Texas Attorney General Opinion: LO96-121 Page: 1 of 7
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@ffice of the ttornep 4enerat
state of ftexas
ATTORNEY GENERAL November 4, 1996
The Honorable Teel Bivins Letter Opinion No. 96-121
Chair, Nominations Committee
Texas State Senate Re: Whether base updated service credits
P.O. Box 12068 are calculated on the basis of the number of
Austin, Texas 78711 months a member has performed credited
service and related questions (ID# 36101)
Dear Senator Bivins:
Government Code section 853.402(c)(1) requires the Texas Municipal Retirement
System (the "retirement system") to calculate a member's base updated service credit us-
ing the number of months of credited service the member has accumulated. You ask
whether, in calculating base updated service credits, the retirement system must include
service for a partial year. Under section 853.402(c)(1), the calculation of base updated
service credit is premised on the number of months, not years, of accumulated credited
service. Consequently, we conclude that the retirement system must include service for a
You also ask, if we determine that the retirement system must include credited
service for a partial year, what adjustments the retirement system must make in existing
updated service credits and retirement annuities. In our opinion, to the extent the retire-
ment system has incorrectly calculated updated service credits and retirement annuities
because it incorrectly calculated base updated service credits, it must recalculate them.
We do not consider, however, whether the retirement system has, in fact, erroneously cal-
culated updated service credits and retirement annuities.
Government Code section 853.402 is a part of chapter 853, subchapter E. You
state that, as you understand subchapter E, it provides a municipality an optional method
by which to increase the value of retirement benefits for participating members of a de-
fined contribution plan. Subchapter E, you suggest, provides a means by which the
municipality may account for the effects of inflation over time.
Section 853.401(a) generally authorizes the governing body of a municipality that
has chosen to participate in the retirement system' to adopt an ordinance authorizing the
retirement system to recalculate members' credits for service to the municipality. Upon
ISee Gov't Code 852.001 (providing for municipality's election to participate in retirement
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Texas. Attorney-General's Office. Texas Attorney General Opinion: LO96-121, text, 1996; (texashistory.unt.edu/ark:/67531/metapth277154/m1/1/: accessed November 20, 2018), University of North Texas Libraries, The Portal to Texas History, texashistory.unt.edu; crediting UNT Libraries Government Documents Department.