(a) Notwithstanding § 8-36-209 or any other law to the contrary, there shall be no minimum serviceretirement allowance payable under the defined benefit component of the plan except as otherwise provided in subsections (b) and (c). Instead, the retirement allowance shall be determined in accordance with § 8-36-907.
Terms Used In Tennessee Code 8-36-909
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
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
Hybrid plan: means a plan that provides a combination of a defined benefit plan and a defined contribution plan which, together, are intended to comply with the provisions of the Internal Revenue Code (26 U. See Tennessee Code 8-36-902
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
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
Retirement system: means the Tennessee consolidated retirement system as defined in §. 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
(b)(1) The minimum service retirement allowance payable under the defined benefit component of the plan with respect to creditable service established pursuant to § 8-35-226 shall not be less than seven dollars ($7.00) per month for each year of such creditable service, except as provided in subsection (e).(2) Notwithstanding subdivision (b)(1), the chief legislative body of any city, special school district or county may set the minimum service retirement allowance payable with respect to creditable service established pursuant to § 8-35-226 in the amount as determined and in effect pursuant to § 8-36-209(a)(2)(A)(i) or § 8-36-209(a)(2)(A)(ii). Such amount shall be adjusted on each July 1 thereafter pursuant to the cost-of-living provisions in § 8-36-701(b)(1) and (2).(3) To set the minimum service retirement allowance under either § 8-36-209(a)(2)(A)(i) or (a)(2)(A)(ii), the chief legislative body of the respective city, special school district or county must pass a resolution authorizing the provisions of either § 8-36-209(a)(2)(A)(i) or (a)(2)(A)(ii) and accepting the liability therefore. Any such resolution shall apply to current and future retirees of the hybrid plan and shall become effective on the first day of any quarter following the filing of the resolution with the retirement system. No retroactive benefits shall be paid under subdivision (b)(2).(c)(1)(A) The minimum retirement allowance payable under the defined benefit component with respect to creditable service rendered as a member of the general assembly shall not be less than fifty-five dollars ($55.00) per month for each year of creditable service adjusted effective July 1, 2015, and on each July 1 thereafter pursuant to the cost-of-living provisions in § 8-36-701(b)(1) and (2) except as provided in subdivision (c)(1)(B) and subsection (e).(B) For members of the general assembly who retire on or after November 5, 2024, with ten (10) or more years of service, the minimum retirement allowance payable under the defined benefit component with respect to creditable service rendered as a member of the general assembly must not be less than seventy dollars ($70.00) per month for each year of creditable service adjusted on July 1, 2025, and on each July 1 thereafter pursuant to the cost-of-living provisions in § 8-36-701(b)(1) and (2) except as provided in subsection (e).(2) Any recipient eligible for a benefit pursuant to subdivision (c)(1) may elect to receive an amount less than the amount that the recipient is otherwise eligible to receive; provided, that the election is in writing and irrevocable.(d) Section 8-36-124 shall not apply in determining the retirement allowance payable under this section.(e)(1) In no event shall the minimum retirement allowance payable hereunder 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 (2).(2) For purposes of determining the limitations on the amount of the retirement allowance as provided in this subsection (e), the average final compensation for service granted under § 8-35-226 shall be independent of the average final compensation calculation on any other creditable service in the retirement system, and the average final compensation for service granted as a member of the general assembly shall be independent of the average final compensation calculation on any other creditable service in the retirement system.
