Texas Vernon’s Civil Statutes
Sec. § 1.04
Exemption From Execution


All retirement annuity payments, other benefit payments, and a members accumulated contributions are unassignable and are exempt from execution, garnishment, attachment, and state and local taxation.

(b)

The board shall hold in trust the assets of the fund for the exclusive benefit of the members and retirees of the fund and their beneficiaries and for defraying reasonable administrative expenses of the fund.

(c)

The fund may not be diverted, transferred, or used for any purpose inconsistent with this Act and with the instruments governing the fund.

(d)

A public or private entity, agency, or authority may not alter or impair any contract made by the board or under the authority or direction of the board.

(e)

The fund is independent of the control of a municipality to which this Act applies.

(1)

"Accumulated contributions" means a members aggregate contributions made to the pension fund, including interest, if any, as determined by the board of trustees.

(1-a)

"Actuarial experience study" has the meaning assigned by Section 802.1014, Government Code.

(1-b)

"Actuarially determined contribution rate" means the contribution rate, expressed as a percentage of payroll or compensation, actuarially determined necessary to:

(A)

fund the normal cost of the pension fund, the costs of administering the fund, and the unfunded actuarial amortization amount of the fund for the current plan year; and

(B)

maintain a closed amortization period that does not exceed 30 years.

(2)

"Average monthly compensation" means the result obtained by dividing the total compensation paid to a member during a computation period by the product of the number of years in the computation period multiplied by 12. The computation period is the last 60 consecutive completed calendar months of employment with the municipality or, if the member is employed by the municipality for fewer than 60 calendar months, the computation period is all completed months of employment with the municipality.

(3)

"Board of trustees" or "board" means the board of trustees of the police pension fund.

(4)

"Compensation" means the total cash remuneration paid to a member for personal services rendered to the municipality as a police officer, including longevity pay, overtime pay, deferred compensation, workers compensation, payments for unused vacation or unused sick leave, and picked-up contributions paid by the municipality to the fund.

(5)

"Disability" means the existence of a physical or mental condition that in the judgment of the board totally and permanently prevents the member from engaging in any work for pay for the municipality, for any other employer, or in the members own employment or business. A disability that exists for a period of six months is presumed to be permanent.

(6)

"Member" means a properly appointed and enrolled police officer of a municipality that has adopted this Act who is a contributing member of the pension fund.

(6-a)

"Normal cost" means the actuarially determined amount necessary to fully fund accrued pension benefits under the pension fund allocated to the current plan year.

(7)

"Pension fund" or "fund" means the police pension fund created by this Act.

(8)

"Plan year" means the 12-month period beginning January 1 and ending on the following December 31.

(9)

"Trustee" means a member of the board of trustees.

(10)

"Unfunded actuarial amortization amount" means the actuarially determined amount required to pay off the funds unfunded actuarial accrued liability layers over a closed 30-year amortization period. The initial layer is equal to the unfunded actuarial accrued liability of the fund in the plan year beginning January 1, 2019. For each subsequent plan year, the unfunded actuarial accrued liability layer is equal to the unanticipated change in the unfunded actuarial accrued liability of the fund in that plan year over the expected unfunded actuarial accrued liability included in the preceding plan years actuarial valuation.

(b)

The board shall administer and hold in trust the assets of the fund for the exclusive benefit of the beneficiaries of the fund. The board may pay from the fund reasonable administrative expenses incurred in administering the fund.

(c)

The fund may not be diverted, transferred, or used for any other purpose inconsistent with this Act and with the instruments governing the fund.

(d)

A public or private agency, entity, or authority may not alter or impair any contract made by the board or under the authority or direction of the board.
Source
Last accessed
Oct. 22, 2019