Tex. Gov't Code § 842.053 · Subchapter A-1. TERMINATION OF PARTICIPATION BY SUBDIVISIONS
INVOLUNTARY TERMINATION OF PARTICIPATION.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) The board of trustees by order may terminate the participation of a subdivision other than a county if the board determines that:
(1) the subdivision has failed to perform in accordance with a termination agreement under Section 842.052;
(2) the subdivision has ceased to exist, is in the process of dissolving, or is changing its operational form;
(3) benefits accrued for service with the subdivision may be at risk of forfeiture;
(4) the retirement system no longer serves as an effective program for providing retirement, disability, and death benefits to the employees of the subdivision because of the action or inaction of the subdivision or because of a significant change in covered payroll, number of contributing members, workforce composition, general revenues, or other circumstances of the subdivision; or
(5) the continued participation of the subdivision is not in the best interest of the retirement system, the subdivision, the employees of the subdivision, or the other participating subdivisions.
(b) Beginning with a date specified by the board, additional employee deposits or contributions may not be made to a member's account with the subdivision and additional service with the subdivision may not be credited to a member, except as authorized by the board. Except as otherwise provided by this subchapter, all other retirement plan provisions then in effect remain in effect.
(c) Beginning with a date specified by the board, the subdivision's account in the subdivision accumulation fund ceases to receive allocations under this subtitle for any prior, current, or future plan year except as authorized by the board.
(d) Beginning with a date specified by the board, the retirement system shall value the accrued benefits and supplemental annuities with respect to the subdivision's participation as immediately payable under this subchapter. If the assets in the subdivision's account exceed the actuarial equivalent value of pension benefits, the subdivision is released from all liability with respect to the accrued benefits and supplemental annuities. The retirement system shall make transfers from the subdivision's account to the appropriate funds within the system in amounts actuarially equivalent to all accrued benefits and supplemental annuities. The retirement system shall pay any amount remaining in the subdivision's account after satisfaction of all the subdivision's pension liabilities to the subdivision or its governmental successor in interest in accordance with Section 845.317(b).
(e) If the actuarial equivalent value of pension benefits exceeds the assets in the subdivision's account, the subdivision or its governmental successor in interest may make a contribution in any amount to the subdivision's account. The retirement system shall transfer the assets of the subdivision's account in the subdivision accumulation fund to appropriate funds within the system and allocate the assets as provided by Sections 842.054-842.057.
Notes and commentary — not statutory text
History
Added by Acts 2005, 79th Leg., Ch. 506 (H.B. 633), Sec. 6, eff. January 1, 2006.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 873 (H.B. 1587), Sec. 9, eff. January 1, 2008.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/GV/htm/GV.842.htm
- Text hash
- sha256 1e8b88994a8b7e35487fc997402bf1560f4575038e91d4e8724a9d2fab76ff9f
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Government Code
- Tex. Gov't Code § 842.052VOLUNTARY TERMINATION OF PARTICIPATION.Printed as Section 842.052
- Tex. Gov't Code § 842.054CLASS A.Printed as Sections 842.054-842.057
- Tex. Gov't Code § 842.057CLASS D.Printed as Sections 842.054-842.057
- Tex. Gov't Code § 845.317PAYMENT TO FORMERLY PARTICIPATING SUBDIVISION.Printed as Section 845.317(b)
Cited by 5 provisions
Provisions in this library whose text cites Tex. Gov't Code § 842.053. Each shows the citation as that text prints it.
Government Code
- Tex. Gov't Code § 842.0075ASSUMPTION BY SUCCESSOR SUBDIVISION.Printed as Section 842.053
- Tex. Gov't Code § 842.054CLASS A.Printed as Section 842.053
- Tex. Gov't Code § 845.310ENDOWMENT FUND.Printed as Section 842.052, 842.053, or 845.317
- Tex. Gov't Code § 845.315ANNUAL ALLOCATION OF NET INVESTMENT INCOME OR LOSS.Printed as Section 842.052 or 842.053
- Tex. Gov't Code § 845.317PAYMENT TO FORMERLY PARTICIPATING SUBDIVISION.Printed as Section 842.052 or 842.053
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.