A~~JSTIN 11. TCUAS
September29, 1954
Hon. c. H. CavnePe ~opini0n 190. a-141 State Auditor Anntin, Texae Re: IU~lbillty'of the llqni- dator appointeduwlor Arti- cle 21.28,Tcxaa InBuMnoe Code, and hl8 eraployeee for membershipin the State Em- plRyeestbtlrcmtentsy8te& Dear Mr. Cavllesrt
Your requertror UI opinion rem in pm uumt
"Ara the liquidator (appointedby the Board of InsuranceCommissionersunder the provisionsof Article 21.28, Imuranos Code of;Texas) and those operatingunder him Stata employeesto the extent that they are eligiblefor membershipand partioipa- tion in the Texas EmployeesRetirementSystem?
"This questionarises in view of the fact that those personsare members of the EmployeesRetirement System and making contributionsto it, while at the same time they are also participatingin the Federal Social Security,Act(makingcontributions) and the Un- employmentCompensationcoverage(Stateand Federal).
"If those personsare State employeeswe do not believe they shouldbe under the Sooial Securityand UnemploymentCompensationprovisions. If they are not State employees,then we do not believethey should be coveredby the EmployeesRetirementSystem."
Eligibilityfor membershipin the EmployeesRetirementSystem of Texas Is determinedby the definitionsof "department" aud "ea@.oyee" found in Section 1 of Article 62289, Vernon'sCivil Statutes. These de- finitionsare *s follows:
"'Dcpartmant'shall mean any department,commission, institution, or agency of the State Government.
"'Employee'shall mean any regularlyappointedofficer or employeein a hepar'tment o? '2netitate tin0'isemployahon
z C.H. Cavness,pa@ 2 ,(iS-141)
a basis or in a positionnormallyreq~fringnot iqa thau nine hundred (900) hours per year, but shall ~4~ includemembere of U$State Legislatureor any inoumbantof an office normallyfilledby vote of the people; nor peraonson pieceworkbasis; nor operatorsof equipmentor dPiYel'Rof 3mm whom wages are Ineludedin.rentalrate Raid the ownersof &aid equipmentor team; nor any personwho is coveredby the TeacherRetirementSystemof the State of Texas or,any retirementsystemslrPport.4 with State funds other than the Texas EmployeesHn,tirement System."
Funds from which retirementbenef::sare paid are made up of contributions from the employees@oompenoatiojnand a matchingoontribu- tion by the State of Texas, which in chargedto the fund "appropriated, allooated,and providedto pay the salaryor compensationof the em- is made." Art. 6228a, sea. 8. ployee for whose benefit the oontrib'ation
The questionfor determinationis uix%her Article21.28 of the InsuranceCode createsa "department,?omraission,Institution,or agencyof the State Govemmanf." Section2 of Article21.28 provides:
"Wheneverunder the law of this S-);ete a court of competentjurisdiction fiuds that a reooivershould take chargeof the assetsof an insurerdomiciledin this State, the liquidatordasignakedb:-,theBoard of InsuranceCommisaiouerees "heriqafterprtivided for shall be such receiver. ,ilbe l!.<~~~ir'*a'b~~ iles:~i~~ a;'the assetsof such 1ns~~~e.r and dea? w.,&+ .-the oaue %n his own nom as receiveror -Inthe imme of the Umrer a8 ,t. of b~::h. ~mgmsa%ion and all expensesof liquidstionshall be made by the liquidatorout of funds or assets of the insureron approvalof the Board. An itemizedreport of such expenees,sworn to by the liquidatorand approvedby the Board, shall be preflentedto the court from time to time,which accountnhkl.1 be approvedby the Court unlessobJectionis filed theretowithin ten (10) days after the presentationof the aoaount . . . ." E&l. c. 'H.crYnass,pago 3 (.(&141)
sootion 4 or Artiole 21.28 rerd~ in parts