(a) Notwithstanding any law to the contrary, the base annual service retirement allowance payable to a participant under the defined benefit component of the plan shall not exceed the amount determined and in effect on July 1, 2014, pursuant to § 8-35-256(h); provided, however, that commencing on July 1, 2015, and on each July 1 thereafter, this amount shall be increased or decreased in accordance with the consumer price index as defined in § 8-36-701(c), and the amount of increase or decrease shall be based on the prior calendar year. Such participant’s annual pension benefit shall be limited to the base benefit in effect at the time of the participant’s retirement, but shall be subject to increase in accordance with the cost-of-living provisions of § 8-36-701(b)(1) and (b)(2).

Terms Used In Tennessee Code 8-36-908

  • 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
  • Defined benefit component: means the portion of the hybrid plan that provides a defined benefit plan within the retirement system, but which has its own vesting, benefit structure, and contribution requirements as set forth in this part. See Tennessee Code 8-36-902
  • Participant: means any state employee, teacher, or political subdivision employee participating in the hybrid plan. See Tennessee Code 8-36-902
  • Retirement: means withdrawal from membership with a retirement allowance granted under chapters 34-37 of this title. See Tennessee Code 8-34-101
  • Retirement allowance: means the sum of the member annuity and the state annuity. 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
  • Year: means a calendar year, unless otherwise expressed. See Tennessee Code 1-3-105
(b) Notwithstanding subsection (a), the service retirement allowance payable under this part shall not exceed ninety percent (90%) of the participant’s average final compensation as may be adjusted by the cost-of-living provisions of § 8-36-701(b)(1) and (b)(2).
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