THEA~-~oRNI~Y GENERAL 

OFTEXAS 

November 24, 1959 

Honorable Frank M. Jackson 

Executive Secretary 

Teacher Retirement System of Texas 

Austin, Texas 

Opinion No. WW-740 

Re: Questions as to amounts of 

the salaries paid to em-' 

ployees subject to the 

Teacher Retirement Law, 

which must be withheld and 

paid monthly to the RetireDear Mr. Jackson: ment System. 

Your recent request for an opinion states that the 

Board of Trustees of the Teacher Retirement System has ruled 

that the full six per cent (6%) of the salaries paid to employees subject to the Teacher Retirement Law must be withheld 

and submitted monthly to the Retirement System until the employee 

has received a salary of $8,400, of which the aggregate sum of 

$504 has been withheld and submitted to the Retirement System. 

You ask if this procedure by the Board is in accordance with the 

Teacher Retirement Act. 

Subsection 1 (b) of Section 10 of Article 2922-1, 

Vernon's Texas Civil Statutes, provides as follows: 

"Each employer on each of its payrolls 

shall cause to be deducted from the salary 

of each member, five per cent (5%) of his 

earnable compensation for each payroll period 

prior to September L, 1957, and six per cent 

(6%) of his earnable compensation for each 

payroll period thereafter; provided that the 

sum of the deductions made during any one year 

shall not exceed five per cent (5%) of the 

member's annual compensation, or One Hundred 

Eighty Dollars ($180.00), whichever is the 

lesser, for any year ending on or before August 

31, 1957, nor more than six per cent (6%) of 

his annual compensation, or Five Hundred Four 
- . . 

Honorable Frank M. Jackson, page 2 (W-740) 

Dollars ($504.00), whichever is the lesser, 

for any year ending after September 1, 1957. 

In determining the amount earnable by a member within a payroll period, the State Board 

of Trustees may consider the rate of annual 

compensation payable to such member on the 

first day of the payroll period as continuing 

throughout such period, and it may omit deduction from compensation for any period less 

than a full payroll period if the person was 

not a member on the first day of such period, 

and to facilitate the making of deductions, it 

may modify the deduction required of any member 

by such an amount as shall not exceed one-tenth 

(l/10) of such one per centum (l$) of the annual 

compensation upon the basis of which such deduction is to be made." 

Subsections l(a) and (b) of Section 11, provide as 

follows: 

"1 . The collection of members' contributions shall be as follows: 

"(a) Each employer shall cause to be deducted on each and every psyroll of a member for each 

and every pay roll period subsequent to the date 

of establishment of the Retirement System the contributions payable by such member, as provided in 

this Act. Each employer shall certify to the treasurer of said employer on each and every pay roll a 

statement as vouchers for the amount so deducted. 

"(b) The treasurer or proper disbursing officer of each employer on authority from the employer shall make deductions from salaries of 

members as provided in this Act, and shall transmit monthly, or at such time as the State Board of 

Trustees shall designate, a certified copy of the 

pay roll, and the amount specified to be deducted 

shall be paid to the Executive Secretary of the 

State Board of Trustees; and after making a record 

of all receipts, the said Board shall pay them to 

the Treasurer of the State of Texas, and by him be 

credited to Teacher Savings Fund, and such funds 

shall be deemed as appropriated for use according 

to the provisions of this Act. . , .' 
Honorable Frank M. Jackson, page 3 (w-740) 

The above quoted provisions of the Teacher Retirement 

Act clearly provide that on and after September 1, 1957, that 

there shall cause to be deducted from the salary of each member 

six per cent (6%) of his earnable compensation for each payroll 

period; provided, however, that the sum of the deductions made 

during any one year shall not exceed six per cent (6%) of the 

member's annual compensation or $504.00, whichever is the lesser, 

for any year ending after September 1, 1957. Accordingly, members whose annual compensations exceed $8,400.00 should have deducted from their pay a full six per cent (6%) of his earnable 

compensation for each payroll period until the sum of such deductions for any one year shall equal $504.00, after which the deductions for such year shall cease. 

You are therefore advised that it is our opinion that 

the Board of Trustees of the Teacher Retirement System has correctly construed and applied the law in this respect. 

SUMMARY 

The full six per cent (6%) of the salaries 

for each payroll period paid to employees 

subject to the Teacher Retirement Act, should 

be withheld and remitted to the Teacher Retirement System; provided, however, that the 

sum of deductions for any year ending after 

September 1, 1957, shall not exceed six per 

cent (6%) of the member's annual compensation 

or $504.00, whichever is the lesser. 

Yours very truly, 

WILL WILSON 

Attorney General of Texas 

LP:me:zt 

APPROVED: 

OPINION COMMITTEE 

W.V.Geppert, Chairman 

J.C.Davis, Jr. 

Houghton Brownlee, Jr. 

Paul Floyd 

Ray Loftin 

REVIEWED FOR THE ATTORNEY GENERAL 

BY: Morgan Nesbitt 

- Leonard Passmore 

Assistant