Wr”RD c. LwAR-rIN 

AUSTIN. %-EZXAS 7 

*-l-roRNEY GRNnGRAI. 

Aiiin#d by Crap@ 0, 

May15 , 1970 Bd. of bimD.n'm swiof 

and Retianmt Fund 

456 su Pd page 49,438 

Mrs. Marie Winters OpiniOn NO. M-631 

Firemen's Pension Commissioner 

1010 Sam Houston Building Re: Construction of Section 7F, 

Austin, Texas 78701 Article 6243e, Firemen's 

Rellef~and,Retirement Fund 

Act,~S.B:473, Acts;Glst 

Leg., R.S., 1969, ch. 768, 

Dear Mrs. Winters: p. 2281. 

In your letter requesting an opinion from this office, 

you submit the following facts: 

"Most of the thirty-seven (37) fully paid 

fire departments that participate in the State 

Firemen's Pension System are having actuarial 

studies made and increasing benefitsas provided 

unde,r Section 7F. Three of these departments, 

Amarillo, Lubbock and Abilene have raised benefits which, in my opinion, are not permissible 

under Section 7F. 

"Amarillo and Lubbock have voted to pay a 

lump sum of $2,500.00 to a retiring fireman plus 

his regular monthly pension. No lump sum payment Is provided in the Act; however, a lump 

sum may be permissible to firemen, however, the 

two towns mentioned have also voted to pay a 

lump sum of $2,5OO.OO to the widow of a fireman 

who dies after the new benefits are voted In." 

With regard to these facts you ask the following questions: 

“May I have your official ruling on whether 

or not the lump sum to firemen is legal and $1~0 

are changes to widows benefits legal. 0 D . 

Section 7F was Initial1 amended by S.B. 397, Acts 

61st Leg., R.s., 1969, chapter 17 % , Section 3, page 508, and 

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. 

Mrs. Marie Winters, page 2 (M-631) 

provides as follows: 

"Sec. 3. Section 7F, Chapter 125, Acts 

of the 45th Legislature, Regular Sessioh; 1937, 

(Article 6243e, Vernon's Texas Civil Statutes) 

as added by'sectlon 4, Chapter 167, Acts of the 

60th Legislature, Regular Session, 1967, is 

amended to read as follows: 

"'Sec. 7F. In cities of less than one hundred 

eighty-five thousand (185,000), according to the 

last preceding Federal Census, the monthly,pension 

allowance as provided for underSections 6, 7 and 

7A of this Act, and In cities of more than one 

hundred eighty-five thousand (185,000) the monthly 

pension allowance as provided for under Sections 

6B, 7B, and 76 of this Act, may beg Increased provided that: 

"'(1) the Increase Is first approved by an 

actuary qualified by training and experience in 

the field of retirement programming and who is 

selected by a four-fifths vote of the Board of 

Trustees of the Firemen's Relief and Retirement 

Fund; 

"'(2) a majority of the participating members of the pension fund vote for the Increased 

,monthly pension allowance by a secret ballot; 

"'(3) the increase applies only to active 

full time firemen In the department at the time 

of the Increase and those who enter the department thereafter.'" 

Section 7F was subsequently amended during the same 

session of the Legislature by S.B. 473, Acts 61st Leg., R.S., 

1969, chapter 768, Section 1, p* 2281, and provides as follows: 

"Sec. 7FF. This section applies to all 

cities and towns which are now within or which 

may hereafter come wfthin the provisions of this 

Act. The Board of Trustees, as prescribed by law, 

of any such city or town may modify or change In 

any manner whatsoever any of the benefits provided 

hereunder and may modify or change in any manner 

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Mrs. Marie Winters, page 3(M-631) 

whatsoever any of the eligibility requirements 

for such benefits provided that: 

"(1) the change or modification 1s first 

approved by a qualified actuary selected by a 

four-fifths vote of the Board of Trustees of the 

Firemen's Relief and Retirement Fund; such qualified 

actuary shall (a) if an Individual, be a Fellow 

of the Society of Actuaries or a Fellow of the 

Conference of Actuaries in Public Practice or a 

Member of the American Academy of Actuaries; 

“(2) a majority of the participating members of the pensionfund vote for the change or 

modification by a secret ballot; 

"(3) the change or modification applies 

only to active full time firemen in the department at the time of the change or modification 

and those who enter the department thereafter; 

and - 

"(4) the change or modification does not 

deprive a member, without his written consent, 

of a right to receive benefits hereunder which 

have already become fully vested and matured in 

such membereH (Emphasis added.) 

S.B. 473, in authorizing cities or towns to modify 

or change in any manner whatsoever all of the pension benefits 

provided for in Article 6243e, and in addition authorizing the 

cities to modify or change in any manner whatsoever any of the 

eligibility requirements for such benefits, broadens considerably 

the scope and application of Section 7F as amended by S.B. 397. 

The Legislature in granting the cities such broad authority to 

operate their individual Firemen's Relief and Pension Fund is 

presumed to have acted with full knowledge of all existing statutes, 

especially those dealing with the subject matter of the new statute; 

that 1s S.B. 473. Garner v. Lumberton Independent School District, 

430 S.W.2d 418 (Tex,Civ.App. 19b8, no writ). 

Under the broad authority of S,B. 473> supra, the Board 

of Trustees of the Firemen's Relief and Retirement Fund Trustees 

of a town or city would be authorized 9 under the prescribed procedure, to modify or change any existing pension benefit provided 

for in Article 6243e, Vernon"s Civil Statutes, the Firemen's 

Relief and Retirement Fund Act. This authority would include the 

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Mrs. Marie Winters, page 4(m-631) 

granting of a lump sum payment In addition to a regular monthly 

pension to those firemen or their survivors who were active fulltime firemen in the department on the date the additional lump 

sum payment is voted on and adopted by the membership and those 

who entered the department after such date as active full-time 

firemen. This would preclude any pension modification or change 

In the form of an additional lump sum payment in pension benefits 

to retired firemen or their survivors. 

Section 6a, Article 6243e, contains a provision similar 

to Section 7F, Article 6243e, which requires an election for the 

adoption of additional pension benefits. In construing this Section, Attorney General's Opinion Wo. WW-1168 (1961) holds: 

I! 

. . . those persons who have 'retired' and 

who have received retirement benefits prior to 

the election discussed above have no right to 

participate in or otherwise receive benefits 

under Section 6a of Article 6243e, Vernon's Civil 

Statutes.U 

It is our opinion that this reasoning is applicable to the construction of the provisions of Section 7F. 

Therefore, on the basis of the foregoing discussion, 

It is our opinion that under the provisions of Section 7F, 

Article 6243e, Firemen's Relief and Retirement Fund Act (S.B. 

473, Acts 61st Leg., R.S., 1969, ch. 768, p. 2281), that a lump 

sum payment in addition to a regular monthly pension is authorized 

to be paid to a retired fireman or his survivor if such additional 

payment was adopted at the time such fireman was an active fulltime fireman In the department or prior to the time such fireman 

entered the department as an active full-time fireman. 

SUMMARY 

Under the provisions of Section 7F, Article 

6243e, Firemen's Relief and Retirement Fund~.Act 

(S.B. 4 3, Acts 61st Leg., R.S., 1969, ch. 768, 

p* 2281 1 a lump sum payment, In addition to 

a regular monthly pension, is authorized to be 

paid to a retired fireman or his survivor, if 

such additional payment was adopted at the time 

he was an active full time fireman in the department or prior to the time such fireman entered 

the department as an active full-time fireman. 

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Mrs. Marie Winters, page 5 (M-631) 

Prepared by Ivan R. Williams, Jr. 

Assistant Attorney General 

APPROVED: 

OPINION COMMITTEE 

Kerns Taylor, Chairman 

W. E. Allen, Acting Co-Chairman 

Sam Jones 

Malcolm Quick 

Jack Sparks 

Houghton Brownlee 

MEADE F. GRIFFIN 

Staff Legal Assistant 

ALFRED WALKER 

Executive Assistant 

NOLA WRITE 

First Assistant 

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