Tenn. Code § 49-1544

Current through Acts 2023-2024, ch. 1069

Section 49-1544 - Service retirement allowance

Upon service retirement on or after July 1, 1967, a member who last became a member prior to July 1, 1967, shall receive a service retirement allowance which shall be the largest of the amounts computed under the provisions of subsection A of this § 49-1544, subsection B of this § 49-1544, or § 49-1552. Upon service retirement a member who last became a member on or after July 1, 1967, shall receive a service retirement allowance which shall be the larger of the amounts computed under the provisions of subsection A of this § 49-1544 or § 49-1552.

A.

(1) Upon service retirement, a class A member shall receive a service retirement allowance which shall consist of:

(a) A teacher annuity which shall be the actuarial equivalent of his accumulated contributions at the time of his retirement; and

(b) A state annuity which, together with the teacher annuity, shall provide (i) if the member's service retirement date occurs on or after his sixty-fifth (65th) birthday, an allowance equal to:

One and one-eighth per cent (11/8%) of his average final compensation multiplied by the total number of years of his creditable service, plus

An additional three quarters of one per cent (.75%) of the part of such compensation in excess of $6,600 multiplied by the number of years of his creditable service rendered prior to January 1, 1966, plus

An additional allowance for each year of creditable service rendered after January 1, 1966, equal to three quarters of one per cent (.75%) of the part of such compensation in excess of covered compensation applicable to such year, or (ii) if the member's service retirement date occurs before his sixty-fifth (65th) birthday, his retirement allowance as computed in (i) above shall be permanently reduced by four tenths of one per cent (.4%) for each full month the member retires prior to his attaining age sixty-five (65).

In no event shall any change or changes in the level of covered compensation result in a lesser total benefit than that which would have been computed on the basis of covered compensation and the provisions of the Social Security Act as in effect on January 1, 1966. "Total benefit" shall be the sum of (a) retirement allowances, determined in accordance with this section, plus (b) Annual Primary Insurance Amount determined in accordance with the provisions of the Social Security Act.

The provisions of clause (ii) of subsection A(1)(b) of this section shall not be applicable to a member whose service retirement date occurs on or after his sixtieth (60th) birthday or who has established thirty (30) or more years creditable service in the Tennessee teachers' retirement system.

(2) Upon service retirement, a class B member shall receive a service retirement allowance which shall consist of:

(a) A teacher annuity which shall be the actuarial equivalent of his accumulated contributions at the time of his retirement, and

(b) A state annuity which, together with the teacher annuity, shall provide (i) if the member's service retirement date occurs on or after his sixty-fifth (65th) birthday an allowance equal to one and three-fourths per cent (1.75%) of his average final compensation multiplied by the total number of years of his creditable service, or (ii) if the member's service retirement date occurs before his sixty-fifth (65th) birthday, his retirement allowance as computed in (i) above shall be permanently reduced by four tenths of one per cent (.4%) for each full month the member retires prior to his attaining age sixty-five (65).

The provision of clause (ii) of subsection A(2)(b) of this section shall not be applicable to a member whose service retirement date occurs on or after his sixtieth (60th) birthday or who has established thirty (30) or more years creditable service in the Tennessee teachers' retirement system.

B.

(1) Upon service retirement a class A member shall receive a service retirement allowance which shall consist of:

(a) A teacher annuity which shall be the actuarial equivalent of his accumulated contributions at the time of his retirement; and

(b) If the member last became a member on or after July 1, 1957, a state annuity equal to the teacher annuity allowable at age sixty-five (65) or at his retirement age if prior to age sixty-five (65), computed on the basis of contributions made prior to age sixty-five (65) or his retirement age if prior thereto at the rate of three per cent (3%) of covered compensation and five per cent (5%) of compensation in excess of covered compensation; or

(c) If the member last became a member prior to July 1, 1957, and retired prior to the attainment of age sixty-five (65), a state annuity payable until the attainment of such age equal to:

(i) the teacher annuity allowable at age sixty (60), or at his retirement age if prior thereto, computed on the basis of contributions made prior to January 1, 1956, and

(ii) the teacher annuity allowable at age sixty (60), or at his retirement age if prior thereto, arising from contributions subsequent to January 1, 1956 and prior to July 1, 1961 as they would have stood if the member had contributed seven per cent (7%) of covered compensation and five per cent (5%) of compensation in excess of covered compensation, and

(iii) the teacher annuity allowable at age sixty-three (63), or at his retirement age if prior thereto, arising from contributions subsequent to July 1, 1961 as they would have stood if the member had contributed seven per cent (7%) of covered compensation and five per cent (5%) of compensation in excess of covered compensation, and

(iv) if the member has a prior service certificate in full force and effect, an additional state annuity equal to his prior service annuity.

(d) If the member last became a member prior to July 1, 1957, a state annuity payable on and after the attainment of age sixty-five (65), or on and after retirement if subsequent thereto, equal to:

(i) the teacher annuity allowable at age sixty (60), or at his retirement age if prior thereto, computed on the basis of the contributions made prior to January 1, 1956, except that the part based on covered compensation shall be equal to sixty per cent (60%) of such part of such annuity, and

(ii) the teacher annuity allowable at age sixty (60), or his retirement age if prior thereto, computed on the basis of contributions made subsequent to January 1, 1956 and prior to July 1, 1961 at the rate of three per cent (3%) of covered compensation and five per cent (5%) of compensation in excess of covered compensation, and

(iii) the teacher annuity allowable at age sixty-three (63), or his retirement age if prior thereto, computed on the basis of contributions made subsequent to July 1, 1961 at the rate of three per cent (3%) of covered compensation and five per cent (5%) of compensation in excess of covered compensation, and

(iv) if he has a prior service certificate in full force and effect, an additional state annuity equal to sixty per cent (60%) of his prior service annuity.

(2) Upon service retirement a class B member shall receive a service retirement allowance which shall consist of:

(a) A teacher annuity which shall be the actuarial equivalent of his accumulated contributions at the time of his retirement; and

(b) A state annuity equal to:

(i) the teacher annuity allowable at age sixty (60) or at his retirement age if prior thereto, computed on the basis of contributions prior to July 1, 1961 made prior to age sixty (60) or his retirement age if prior thereto, and

(ii) the teacher annuity allowable at age sixty-three (63) or at his retirement age if prior thereto, computed on the basis of contributions subsequent to July 1, 1961 made prior to age sixty-three (63) or his retirement age if prior thereto, and

(iii) if he has a prior service certificate in full force and effect an additional state annuity equal to his prior service annuity.

T.C.A. § 49-1544

Acts 1945, ch. 29, § 5; 1949, ch. 33, § 1; C. Supp. 1950, § 2540.5 (Williams, § 2524.5); Acts 1957, ch. 87, § 15; 1961, ch. 62, §§ 23-25; 1963, ch. 250, § 3; 1965, ch. 170, § 7; 1967, ch. 251, § 14; 1970 (Adj. S.), ch. 375, §§ 1-3; 1970 (Adj. S.), ch. 377, §§ 1, 2; 1972 (Adj. S.), ch. 722, §§ 1, 2.