Chief William Mull announced his decision in a written statement Tuesday afternoon.
In his statement, Mull said McPherson, "has worked with the police department for eighteen years, and his job performance is currently in good standing."
McPherson was at work on Monday, according to Mull, to wrap up some projects he needed to finish.
"Well, basically, he was indicted and it became public record on Friday," Mull explained. "He was off Saturday and Sunday, he came in Monday to finish up some official duties and he's been off since that time."
Mull said McPherson will remain off until he and the city manager can decide what duties McPherson will take on.
When KAMC spoke with Mull on Tuesday, he said he was not aware of Section V-E.11, which says any officer who is charged with a felony or who is being investigated as a suspect in a felony should be put on administrative leave while an internal affairs investigation is conducted.
Once that investigation is completed, according to the policy, the police chief should take appropriate disciplinary action based on the outcome of the investigation.
Mull said Tuesday night the department's internal affairs investigation was put on hold when the Texas Rangers began investigating McPherson.
When KAMC pointed out that McPherson should currently be suspended, then, Mull said he would discuss the matter with the town manager and the town's attorney Wednesday.