(a) Each employer shall be permitted to pick up the employee contributions required by § 8-37-202 for all compensation earned after December 31, 1986; provided, that the state has received a favorable decision before that date from the internal revenue service or the federal courts that, under § 414(h) of the Internal Revenue Code (26 U.S.C. § 414(h)), these contributions shall not be included in the gross income of the employee until they are distributed or made available to the employee. If a favorable decision is received after December 31, 1986, then such plan shall go into effect for compensation earned after the next December 31.

Terms Used In Tennessee Code 8-37-216

  • Code: includes the Tennessee Code and all amendments and revisions to the code and all additions and supplements to the code. See Tennessee Code 1-3-105
  • 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
  • Internal Revenue Code: means the Internal Revenue Code of 1986, codified in United States Code, title 26, as amended. 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
  • State: means the state of Tennessee. See Tennessee Code 8-34-101
(b) Employee contributions shall be paid by the employer in lieu of contributions by the employee. The contributions so picked up shall be treated as employer contributions in determining tax treatment under the Internal Revenue Code.
(c) The state shall pick up contributions on behalf of state employees and teachers.
(d) Political subdivision employers may elect to pick up contributions on behalf of all of their employees upon adoption of a resolution by the chief governing body authorizing and accepting the liability for such contributions.
(e) The employee shall not have the option of choosing to receive the contributions in the form of cash or cash equivalents instead of having them paid by the employer into the retirement fund.
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