If a teacher in the service of an employer operating a local retirement fund who is eligible for membership therein ceases to be a teacher, and if at such time such person would have been eligible for retirement under this retirement system had such person been a member, the board of trustees shall pay from the state accumulation fund of this retirement system to the managing board of the local retirement fund a state annuity equal to the state annuity which would have been payable under this retirement system if such teacher had been a member of this retirement system during service with such employer subsequent to the date of establishment to the time of retirement and a member of the Tennessee teachers’ retirement system during service with such employer prior to the date of establishment:

(1) The excess of any such state annuity payable under this system over the retirement income provided by the local retirement fund by contributions of the employer shall be payable to the retired teacher and not to the local retirement fund;

Terms Used In Tennessee Code 8-35-303

  • 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.
  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Beneficiary: means any person, persons or institution receiving a retirement allowance or other benefit as provided in chapters 34-37 of this title. See Tennessee Code 8-34-101
  • board: means the board provided for in part 3 of this chapter. See Tennessee Code 8-34-101
  • Date of establishment: means the date as of which the retirement system is established as provided in §. See Tennessee Code 8-34-101
  • Employer: means :
    (A) The state or any department, commission, institution, board or agency of the state government by which a member is paid, with respect to members in its employ. See Tennessee Code 8-34-101
  • Local retirement fund: means any teachers' retirement fund or other arrangement for payment of retirement benefits to teachers, except this retirement system, supported wholly or in part by contributions made by an employer as defined by chapters 34-37 of this title. 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
  • Person: includes a corporation, firm, company or association. 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
  • 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
  • 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
(2) Payments to beneficiaries of local retirement funds shall be based upon the amount of money expended through the Tennessee consolidated retirement system on behalf of the beneficiary and shall be paid directly to the beneficiary;
(3) In the case of a teacher whose service commenced prior to the date of establishment, the state annuity shall be computed as if the teacher had been a Class B member of the Tennessee teachers’ retirement system and a prior class member of this retirement system;
(4) The payment of the state annuities under this part shall be subject to all the conditions and requirements governing the payment of state annuities to members retired under this retirement system, and payment of such state annuities to be withheld until such members meet the conditions and requirements of this retirement system; and
(5) Notwithstanding this part to the contrary, the board of trustees shall, upon the request of the managing board of a local retirement fund, henceforth pay the entire amount of the state annuity directly to the members of the local retirement fund.
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