(a) The trustees shall establish an investment trust or trusts for the purpose of pre-funding other post-employment benefits accrued by employees of the state, to be paid as they come due in accordance with the arrangements between the state, the plan members, and their beneficiaries. The trustees may, in their discretion, also choose to establish an investment trust or trusts for the purpose of pre-funding other post-employment benefits accrued by authorized employees of local education agencies, to be paid as they come due in accordance with the arrangements between the local education agency, the plan members, and their beneficiaries.

Terms Used In Tennessee Code 8-27-802

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • post-employment benefits: means non-pension benefits paid on behalf of former state employees, former state employees' beneficiaries, authorized local education agency employees or the authorized local education agency employees' beneficiaries after separation from service. See Tennessee Code 8-27-801
  • Retirement: means withdrawal from membership with a retirement allowance granted under chapters 34-37 of this title. See Tennessee Code 8-34-101
  • Service: means service as a general employee, a teacher, a state police officer, a wildlife officer, a firefighter, a police officer, a state judge, a county judge, an attorney general, a commissioner or a county official which is paid for by an employer, and also includes service for which a former member of the general assembly is entitled to under former §. See Tennessee Code 8-34-101
  • State: means the state of Tennessee. See Tennessee Code 8-34-101
  • Trustees: means the four (4) trustees designated in §. See Tennessee Code 8-27-801
(b) The trustees must adopt, in writing, an investment policy or policies authorizing how assets in the trust or trusts may be invested.
(c) The trust or trusts may invest in any security or investment in which the Tennessee consolidated retirement system is permitted to invest; provided, that investments by the trust shall be governed by the investment policies and guidelines adopted by the trustees in accordance with this part. The trustees shall delegate to the state treasurer the responsibility for the investment and reinvestment of trust funds in accordance with the policies and guidelines established by the trustees.
(d) The trust must conform to all applicable laws, rules, and regulations of the Internal Revenue Service, if any.
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