Section 851.001 - Definitions In this subtitle:
(1) "Accumulated contributions" means the sum of all contributions made by a member and credited to the member's individual account, plus interest allowed on the account as provided by this subtitle.(2) "Actuarial equivalent" means a benefit that, at the time it is entered upon, has the same present value as the benefit it replaces, based on interest and on a mortality table recommended by the actuary and adopted by the board of trustees.(3) "Annuity" means an amount of money payable in equal monthly installments at the end of each month for a period determined under this subtitle.(4) "Annuity reserve" means the present value, computed on the basis of annuity or mortality tables adopted by the board of trustees, with interest, of all payments to be made under an annuity.(5) "Board of trustees" means the persons appointed under this subtitle to administer the retirement system.(6) "Compensation" means the sum of payments made to an employee for performance of personal services, as certified on a written payroll of an employing department, that does not exceed any rate of compensation fixed by a governing body as the maximum salary on which member contributions to the retirement system may be based and does not exceed the amount established by board rule, which may not exceed the limit provided by Section 401(a)(17) of the Internal Revenue Code of 1986 (26 U.S.C. Section 401) , as indexed in the manner provided by that section, and includes amounts by which payment for earnings is reduced by reason of: (A) employer pick-up of employee contributions to the retirement system under Section 855.402(j);(B) deferral of compensation under benefit plans adopted by the employer pursuant to Section 401(k) or 457 of the Internal Revenue Code of 1986 (26 U. S.C. Sections 401, 457);(C) cost of benefits furnished under qualified cafeteria plans adopted by the employer pursuant to Section 125 of the Internal Revenue Code of 1986 (26 U.S.C. Section 125);(D) cost of tax-sheltered annuities acquired for the employee under Section 403(b) of the Internal Revenue Code of 1986 (26 U.S.C. Section 403); and(E) deductions for Federal Insurance Contribution Act taxes, federal income taxes, or other obligations of the employee.(7) "Department" means a recognized division performing a governmental or proprietary function of a municipality.(8) "Employee" means a person, including a person serving a period of probationary employment, who receives compensation from and is certified by a municipality as being regularly engaged in the performance of duties of:(A) an appointive office or position that normally requires services from the person for not less than 1,000 hours a year; or(B) an elective office that normally requires services from the person for not less than 1,000 hours a year, in a municipality that began participating in the retirement system after December 31, 1981, or that has adopted a membership requirement under Section 852.107.(8-a) "Excluded prior service credit" means prior service credit described by Section 853.0015 and: (A) adopted under Section 853.105(d-1); or(B) required by Section 853.303(a-1), (a-2), or (a-3).(9) "Municipality" means any incorporated city or town in this state.(10) "Rate of compensation" means the rate at which payments to an employee are computed, as certified by the employing municipality, converted into compensation for any period on the assumption that 2,400 hours, 300 days, 52 weeks, 12 months, and 1 year are equivalents.(11) "Retirement" means withdrawal from service with a retirement benefit granted under this subtitle.(12) "Retirement system" means the Texas Municipal Retirement System.(13) "Service" means the time a person is an employee.(14) "Credited service" means the number of months of prior and current service ascribed to a member in the retirement system or included in a prior service certificate in effect for the member.(15) "Amortization period" means, as to a particular municipality, the expiration of the maximum number of years, not to exceed 30 years, after the most recent actuarial valuation date for the municipality.(16) "Member" means a person for whom an individual account has been established in the retirement system and whose membership has not terminated under Section 852.104.(17) "Beneficiary" means a person designated by a member, annuitant, or by statute to receive a benefit payable under this subtitle as a result of the death of a member or annuitant.(18) "Director" means the person appointed executive director under Section 855.201.(19) "Vested member" means a member who may withdraw from employment with all participating municipalities, leave the member's accumulated contributions on deposit with the retirement system and, on meeting the age and length of service requirements, file an application for retirement and begin to receive a service retirement benefit.(20) "Individual account" means an individual account for a member in the benefit accumulation fund, as established under Section 855.306(a).Tex. Gov't. Code § 851.001
Amended by Acts 2019, Texas Acts of the 86th Leg.- Regular Session, ch. 991,Sec. 1, eff. 1/1/2020.Amended By Acts 2011, 82nd Leg., R.S., Ch. 1208, Sec. 1, eff. 6/17/2011.Amended by Acts 1991, 72nd Leg., ch. 16, Sec. 11.01(a), eff. 8/26/1991; Acts 1993, 73rd Leg., ch. 57, Sec. 1, eff. 1/1/1994; Acts 1995, 74th Leg., ch. 514, Sec. 1, eff. 9/1/1995; Acts 1997, 75th Leg., ch. 76, Sec. 1, eff. 9/1/1997; Acts 1999, 76th Leg., ch. 83, Sec. 1, eff. 12/31/1999; Acts 2001, 77th Leg., ch. 121, Sec. 1, eff. 9/1/2001; Acts 2003, 78th Leg., ch. 599, Sec. 1, eff. 1/1/2004.1989, 71st Leg., ch. 462, Sec. 1, eff. 9/1/1989. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec. 61.001 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. 9/1/1989.Amended By Acts 1987, 70th Leg., ch. 183, Sec. 1, eff. 8/31/1987Amended by Acts 1981, 67th Leg., 1st C.S., p. 218, ch. 18, Sec. 65, 66, eff. 1/1/1982Added by Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. 9/1/1981.