Except as provided in § 8-36-209, the service retirement allowance of a member other than a prior class member shall consist of:

(1) A member annuity which shall be the actuarial equivalent of the member’s accumulated contributions at retirement, plus a state annuity which, when added to the member annuity, shall be equal to:

Terms Used In Tennessee Code 8-36-206

  • Accumulated contributions: means the sum of all the amounts deducted from the compensation of a member, together with any amount transferred to the account of the member established pursuant to chapters 34-37 of this title from the respective account of the member under one (1) or more of the superseded systems, with interest thereon, as provided in §. See Tennessee Code 8-34-101
  • Actuarial equivalent: means a benefit of equal value when computed at regular interest upon the basis of the mortality tables last adopted for such purpose by the board of trustees. See Tennessee Code 8-34-101
  • Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
  • Average final compensation: means the average annual earnable compensation of a member during the five (5) consecutive years of the member's creditable service affording the highest such average, or during all of the years in the member's creditable service if less than five (5) years. See Tennessee Code 8-34-101
  • Creditable service: means prior service plus membership service, as provided in part 6 of this chapter. See Tennessee Code 8-34-101
  • Member: means any person included in the membership of the retirement system, as provided in chapter 35, part 1 of this title. See Tennessee Code 8-34-101
  • Member annuity: means annual payments for life derived from the accumulated contributions of the member. See Tennessee Code 8-34-101
  • Month: means a calendar month. See Tennessee Code 1-3-105
  • Prior class member: means a member who, on the day preceding the date of establishment, shall have been a member of a superseded system and who elects to remain covered by the benefit and contribution provisions of the superseded system, or who fails to elect to become covered by the benefit and contribution provisions of the retirement system applicable to new employees, as the case may be, in accordance with chapter 35, part 1 of this title. See Tennessee Code 8-34-101
  • 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
  • Social security integration level: means , with respect to the calendar year in which a member retires, the average annual amount of compensation with respect to which old age and survivors benefits would be provided under Title II of the Federal Social Security Act (42 U. See Tennessee Code 8-34-101
  • State: means the state of Tennessee. See Tennessee Code 8-34-101
  • State annuity: means annual payments for life derived from contributions by an employer. See Tennessee Code 8-34-101
(A) In the case of a member in Group 1, one and one-half percent (1.5%) of the member’s average final compensation, multiplied by the number of years of creditable service, plus one fourth of one percent (0.25%) of the member’s average final compensation in excess of the social security integration level applicable at the time of retirement, multiplied by the number of years of the member’s creditable service;
(B) In the case of a member in Group 2, one and three-fourths percent (1.75%) of the member’s average final compensation, multiplied by the number of years of creditable service plus one half of one percent (0.5%) of the member’s average final compensation in excess of the social security integration level applicable at the time of retirement, multiplied by the number of years of creditable service plus one half of one percent (0.5%) of the average final compensation not in excess of the social security integration level, multiplied by four-tenths of one percent (0.4%) for each month which the member’s age is less than sixty-five (65) years of age, multiplied by years of service;
(C) In the case of a member in Group 3, two percent (2%) of the member’s average final compensation, multiplied by the number of years of creditable service plus one half of one percent (0.5%) of the member’s average final compensation in excess of the social security integration level applicable at the time of retirement, multiplied by the number of years of creditable service, plus one half of one percent (0.5%) of the average final compensation not in excess of the social security integration level, multiplied by four tenths of one percent (0.4%) for each month which the member’s age is less than sixty-five (65) years of age, multiplied by years of service;
(D) In the case of a member in Group 4, two and one-half percent (2.5%) of the member’s average final compensation, multiplied by the number of years of creditable service.
(2) However, in the case of a member who at the time of retirement has not accumulated sufficient quarters of coverage under the Social Security Act (42 U.S.C. § 301 et seq.), to qualify for social security benefits at sixty-five (65) years of age, the member’s annuity plus the state annuity shall equal:

(A) In the case of a member in Group 1, one and three-fourths percent (1.75%) of the member’s average final compensation, multiplied by the number of years of creditable service;
(B) In the case of a member in Group 2, two and one-fourth percent (2.25%) of the member’s average final compensation, multiplied by the number of years of creditable service; or
(C) In the case of a member in Group 3, two and one-half percent (2.5%) of the member’s average final compensation, multiplied by the number of years of creditable service.
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