Title 8 Public Officers And Employees

Chapter 1 Governor

Part 1 General Provisions

§ 8-1-101. Date governor's oath of office taken.

The governor shall take the oath of office on the first Saturday following the fourteenth day of January next following the governor's election, after the commencement of the organizational session of the general assembly as established by the Constitution of Tennessee, Article II, § 8.

§ 8-1-102. Compensation.

The salary of the governor shall be the same as the chief justice of the supreme court payable, in equal monthly installments out of the state treasury on warrant, which compensation shall be in full for services as governor. The salary shall not include upkeep on the governor's residence or such necessary traveling expenses as the governor may incur on behalf of the state. No fees of any kind or character shall attach to the office of governor or in relation to the operation of the office.

§ 8-1-103. Private secretary.

There shall be a private secretary to the governor who shall be appointed by the governor and shall be a resident and citizen of Tennessee.

§ 8-1-104. [Reserved]

§ 8-1-105. Administrative assistants to governor.

The governor is empowered to appoint two (2) persons to be known as administrative assistants, to aid the governor in the performance of additional duties of the office. These administrative assistants shall hold office at the pleasure of the governor and perform such duties as may be delegated to them by executive order of the governor or otherwise. An administrative assistant may also be the head of a department of the state government; provided, that the administrative assistant's total salary shall be fixed commensurate with the services rendered.

§ 8-1-106. Contingent expenses of executive department.

The following contingent expenses of the executive department shall be a charge upon the state treasury:
1. (1) Such sums of money as may be necessary to defray the expenses attendant on exchanging laws and documents with the several states of the union;
2. (2) Such sums of money as may be necessary to provide stationery for the governor's and secretary's offices, and postage and expressage on public letters and documents;
3. (3) An amount to pay for cleaning the public arms of the state and keeping them in good serviceable order; and
4. (4) Such sums of money as may be requisite to defray the expenses of all messengers and messages which it may be necessary for the governor to dispatch.

§ 8-1-107. Succession to office.

Whenever a vacancy exists in the office of governor from death, resignation or other cause, creating a vacancy therein, and there is no speaker of the senate nor speaker of the house at such time, then and in that event the secretary of state shall become governor, and in case of the death or resignation of the secretary of state, then the comptroller of the treasury shall become governor.

§ 8-1-108. Power to forbid starting of fires during drought — Violation.

(a) During periods of extreme drought in this state, or in any area of the state, the governor is hereby authorized and empowered to issue proclamations forbidding the starting of any open air and unconfined fire on or near woodlands where dangerous fire hazards exist during the period of such drought.
(b) If the governor issues a proclamation pursuant to this section, anyone igniting an open air or unconfined fire in violation of the proclamation commits a Class A misdemeanor.

§ 8-1-109. Governor to sign certain documents — Power of attorney for purpose of affixing governor's signature.

(a) The governor shall personally affix the governor's signature to bills, joint resolutions, executive orders or veto messages, and to reprieves, pardons and commutations.
(b)
1. (1) In the event the governor is physically incapacitated due to health or is out of the state on official business and is unable to sign those items enumerated in subsection (a), the governor may authorize a power of attorney to an individual for a specified period of time for the purpose of affixing the governor's signature to such items.
2. (2) If the governor is physically incapacitated due to health and unable to sign such items, the power of attorney shall be accompanied by a physician's affidavit that the governor is physically incapacitated due to health and is unable to personally sign such items.
3. (3) The power of attorney shall only be for the affixing of the governor's signature and not for the decision of approval or nonapproval of such items. It is the express intent of this section that the governor may delegate only the affixing of the governor's signature and not the decision of approval or nonapproval of such items.

§ 8-1-110. Criminal justice agency statistics.

(a) Notwithstanding any other law to the contrary, the governor may designate an agency to coordinate the gathering, analysis and dissemination of state and local criminal justice agency statistics for the purpose of providing the governor, general assembly, and state and local criminal justice agencies with relevant and timely criminal justice data and information.
(b) As used in this section, “criminal justice agency” includes all state, county and municipal law enforcement agencies, the office of attorney general and reporter, the offices of the district attorneys general, the offices of municipal prosecutors, all state and local courts, all state, county and municipal correctional agencies, and all state and local agencies or entities charged by law with the responsibility of reviewing or monitoring any or all aspects of the criminal justice system.

§ 8-1-111. Appointment of senior citizens and racial minorities to governing or advisory entities of the executive branch.

In appointing citizens to serve on boards, commissions, committees, and other governing or advisory entities of the executive branch of state government, the governor shall strive to ensure that at least one (1) such citizen serving on each such board, commission, committee, or other governing or advisory entity is sixty (60) years of age or older and that at least one (1) such citizen serving on each such board, commission, committee, or other governing or advisory entity is a member of a racial minority.

§ 8-1-112. Governor authorized to deploy a brigade-sized force to Texas to assist in repelling the invasion at the southern border of the United States — Authorization period.

(a) In accordance with the Constitution of Tennessee, Article 3, § 5, which states, “[T]he Militia shall not be called into service except in case of rebellion or invasion, and then only when the General Assembly shall declare, by law, that the public safety requires it[,]” the General Assembly authorizes the Governor of the State of Tennessee to deploy up to a brigade-sized force to Texas to assist in repelling the invasion at the southern border of the United States.
(b) The deployment is authorized during fiscal year 2024-2025.

Part 2 Transition Act of 1970

§ 8-1-201. Short title.

This part shall be known and may be cited as the “Transition Act of 1970.”

§ 8-1-202. Governor-elect — Office facilities and staff.

The governor-elect, in order to facilitate the transition period between administrations, shall be provided, at the expense of the state, office space, appropriate furniture and three (3) secretaries in Nashville for the governor-elect and the members of the governor-elect's staff between the date of the election and the date on which the governor-elect assumes office.

§ 8-1-203. Interim office space — Appointees of cabinet level rank.

Any state official of cabinet level rank appointed by a governor-elect between the date of election and the date on which the governor-elect assumes office shall, upon request of the governor-elect to the then incumbent governor, accompanied by notification of the appointment, be provided with suitable office space and equipment and secretarial help in or as near as possible to the administrative offices of the department or staff division which the person has been appointed to head. Only if no suitable space is available in existing state facilities shall space be secured and provided in other places.

§ 8-1-204. Immediate past governor — Office space.

For a period of thirty (30) days following the inauguration of a governor who is not thereby serving a successive term in office, the immediate past governor shall be provided with suitable office space and equipment and one (1) secretary in Nashville, to enable such past governor to handle any correspondence or other personal matters not concluded at the time such past governor leaves office.

Chapter 2 Lieutenant Governor

§ 8-2-101. Office created — Succession to governorship.

There is hereby created the state office of lieutenant governor. The person holding the office of lieutenant governor shall be next in succession to the office of governor.

§ 8-2-102. Speaker of senate to be lieutenant governor.

As provided by the Constitution of Tennessee, the speaker of the senate shall in all cases be the lieutenant governor and entitled to exercise the powers and duties appertaining to that office and to enjoy and use the title “Lieutenant Governor of the State of Tennessee.” The office of lieutenant governor provided for in this chapter shall constitute a separate office from that of speaker of the senate and any person holding such office shall do so until a successor is elected and qualified, such official being hereby declared to be a civil officer subject to the Constitution of Tennessee, Article VII, § 5 as to term of office.

Chapter 3 Secretary of State

Part 1 General Provisions

§ 8-3-101. Election — Term of office.

A secretary of state shall be elected by joint vote of the general assembly, and commissioned for a term of four (4) years.

§ 8-3-102. Complaint regarding annexation by municipality — Administrative hearing.

(a) If a dispute arises between an individual property owner and a municipality as to whether a property has been annexed by the municipality, the individual property owner or the municipality may file a complaint against the opposing party with the secretary of state to determine whether the person's property has been annexed by a municipality. The burden of proof shall be on the municipality to prove annexation of the subject property by a preponderance of the evidence.
(b) Within ten (10) days of the filing of the complaint, the secretary of state shall appoint an administrative judge from the administrative procedures division of the secretary of state's office who shall set an administrative hearing to be held under the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, part 3, within ninety (90) days of the date of filing the complaint, unless for good cause shown that a later time is deemed necessary. Notwithstanding other law to the contrary, the secretary of state or the secretary of state's designee has the authority to render a final order following entry of an initial order by the administrative judge. Such order shall be appealable as provided by § 4-5-322.
(c) Once a complaint has been filed under subsection (a), the municipality shall file with the administrative procedures division within twenty (20) days of the filing of the complaint, all annexation ordinances of the municipality and all results of referendums on annexation held within the municipality that are specific to the annexation of the subject property.
(d) If the final order includes a finding that the subject property has not been annexed, any property taxes paid by the individual property owner to the municipality shall be reimbursed to the individual property owner, with interest.

§ 8-3-103. Oath of office.

The secretary of state shall also take an oath to support the Constitutions of Tennessee and of the United States, and an oath that such person will faithfully execute the duties of the office.

§ 8-3-104. Duties.

It is the duty of the secretary of state to:
1. (1) Keep the secretary of state's office at the seat of government;
2. (2) Keep a fair register of all the official acts and proceedings of the government;
3. (3) Lay the same, when required, and all papers, minutes, and vouchers relating thereto, before the general assembly at each session;
4. (4) Cause the original acts and resolutions of the general assembly, that are enrolled and filed in the secretary of state's office, to be bound together, and preserved in that form in such office;
5. (5) Make out and deliver to the printer, for publication, attested copies thereof as soon after receiving them as conveniently may be, and collate the printed copies with the originals; provided, that resolutions of the general assembly shall be published in accordance with title 12, chapters 5 and 6;
6. (6) Receive and safely keep all official bonds directed by law to be lodged in the secretary of state's office, record the same in books for that purpose, give attested copies thereof agreeably to law, and lay such bonds and such record before the general assembly when required;
7. (7) Issue a summons, under the secretary of state's hand and the seal of the state, to each public officer who is required by law to enter into bond payable to the state of Tennessee for the performance of official duty, and who has failed and neglected to forward the same, as required by law, commanding such officer to deposit such bond in the office of the secretary of state;
8. (8) Make out all commissions to be issued by the governor and, when signed by the governor but not before, affix to them the seal of the state;
9. (9) Affix the seal of the state to any other instrument or act when authorized by the governor, but not otherwise;
10. (10) Give to any person requiring the same, and paying lawful fees, an attested copy of any act, record, or paper in the secretary of state's office, except papers relating immediately to the executive department, and, in the governor's judgment, requiring secrecy;
11. (11) Examine and adjust any account presented against the secretary of state's office for freight, storage, and other necessary charges on books and documents transmitted from other states of the union for the use of this state, and certify the same to be just and true, as adjusted;
12. (12) Record in the secretary of state's office titles to the state;
13. (13) Preserve carefully in the secretary of state's office all copies of the records of the boundaries of civil districts forwarded to the secretary of state by the county clerks;
14. (14) Furnish the commissioner of revenue on the first day of each month a list of all new corporations that have been licensed or authorized to operate in this state during the preceding month; and
15. (15) Furnish the commissioner of revenue on the first day of each month a list of all corporations that have surrendered their charters or have ceased to do business in this state during the preceding month.

§ 8-3-105. Office of assistant secretary — Appointment.

(a) There is created the office of assistant secretary of state who shall serve as secretary of state during any emergency when the regular secretary of state is disabled or disqualified from performing the duties of the office.
(b) If the general assembly is not in session when such emergency exists, the governor shall appoint such assistant secretary of state to serve until the general assembly convenes, at which time the general assembly shall elect the assistant in the event the emergency then continues. If the general assembly is in session when the emergency commences, the assistant secretary of state shall be elected by the joint vote of the general assembly.

§ 8-3-106. Acting during emergency.

(a) In no event shall the person appointed as assistant secretary of state serve as such except during the existence of the emergency, and the governor shall determine when such emergency exists and when it terminates and shall so declare.
(b) The action of the governor in declaring the existence of an emergency shall be subject to review by writ of certiorari.

§ 8-3-107. Powers and duties of assistant secretary.

Such person appointed or elected as assistant secretary of state shall possess all the qualifications required of the secretary of state and shall file such bond as is required to be filed by the secretary of state under the statutes, and shall take the oath of office prescribed by statute for the secretary of state, and shall serve only during the continuance of the emergency as determined by the governor and shall be paid such compensation as the governor may fix, but in no event shall the compensation so fixed exceed that prescribed by law for the duly elected secretary of state.

§ 8-3-108. Donations for publication of the Tennessee Blue Book.

(a) The secretary of state is authorized to accept donations from persons, political subdivisions, foundations, corporations, firms or any other business entity for the express purpose of publishing the Tennessee Blue Book. The secretary of state shall control all aspects of the publication and distribution of the book, including, but not limited to, complete editorial control, quantity published and distribution. No benefactor shall have authority to interfere with any aspect of development, publication, quantity published or distribution of the book.
(b) The secretary of state will determine the amount of money needed to publish the quantity desired and shall have the sole authority to select the benefactor or benefactors. The funds received shall be used for the publication and distribution of the book. Such funds shall not revert to the general fund but shall be carried forward to the next fiscal year and remain available to the secretary of state until expended for the publications and distribution of future editions. None of these funds shall be used for the payment of employees' salaries.
(c) Acknowledgement of the chosen benefactors shall be included in the preface of the book. An appropriate acknowledgement shall be given based on the generosity of the benefactor. Acknowledgement shall be in the form of a letter from the secretary of state acknowledging the gift in a separate listing in the preface of the book. Notwithstanding any law to the contrary, a benefactor shall have the first option of being chosen as the benefactor or benefactors of the next edition of the Tennessee Blue Book.
(d) The secretary of state shall maintain a list of all benefactors that shall include names, addresses and the amount of the benefactor's donation. Such a list shall be open and available to public inspection.

Part 2 Ascertaining Action on Local or Private Acts

§ 8-3-201. Private or local acts — Transmission to local body or agency for approval.

It is the duty of the secretary of state to send promptly by registered or certified mail, with return receipt requested, a certified copy of every act which requires a notification of the secretary of state pursuant to § 8-3-205 passed by the general assembly, which is private or local in form or effect, to the presiding officer of the body having jurisdiction to approve or disapprove the act if, in the effective date, the act provides for such action by the local legislative body, or to the chair of the county election commission if, in the effective date, the act provides for approval or disapproval in an election. The secretary of state, in a separate communication with each such act, shall call attention to the time limit for local action, either as provided in the act itself or as provided in § 8-3-202.

§ 8-3-202. Certification of result of local action — Default deadline for action.

(a) If any act which requires a notification of the secretary of state pursuant to § 8-3-205 provides a deadline for local approval or disapproval, within thirty (30) days after approval or disapproval it shall be the duty of the presiding officer of the local legislative body or the chair of the county election commission, as the case may be, to certify to the secretary of state whether the act was approved or disapproved.
(b) If any act which requires a notification of the secretary of state pursuant to § 8-3-205 does not specify such a deadline, a failure to approve by December 1 of the year the act was passed shall render it null and void and of no effect whatsoever.

§ 8-3-203. Secretary of state to ascertain result of local action on private or local act.

It is the duty of the secretary of state to ascertain whether local action has been taken on all acts which are private or local in form or effect which requires a notification of the secretary of state pursuant to § 8-3-205. When a certificate of local action taken has not been received within the time limit specified in such act, the secretary of state shall take steps to find out whether any action has been taken and to obtain the necessary certificate, including the sending of a courier to examine local records and to procure a certificate if all other measures fail.

§ 8-3-204. Local action on private or local act to be indicated in published acts.

The secretary of state shall indicate, in the published volumes of private acts, what action has been taken on every act which is private or local in form or effect which requires a notification of the secretary of state pursuant to § 8-3-205. If the deadline for local action, either as fixed in the act or by § 8-3-202, has passed with no action having been taken, the secretary of state shall so indicate in the published volumes. In no case shall such an act in the published volumes have appended thereto a statement that local action is unknown.

§ 8-3-205. Notification requirements of the secretary of state.

The notification requirements of the secretary of state pursuant to this part only apply to any act passed by the general assembly which:
1. (1) Does not amend the general law;
2. (2) Within the body of the act, names and specifically only applies to the named municipality or county; and
3. (3) In the effective date, pursuant to the Constitution of Tennessee, Article XI, § 9, requires a two-thirds (⅔) vote of the legislative body of the specifically named municipality or county to approve or disapprove the act, or requires approval or disapproval of the act in an election by a majority of those voting in the election in the municipality or county affected.

Chapter 4 Comptroller of the Treasury

Part 1 General Provisions

§ 8-4-101. Election — Term of office.

There shall be a comptroller of the treasury, who shall be elected by joint vote of both houses of the general assembly, and hold such office for two (2) years, and until a successor shall be elected and qualified.

§ 8-4-102. Examination of incumbent's accounts.

Previous to the convening of each biennial general assembly, the speaker of the senate and the speaker of the house jointly may contract for the services of an independent public accounting firm to audit or review the operations of the office of the comptroller of the treasury, or may call upon the director of the division of state audit to review with them a current audit of the comptroller of the treasury. The speakers may appoint a committee of the general assembly for the purpose of such review.

§ 8-4-103. Assistance of local governments with geographic information systems related to administration of property taxes — Assistance of local governments with local redistricting and reapportionment — Compilation and maintenance of precinct boundaries and maps — Liaison with United States census bureau.

(a) The comptroller of the treasury shall:
1. (1) Assist local governments with geographic information systems technical support, training, and mapping issues related to the administration of property taxes;
2. (2) Assist and advise local governments with local redistricting and reapportionment;
3. (3) Compile and maintain precinct boundaries and maps in the state and assist with their development; and
4. (4) Serve as the liaison with the United States census bureau and participate in its redistricting data program.
(b) This section does not detract from the function, powers, and duties legally assigned to any other agency of this state, or interrupt or preclude direct relationships by any such agency with local governments in carrying out its operations.

§ 8-4-104. Oath of office.

The comptroller of the treasury shall take an oath, before a judge of the circuit, chancery, appeals or supreme court, to support the Constitutions of Tennessee and of the United States, and an oath of office.

§ 8-4-105. Location of office.

The office of the comptroller of the treasury shall be kept at the seat of government.

§ 8-4-106. Seal.

The comptroller of the treasury shall keep a seal, with the motto, “The Seal of the Comptroller of Tennessee.”

§ 8-4-107. Interest in transactions prohibited.

The comptroller of the treasury shall not have any financial interest in the transactions of any department, institution, office, or agency of the state government.

§ 8-4-108. Duties generally.

(a) The comptroller of the treasury shall perform all such services as may be required of the comptroller of the treasury by law or by resolution of the general assembly. The comptroller is authorized to provide such services to a county or other local government as may be requested by that entity and determined by the comptroller to be appropriate, and to charge that entity an administrative fee with respect thereto.
(b) This section shall not be construed either to extend or limit the authority of the division of property assessments with respect to taxpayer audits and reviews to the extent such authority exists under present law.

§ 8-4-109. Audits of governmental entities — Implementation and reports by agency heads.

(a)
1. (1) The comptroller of the treasury shall keep no accounts in the department of audit, but shall conduct a continuous post audit of the accounts, books, records, and other evidences of financial transactions kept in the department of revenue, the state treasurer's office, or in the other departments, institutions, offices and agencies of the state government.
2. (2) The comptroller of the treasury is hereby authorized to audit any books and records of any governmental entity created under and by virtue of the statutes of the state which handles public funds when such audit is deemed necessary or appropriate by the comptroller of the treasury. The comptroller of the treasury shall have the full cooperation of officials of the governmental entity in the performance of such audit or audits.
(b) When the comptroller of the treasury conducts an audit of the accounts, books, records, and other evidences of financial transactions of any department, agency, or institution of the state, it shall be the duty of the officer who is the administrative head of such department, agency, or institution to submit a corrective action plan to the comptroller of the treasury which addresses the actions taken, or to be taken, in response to each audit finding and related recommendations of the comptroller of the treasury relative to the effective and efficient management of such accounts, books, records, or other evidences of financial transactions. The corrective action plan shall provide the name or names of the contact person or persons responsible for the corrective action, the corrective action taken or planned, and the anticipated completion date. If the auditee does not agree with an audit finding or a related recommendation proposed by the office of the comptroller of the treasury, or believes corrective action is not required, the corrective action plan shall state the reasons and justifications for disagreement or belief. The corrective action plan shall be filed with the comptroller of the treasury no later than thirty (30) days after the issuance of the department, agency, or institution's audit report.
(c) It shall be the duty of the officer who is the administrative head of such department, agency, or institution to report to the comptroller of the treasury, in writing, the action that has been taken to implement the recommendations of the comptroller of the treasury, or to state the reasons and justifications for disagreement with the recommendations proposed by the office of the comptroller of the treasury, six (6) months after the issuance of the department, agency, or institution's audit report.
(d) In order to avoid repeat audit findings, the comptroller of the treasury shall at any time notify the chairs of the finance, ways and means, government operations, and fiscal review committees of the general assembly of any such department, agency, or institution's failure to timely implement such recommendations, to submit the report required by subsection (c), or to comply with its corrective action plan. Those committees may direct the department, agency, or institution to provide a written statement to the requesting committee explaining why full corrective action has not been taken. If a requesting committee determines that the written statement is not sufficient, that committee may require the department, agency, or institution to appear before the committee. If the committee determines that the department, agency, or institution has failed to take full corrective action for which there is no justifiable reason or has failed to comply with the committee's request, that committee shall take such steps as they deem necessary.

§ 8-4-110. Reports and recommendations.

(a) The comptroller of the treasury shall prepare and publish a report, setting forth the essential facts of the post audit provided for in § 8-4-109 in summary form after the close of each fiscal year.
(b) If the comptroller of the treasury finds, in the course of the audit, evidences of improper transactions, or of incompetence in keeping accounts or in handling funds, or of any other improper practice of financial administration, the comptroller of the treasury shall report the same to the governor immediately. If the comptroller of the treasury finds evidences of illegal transactions, the comptroller of the treasury shall forthwith report such transactions both to the governor and to the attorney general and reporter. All such evidences shall be included in the annual reports of the comptroller of the treasury, who has the discretion to make them public at any time during the fiscal year.
(c) The comptroller of the treasury shall supply the members of the general assembly, when in session, with copies of all annual reports, and shall make recommendations for the elimination of improper financial practices and for the general improvement of the financial administration of the state.
(d) In the discharge of these duties, the comptroller of the treasury shall exercise, as necessary, the authority granted the comptroller of the treasury elsewhere at law for performing investigations.

§ 8-4-111. Methods of accounting.

The comptroller of the treasury has the authority to require any and all departments, institutions, offices, and agencies of the state government to maintain their accounts, records, documents, vouchers, requisitions, payrolls, cancelled checks and coupons, and other evidences of financial transactions in such manner as to expedite the work of post auditing.

§ 8-4-112. [Reserved]

§ 8-4-113. Guidelines for compliance with Financial Integrity Act.

The comptroller of the treasury shall consult with the commissioner of finance and administration in the establishment of guidelines for the evaluation by agencies of their systems of accounting and administrative control as provided in the Financial Integrity Act of 1983, compiled in title 9, chapter 18.

§ 8-4-114. Investigation of fraud relating to qualification for government set-aside program.

The comptroller of the treasury shall investigate any complaint brought to the attention of the comptroller of the treasury's office alleging a violation of § 39-14-137. If, as a result of such investigation, the comptroller of the treasury determines that probable cause exists to believe that a violation has occurred, then the comptroller of the treasury shall submit such investigatory findings to the appropriate prosecutorial authority.

§ 8-4-115. Standardized procedures for booking of arrestees.

(a)
1. (1) The comptroller of the treasury, in consultation with the Tennessee bureau of investigation, the Tennessee Sheriff's Association, the Tennessee Association of Chiefs of Police, and the Tennessee corrections institute, developed standardized booking procedures which include:
  1. (A) A photograph of the arrestee;
  2. (B)
    1. (i) A set of fingerprints. If fingerprints are maintained manually, the booking agency shall mail two (2) sets of properly completed fingerprint cards to the Tennessee bureau of investigation. If fingerprints are transmitted to the Tennessee bureau of investigation electronically, the booking agency shall maintain with the arrest report one (1) hard copy of the fingerprints along with an acknowledgement from the Tennessee bureau of investigation that a copy of the fingerprints have been received and accepted;
    2. (ii)
      1. (a) When a person is arrested for a vehicular impairment offense, and fingerprints are maintained manually, the booking agency shall mail two (2) sets of properly completed fingerprint cards to the Tennessee bureau of investigation within five (5) business days of the person being booked for the offense;
      2. (b) If fingerprints of a person arrested for a vehicular impairment offense are transmitted to the Tennessee bureau of investigation electronically, the fingerprints shall be transmitted within up to five (5) business days of booking;
      3. (c) As used in this subdivision (a)(1)(B), “vehicular impairment offense” means the person is charged with a violation of § 39-13-106, § 39-13-115, § 39-13-213(a)(2), § 39-13-218, or § 55-10-401;
  3. (C)
    1. (i) Delivery to the appropriate local law enforcement agency of a completed judgment order containing the state control number, signed by a judge to be used by the local law enforcement agency for completion of an R-84 Disposition Card, except as provided in this subdivision (a)(1)(C). A local law enforcement agency shall provide a state control number printed on the R-84 Disposition Card and attached to the arresting document to the clerk within seven (7) business days of arrest so that the clerk or court can electronically submit final dispositions of criminal cases, including the state control number, to the Tennessee bureau of investigation. Unless otherwise authorized by the Tennessee bureau of investigation, all final dispositions shall be reported electronically. A formal disposition shall not be sent to the Tennessee bureau of investigation without the state control number or transaction control number being contained within the document;
    2. (ii)
      1. (a) When a person is convicted of a vehicular impairment offense, the clerk shall deliver the judgment order signed by the judge to the appropriate law enforcement agency within seven (7) business days of the date the judge signs the order. Upon receiving the judgment order from the clerk, the appropriate law enforcement agency shall have seven (7) business days to complete an R-84 Disposition Card on the person convicted and send it to the Tennessee bureau of investigation for entry into the National Crime Information Center (NCIC);
      2. (b) If a person is convicted of a vehicular impairment offense, in a county where the clerk and the law enforcement agency have implemented an automated process for the electronic submission of final dispositions for criminal cases that is certified by the Tennessee bureau of investigation, the conviction containing the state control number shall be transmitted by the clerk to the Tennessee bureau of investigation within two (2) business days of the judgment order being signed by the judge. The Tennessee bureau of investigation shall immediately enter the conviction into the National Crime Information Center (NCIC);
      3. (c) As used in this subdivision (a)(1)(C), “vehicular impairment offense” means the person was convicted of a violation of § 39-13-106, § 39-13-115, § 39-13-213(a)(2), § 39-13-218, or § 55-10-401;
  4. (D) An arrest report; and
  5. (E) Delivery to the appropriate court clerk office of a warrant or capias for offense containing the state control number assigned by the law enforcement agency upon the arrest of an individual to be recorded in the court information system of the court clerk office.
2. (2) Notwithstanding § 8-8-201 or § 38-3-122 to the contrary, it shall be the duty of the law enforcement agency responsible for maintaining the arrested person's booking records to take the fingerprints from such person as required by such sections.
3. (3) Where individuals are arrested multiple times for a violation of § 39-17-310, the offense of public intoxication, the arresting officer shall note on the arrest report that fingerprints are on file for this individual pursuant to § 38-3-122(a).
4. (4) Compliance with these standardized booking procedures shall be the basis for the comptroller of the treasury determining compliance with the fingerprinting requirements of §§ 8-8-201(a)(35) and 38-3-122. The Tennessee corrections institute and the law enforcement training academy shall train correctional personnel in municipal, county and metropolitan jurisdictions in the application of these standardized booking procedures.
(b) The respective county or municipal legislative body shall appropriate funds for the respective sheriff's office or police department, including funds for personnel and supplies which are sufficient to comply with this section.
(c)
1. (1) The comptroller of the treasury shall audit or cause to be audited under title 4, chapter 3, part 3 and title 6, chapter 56, part 1, on an annual basis the sheriff's office or police department to determine whether or not such law enforcement agency is in compliance with the requirements of this section. If the comptroller of the treasury determines that a particular sheriff's office or police department is not in compliance with §§ 8-8-201(a)(35), 38-3-122 and this section, the comptroller of the treasury, within thirty (30) days of such determination, shall notify such sheriff or police chief and the Tennessee peace officer standards and training commission of such noncompliance.
2. (2) Such sheriff or police chief shall show cause to the Tennessee peace officer standards and training commission within thirty (30) days of notification why such sheriff or police chief should not be found to be in noncompliance with the requirements of §§ 8-8-201(a)(35) and 38-3-122. If the appropriate sheriff or police chief does not respond or show good cause within thirty (30) days, the Tennessee peace officer standards and training commission shall forthwith decertify the appropriate sheriff or police chief and impound the supplement provided for such sheriff or police chief in § 38-8-111. The Tennessee peace officer standards and training commission shall notify the comptroller of the treasury and both the sheriff and county commission or the police chief and city council of such action.
3. (3) The burden shall be on such sheriff or police chief to demonstrate compliance to the Tennessee peace officer standards and training commission and if such sheriff or police chief is found to be in compliance with this section within sixty (60) days after decertification, the Tennessee peace officer standards and training commission shall rescind the decertification order and cause any salary supplement impounded to be returned to the appropriate sheriff or police chief except for one-twelfth (⁄) of the annual supplement.
(d) In addition to any proceeding under chapter 47 of this title, the sheriff or police chief may be removed from office in accordance with this section. The comptroller of the treasury shall forward a copy of reports of noncompliance with this section by the sheriff or police chief to the district attorney general having jurisdiction and to the attorney general and reporter. The district attorney general and the attorney general and reporter shall each review the report and determine if there is sufficient cause for further investigation. If further investigation indicates willful misfeasance, malfeasance or nonfeasance by the sheriff or police chief, the district attorney general shall proceed pursuant to chapter 47 of this title, to remove the sheriff or police chief from office. This subsection (d) is effective for fingerprints taken or required to be taken on or after July 1, 1999.
(e) Prior to purchasing an electronic fingerprint imaging system, the sheriff or municipal police department shall obtain certification from the Tennessee bureau of investigation that such equipment is compatible with the Tennessee bureau of investigation's and the federal bureau of investigation's integrated automated fingerprint identification system.
(f) Subject to the approval of the general assembly, a portion of the funds derived from the additional privilege tax levied on all criminal cases instituted in this state as provided for in § 67-4-602(g), may be appropriated to the Tennessee bureau of investigation for the purchase, installation, maintenance, and line charges of electronic fingerprint imaging systems.
(g) Upon establishment of an automated system for final disposition reporting, clerks of the court shall submit final disposition reports containing the state control number electronically to the Tennessee bureau of investigation. Jurisdictions that submit final disposition reports electronically will cease the submission of R-84 Disposition Cards upon advisement from the Tennessee bureau of investigation. The submission of an electronic final disposition report containing the state control number shall have the same force and effect as the submission of the R-84 Disposition Card.
(h) Any automated court information system being used or developed on or after July 1, 2005, including, but not limited to, the Tennessee court information system (TnCIS) being designed pursuant to § 16-3-803(h), shall ensure that an electronic file of final disposition data, including the state control number, will be reported to the Tennessee bureau of investigation. The form, general content, time, and manner of submission of the electronic file of final disposition data, including the state control number, will comply with the rules prescribed by the Tennessee bureau of investigation.
(i) As used in this section, unless the context otherwise requires:
1. (1) “Final disposition” means a court document that reflects the outcome of a criminal case and includes:
  1. (A) The defendant's full name;
  2. (B) The defendant's social security number;
  3. (C) The defendant's date of birth;
  4. (D) The defendant's sex;
  5. (E) The defendant's race;
  6. (F) The county of arrest;
  7. (G) The class designation of the crime;
  8. (H) The state control number;
  9. (I) The date of arrest and date of offense;
  10. (J) The date of disposition and date of sentence imposed;
  11. (K) The criminal charge or charges convicted of;
  12. (L) Any fines, court costs, and restitution;
  13. (M) The case number and court number;
  14. (N) Whether the defendant is sentenced to confinement in the Tennessee department of correction, a county jail, or workhouse;
  15. (O) Whether the defendant was sentenced to supervised or unsupervised probation or to community correction; and
  16. (P) Whether diversion was ordered;
2. (2) “Finger printing agency” means any entity approved by the Tennessee bureau of investigation responsible for the submission of fingerprint arrests in a Tennessee municipality or county; including a state or local law enforcement agency, sheriff's office, or police department; and
3. (3) “State control number” means a unique twelve (12) digit number generated and printed by a live scan device or automated fingerprint identification system (AFIS) for the purpose of identifying, tracking, or referencing a criminal transaction.

§ 8-4-116. Authority of comptroller to audit.

(a) Entities contracting with the state or local governments to perform government services shall be subject to audit by the comptroller of the treasury to assure that public funds are expended in accordance with the public purpose for which they were contracted.
(b) Notwithstanding any other law or existing contract, the comptroller of the treasury is hereby authorized to conduct an audit of the records of any entity contracting with the state or local government entities created under and by virtue of the statutes of the state, if such contracting entity derives fifty percent (50%) or more of its gross revenue from such state or local entity or entities. All books, records, documents, and other evidence pertaining to the receipt, accounting for, use and/or expenditure of any public funds by any such contracting entity shall be available for examination by the comptroller of the treasury during normal business hours through on-site review. In the alternative, and in the comptroller's sole discretion, such records may be provided through the mail or other methods of data transmission. Such audits shall take place as often as necessary, and to the extent necessary, in the discretion of the comptroller of the treasury and in conformance with generally accepted auditing standards, to determine whether public funds received by the entity were properly accounted for and expended in accordance with the public purpose for which the entity was contracted. The comptroller of the treasury shall have such authority notwithstanding whether the contract is in the form of a fee-for-service contract, a vendor contract, a cost reimbursement contract, any combination of these types of contract, or any other form of contract.
(c) The comptroller of the treasury shall have the authority to determine whether a contracting entity is subject to audit pursuant to this section. The comptroller of the treasury shall give advance written notice of intent to audit to the contracting entity and its chief executive officer. If the contracting entity contends that it is not subject to audit, it shall, within five (5) business days of receipt of the notice, file with the comptroller of the treasury a written objection to the audit. Such objection shall be made under oath and accompanied by an income statement or such other statements or financial records as would, within the sound discretion of the comptroller of the treasury and consistent with generally accepted auditing standards, establish that the contracting entity is not subject to audit. The failure to file such an objection shall be deemed a waiver of any objection to the audit. Notwithstanding any other law to the contrary, any income statements or other financial documents filed with the objection shall become a part of the comptroller's confidential work papers and shall not be open or otherwise subject to public inspection.
(d) If a contracting entity, after having received notice of intent to audit, refuses to grant access to such books, records, documents, and other evidence of the contracting entity as may be necessary, in the judgment of the comptroller, to accomplish the audit, the comptroller of the treasury shall have the authority to make application to the chancery court of Davidson County for an order requiring the contracting entity to show cause why the entity is not subject to audit by the comptroller of the treasury. In the absence of such a showing by the contracting entity, the court shall grant a permanent or temporary injunction compelling the contracting entity, its officers, agents, and attorneys, to grant access to such books, records, documents, and other evidence to the comptroller of the treasury or the comptroller's duly appointed representatives. The chancery court shall have the authority to assess costs of enforcement, including reasonable attorneys' fees, against the contracting entity, its officers and agents, and any other person responsible for objecting to the audit or refusing access to such books, records, documents, and other evidence if the court finds that there were no substantial grounds for objecting to the audit or refusing access.
(e) The comptroller of the treasury has the authority to promulgate rules pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, consistent with this section for the purpose of ensuring the proper and orderly conduct of audits and other examinations of contracting entities within the meaning of this section.
(f) This section is not intended to abolish any authority now held by the comptroller of the treasury, and shall not be deemed to repeal by implication any existing law.

§ 8-4-117. Determination of state and local expenditures for indigent care and available federal resources.

The comptroller of the treasury is directed to determine all state and local government expenditures for the care of indigent persons and all federal resources available to the state for the care of indigent persons.

§ 8-4-118. Authority of the comptroller of the treasury to obtain certain information from applicants applying for employment.

(a) The comptroller of the treasury may require all persons prior to employment with such office to:
1. (1) Agree to the release of all investigative records to the comptroller of the treasury for the purpose of verifying the accuracy of criminal violation information contained on an employment application; and
2. (2) Supply a fingerprint sample and submit to a criminal history records check to be conducted by the Tennessee bureau of investigation. In addition, to the extent permitted by federal law, and at the discretion of the comptroller of the treasury, a check of such prints may be made against records maintained by the federal bureau of investigation.
(b) Any costs incurred by the Tennessee bureau of investigation or the federal bureau of investigation, as appropriate, in conducting such investigations of applicants shall be paid by the comptroller of the treasury.
(c) The comptroller of the treasury may establish the job titles or classifications to which the requirements of this section apply. Such classifications shall not supersede any mandatory fingerprint-based criminal history background requirements that may be applicable for any person who is seeking employment in a position in any program subject to licensure, approval or certification by any state agency.

§ 8-4-119. Report to comptroller of treasury of government fraud.

(a) Any state agency having determined that a theft, forgery, credit card fraud or any other intentional act of unlawful or unauthorized taking, or abuse of public money, property, or services, or that other cash shortages have occurred in the state agency, shall report the information to the office of the comptroller of the treasury.
(b) The comptroller of the treasury, in consultation with the state agencies, shall have the authority to establish guidelines for such reports.
(c)
1. (1) Any state agency shall, within a reasonable amount of time, notify the comptroller of the treasury of any confirmed or suspected unauthorized acquisition of computerized data and any confirmed or suspected breach of a computer information system or related security system established to safeguard the data and computer information system.
2. (2) For purposes of subdivision (c)(1):
  1. (A) “Breach” does not include individual occurrences of malware or spyware;
  2. (B) “Computer information system” and “related security system” mean those computer information systems and security system infrastructures operated and administered by the state agency or an entity with which the state agency contracts for such operation and administration; and
  3. (C) “Reasonable amount of time” means any amount of time that is reasonable under the particular circumstances, but shall not under any circumstances exceed five (5) working days.
(d) The information received pursuant to this section shall be confidential working papers of the comptroller of the treasury, and therefore, shall not be an open record pursuant to title 10, chapter 7.
(e) As used in this section “state agency” means each state board, commission, committee, department, office, or any other unit of state government.

Part 2 Hearings and Investigations

§ 8-4-201. Power to require testimony and administer oaths.

The comptroller of the treasury, in performing any of the duties of office, has the power to require any person to testify under oath as to any matter which is a proper subject of inquiry by the comptroller of the treasury. The comptroller of the treasury is authorized to administer all necessary oaths.

§ 8-4-202. Power to subpoena.

For these purposes, the comptroller of the treasury is empowered to issue subpoenas or subpoenas duces tecum to require attendance of persons and submission of documents, at specified times and places, to give testimony in the case or matter therein stated. The subpoena shall mention the names of the parties to the hearing and the party at whose instance the witness is called, and, if necessary, require the witness also to bring any books, documents, or other writing under the person's control which may be pertinent to the hearing.

§ 8-4-203. Service of subpoena.

Service of such subpoena shall be had by a designated representative of the comptroller of the treasury either handing a copy of the subpoena to such witness, at which time service is complete; mailing a copy of the subpoena to such witness by certified mail, return receipt requested, in which case service shall be complete on the date the witness signs the certified mail receipt; or, if the witness cannot be found, mailing a copy of the subpoena to the last known address of the witness by first-class mail, in which case service shall be complete upon mailing. Such process shall run throughout the state.

§ 8-4-204. Failure of witness to appear — Penalty.

Failure of any witness so subpoenaed to attend shall be certified by the comptroller of the treasury to the chancery court in whose judicial district such witness resides, and such chancery court shall exercise authority granted it by law in the treating of contempt of court matters, including those powers granted in §§ 29-9-103 — 29-9-105; all to the end that the witness shall be compelled to appear at a time and place specified by the chancery court.

§ 8-4-205. Witness refusing to testify — Penalty.

Any witness who appears as ordered, but upon appearance refuses to testify on matters not privileged by law, shall be punished as prescribed in § 8-4-204.

§ 8-4-206. Witness' traveling expenses — Reimbursement — Pay.

Any witness so subpoenaed shall be reimbursed necessary traveling expenses from such witness' home to the place of hearing and other necessary expenses as determined by the comptroller of the treasury. Those witnesses not employees of the state shall be paid at the rate of five dollars ($5.00) per day for each day or portion of a day in attendance at such hearing.

§ 8-4-207. Investigations — Request of aid from other state agencies.

The comptroller of the treasury may, whenever deeming such aid necessary, request the aid of any and all agencies of the state in investigation of alleged irregularities or discrepancies involving state revenue or state funds.

§ 8-4-208. Cooperation of state agencies in investigations.

Unless good and sufficient reason can be shown why the particular state agency should not render such aid, any request by the comptroller of the treasury shall be honored and the agency so requested shall give full aid, support and cooperation to the comptroller of the treasury in such investigation.

§ 8-4-209. Investigation of allegation of felony involving private fund.

The comptroller of the treasury, in its discretion, may investigate an allegation of a felony that is classified as Class B or higher involving private funds if:
1. (1) The investigation is requested by the attorney general and reporter or the district attorney general of a judicial district;
2. (2) The investigation is in conjunction with an open investigation by the Tennessee bureau of investigation; and
3. (3) The comptroller of the treasury deems an investigation to be in the public interest.

Part 3 Disability of Comptroller of the Treasury — Assistant Comptroller of the Treasury

§ 8-4-301. Vacancy in office.

If the comptroller of the treasury dies, resigns, or is, from any cause, disabled from performing the duties of office, the governor shall appoint some person well qualified to act in the comptroller of the treasury's stead, who shall take the same oaths, give the same bonds, in the same manner, be liable to the same penalties and receive the same salary and allowances as the regular comptroller of the treasury.

§ 8-4-302. Assistant comptroller of the treasury — Appointment.

(a) There is created the office of assistant comptroller of the treasury who shall serve as such during any emergency when the regular comptroller of the treasury is disabled or disqualified from performing the duties of the office.
(b) If the general assembly is not in session when such emergency exists, the governor shall appoint such assistant comptroller of the treasury to serve until the general assembly convenes, at which time the general assembly shall elect the assistant comptroller of the treasury in the event the emergency then continues. If the general assembly is in session when the emergency commences, the assistant comptroller of the treasury shall be elected by the joint vote of the general assembly.

§ 8-4-303. Acting in emergency only.

(a) In no event shall the person so appointed as assistant comptroller of the treasury serve as such except during the existence of the emergency, and the governor shall determine when such emergency exists and when it terminates and shall so declare.
(b) The action of the governor in declaring the existence of an emergency shall be subject to review by writ of certiorari.

§ 8-4-304. Powers and duties of assistant comptroller of the treasury.

Such person appointed or elected as assistant comptroller of the treasury shall possess all the qualifications required of the comptroller of the treasury and shall file such bond as is required to be filed by the comptroller of the treasury under the statutes, and shall take the oath of office prescribed by statute for the comptroller of the treasury, and shall serve only during the continuance of the emergency as determined by the governor and shall be paid such compensation as the governor may fix, but in no event shall the compensation so fixed exceed that prescribed by law for the duly elected comptroller of the treasury.

Part 4 Advocacy for Honest and Appropriate Government Spending Act

§ 8-4-401. Short title.

This part shall be known and may be cited as the “Advocacy for Honest and Appropriate Government Spending Act.”

§ 8-4-402. Part definitions.

As used in this part, unless the context otherwise requires:
1. (1) “Community grant” means federal funds made available to the state of Tennessee for administration and distribution pursuant to any of the following programs:
  1. (A) The maternal and child health block grant program;
  2. (B) The preventative health and services block grant program;
  3. (C) The alcohol, drug abuse, and mental health block grant program;
  4. (D) The social services block grant program;
  5. (E) The community services block grant program; or
  6. (F) The low income energy assistance program;
2. (2) “Community grant agency” means any private corporation that contracts with a state agency to receive one (1) or more community grants in consideration for rendering specified services to the public;
3. (3) “Hotline” means a method or system created or established to accept any telephonic or electronic form of communication that is communicated to the office of the comptroller of the treasury, for the purposes of providing governmental employees and citizens of Tennessee a means to report or provide information relating to alleged fraud, abuse, or wrongdoing;
4. (4) “Local agency” means any county, municipality, branch or agency of a county or municipality, public utility, utility district, entity created pursuant to any interlocal agreement, or any other political subdivision thereof; and
5. (5) “State agency” means each state board, commission, committee, department, office, or any other unit of state government.

§ 8-4-403. Toll-free telephonic and web-based hotline.

The office of the comptroller of the treasury shall establish, maintain, and publicize a toll-free telephonic and web-based hotline for the purpose of receiving allegations of fraud, waste, or abuse of public funds.

§ 8-4-404. Display of sign concerning toll-free hotline.

(a) Throughout the period in which a state agency or community grant agency receives public funds, the entity shall display in a prominent place, a sign at least eleven inches (11″) in height and seventeen inches (17″) in width stating:
(b) No state agency or community grant agency shall edit the written text of such notice.

§ 8-4-405. Educating citizens and public employees on reporting allegations of fraud, waste or abuse of public funds and the responsibility of comptroller to review allegations.

Through press releases, public service announcements, or other appropriate public information activities, the office of the comptroller of the treasury shall attempt to educate both private citizens and public employees of the availability of a mechanism to report, and the responsibilities of the office of the comptroller of the treasury to review, allegations of fraud, waste, or abuse of public funds.

§ 8-4-406. Review and record of notifications — Investigations — Reports.

(a) The office of the comptroller of the treasury shall review all notifications received through the hotline pursuant to this part and shall maintain a record of each meritorious notification involving an activity related to state agency or community grant supported services. The information received through the notifications shall be investigated by the office of the comptroller of the treasury or may be referred by the office of the comptroller of the treasury to the appropriate program or investigative agency.
(b) Upon receiving the information relating to a notification, a state agency, local agency or community grant agency shall undertake adequate and appropriate measures to investigate and remedy any illegal, improper, or wasteful activity noted in the information. The state agency, local agency or community grant agency shall submit a written report to the office of the comptroller of the treasury, outlining the findings of the investigating entity's investigation, as well as any remedial action undertaken. A copy of the report shall be retained by the state agency, local agency or community grant agency, and if involving a community grant agency, the report shall be appropriately considered prior to the state entering into any other contractual relationship with the community grant agency. The detailed information received and generated shall be considered confidential in the same manner as if such investigation has been conducted by the office of the comptroller of the treasury pursuant to § 8-4-407.

§ 8-4-407. Confidentiality of information — Annual summary of notifications.

(a) The detailed information received and generated pursuant to this part shall be considered confidential working papers of the comptroller of the treasury and is therefore not an open record pursuant to title 10, chapter 7.
(b) Each year the office of the comptroller of the treasury shall include within the annual report required by § 8-4-110, a summary of the notifications received during the year pursuant to this part. The summary shall indicate the number of notifications, the general nature of the activities reported, the state agencies and community grant agencies affected, and, if appropriate, any remedial action taken or proposed, including the total amount of public funds recovered, and any criminal or civil actions initiated or completed as a result of an allegation received by the office of the comptroller of the treasury under this part.

§ 8-4-408. Procurement and distribution of hotline signs.

The office of the comptroller of the treasury shall procure uniform signs, printed in accordance with § 8-4-404, which shall be available, upon request, for distribution without cost to each state agency and community grant agency.

§ 8-4-409. Providing false information — Good faith allegation — Application to state agencies and local government employees — Retaliation.

(a) Any person who knowingly provides false information pursuant to this part commits a Class C misdemeanor.
(b) Any person making an allegation in good faith pursuant to this part is immune from civil or criminal liability for making the allegation, even if the allegation proves to be false.
(c) Section 8-50-116 shall apply to all state agency and local government employees. In addition, no government employee shall suffer any of the prohibited retaliatory actions specified in § 8-50-116 for reporting to, or cooperating with, the office of the comptroller of the treasury or other investigating entity. Any person who knowingly and willingly retaliates or takes adverse action of any kind against any person for reporting alleged wrongdoing pursuant to this part, commits a Class A misdemeanor.

Part 5 Local Government Instances of Fraud Reporting Act

§ 8-4-501. Short title.

This part shall be known and may be cited as the “Local Government Instances of Fraud Reporting Act.”

§ 8-4-502. Part definitions.

As used in this part, unless the context otherwise requires:
1. (1) “Public entity” means any branch or agency of a county, municipality, public utility, utility district, entity created pursuant to any interlocal agreement, or any other political subdivision thereof;
2. (2) “Public official” means a person elected or appointed to any office of a public entity;
3. (3) “Reasonable amount of time” means any amount of time that is reasonable under the particular circumstances, but shall not under any circumstances exceed five (5) working days; and
4. (4) “Unlawful conduct” means theft, forgery, credit or debit card fraud, or any other act of unlawful taking, waste, or abuse of, or official misconduct, as defined in § 39-16-402, involving public money, property, or services.

§ 8-4-503. Reporting unlawful conduct — Method of making report.

(a) A public official with knowledge based upon available information that reasonably causes the public official to believe that unlawful conduct has occurred shall report the information in a reasonable amount of time to the office of the comptroller of the treasury.
(b) A certified public accountant or firm conducting an audit, investigation, or other engagement under a contract with the comptroller of the treasury, or with a public entity that requires approval by the comptroller of the treasury, shall promptly report any reasonable suspicion of unlawful conduct to the office of the comptroller of the treasury.
(c) The comptroller of the treasury may prescribe the method of making the report.

§ 8-4-504. Good faith immunity.

(a) If acting in good faith, a public official, or a certified public accountant or firm, makes a report, as required by § 8-4-503, the person or firm shall not be liable in any civil or criminal action that is based solely upon:
1. (1) The person's or firm's decision to report what the person or firm believed to be unlawful conduct;
2. (2) The person's or firm's belief that reporting the unlawful conduct was required by law or by contract; or
3. (3) The fact that a report of unlawful conduct was made.
(b) No immunity conferred pursuant to subsection (a) shall attach if the person or firm reporting the unlawful conduct:
1. (1) Participated in or benefited from the unlawful conduct; or
2. (2) Knowingly provides false information pursuant to this part.

§ 8-4-505. Confidentiality.

The detailed information received and generated pursuant to this part shall be considered confidential working papers of the comptroller of the treasury and is therefore not an open record pursuant to title 10, chapter 7.

Part 6 Office of Open Records Counsel

§ 8-4-601. Creation.

(a) There is created the office of open records counsel to answer questions and provide information to public officials and the public regarding public records. The role of the office shall also include collecting data on open meetings law inquiries and problems and providing educational outreach on the open records laws, compiled in title 10, chapter 7, and the open meetings laws, compiled in chapter 44 of this title.
(b) The office of open records counsel shall answer questions and issue informal advisory opinions as expeditiously as possible to any person, including local government officials, members of the public and the media. State officials shall continue to consult with the office of the attorney general and reporter for such opinions. Any opinion issued by the office of open records counsel shall be posted on the office's website.
(c) The office of open records counsel is authorized to informally mediate and assist with the resolution of issues concerning the open records laws, compiled in title 10, chapter 7.

§ 8-4-602. Advisory committee — Membership.

(a) There is created an advisory committee on open government to provide guidance and advice for the office of open records counsel.
(b)
1. (1) The advisory committee shall consist of fourteen (14) members to be appointed for a term of four (4) years; provided, that the five (5) members listed in subdivisions (b)(1)(A)-(E) shall be appointed for an initial term of four (4) years and the five (5) members listed in subdivisions (b)(1)(F)-(J) shall be appointed for an initial term of two (2) years. The members listed in subdivisions (b)(1)(K), (L), (M) and (N) shall be appointed for an initial term of four (4) years. The advisory committee shall be made up of one (1) member from each of the following groups who will be appointed by the comptroller of the treasury from a list of three (3) nominees submitted from each group:
  1. (A) One (1) member from the Tennessee Coalition for Open Government;
  2. (B) One (1) member from the Tennessee Press Association;
  3. (C) One (1) member from the Tennessee Municipal League;
  4. (D) One (1) member from either the Tennessee County Services Association or the County Officials Association of Tennessee;
  5. (E) One (1) member from the Tennessee School Boards Association;
  6. (F) One (1) member from Common Cause;
  7. (G) One (1) member from the League of Women Voters;
  8. (H) One (1) member from public hospitals submitted by the Tennessee Hospital Association;
  9. (I) One (1) member from the Tennessee Association of Broadcasters;
  10. (J) One (1) member representing the board of regents or the University of Tennessee;
  11. (K) One (1) member from the Tennessee Association of Chiefs of Police;
  12. (L) One (1) member from the Tennessee Sheriffs' Association;
  13. (M) One (1) member from the Society of Professional Journalists; and
  14. (N) One (1) member from the American Association of Retired People.
2. (2) The advisory committee shall also consist of the chair of the state and local government committee of the senate and the state government committee of the house of representatives and the attorney general and reporter or the attorney general and reporter's designee.
(c) The nonlegislative members shall not receive compensation for serving on the committee but shall be reimbursed for attendance at meetings in accordance with the comprehensive travel regulations promulgated by the commissioner of finance and administration and approved by the attorney general and reporter.

§ 8-4-603. Open meetings laws — Review of proposed legislation — Report.

(a)
1. (1) The advisory committee shall, with the guidance of the office of open records counsel, hold meetings to review and provide written comments, if requested, on any proposed legislation regarding the open meetings laws, compiled in chapter 44 of this title, and the open records laws, compiled in title 10, chapter 7.
2. (2)
  1. (A) The advisory committee shall select two (2) co-chairs from among its membership.
  2. (B) One (1) co-chair selected under subdivision (a)(2)(A) shall represent the interests of advisory committee members appointed under § 8-4-602(b)(1)(C)-(E), (H), and (J)-(L); and one (1) co-chair selected shall represent the interests of members appointed under § 8-4-602(b)(1)(A), (B), (F), (G), (I), (M), and (N).
  3. (C)
    1. (i) The advisory committee shall meet at least once during each calendar year, with the date for such meeting to be set by joint agreement of the co-chairs.
    2. (ii) The co-chairs of the committee:
      1. (a) May, by joint agreement, call additional meetings at any time; and
      2. (b) Shall, upon the request of a majority of the members, call additional meetings.
  4. (3) All meetings of the advisory committee shall be open to the public, pursuant to § 8-44-102.
(b)
1. (1) The office of open records counsel and the advisory committee shall separately provide a detailed report of their activities to the governor, the speaker of the senate, the speaker of the house of representatives, the chair of the state and local government committee of the senate, the chair of the local government committee of the house of representatives, and the chair of the state government committee of the house of representatives by March 1 of each year.
2. (2) The advisory committee shall provide reports on open records and open meetings laws and issues as requested by the governor or any committee of the general assembly.
(c) Any written comments or reports provided by the advisory committee shall require unanimous consent of the co-chairs.

§ 8-4-604. Office of open records counsel — Duties — Schedule of reasonable charges — Policies and guidelines.

(a) The office of open records counsel shall establish:
1. (1)
  1. (A) A schedule of reasonable charges that a records custodian may use as a guideline to charge a citizen requesting copies of public records pursuant to title 10, chapter 7, part 5. In establishing the schedule, the office of open records counsel shall consider:
    1. (i) Such factors as the size, by population, of the county or municipality, the complexity of the request, the number of man hours involved in retrieving the documents, redacting confidential information from the documents and any other costs involved in preparing the documents for duplication, the costs of duplication, the costs of mailing the documents if the requestor is not returning to retrieve the requested documents, and any other costs that the office of open records counsel deems appropriate to include in the charge; and
    2. (ii) The principles presented by the study committee created by chapter 887 of the Public Acts of 2006:
      1. (a) That state policies and guidelines shall reflect the policy that providing information to the public is an essential function of a representative government and an integral part of the routine duties and responsibilities of public officers and employees;
      2. (b) That excessive fees and other rules shall not be used to hinder access to nonexempt public information;
      3. (c) That, in accordance with § 10-7-503(a)(7)(A), no charge shall be assessed to view a public record unless otherwise required by law;
      4. (d) That the requestor be given the option of receiving information in any format in which it is maintained by the agency, including electronic format consistent with title 10, chapter 7, part 1; and
      5. (e) That when large-volume requests are involved, information shall be provided in the most efficient and cost-effective manner, including but not limited to permitting the requestor to provide copying equipment or an electronic scanner;
  2. (B) The schedule established pursuant to subdivision (a)(1)(A) shall be revised at least annually;
2. (2) A separate policy related to reasonable charges that a records custodian may charge for frequent and multiple requests for public records;
3. (3) A safe harbor policy for a records custodian who adheres to the policies and guidelines established by the office of open records counsel; and
4. (4) A model best practices and public records policy for use by a records custodian in compliance with § 10-7-503.
(b) The office of open records counsel shall make the policies and guidelines available on the internet.
(c) The policies and guidelines shall not be deemed to be rules under the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
(d) Before establishing any version of a policy or guideline authorized or required by this section, the office of open records counsel shall provide a proposed draft to the advisory committee on open government for comment. The advisory committee on open government may meet and provide written comments on the draft to the office of open records counsel.

Part 7 Small Business Advocate

§ 8-4-701. “Small business” defined.

For purposes of this part, “small business” means a business entity, including its affiliates, that employs fifty (50) or fewer full-time employees.

§ 8-4-702. Advocate within the office of the comptroller of the treasury — Authority — Choice of advocate.

(a) There shall be a small business advocate within the office of the comptroller of the treasury to answer questions and provide information to residents of this state who are starting a small business or who already own a small business.
(b) The small business advocate is authorized to informally mediate and assist with the resolution of issues concerning small business owners and state departments and agencies.
(c) The small business advocate shall be chosen by the comptroller of the treasury from existing personnel within the comptroller's office and the comptroller shall implement this part without using additional resources.

§ 8-4-703. Contact person within each department and agency with regulatory authority.

(a) Each department and agency in state government that has any regulatory authority over business activity shall appoint a person from existing executive service personnel who shall serve as a contact person for the small business advocate when the advocate has an issue or question concerning the department or agency. The contact person is responsible for communicating with the small business advocate when problems or issues from small business owners arise in the person's department or agency. The contact person shall notify the small business advocate when the issue or problem is resolved.
(b) The department or agency shall notify the small business advocate who the contact person is within sixty (60) days of July 1, 2010. At any time a department or agency changes the contact person, the department or agency shall notify the small business advocate within seven (7) business days of the change.

§ 8-4-704. Duties of advocate.

The small business advocate shall:
1. (1) Work with each state agency and department with regulatory authority over businesses to ensure that small business owners who receive or are subject to an audit, on-site inspection, compliance assistance effort, or other enforcement-related communication or contact by agency or department personnel are provided with a means to communicate or comment on the enforcement activity conducted by such personnel;
2. (2) Establish means to receive comments from small business owners regarding actions by agency or department employees conducting compliance or enforcement activities;
3. (3) Establish means to refer comments from small business owners received pursuant to subdivision (2) to the contact person of the affected agency or department in the appropriate circumstances and to maintain the confidentiality of the identity of the person making such comments; and
4. (4) Rate agencies on the extent to which they notify small business owners about the existence of the small business advocate.

§ 8-4-705. Annual report to general assembly on enforcement activities.

The small business advocate shall report annually to the commerce and labor committee of the senate and the commerce committee of the house of representatives regarding evaluating the enforcement activities of department and agency personnel, including a rating of the responsiveness to small business owners' concerns.

§ 8-4-706. Annual report on advocate's activities, findings and recommendations.

The small business advocate shall annually prepare a report on the advocate's activities, findings and recommendations to the governor, members of the general assembly and to the heads of affected state departments and agencies. Prior to publishing the report, the small business advocate shall provide any affected department or agency with an opportunity to comment on draft reports and include the department's or agency's comments in the final version of the report.

§ 8-4-707. Publication of contact information.

The contact information for the small business advocate shall be published on the comptroller of the treasury's website. The website shall also include the names of all contact persons for each state department and agency as provided in § 8-4-703.

Chapter 5 State Treasurer

Part 1 General Provisions

§ 8-5-101. Election — Term of office.

There shall be a state treasurer, who shall be elected by the joint vote of both houses of the general assembly, and shall hold office for the term of two (2) years, and until a successor is elected and qualified.

§ 8-5-102. Audit of incumbent's accounts.

Previous to the convening of each biennial general assembly, the speaker of the senate and the speaker of the house of representatives may call upon the comptroller of the treasury to submit and review with them a current audit of the office of the treasurer. The speakers may appoint a committee of the general assembly for the purpose of such review.

§ 8-5-103. [Reserved]

§ 8-5-104. Oath of office.

The state treasurer shall take an oath before a judge of the supreme, appeals, or circuit court, or a chancellor, to support the Constitutions of Tennessee and of the United States, and faithfully to execute the duties of the office.

§ 8-5-105. Office — Duties.

The state treasurer shall keep office in the room assigned to the state treasurer in the capitol, and shall perform all the duties appertaining thereto by law, or which may be required of the state treasurer by resolution of the general assembly.

§ 8-5-106. Accounts of receipts and disbursements.

The state treasurer shall keep in a book or books, under distinct heads, true, faithful, and just accounts of all the money received from time to time by virtue of such office, and also of all such sums of money as the state treasurer shall pay out of the treasury on warrants received.

§ 8-5-107. General ledger.

The state treasurer shall keep a general ledger of accounts, into which the state treasurer shall post all of the receipts and disbursements of the office, arranging the receipts and disbursements under the appropriate accounts. The state treasurer shall open in the ledger a general account of receipts and disbursements, which shall be reconciled currently with the general ledger maintained by the commissioner of finance and administration, in the accounts section, as of the last day of each month of the fiscal year.

§ 8-5-108. Accounts with banks.

The state treasurer shall keep accounts in the books of the office with the individual banks in which the public revenue or money is deposited, with such balances being reconciled to the individual bank statement balances on a monthly basis, showing the amount in the bank to the credit of the state at the end of each month.

§ 8-5-109. General account.

The state treasurer shall, moreover, keep a general account, which shall be reconciled to balances maintained by the commissioner of finance and administration, in the accounts section, and with the individual banks in which the public revenue or money is deposited on a monthly basis, showing the balance in the treasury at the end of each month.

§ 8-5-110. Custodian of collateral.

(a) The state treasurer is designated as the custodian of all negotiable instruments deposited as collateral with the state or any department thereof, and shall be exclusively responsible for their safekeeping.
(b) It is the duty of each department head or other person in the state government, having in possession collateral of the type above mentioned, to turn the same over to the state treasurer and to receive from the state treasurer an itemized receipt therefor. As additional collateral shall come into the hands of the department head or other person, the same procedure shall be followed.
(c) Such collateral submitted to the state treasurer in the form of securities shall be fully registered as to principal and interest in such manner as to identify the state and the appropriate agency or department as holder of such collateral and to also identify the individual or concern placing such collateral.
(d) The state treasurer shall make an annual report to the department head of collateral held on behalf of such department.
(e) The official bond of the state treasurer shall be security for any losses resulting under this section.

§ 8-5-111. Biennial statement.

The state treasurer shall exhibit to the governor, at least ten (10) days before the meeting of the general assembly, an exact statement of the balance in the state treasury to the credit of the state, with a summary of the receipts and payments of the state treasury during the two (2) preceding years.

§ 8-5-112. Misappropriation of funds.

If the state treasurer diverts, misapplies, or fails to pay over any money paid, or which by law is required to be paid, into the state treasury, contrary to law, the state treasurer shall forfeit the office and be incapable of holding any office of trust or profit whatsoever in this state. The state treasurer shall, moreover, be liable to pay double the value of any sum so misapplied, to be recovered, for the use of the state, by motion of the comptroller of the treasury or the comptroller of the treasury's attorney, in any court of record in the state.

Part 2 Disability of State Treasurer — Additional State Treasurer

§ 8-5-201. Vacancy in office.

Whenever the office of state treasurer becomes vacant, by death, resignation, or otherwise, during the recess of the general assembly, the governor shall immediately fill it by appointing some person qualified to discharge its duties. The person appointed shall, before entering upon the duties of the office, enter into bond, with such sureties as shall be approved by the governor, in the penalty of one hundred thousand dollars ($100,000), and shall take the same oath, perform all the duties, be liable to the same penalties and receive the same compensation as the state treasurer appointed by the general assembly.

§ 8-5-202. Additional state treasurer during emergency — Appointment.

(a) There is created the additional office of state treasurer to serve during any emergency when the regular state treasurer is incapacitated or disabled because of illness, or other cause, and therefore cannot perform the duties of the office.
(b)
1. (1) If the general assembly is not in session when such disability or incapacity on the part of the regular state treasurer occurs, the governor shall appoint a person as state treasurer, charged with the duty of performing the regular duties of the office. Such person shall serve during the emergency or until the time the general assembly shall convene and elect a person to fill the office for the continuance of the emergency.
2. (2) If the general assembly is in session when the regular state treasurer becomes incapacitated or disabled and therefore cannot perform the duties of the office, then the general assembly shall elect the additional state treasurer to serve during the existence of the emergency.

§ 8-5-203. Powers and duties of additional state treasurer — Determination of emergency.

(a) The person so appointed or elected shall possess all of the qualifications now required by statute for the regular state treasurer, and compensation for such person shall be fixed by the governor, but in no event shall the compensation so paid exceed that prescribed by law for the duly elected state treasurer.
(b) The person so appointed or elected as additional state treasurer shall execute such bond or bonds as shall be required by the governor and as are now required by statute and shall take and subscribe to the oath required by statute.
(c)
1. (1) The decision of the governor as to the existence of an emergency caused by the incapacity or disability of the regular state treasurer shall be final and the governor shall determine when the emergency is ended.
2. (2) The action of the governor, in determining the existence of an emergency, shall be subject to review by writ of certiorari.

Chapter 6 Attorney General and Reporter — Legal Department

Part 1 General Provisions

§ 8-6-101. Appointment and qualification — Term of office.

The attorney general and reporter for the state is appointed by the judges of the supreme court. The term of office is eight (8) years. A certificate of appointment, signed by all the judges, shall be entered upon the minutes of the court at the first session thereafter at Knoxville, Nashville, and Jackson, respectively. The attorney general and reporter shall qualify and perform the duties of the office as required by law, and subject to the penalties imposed by law.

§ 8-6-102. Legal department — Offices.

There is created a legal department of the state, of which the attorney general and reporter shall be the executive head, and who, with assistants, shall constitute such department. The department shall maintain offices at Nashville, which shall be furnished and provided by the state under the supervision of the department of finance and administration.

§ 8-6-103. Assistants and other personnel.

The attorney general and reporter, consistent with budgetary limitations, is authorized to appoint such assistants and other personnel as the attorney general and reporter may deem necessary to perform the duties of the office. All assistants and other personnel shall hold office during the pleasure of the attorney general and reporter and shall have such titles and perform such duties as may be assigned to them by the attorney general and reporter. All assistants shall take an oath to discharge the duties imposed. The attorney general and reporter shall submit a report of any increase and decrease in the number of assistants to the general assembly on July 1 of each year for the prior fiscal year ending June 30.

§ 8-6-104. Salaries.

The attorney general and reporter may fix the compensation of the attorney general and reporter and the attorney general and reporter's several assistants within the limits of the appropriation to that department. The attorney general and reporter's salary must not exceed the greater of that of an associate justice of the supreme court or of a class 1 official pursuant to title 8, chapter 23, part 1. All such salaries must be payable in periodic installments out of the state treasury upon the warrants of the commissioner of finance and administration.

§ 8-6-105. Expenses.

The attorney general and reporter and all of the assistants shall be paid their necessary expenses incurred on business for the state, in like manner as their compensation, when there have been filed with the commissioner of finance and administration an itemized statement certified by the officer incurring the expenses. This statement, in case of assistants, shall be approved by the attorney general and reporter.

§ 8-6-106. Employment of additional counsel.

(a) In all cases where the interest of the state requires, in the judgment of the governor and attorney general and reporter, additional counsel to the attorney general and reporter or district attorney general, the governor shall employ such counsel, who shall be paid such compensation for services as the governor, secretary of state, and attorney general and reporter may deem just, the same to be paid out of any money in the treasury not otherwise appropriated, upon the certificate of such officers certifying the amount to the commissioner of finance and administration.
(b) Notwithstanding this section or any other law to the contrary, the attorney general and reporter or district attorney general shall inform the governor of, and consideration shall be given to, whether the person or firm to be employed as additional counsel:
1. (1) To defend the state in any action is then serving as counsel for a party in any action by that party against the state and whether the action, if adjudicated in that party's favor, is likely to result in an increase in state expenditures; or
2. (2) To prosecute any action on behalf of the state is then serving as counsel in defense of any action against the state.
(c) In all cases where, in the judgment of the speaker of the house of representatives and the speaker of the senate, the interest of the state requires additional counsel to the attorney general and reporter, the speaker of the house of representatives and the speaker of the senate shall retain additional counsel to prosecute an action against the federal government on behalf of the state; provided, that the representation must not include payment of a fixed or contingent fee to any such additional counsel or otherwise increase state expenditures.

§ 8-6-107. Restrictions — Misdemeanors in office.

The attorney general and reporter and assistants shall be under the disabilities, restrictions, and disqualifications of district attorneys general and shall be subject to be proceeded against for misdemeanors in office in the same manner that the judges of the courts are proceeded against. Nothing in this section or in any other law prohibits the voluntary provision of pro bono legal services through an organized program of pro bono legal services that receives funding pursuant to § 16-3-808 and that provides professional liability insurance for losses sustained by clients of lawyers participating in the program.

§ 8-6-108. Criminal defense in lower courts.

It is a Class C misdemeanor for the attorney general and reporter or any assistant to take or receive a fee for defending any supposed offender in the inferior courts.

§ 8-6-109. Duties.

(a) The attorney general and reporter has and shall exercise all duties vested in the office by the Constitution of Tennessee and all duties and authority pertaining to the office of the attorney general and reporter under the statutory law. The attorney general and reporter is authorized to utilize and refer to the common law in cases in which the state is a party.
(b) In addition to the duties described in subsection (a), the attorney general and reporter, or assistants acting at the attorney general and reporter's discretion, has the following duties:
1. (1) The trial and direction of all civil litigated matters and administrative proceedings in which the state or any officer, department, agency, board, commission or instrumentality of the state may be interested;
2. (2) To attend to all business of the state, both civil and criminal in the court of appeals, the court of criminal appeals and the supreme court;
3. (3) To attend to all legal business connected with the management of the state treasury, or debts due and owing to the state, or debts and liabilities claimed against the treasury of the state, or suits brought against the comptroller of the treasury before any court where such litigation may be pending;
4. (4) To attend to any other legal duty which the comptroller of the treasury and the state treasurer may require the attorney general and reporter or such assistants to perform, connected with the state treasury;
5. (5) To give the governor, secretary of state, state treasurer, comptroller of the treasury, members of the general assembly and other state officials, when called upon, any legal advice required in the discharge of their official duties;
6. (6) To give the governor, secretary of state, state treasurer, comptroller of the treasury, members of the general assembly and other state officials, when called upon, written legal opinions on all matters submitted by them in the discharge of their official duties. Written opinions issued pursuant hereto shall be made available for public inspection. It is the legislative intent that when a request for a written legal opinion is from a member of the general assembly and concerns pending legislation, such request shall be replied to as expeditiously as possible;
7. (7) To report the decisions of the court of appeals, the court of criminal appeals and the supreme court of Tennessee in the manner prescribed by law;
8. (8) To examine and certify all bills of cost in the appellate courts of the state in which the state of Tennessee is interested before they are ordered to be paid by the state;
9. (9) To defend the constitutionality and validity of all legislation of statewide applicability, except as provided in subdivision (b)(10), enacted by the general assembly, except in those instances where the attorney general and reporter is of the opinion that such legislation is not constitutional, in which event the attorney general and reporter shall so certify to the speaker of each house of the general assembly;
10. (10) To exercise discretion to defend the constitutionality and validity of all private acts and general laws of local application enacted by the general assembly and of administrative rules or regulations of this state. However, a sufficient adversary relationship must exist before the discretion not to defend the constitutionality of all legislation of local application may be exercised. If such discretion not to defend is exercised, such decision shall be certified to the speaker of each house of the general assembly, in the same manner as provided in subdivision (b)(9);
11. (11) To notify the director of the fiscal review committee of any lawsuit filed in state or federal court, in which the state is a named party and the attorney general and reporter or assistants are representing the state, which contains as part of the pleadings an allegation which would raise an issue:
  1. (A) Of insufficient funding of a law as enacted or amended, including any regulation authorized by such act; or
  2. (B) That the implementation by a department, agency, or governmental entity of a law as enacted or amended, including any regulation authorized by such act, was accomplished in a manner which resulted in insufficient funding; which lawsuit, if adjudicated in the plaintiff's favor, would result in a mandated increase in state expenditures;
12. (12) To confer with the speaker of each house of the general assembly upon notification by the director of the fiscal review committee under § 3-7-109;
13. (13) To defend local education agencies and/or their present or past superintendents, board members, teachers, or nonprofessional staff members, hereinafter referred to as employees, upon the formal request in writing of any such employee in any case involving a claim of injury or damage alleged to have been proximately caused by acts or omissions of such employees within their scope of employment with the local education agency in detecting, managing or removing asbestos from any building or structure owned or controlled by the local education agency when the local education agency has complied with the United States environmental protection agency regulations relative to asbestos in schools. In the event that the attorney general and reporter determines that the best interest of the state or employee requires private counsel, the employee shall be notified, and shall have the right to file for reimbursement of defense cost in accordance with chapter 42 of this title in the same manner as state employees;
14. (14) To bring suit upon behalf of the state, local government units or local education agencies to recover public funds from entities financed by the funds and their directors or officers when the funds through the improper actions of the directors or officers have been used for unauthorized purposes, misapplied or misappropriated; and
15. (15) To attend to any other duty which may devolve upon, or be imposed upon, the attorney general and reporter by law.
(c) Notwithstanding § 8-6-106 to the contrary, in all cases in which the attorney general and reporter has certified to the speaker of each house of the general assembly the decision not to defend the constitutionality and validity of any law pursuant to subsection (b), the speakers, acting jointly, may employ legal counsel to defend the constitutionality of such law. Such counsel shall be paid such compensation for their services as the speakers may deem just; the same to be paid out of any money in the state treasury not otherwise appropriated, upon the certification of the speakers to the commissioner of finance and administration.
(d) The attorney general and reporter, or assistants acting at the attorney general and reporter's discretion, shall notify the director of the office of legal services or the director's designee and the director of the fiscal review committee of any lawsuit filed in state or federal court, in which the state is a named party and the attorney general and reporter or assistants are representing the state, and in which the adjudication could result in a significant increase in state expenditures, in a decision on a policy issue which may result in a significant increase in state expenditures, or in a decision which may affect the bond rating of the state.
(e) Notwithstanding § 8-6-106, or other law to the contrary, in all cases within subsection (d), the speaker of the senate and the speaker of the house of representatives, acting jointly, may employ legal counsel to advise them; provided, that the attorney general and reporter shall remain the state's sole representative in federal and state court proceedings. Such counsel shall be paid such compensation for services rendered as the speakers may approve and such compensation shall be paid out of any money in the state treasury not otherwise appropriated, upon the certification of the speakers to the commissioner of finance and administration.

§ 8-6-110. Appearance in federal courts.

The attorney general and reporter shall attend in person, or by assistant, and prosecute or defend, as the case may be, any and all suits, civil or criminal, in the supreme court of the United States, in the United States court of appeals for the judicial circuit of the United States comprising the state of Tennessee, or in any of the district courts of the United States held in the state of Tennessee, in which suit or suits the state may be a party, or in which the state has or may have interests of a pecuniary nature.

§ 8-6-111. Special personnel for expedition of post-conviction proceedings in capital cases.

The attorney general and reporter is authorized to employ, reassign, or contract with individuals utilizing special funds appropriated solely for the purpose of providing prompt and fair adjudication of post-conviction proceedings in capital sentence cases, including authority to assign the additional personnel the duties of personnel reassigned to the post-conviction cases. In no event shall the employment, contract, or expenditures under this authority extend beyond a two-year period.

§ 8-6-112. Criminal prosecution of judge, chancellor, or judicial elected official.

(a) The attorney general and reporter has the authority to conduct an investigation and has the authority to initiate the criminal prosecution of any judge, chancellor or judicial elected official and/or district attorney general whenever:
1. (1) The attorney general and reporter receives information sufficient to constitute probable cause to investigate whether any official may have violated any state criminal law;
2. (2) A decision to prosecute the official by the district attorney general of the district in which the offense occurred or in which a portion of the offense occurred may result in a personal, financial or political conflict of interest; and
3. (3) The attorney general and reporter receives a report of a violation of § 8-31-103.
(b) If the attorney general and reporter initiates a criminal prosecution pursuant to the authority of this section, such attorney general and reporter, or a deputy or assistant attorney general, shall have the authority to exercise all of the powers and perform all of the duties before any court or grand jury with respect to such prosecution that the appropriate district attorney general would otherwise be authorized or required by law to exercise or perform.
(c) If the attorney general and reporter initiates a criminal prosecution pursuant to this section, the appropriate district attorney general shall fully cooperate with the attorney general and reporter and participate in the prosecution, unless the subject of such prosecution, to the extent requested or approved by the attorney general and reporter.
(d) If the attorney general and reporter concludes that an investigation or prosecution should be initiated pursuant to this section, the attorney general and reporter may, after giving notice to the executive director of the district attorneys general conference, request appointment as district attorney general pro tem by an appropriate court pursuant to § 8-7-106(a). The application shall be considered by the court in camera. The executive director may appear before the court to be heard on the request for appointment. The notice to the executive director, the application for appointment, and the proceedings on the application shall be confidential.
(e) The attorney general and reporter is hereby authorized to request the director of the Tennessee bureau of investigation to furnish such assistance as may be required by the attorney general and reporter in the performance of the attorney general and reporter's duties under this section. The Tennessee bureau of investigation is authorized to provide to the attorney general and reporter such assistance as the attorney general and reporter may request pursuant to this section.

Part 2 Reports and Opinions

§ 8-6-201. Delivery of supreme court opinions — Time of publication.

The clerks of the supreme court shall have the opinions of the supreme court enrolled within ten (10) days after their delivery by the court, and shall then deliver to the attorney general and reporter the original opinion for publication. Reports of the opinions shall be published within sixty (60) days from the time sufficient material is furnished the reporter to complete a volume.

§ 8-6-202. Opinions to be reported.

(a) It is the duty of the attorney general and reporter to report any written opinion of the supreme court that may be pronounced by the court, or any judge thereof, in which any other points of law are decided than such as are settled in some previously reported decisions, and all the opinions the court may direct the attorney general and reporter to report. Additionally, the attorney general and reporter may report and distribute the opinions of the office of the attorney general and reporter, or such other significant legal matters as may be deemed appropriate.
(b) All opinions handed down by the supreme court are required to be officially published in the official reports. This subsection (b) shall not affect appeals from any state boards or commissions, including the Tennessee public utility commission, appeals involving revenue matters and/or taxes, and appeals where the only grounds for a new trial were that there was no evidence to support the verdict and/or that the verdict of the jury was contrary to the weight and preponderance of the evidence.
(c) All opinions handed down by the court of appeals are required to be published in the official reports where certiorari is denied by the supreme court. This subsection (c) shall not affect appeals from any state boards or commissions, including the Tennessee public utility commission, appeals involving revenue matters and/or taxes, and appeals where the only grounds for a new trial were that there was no evidence to support the verdict and/or that the verdict of the jury was contrary to the weight and preponderance of the evidence.

§ 8-6-203. Preparation of reports.

The attorney general and reporter shall prepare the case, and the opinion so pronounced thereon, with proper syllabi of the points therein. In the report of each case shall be given the name of the judge or chancellor who made the decision in the court below, and the place of the decision; also, the name of the judge pronouncing the same in the supreme court. A brief synopsis of the statement of facts shall also be made, if the same is not sufficiently stated in the body of the opinion. It is the further duty of the attorney general and reporter to prepare a correct index for each volume.

§ 8-6-204. Printing of reports — Copyright.

The attorney general and reporter has the right to select a printer, and has the exclusive control of the publication and binding of all reports. After five (5) years from the publication of each report, the copyright of the same shall revert to the state of Tennessee.

§ 8-6-205. Opinions of attorney general — Publication — Distribution.

(a) The attorney general and reporter shall cause to be printed and bound, in a form deemed appropriate, official opinions of that office. Opinions shall be printed annually.
(b) The attorney general and reporter is authorized to examine all such past opinions and omit from the publication any opinion which has, as a result of a holding by a court of competent jurisdiction, or by a change in the law by the general assembly, become obsolete or no longer of authoritative value.
(c) Such opinions, as prepared under the above authority, shall be published in such quantity as the attorney general and reporter determines necessary to supply such publications to all state colleges and universities, the library and archives for interchange, members of the general assembly upon request and the various state departments and agencies, all of which will be furnished without cost, and a sufficient number to be sold to the public generally at a price to include necessary costs above the actual cost of publication.

§ 8-6-206. Reports — Number printed — Distribution.

The attorney general and reporter shall have printed and bound, at the expense of the state to be paid for upon the warrant of the commissioner of finance and administration, a sufficient number of volumes of any of the reports required to be distributed under this part, the same to be furnished at not more than cost plus necessary expenses. These reports as published shall be furnished upon request to members of the general assembly and departments of state government, without cost.

§ 8-6-207. Distribution of state-owned reports.

(a) The comptroller of the treasury shall furnish each judge and chancellor and each circuit, chancery, criminal and common law court with a copy of each volume of such reports, gratis, and shall, in like manner, deposit with the secretary of state twenty-five (25) copies of each volume, to remain in that office subject to the direction of the general assembly, and shall also deliver to the state librarian copies requested, to be exchanged with departments and libraries of the United States, and of the several states and territories, and the librarian shall immediately distribute the same at the expense of the state.
(b) The comptroller of the treasury shall also deliver, gratis, to the order of the University of Tennessee thirty (30) copies of each volume for its use, and for exchanges.

Part 3 Coordination with Other State Agencies and Attorneys

§ 8-6-301. Representation of state departments and agencies — Supervision of investigations — Office of legal services exempted.

(a) The attorney general and reporter, either in person or by assistant, shall represent all offices, departments, agencies, boards, commissions or instrumentalities of the state now in existence or which may hereafter be created. All legal services required by such offices, departments, agencies, boards, commissions or instrumentalities of the state shall be rendered by, or under the direction of, the attorney general and reporter. This section shall not prevent the various offices, departments, agencies, boards, commissions or instrumentalities of the state from employing other attorneys, working solely under the supervision and at the direction of the agency, for the purpose of conducting investigations, advising, consulting, and assisting the office, department, agency, board, commission or instrumentality in the administration of its duties.
(b) The attorney general and reporter shall direct and supervise all investigations and litigation necessary to the administration of the duties of the various offices, departments, agencies, boards, commissions or instrumentalities of the state, and no such entities shall institute any civil proceeding except through the attorney general and reporter.
(c) Legal services provided by the office of legal services for the general assembly under title 3, chapter 12, and attorneys employed by such office are exempt from this section. The attorney general and reporter shall not represent such office before the general assembly or any committee thereof, nor shall direct or supervise such office or attorneys employed by such office.

§ 8-6-302. Permission for department or agency attorneys to represent state.

The attorney general and reporter, exercising discretion and with the concurrence of the head of the executive agency involved, may permit, by express written authorization, staff attorneys employed by the various departments, agencies, boards, commissions or instrumentalities of the state to appear and represent the state in a certain case or certain classes of cases under the direction and control of the attorney general and reporter.

§ 8-6-303. Actions instituted by district attorneys general excepted.

This part is not to be construed as requiring the attorney general and reporter to approve of, participate in, or supervise actions instituted by the various district attorneys general pursuant to law.

Part 4 Investigative Authority

§ 8-6-401. Authority to give oaths and require testimony.

The attorney general and reporter, in performing the duties of such office where the state is a party litigant, or there is reasonable cause to indicate it will be a party litigant, is hereby empowered to require any person to testify under oath as to any matter which is a proper subject of inquiry by the attorney general and reporter. The attorney general and reporter, or a designee, is authorized to administer all necessary oaths.

§ 8-6-402. Investigative demands for production of documents and testimony.

(a) For these purposes, the attorney general and reporter is empowered to issue civil investigative demands to require the attendance of witnesses or the submission of documents, or both, at specified times and places, to give testimony in the case or matter therein stated. The demand shall mention the parties to the inquiry and the party at whose instance the witness is called, and, if necessary, require the witness also to bring any books, documents, or other writings, records or tangible objects under the witness' control, which may be pertinent to the inquiry.
(b) No witness called to testify or to produce records, books, documents, writings or other tangible objects under §§ 8-6-401 — 8-6-406 shall be required to testify in any county other than the witness' county of residence or the county where the records or tangible objects are found under the witness' control.

§ 8-6-403. Civil demands — Service of process.

Service of a civil investigative demand as described in § 8-6-402 must be made by a designated representative of the attorney general and reporter by any means permitted by the Rules of Civil Procedure. Such process must run throughout the United States but does not require any witness to testify in any county other than the witnesses' county of residence or the county where records or tangible objects demanded are found under the witnesses' control.

§ 8-6-404. Civil demands — Failure to comply.

If a witness fails to comply with a civil investigative demand issued under this part by its return date and has not secured a protective order from the court, then the attorney general and reporter, upon notice to the witness, may apply to a court of competent jurisdiction for an order compelling compliance.

§ 8-6-405. Penalty for failure to testify when served with investigative demand.

Any witness who appears as directed by the civil investigative demand, but upon appearance refuses to testify on matters not privileged by law, shall be punished as prescribed in § 8-6-404.

§ 8-6-406. Witness fees and mileage on investigative demands.

Any witness served with a civil investigative demand shall be paid fees and mileage on the same basis as authorized to be paid witnesses in the courts of this state.

§ 8-6-407. Confidentiality of writings, records or tangible objects obtained by attorney general.

(a) All testimony, books, documents, or other writings, records or tangible objects obtained by the attorney general and reporter pursuant to §§ 8-6-401 and 8-6-402 shall be confidential and shall not be publicly divulged by the office of the attorney general and reporter except in the discharge of the duties of the office or in legal proceedings in which the state is a party.
(b) All other documentary material, answers to written interrogatories, and transcripts of oral testimony that are voluntarily provided to the attorney general and reporter as part of an investigation under this part must be treated as if obtained pursuant to a demand issued under this part if said materials were obtained pursuant to an investigative demand or similar process issued by another state or federal attorney general or law enforcement agency, obtained from a state or federal attorney general or law enforcement agency pursuant to a statutory obligation to produce, or provided by a person with information relevant to the subject matter of the investigation.

§ 8-6-408. Authority of attorney general investigator to act as district attorney criminal investigator.

(a) Upon consent of the district attorney general, the attorney general and reporter may designate any full-time salaried attorney general investigator who meets the qualifications of § 38-8-106 and the training requirements of § 38-8-107(a), to act with the same authority as a district attorney criminal investigator when on active duty in connection with criminal matters for which the attorney general and reporter has jurisdiction as provided by law.
(b) Any investigator so designated shall, while on such active duty in the affected jurisdiction, have the same authority as is provided by law for any full-time criminal investigator employed by the district attorney general.
(c) The authority conferred by this section shall be in addition to any authority otherwise conferred by law upon the attorney general and reporter.

Chapter 7 District Attorneys General

Part 1 General Provisions

§ 8-7-101. Districts.

Each judicial district shall constitute a district attorney general's district.

§ 8-7-102. Election.

The district attorneys general for the judicial districts are elected by the qualified voters of the districts respectively.

§ 8-7-103. Duties.

Each district attorney general:
1. (1) Shall prosecute in the courts of the district all violations of the state criminal statutes and perform all prosecutorial functions attendant thereto, including prosecuting cases in a municipal court where the municipality provides sufficient personnel to the district attorney general for that purpose;
2. (2) Shall prosecute in the federal court all criminal cases removed from a state court in the district to any inferior court;
3. (3) May cooperate and assist, upon the request or direction of the attorney general and reporter, in the bringing, prosecution, defense, preparation, and trial of all cases in the circuit and chancery courts in which the attorney general and reporter is required to appear for the protection of the state or the public interest;
4. (4) Shall give an opinion, without charge, whenever called upon by any county officer in the district, upon a question of criminal law relating to the duties of the county officer's office;
5. (5) Shall submit to the office of executive director for the district attorneys general conference within ninety (90) days after the end of each fiscal year, a written report specifying:
  1. (A) Each source from which funds were received by the office of the district attorney general during the fiscal year;
  2. (B) The amount of funds received from each source; and
  3. (C) The disposition of such funds;
6. (6) Shall have discretion in the performance of duties and responsibilities in the allocation of resources available to such district attorney general, any other law notwithstanding; and
7. (7) Shall have authority to delegate the foregoing duties and responsibilities to an assistant district attorney general.

§ 8-7-104. Practice of law prohibited.

District attorneys general are prohibited from engaging in the practice of law.

§ 8-7-105. Salary.

(a) On July 1, 1990, the salary for district attorneys general shall be sixty-eight thousand dollars ($68,000) per annum. On July 1, 1991, the base salary for district attorneys general shall be seventy-four thousand one hundred dollars ($74,100) per annum. On September 1, 2006, the salary for district attorneys general shall be one hundred twenty-four thousand nine hundred dollars ($124,900). On March 1, 2018, the base salary for district attorneys general shall be one hundred fifty-six thousand twenty-four dollars ($156,024) and shall be adjusted on July 1 to reflect the average percentage pay increase provided for state employees by the general appropriations act. On June 30, 2024, the base salary for district attorneys general shall be two hundred five thousand three hundred twenty-eight dollars ($205,328) and shall be adjusted on July 1 to reflect the average percentage pay increase provided for state employees by the general appropriations act.
(b) On September 1, 2006, and on July 1 for each subsequent year, the base salary fixed in subsection (a) shall be adjusted to reflect the average percentage pay increase provided for state employees by the general appropriations act.
(c) For the sole purpose of calculating the salaries payable to assistant district attorneys general under § 8-7-201, the annual compensation of a district attorney general shall be as follows:
1. (1) For full-time assistant district attorneys general through the end of the final fiscal year in which they are eligible for step increases, the salary provided by law for district attorneys general for the 1982-1983 fiscal year;
2. (2) Effective July 1, 1990, for full-time assistant district attorneys general no longer eligible for step increases, a base salary equal to the salary provided by law for district attorneys general for the 1989-1990 fiscal year, adjusted on July 1, 1990, by the percentage set out in subsection (b); and
3. (3) Effective July 1, 1991, for full-time assistant district attorneys general no longer eligible for step increases, but having less than twelve (12) years of credited service as an assistant district attorney general or district attorney general in this state, a base salary equal to the salary provided by law for district attorneys general for the 1989-1990 fiscal year, adjusted as set out in subdivision (c)(2), and further adjusted on July 1, 1991, and on each succeeding July 1, by the percentage set out in subsection (b).
(d) For purposes of this chapter, in computing annual salary increases that are tied to salary increases appropriated to state employees, it is the intention of the general assembly that the increases are to be based solely on the specific percentage increase granted by the general appropriations act to all general state employees. Adjustments to annual salary increases as provided for in this chapter that are tied to salary increases of state employees are not to be adjusted on the basis of any class compensation efforts, class compression efforts, or any other method of salary adjustments.

§ 8-7-106. District attorney general pro tem — Attorney acting for district attorney general.

(a)
1. (1) If the district attorney general fails to attend the circuit or criminal court, or is disqualified from acting, or if there is a vacancy in the office, the court shall appoint some other attorney to supply such district attorney general's place temporarily. The acts of such district attorney general pro tem shall be as valid as if done by the regular officer, and the district attorney general pro tem shall be entitled to the same privileges and emoluments.
2. (2) If a district attorney general peremptorily and categorically refuses to prosecute all instances of a criminal offense without regard to facts or circumstances, then the attorney general and reporter may petition the supreme court for appointment of a district attorney general pro tem. If the supreme court finds that the district attorney general has refused to attend and prosecute according to law, then the supreme court shall appoint some other attorney as district attorney general pro tem in the district attorney general's place for the sole purpose of prosecuting persons accused of committing that offense. The acts of such district attorney general pro tem are valid as if done by the regular officer, and the district attorney general pro tem is entitled to the same privileges and emoluments.
(b) Notwithstanding subsection (a), the district attorney general may:
1. (1) Upon the consent of the district attorney general of any other judicial district, specially appoint another district attorney general, or an assistant to that district attorney general, to conduct specific criminal proceedings, including grand jury proceedings, which the district attorney general is authorized by law to conduct in that district;
2. (2) Upon the consent of the executive director of the district attorneys general conference, specially appoint the executive director or an assistant to the executive director to conduct specific criminal proceedings, including grand jury proceedings, which the district attorney general is authorized by law to conduct in that district;
3. (3) Upon the consent of the chief executive officer of any governmental agency, appoint a licensed attorney employed by that agency to conduct specific criminal proceedings, including grand jury proceedings, which the district attorney general is authorized by law to conduct in that district;
4. (4) Upon the consent of the attorney general and reporter, specially appoint the attorney general and reporter, or an assistant to the attorney general and reporter, to conduct specific criminal proceedings, including grand jury proceedings, which the district attorney general is authorized by law to conduct in that district; provided, that no prosecution for an offense against the person as set forth in title 39, chapter 13 may be undertaken by the attorney general and reporter unless such prosecution arises out of, is related to, or affects an investigation, prosecution, or other proceeding which the attorney general and reporter is otherwise authorized to conduct, by cross-designation or otherwise; and
5. (5) Upon the written request of the attorney general and reporter, personally or through one (1) of the attorney general and reporter's assistant attorneys general, participate in the trial and direction of a specific proceeding, criminal or civil, which the attorney general and reporter is authorized by law to conduct.
(c) The acts of an attorney acting for the district attorney general or the attorney general and reporter pursuant to subsection (b) shall be valid as if done by the regular officer, and there shall be no requirement that the regular officer be disqualified from acting or that there be a vacancy in the office. Nor shall the regular officer be compelled to attend court proceedings in the matters in which an attorney is acting for the regular officer pursuant to subsection (b); provided, that the regular officer may be in attendance, and participate, if such a regular officer so desires.
(d) Subsections (b) and (c) are not intended to abolish any authority now held by the district attorneys general, and shall not be deemed to repeal by implication any existing law.

§ 8-7-107. Filling of vacancy.

A vacancy in the office of district attorney general shall be filled by the voters of the district at the next biennial election more than thirty (30) days after the happening of the vacancy. The election shall be ordered by the governor by issuing proper writs of election to the county election commissions throughout the district, notice being given for one (1) month by publication in one (1) or more newspapers in the district. In the meantime, the governor shall appoint a suitable person to fill the office temporarily until the election takes place.

§ 8-7-108. Separate and secure waiting areas for victims of crimes during critical stages of judicial process.

(a) In accordance with § 40-38-102, whenever possible, victims of crime must have separate and secure waiting areas during all critical stages of the judicial process, and to further the availability of such separate and secure waiting areas, the district attorneys general conference shall assist in assessing whether such space exists for victims to meet with attorneys, law enforcement, counselors, and others, and to wait while attending judicial proceedings in judicial facilities throughout the state.
(b) By March 1, 2022, the district attorneys general conference shall submit a report to the chairs of the judiciary committee of the senate and the criminal justice committee of the house of representatives as to whether separate and secure waiting areas exist within each of the thirty-one (31) judicial districts along with recommendations to achieve the requirements of § 40-38-102.
(c) The district attorneys general conference additionally shall determine whether grant or other funding is available to create separate and secure waiting areas or to improve such existing spaces and shall assist judicial districts in achieving the creation or improvement of such separate and secure waiting areas.

§ 8-7-109. Sex crime prosecution units — Support personnel — Training.

(a)
1. (1) There is hereby created a sex crime prosecution unit, the duties of which shall include, but not be limited to, child sexual abuse cases, which unit shall include two (2) assistant district attorneys general, and one (1) secretary-file clerk.
2. (2) It is the intent of the general assembly, in the enactment of chapter 478 of the Public Acts of 1985, to encourage the establishment of a sex crime prosecution unit, the duties of which shall include, but not be limited to, child sexual abuse cases, in the office of the district attorney general for the twentieth judicial district as a pilot project, and subsequently, in 1986, to establish the necessary number of units throughout the state.
(b) There are hereby created two (2) additional assistant district attorney general positions for the twentieth judicial district, who shall be appointed by the district attorney general for the twentieth judicial district, shall serve at the pleasure of such official, and shall perform such duties as are assigned to them by the district attorney general. The assistant district attorneys general herein authorized shall be licensed attorneys and residents of the judicial district. The compensation for the assistant district attorneys general shall be as provided by law for assistant district attorneys general.
(c) There is hereby created an additional secretary-file clerk position for the twentieth judicial district who shall be appointed by the district attorney general for the twentieth judicial district, shall serve at the pleasure of such official, and shall perform such duties as are assigned to such secretary-file clerk by the district attorney general. The secretary-file clerk shall furnish the speakers of the senate and the house of representatives with quarterly reports containing statistical data required by the speakers, and other information deemed appropriate by the district attorney general pertaining to reports, investigations and prosecution of the sex crimes prosecution unit. The compensation for the secretary-file clerk shall be as provided by law for secretary-file clerk.
(d) The district attorney general for the twentieth judicial district shall authorize and direct the assistant district attorneys of the child sex crime prosecution unit of the twentieth judicial district to receive training at seminars conducted by appropriate agencies and associations within the United States, upon approval by the executive director of the Tennessee district attorneys general conference, in the investigation and prosecution of child sexual abuse cases. The Tennessee district attorneys general conference shall fund such attendance within existing state guidelines.

§ 8-7-110. Assignment of law enforcement officers to drug task forces — Officers' powers, duties and immunities.

(a) Any law enforcement officer or assistant district attorney general or district attorney general criminal investigator assigned to or hired by a judicial district or multi-judicial district task force relating to the investigation and prosecution of drug and violent crime cases shall have the same rights, powers, duties and immunities in every jurisdiction within the judicial district as such officer has within the officer's own jurisdiction. Such assignment shall be made in writing by the chief law enforcement official of the assigning jurisdiction, including, but not limited to, sheriff offices, police departments, task forces, state law enforcement agencies and district attorneys general offices, and shall not become effective until approved by the board of directors or governing or advisory board of the task force and/or the district attorneys general of the judicial district. Any law enforcement officer employed by or assigned to a judicial district drug task force pursuant to this section must meet the minimum certification requirements of the peace officers standards and training commission; provided, however, that such officer employed by a judicial district drug task force shall not be entitled to receive a police pay supplement for that certification. The director of a judicial district drug task force shall have the authority to commission personnel assigned to or hired by the task force with the approval of the district attorney general.
(b) Any law enforcement officer or assistant district attorney general or district attorney general criminal investigator assigned to or hired by a judicial district or multi-judicial district task force relating to the investigation and prosecution of drug and violent crime cases shall have the same rights, powers, duties, and immunities statewide as such officer has within the officer's own judicial district or multi-judicial district; provided, that investigations conducted outside the officer's jurisdiction originated within the officer's own jurisdiction and is immediately necessary to an ongoing investigation; or by working in cooperation with another judicial district or multi-judicial district task force or law enforcement agency; or where there exists a mutual aid agreement between the judicial districts or multi-judicial district task forces approved by each district attorney general.
(c) Notwithstanding any other law to the contrary concerning members of judicial district task forces relating to the investigation and prosecution of alleged drug violations, if a claim or suit should be filed against an individual and it is proven that:
1. (1) At the time of the alleged incident the individual was a member of such task force who was properly certified to the board of claims pursuant to § 8-42-101(3)(C); and
2. (2) The alleged liability arose out of the individual's activities as a task force member;
3. then it shall be conclusively deemed that the individual was not an employee, agent or servant of a local government but was a volunteer to the state.
(d) To the extent any conflict exists concerning liability or jurisdiction of the members of any judicial district task force relating to the investigation and prosecution of, but not limited to, drug and violent crime cases between this section and any mutual aid or interlocal agreement entered into by a task force, this section takes precedence over any such agreement.

§ 8-7-111. Special personnel for expedition of post-conviction proceedings in capital cases.

The district attorney general is authorized to employ, reassign, or contract with individuals utilizing special funds appropriated solely for the purpose of providing prompt and fair adjudication of post-conviction proceedings in capital sentence cases, including authority to assign the additional personnel the duties of personnel reassigned to the post-conviction cases. In no event shall the employment, contract, or expenditures under this authority extend beyond a two-year period.

§ 8-7-112. Authorization to prosecute county ordinance violations.

District attorneys general with responsibility for prosecuting offenses in counties with populations of less than five hundred thousand (500,000), according to the 1990 federal census or any subsequent federal census, and with a charter form of government pursuant to title 5, chapter 1, part 2, also are authorized to contract or enter into an agreement with such counties for the prosecution of violations of the ordinances of such counties.

§ 8-7-113. District attorney assigned to crimes committed against children — Annual training.

(a) Each district attorney general shall designate at least one (1) person currently employed within the judicial district as an assistant district attorney general as the lead prosecuting attorney for the judicial district in cases involving crimes committed against children.
(b) The district attorney general for each judicial district shall designate an assistant district attorney general, or other staff members as may be appropriate, to attend annual training on the investigation of crimes against children provided by the Tennessee bureau of investigation and the Tennessee district attorneys general conference.

§ 8-7-114. Disclosure of nonprofit organization donors — Disclosure requirements — Section definitions.

(a) If a written request for the following information is made jointly by the speaker of the senate and the speaker of the house of representatives, then a nonprofit organization that has entered into a contract or memorandum of understanding with the district attorney general related to policies and strategies related to cash bail, unless such contract or memorandum of understanding is required by statute, shall disclose to the speakers the list of persons or entities that have donated to the nonprofit organization in the previous calendar year in accordance with this section.
(b) The disclosed list of persons or entities that have donated to the nonprofit organization must be restricted to the lesser of the top five (5) donors or the top five percent (5%) of donors in the previous calendar year. The aggregate donation during the previous calendar year must be equal to or greater than twenty-five thousand dollars ($25,000).
(c) Disclosure of the list of persons or entities must only include the name of the person or entity. Other personal identifying information or details must not be included.
(d) As used in this section, “nonprofit organization”:
1. (1) Means an organization that is exempt from payment of federal income taxes pursuant to § 501(c) of the Internal Revenue Code of 1986 (26 U.S.C. § 501(c)), including a limited liability company for which a nonprofit organization has a controlling interest; and
2. (2) Does not include an entity described under § 170(b)(1)(A)(ii) of the Internal Revenue Code of 1986 (26 U.S.C. § 170(b)(1)(A)(ii)), including any affiliate of such entity.

§ 8-7-115. District attorney annual report of cases handled. [Effective on July 1, 2026.]

Each district attorney general shall provide an annual report by March 1 of each year to the governor, speaker of the house of representatives, speaker of the senate, chair of the criminal justice committee of the house of representatives, chair of the judiciary committee of the senate, and district attorneys general conference and make such report available to the public upon request. The report must contain, at a minimum, for the previous year, the following aggregate, non-personally identifying information, categorized by offense:
1. (1) Arrests made and offenses referred;
2. (2) The number of indictments filed;
3. (3) The number of cases transferred to another law enforcement entity;
4. (4) The number of cases in which an indictment was sought for an individual and the indictment was for an offense other than the offense for which the individual was originally arrested; and
5. (5) The number of each disposition entered by a court, including dismissals, pretrial diversions, plea agreements, trial outcomes, and sentences imposed.

Part 2 Criminal Investigators and Assistant District Attorneys General — Compensation

§ 8-7-201. Salaries of criminal investigators and assistant district attorneys general.

(a)
1. (1) All criminal investigators hired prior to July 1, 1994, shall be compensated according to the following schedule:
  2. Entry level$34,128
  3. after five (5) years$35,832
  4. after ten (10) years$37,536
  5. after fourteen (14) years$37,824
  6. after sixteen (16) years$39,924
  7. after eighteen (18) years$42,024
  8. after twenty (20) years$44,124
2. (2) Investigators compensated in the salary schedule in subdivision (a)(1) shall be classified as simply criminal investigators until reaching the five-year level, senior criminal investigators after reaching the five-year level, and chief criminal investigators after reaching the ten-year level.
3. (3) On July 1, 1997, and each subsequent July 1, the salary levels for criminal investigators in subdivision (a)(1) shall be increased by such percentage amount as shall be fixed by the general assembly in the General Appropriations Act. For the purpose of budget preparation, it shall be presumed that such percentage amount shall be the same as that received by other state employees.
4. (4) Notwithstanding subdivisions (a)(1) and (2), if a district attorney general having a vacant criminal investigator position appoints a licensed attorney to that position and designates that person to serve as an assistant district attorney general, the appointee may, on the recommendation of the hiring district attorney general and with the approval of the executive committee of the Tennessee district attorneys general conference, be compensated as an assistant district attorney general as provided for in subsections (d) and (e).
(b) Certain Assistant District Attorneys General.
1. (1) All assistant district attorneys general shall receive from the state a salary of twenty-five thousand dollars ($25,000) per annum, payable out of the state treasury upon the warrant of the commissioner of finance and administration.
2. (2) Any and each assistant district attorney general who shall file with the commissioner of finance and administration a signed and sworn affidavit of intent approved by the district attorney general of the district, stating that such assistant district attorney general will devote full time to the duties as such assistant district attorney general and will not actively engage in the practice of law in any of the civil courts of the state of Tennessee or any other state, unless such practice involves the official duties of the office of attorney general or district attorney general, shall be designated, for the purposes of this section, a full-time assistant district attorney general and shall receive from the state an amount per annum equal to fifty-five percent (55%) of the annual compensation of a district attorney general, payable monthly out of the treasury of the state upon the warrant of the commissioner of finance and administration.
3. (3) Nothing in this section shall be construed as prohibiting any assistant district attorney general from concluding any litigation which such assistant district attorney general had pending prior to appointment as a full-time assistant district attorney general.
4. (4) Notwithstanding the foregoing language, in furtherance of the goal of developing a corps of capable and experienced full-time prosecuting attorneys throughout the state, and thus enhancing the state's ability to cope with recent increases in crime and criminal activity in the state, each full-time assistant district attorney general who has served or has received credit for serving one (1) or more years as a full-time assistant district attorney general shall receive from the state a salary according to the schedule hereinafter set out, payable monthly out of the treasury of the state upon warrant of the commissioner of finance and administration:
  1. (A) After one (1) year's service an amount per annum equal to sixty percent (60%) of the annual compensation of a district attorney general;
  2. (B) After two (2) years' service an amount per annum equal to sixty-five percent (65%) of the annual compensation of a district attorney general;
  3. (C) After three (3) years' service an amount per annum equal to seventy percent (70%) of the annual compensation of a district attorney general;
  4. (D) After four (4) years' service an amount per annum equal to seventy-five percent (75%) of the annual compensation of a district attorney general;
  5. (E) After five (5) years' service an amount per annum equal to eighty percent (80%) of the annual compensation of a district attorney general;
  6. (F) After six (6) years' service an amount per annum equal to eighty-five percent (85%) of the annual compensation of a district attorney general;
5. (5) Compensation computed pursuant to the salary schedule in subdivision (b)(4) shall be recomputed on July 1 of each year, beginning July 1, 1973, to allow for the adjustments in the compensation of district attorneys general as provided in § 8-23-101; provided, that no salary or level of compensation for a district attorney general or a full-time assistant district attorney general, once set, shall be reduced by reason of any subsequent adjustment pursuant to § 8-23-101.
6. (6) In computing the number of years' service pursuant to the salary schedule in subdivision (b)(4), any full-time assistant district attorney general who has previous experience as an assistant district attorney general or as a district attorney general and signs the affidavit mentioned in subdivision (b)(2) shall receive credit for one (1) year's service for each two (2) year's part-time experience.
7. (7) In computing the number of years' service pursuant to the salary schedule in subdivision (b)(4):
  1. (A) Any assistant district attorney general who has previous experience as an assistant state attorney general or as a district attorney general shall receive full credit for such experience;
  2. (B) Any assistant district attorney general who has been employed in full-time service on the staff of a district attorney general as an attorney representing the state before the courts of the state since July 1, 1969, irrespective of the title or position held and irrespective of the source of funds from which such attorney was compensated, shall receive full credit for such experience;
  3. (C) Any assistant district attorney general who has previous experience as a law clerk with the supreme court of the state, or service in the field of criminal law with the United States department of justice, or service in the field of criminal law as a special agent or a criminal investigator employed by the state or a district attorney general, shall receive full credit for such experience;
  4. (D) Any assistant district attorney general, who has previous experience as a commissioned officer, working as a military attorney in the field of criminal law while on full-time active duty in the judge advocate general's corps of any of the armed services of the United States, shall receive full credit for such period of active duty military criminal law experience as supported by sworn affidavit;
  5. (E) Any assistant district attorney general who has previous experience as counsel with the public service commission, the Tennessee public utility commission, or the Tennessee regulatory authority shall receive full credit for such experience;
  6. (F) Any assistant district attorney general who has previous experience with the Tennessee toxicology laboratory and/or the Tennessee crime laboratory shall receive full credit for such experience; and
  7. (G) Any assistant district attorney general who has previous experience as a full-time salaried law enforcement officer shall receive full credit for such experience.
(c)
1. (1) Compensation computed pursuant to the salary schedule shall be recomputed on July 1 of each year to allow for any adjustments in the compensation of district attorneys general.
2. (2) In computing the number of years of service under the salary scale applicable to full-time assistants employed after June 30, 1980, credit may be given for an assistant's prior experience as a licensed attorney, full-time, salaried law enforcement officer or criminal investigator for such district attorney general. Such credit shall be given only upon the recommendation of the district attorney general making the appointment and the approval of the executive committee of the district attorneys general conference, and may be for any period of time up to, but not exceeding, the assistant's experience as a licensed attorney or criminal investigator.
(d) Certain Assistant District Attorneys General Employed After January 1, 1989. Notwithstanding the foregoing language, any assistant district attorney general employed after January 1, 1989, who shall file the affidavit provided for in subdivision (b)(2) shall be compensated as provided for in subsection (c), except for the substitution of the following salary scale for that in subsection (c):
1. (1) Less than one (1) year of satisfactory service an amount per annum equal to fifty percent (50%) of the annual compensation of a district attorney general;
2. (2) After one (1) year of satisfactory service an amount per annum equal to fifty-five percent (55%) of the annual compensation of a district attorney general;
3. (3) After two (2) years of satisfactory service an amount per annum equal to sixty percent (60%) of the annual compensation of a district attorney general;
4. (4) After three (3) years of satisfactory service an amount per annum equal to sixty-five percent (65%) of the annual compensation of a district attorney general;
5. (5) After four (4) years of satisfactory service an amount per annum equal to seventy percent (70%) of the annual compensation of a district attorney general;
6. (6) After five (5) years of satisfactory service an amount per annum equal to seventy-five percent (75%) of the annual compensation of a district attorney general;
7. (7) After six (6) years of satisfactory service an amount per annum equal to eighty percent (80%) of the annual compensation of a district attorney general;
8. (8) After seven (7) years of satisfactory service an amount per annum equal to eighty-five percent (85%) of the annual compensation of a district attorney general;
(e)
1. (1) Notwithstanding the foregoing, on and after July 1, 1991, any full-time assistant district attorney no longer eligible for step increases under this section who has at least twelve (12) years of credited service as an assistant district attorney general in Tennessee shall be compensated according to the following schedule of such credited service:
  1. (A) At least twelve (12) years, but less than sixteen (16) years, an amount per annum equal to eighty percent (80%) of the credited annual compensation of a district attorney general in effect on July 1, 2006;
  2. (B) At least sixteen (16) years, but less than twenty (20) years, an amount per annum equal to eighty-two and one-half percent (82.5%) of the credited annual compensation of a district attorney general in effect on July 1, 2006; or
  3. (C) Twenty (20) or more years, eighty-five percent (85%) of the credited annual compensation of a district attorney general in effect on July 1, 2006.
2. (2) Compensation computed pursuant to the above schedule shall be recomputed annually, based on the salary of the district attorney general on July 1, 2006, and adjusted annually to reflect the average percentage pay increase provided for state employees by the general appropriations act. For purposes of this subsection (e), in computing annual salary increases that are tied to salary increases appropriated to state employees, it is the intention of the general assembly that the increases are to be based solely on the specific percentage increase granted by the general appropriations act to all general state employees. Adjustments to annual salary increases as provided for in this subsection (e) that are tied to salary increases of state employees are not to be adjusted on the basis of any class compensation efforts, class compression efforts, or any other method of salary adjustments.
3. (3) On July 1, 2006, and annually on each succeeding July 1, the executive director of the district attorneys general conference shall reclassify into the salary schedule set forth in § 8-7-226 any employee who was hired prior to July 1, 1994, and has more than twenty (20) years of credited service as an assistant district attorney general.
(f) In computing the number of years' service pursuant to this section, a criminal investigator or an assistant district attorney general shall receive full credit for experience in serving as a full-time member of any board or commission of the state which administers the laws relative to corrections and paroles and supervises investigations pursuant to such laws and whose members are appointed by the governor.
(g) Implementation of salary increases pursuant to the pay schedules prescribed in this section shall be suspended for the fiscal years beginning July 1, 2003, and ending June 30, 2004, and beginning July 1, 2009, and ending June 30, 2010. In the fiscal years beginning July 1, 2004, and July 1, 2010, and in subsequent fiscal years, salary increases pursuant to pay schedules prescribed in this section shall not include time of service between July 1, 2003, and June 30, 2004, nor between July 1, 2009, and June 30, 2010.
(h) The salary increases prescribed in subsections (b)-(e) and suspended by subsection (g) for the period July 1, 2003, through June 30, 2004, and the period July 1, 2009, through June 30, 2010, are reinstated effective July 1, 2019. For purposes of determining the appropriate salary classification pursuant to this section, credible service for the time period of July 1, 2003, through June 30, 2004, and the time period of July 1, 2009, through June 30, 2010, is included.

§ 8-7-202. Traveling expenses of assistant district attorneys general and criminal investigators.

(a) The several assistant district attorneys general and/or criminal investigators in all districts shall be reimbursed from funds appropriated to the office of the district attorney general in the district in which they are employed for the necessary traveling expenses incurred while upon official business as prescribed under the comprehensive travel regulations for employees of the state; provided, that reimbursement to such officials for necessary traveling expenses incurred while on official business within the county of their residence shall be limited to reimbursement of mileage expense; and provided further, that any subsequent changes in the amounts or types of reimbursable expenses as prescribed under the comprehensive travel regulations then shall apply automatically, and without further action, to the several assistant district attorneys general and/or criminal investigators at such times as changes become effective as to employees of the state.
(b) All expense accounts submitted by any assistant district attorney general or criminal investigator shall be submitted upon forms provided and prescribed by the judicial cost accountant. In addition thereto, such expense accounts shall be submitted during the month following the month in which the expense was incurred, and all such expense accounts must be verified by such assistant or criminal investigator and the same shall likewise be first approved by the district attorney general of the judicial district. If any person fails to comply with this section, this expense account shall be disallowed and the same shall not be paid.

§ 8-7-203. Calculation of mileage for assistant district attorneys general and criminal investigators.

Traveling expenses under this part shall be calculated on the basis of a maximum of seven cents (7¢) per mile each way necessarily traveled on official business.

§ 8-7-204. Reimbursement of assistant district attorneys general and criminal investigators.

Any person seeking reimbursement for official expenses under this part shall file with the commissioner of finance and administration, or other official with whom the commissioner's duties may be placed by law, a sworn itemized statement for the amounts necessarily expended by such person in the discharge of such official duties, as granted in this part, and upon the receipt of such verified statement, such commissioner shall issue a warrant in the reimbursement of such expenses, payable out of the state treasury.

§ 8-7-205. County payments to assistant district attorneys general and criminal investigators unaffected.

This part shall not affect any salaries and compensation paid by any county to the several assistant district attorneys general and/or criminal investigators, nor any laws authorizing such salaries and compensation.

§ 8-7-206. Victim-witness coordinator.

(a) There is created in each judicial district the position of victim-witness coordinator to be appointed by the district attorney general. The duties of the victim-witness coordinator shall include:
1. (1) After the return of an indictment or presentment, advising victims of their rights under title 40, chapter 38, part 1;
2. (2) After the return of an indictment or presentment, keeping victims and witnesses informed of court dates and actions affecting their cases, including evidentiary hearings, trial dates, and sentencing hearings as provided for in § 40-38-111;
3. (3) After the return of an indictment or presentment, assisting victims and witnesses to better understand the way the criminal justice system works, including the procedure and basis for continuances of cases and the procedure involved in the plea bargaining process;
4. (4) After the return of an indictment or presentment, assisting victims to become more involved in the processes which affect the perpetrator of the crime, such as the plea bargaining process, including presentence reports and the sentencing hearing itself;
5. (5) Assisting in obtaining restitution to victims of crime directly from the perpetrator of the crime when possible; and
6. (6) Assisting eligible victims in obtaining benefits from the criminal injuries compensation program.
(b) There are created, in ten (10) judicial districts to be designated by the executive director of the Tennessee district attorneys general conference, the positions of assistant victim-witness coordinator.

§ 8-7-207 — 8-7-224. [Reserved]

§ 8-7-225. Short title.

Sections 8-7-225 — 8-7-235 shall be known as the “Assistant District Attorneys General and Criminal Investigators Compensation Act of 1994.”

§ 8-7-226. Salaries of assistant district attorneys general.

All assistant district attorneys general hired after July 1, 1994, or reclassified under § 8-7-201(e)(3), shall be compensated beginning July 1, 2023, according to the following pay schedule, which must be adjusted on July 1, 2023, and each succeeding July 1, to reflect the average percentage pay increase provided for state employees by the general appropriations act:

§ 8-7-227. Prior service credits for assistant district attorneys general.

The executive director of the Tennessee district attorneys general conference shall certify the entry level of compensation awarded to assistant district attorneys general based on prior service credits. Assistant district attorneys general shall be entitled to prior service credits as follows:
1. (1) Any assistant district attorney general who has prior experience as an assistant district attorney, a district attorney general, a criminal investigator for the district attorneys general, a United States attorney, an assistant United States attorney, an assistant attorney general representing the state in criminal litigation, an elected judge of a court with criminal jurisdiction, an attorney that served as a law clerk for an appellate or trial judge of a court with criminal jurisdiction, a district public defender, an assistant district public defender, or one who as a commissioned officer worked as a military attorney in the field of criminal prosecution while on full-time active duty in the judge advocate general's corps of any of the armed services of the United States, shall be eligible to receive year-for-year credit upon the recommendation of the hiring district attorney general, and subject to the approval of the executive director of the Tennessee district attorneys general conference; and
2. (2) The executive director of the Tennessee district attorneys general conference may certify prior service credits for prior practice of law but not exceeding the assistant's experience as a licensed practicing attorney and, in no case, shall year-for-year credit exceed twelve (12) years.

§ 8-7-228. Annual salary increases for assistant district attorneys general.

On July 1, 1995, and each subsequent July 1, the salary levels for assistant district attorneys general shall be increased by such percentage amount as shall be fixed by the general assembly in the general appropriations act. For the purpose of budget preparation, it shall be presumed that such percentage amount shall be the same as that received by other state employees.

§ 8-7-229. Assistant district attorneys general employed on July 1, 1994.

Sections 8-7-225 — 8-7-235 shall have no effect or application to the classification for future employment purposes or compensation or benefits of district attorneys general or assistant district attorneys general serving or employed in such capacity on June 1, 1994, whether compensated by the state of Tennessee or by local government.

§ 8-7-230. Salaries of criminal investigators.

All criminal investigators hired after July 1, 1994, shall be compensated according to the following pay schedule, as adjusted on July 1, 2023, and each succeeding July 1, to reflect the average percentage pay increase provided for state employees by the general appropriations act:
1. Entry level$43,180
2. after two (2) years$46,471
3. after four (4) years$48,944
4. after six (6) years$52,444
5. after ten (10) years$55,982
6. after twelve (12) years$59,276
7. after fourteen (14) years$62,963
8. after fourteen (14) years$66,196
9. after sixteen (16) years$69,822
10. after eighteen (18) years$76,428
11. after twenty (20) years$80,532

§ 8-7-231. Prior service credits for criminal investigators.

(a) The executive director of the Tennessee district attorneys general conference shall certify the entry level of compensation awarded to criminal investigators of the district attorneys general based on prior service credits. Criminal investigators for the district attorneys general shall be entitled to prior service credits as follows:
1. (1) Any criminal investigator for the district attorney general who has prior experience as a criminal investigator for the district attorneys general or for the district public defenders shall be eligible to receive year-for-year credit upon the recommendation of the hiring district attorney general and subject to the approval of the executive committee of the Tennessee district attorneys general conference; and
2. (2) The executive director of the Tennessee district attorneys general conference may certify prior service credits for prior law enforcement experience and post-secondary education degrees obtained and in no case shall year-for-year credit exceed twelve (12) years.
(b) As used in subsection (a), prior law enforcement experience includes full-time employment with a law enforcement agency during which the employee performed duties typically performed by law enforcement personnel, including exercising arrest powers. An employment record from the law enforcement agency shall be used to establish such law enforcement experience.

§ 8-7-232. Salary increases for criminal investigators.

On July 1, 1995, and each subsequent July 1, the salary levels for criminal investigators shall be increased by such percentage amount as shall be fixed by the general assembly in the general appropriations act. For the purpose of budget preparation, it shall be presumed that such percentage amount shall be the same as that received by other state employees.

§ 8-7-233. Criminal investigators employed on July 1, 1994.

Sections 8-7-225 — 8-7-235 shall have no effect or application to the compensation or benefits of criminal investigators employed prior to July 1, 1994.

§ 8-7-234. Attorneys serving as criminal investigators.

Notwithstanding §§ 8-7-230 and 8-7-231, if a district attorney general having a vacant criminal investigator position appoints a licensed attorney to that position and designates that person to serve as an assistant district attorney general, the appointee may, on the recommendation of the hiring district attorney general and with the approval of the executive committee of the Tennessee district attorneys general conference, be compensated as an assistant district attorney general as provided for in § 8-7-227.

§ 8-7-235. Attorneys employed as criminal investigators on July 1, 1994.

No salary or level of compensation shall be reduced by §§ 8-7-225 – 8-7-235 for any assistant district attorney general who is employed in the position of criminal investigator for the district attorneys general on July 1, 1994.

§ 8-7-236. Computation of annual salary increases appropriated to state employees.

For purposes of this chapter, in computing annual salary increases that are tied to salary increases appropriated to state employees, it is the intention of the general assembly that the increases are to be based solely on the specific percentage increase granted by the general appropriations act to all general state employees. Adjustments to annual salary increases as provided for in this chapter that are tied to salary increases of state employees are not to be adjusted on the basis of any class compensation efforts, class compression efforts, or any other method of salary adjustments.

Part 3 District Attorneys General Conference

§ 8-7-301. District attorneys general conference created.

There is hereby created a district attorneys general conference for the state of Tennessee, whose membership shall consist of all district attorneys general of the state whose salaries are paid in whole or in part out of the state treasury. The attorney general and reporter shall be an ex officio member of the conference and act as its legal advisor. The director of the Tennessee bureau of investigation shall also be an ex officio member of the conference.

§ 8-7-302. Meetings of conference — Matters to be considered — Purpose.

The conference shall meet annually and at other times as herein provided for the consideration of any and all matters pertaining to the discharge of the official duties and obligations of the several members, to the end that there shall be a more prompt and efficient administration of justice in the courts of this state.

§ 8-7-303. Consideration of more effective suppression of crime — Committees for drafting proposed legislation.

It is the duty of the conference to give consideration to the enactment of such laws and rules of procedure as in its judgment may be necessary to suppress crime more effectively, and thus promote peace and good order in the state. To this end, a committee of its members shall be appointed to draft suitable legislation and submit its recommendations to the general assembly.

§ 8-7-304. Calling of meetings — Notice — Election of officers.

The president of the conference may call meetings at will, upon at least ten (10) days' written notice to members, and shall call at least one (1) meeting annually, the annual meeting to be at the same time as that held by the judicial conference of this state. The district attorneys general conference shall elect annually a president, vice president, secretary and such other officers as may become necessary.

§ 8-7-305. Duty of members to attend meetings.

It is the official duty of each member of the conference to attend its meetings unless otherwise officially engaged, or for other good and sufficient reasons.

§ 8-7-306. Reimbursement for expenses.

Every member whose salary is paid in whole or in part by the state shall be entitled to have expenses paid for such attendance. Such expenses shall be paid upon the verified statement of such expenses by the district attorney general incurring the same and shall be paid from the general fund.

§ 8-7-307. Office of executive director of the district attorneys general conference created — Purpose.

There is created the office of executive director of the district attorneys general conference. The purpose of this office shall be to assist in improving the administration of justice in Tennessee by coordinating the prosecutive efforts of the various district attorneys general and by performing the duties and exercising the powers herein conferred.

§ 8-7-308. Election of executive director — Terms — Removal — Vacancy — Salary.

(a) The executive director of the district attorneys general conference shall be elected by a simple majority of the membership of the district attorneys general conference for a term of four (4) years. The election of the executive director shall be held at the annual meeting of the conference which immediately precedes July 1 of years in which presidential elections are held.
(b) The term of office of the executive director shall begin on July 1 following election and shall extend through June 30 of the next year in which a presidential election shall be held.
(c) The executive director shall, however, be subject to removal from office by vote of a majority of the conference membership at any meeting of the conference held during the executive director's term of office. Upon removal from office of the executive director, or upon a vacancy in the office otherwise occurring during a meeting of the conference, the conference shall elect by vote of a majority of its membership a person to fill the unexpired term of office. Should a vacancy in the office of executive director occur at any other time, the executive committee of the conference shall appoint a person to the office of executive director to serve until the next meeting of the conference, at which time the conference shall, by vote of a majority of its members, elect a person to fill the unexpired term of office of the executive director.
(d) The executive director shall receive a salary equal to that fixed by law for a district attorney general.

§ 8-7-309. Functions of executive director.

(a) The executive director of the district attorneys general conference shall:
1. (1) Work under the supervision and direction of the executive committee of the district attorneys general conference;
2. (2) Assist the district attorneys general throughout the state in coordinating the efforts of the district attorneys general against criminal activity in the state. Such assistance includes, but is not limited to:
  1. (A) Obtaining, preparation and supplementing of indexes to the unreported decisions of the court of criminal appeals and the supreme court of Tennessee relating to criminal matters;
  2. (B) Preparation of a basic prosecutors manual and educational materials; and
  3. (C) Preparation and distribution of uniform indictment forms, search warrant forms, interrogation warning forms, and other appropriate forms;
3. (3) Initiate conference calls between district attorneys general and coordinate efforts of district attorneys general investigating cases and crimes crossing district lines;
4. (4) Serve in a liaison capacity between the various branches of state government and the divisions thereof, including, but not limited to, the courts, the general assembly, the executive department and the office of attorney general and reporter;
5. (5) Administer the accounts of the judicial branch of government which relate to the offices of the district attorneys general, and shall prepare, approve and submit budget estimates and appropriations necessary for the maintenance and operation of the offices of district attorneys general and make recommendations with respect to such offices; and
6. (6) Draw and approve all requisitions for the payment of public moneys appropriated for the maintenance and operation of the state judicial branch of government which relate to the offices of the district attorneys general, and shall audit claims and prepare vouchers for presentation to the department of finance and administration, including payroll warrants, expense warrants, and warrants covering the necessary costs of supplies, materials and other obligations by the various offices with respect to which the executive director shall exercise fiscal responsibility.
(b) The executive director has authority, within budgetary limitations, to provide the district attorneys general with minimum law libraries, the nature and extent of which shall be determined in every instance by the executive director on the basis of need. All books thus furnished shall remain the property of the state, and shall be returned to the custody of the executive director by each district attorney general upon the retirement or expiration of the official duties of each such officer.
(c) All functions performed by the executive director which involve expenditures of state funds shall be subject to the same auditing procedures by the commissioner of finance and administration and the comptroller of the treasury as required in connection with the expenditure of all other state funds.

§ 8-7-310. Duties of executive director.

The executive director of the district attorneys general conference shall attend to such duties as may be assigned by the district attorneys general conference or the executive committee of such conference.

§ 8-7-311. Appointment of budget officer, director and clerical personnel — Compensation — Practice of law prohibited — Employment of attorney.

(a) The executive director of the district attorneys general conference shall, subject to the approval of the duly elected officers of the district attorneys general conference, appoint a budget officer and a director and such other assistants and clerical personnel as are necessary to enable the executive director to perform the duties of the executive director's office.
(b) Compensation for other assistants and clerical personnel shall be fixed by the executive director with the approval of the executive committee of the district attorneys general conference.
(c)
1. (1) During their terms of office or employment, neither the executive director nor any full-time assistant or employee shall directly or indirectly engage in the practice of law in any of the courts in this state.
2. (2) If the executive director employs an attorney as a part-time employee, such employee shall not engage in the defense of criminal cases if such employee's duties will, at the time of employment, involve or in the future may involve:
  1. (A) Substantial interaction with district attorneys general, their assistants, or other employees of the executive director; or
  2. (B) The prosecution of criminal cases either as a part-time assistant district attorney general or a district attorney general pro tempore.

§ 8-7-312. Office facilities.

The executive director of the district attorneys general conference shall be provided with suitable office space in the supreme court building, or other convenient and suitable office space, and with all office equipment and supplies necessary to perform the duties of the office.

§ 8-7-313. Executive director — Retirement.

The executive director of the district attorneys general conference shall be a member of the attorneys general retirement system of Tennessee, provided for by [former] chapter 81 of the Public Acts of 1953, as amended, [repealed], or the consolidated retirement system of Tennessee, provided for by chapters 34-37 and 39 of this title and for such purpose shall be an “attorney general” as defined in § 8-34-101.

§ 8-7-314. [Reserved] [Effective until July 1, 2026. See the version effective on July 1, 2026.]

§ 8-7-315. Budget submitted to general assembly.

Each year's budget for the operation of the office of executive director of the district attorneys general conference shall be submitted to the criminal justice committee of the house of representatives and the senate judiciary committee prior to approval of the budget by the general assembly.

Part 4 Private Co-Counsel for Crime Victims

§ 8-7-401. Employment of private counsel by crime victim — Participation as co-counsel in prosecution of crime.

(a) A victim of crime or the family members of a victim of crime may employ private legal counsel to act as co-counsel with the district attorney general or the district attorney general's deputies in trying cases, with the extent of participation of such privately employed counsel being at the discretion of the district attorney general. The district attorney general or a deputy shall make the final and concluding argument. The privately retained counsel shall immediately inform the district attorney general of such counsel's employment.
(b)
1. (1) No private legal counsel employed as a special prosecutor pursuant to subsection (a) is permitted to participate in any criminal hearing, trial or other proceeding unless the defendant or defendants have been notified and the court has conducted a hearing on such employment as provided in subdivision (b)(2).
2. (2) At such hearing, the defendant or defendants have the right to be present and to raise and preserve any objections to the employment of such special prosecutor as provided by law. The court shall examine the private counsel to be employed and shall make a specific finding as to whether such person is or is not qualified under the law to serve as special prosecutor and as to whether such person has or does not have a conflict of interest as provided by law.
3. (3) Any allegations of prosecutorial misconduct or other defects in the trial committed or caused by the special prosecutor shall be raised and disposed of at the time a motion for new trial is made by the defendant.

Part 5 Assistance to Grand Juries

§ 8-7-501. Attendance of district attorney general at grand jury.

Whenever required by the grand jury, the district attorney general or a designated assistant may attend before that body for the purpose of assisting in its inquiries, which assistance may include the examination of witnesses and the giving of legal advice as to any matters cognizable by that body; provided, that the district attorney general or the designated assistant shall not be present when the question is taken upon the finding of an indictment; and provided further, that the foreman of any grand jury shall be prohibited from communicating to the district attorney general or any other person the way in which any grand juror voted on any question before such body.

§ 8-7-502. Jurisdiction over misconduct.

It is the legislative intent that any misconduct by a district attorney general before the grand jury shall be subject to the jurisdiction of the board of professional responsibility established by Supreme Court Rule 9.

§ 8-7-503. Judge's instruction to grand jury.

It is the duty of the judge who instructs the grand jury to charge the jurors as to this part so that they will be fully informed of the fact that the district attorney general may attend before such body only upon the grand jury's request.

Part 6 District Attorneys General Fiscal Affairs Act

§ 8-7-601. Short title.

This part shall be known as the “District Attorneys General Fiscal Affairs Act.”

§ 8-7-602. Fiscal officer.

(a) Whereas, the various district attorneys general for the state of Tennessee are entitled to receive and do receive funding from various state, federal and local governmental sources, and private donors, and an orderly system for receiving and disbursing same is necessary, the district attorneys general are hereby authorized and empowered to designate the executive director of the district attorneys general conference as fiscal officer for the judicial district served by a district attorney general. The executive director is authorized and empowered to receive and disburse funds so received for any lawful purpose not inconsistent with this part.
(b)
1. (1) The executive director is hereby designated as fiscal officer for the receipt and disbursement of all funds distributed pursuant to § 36-5-107 and related federal matching funds when the office of the district attorney general is the agency actually participating in the child support collection program as provided by federal law.
2. (2) Any unspent incentive funds being held by counties for the benefit of the offices of district attorneys general as of April 30, 1990, shall be transferred to the executive director.

§ 8-7-603. Disbursement of funds.

Such funds shall be disbursed by the executive director of the district attorneys general conference upon proper request being submitted by the respective district attorneys general specifying the purpose of the disbursement and that the same is lawful and proper and not inconsistent with the terms upon which the funding was received.

§ 8-7-604. Authorized use of funds.

Such funding shall be used solely for the purpose of carrying out the duties and responsibilities of the office of district attorney general, and the orderly management and operation of same, and not to supplement the pay of any district attorney general.

§ 8-7-605. Use of funds to defray costs.

The office of executive director of the district attorneys general conference may receive a portion of the funds to be set by the executive director to defray the cost of receiving and disbursing same.

§ 8-7-606. Records — Audit.

The office of executive director of the district attorneys general conference shall maintain records of all receipts, disbursements, requests for disbursements and the purpose of same, and the records shall be subject to an annual audit by the office of comptroller of the treasury.

Chapter 8 Sheriffs

Part 1 Appointment — Vacancy

§ 8-8-101. Prohibited from practice of law or serving as member of general assembly while sheriff.

No person shall engage in the practice of law or serve as a member of the general assembly while serving as sheriff.

§ 8-8-102. Qualifications for office — Affidavits — Training — Challenge to candidate's qualifications — Fraudulent challenge.

(a) After May 30, 1997, to qualify for election or appointment to the office of sheriff a person shall:
1. (1) Be a citizen of the United States;
2. (2) Be at least twenty-five (25) years of age prior to the date of qualifying for election;
3. (3) Be a qualified voter of the county and a resident of the county for one (1) full year prior to the date of the qualifying deadline for running as a candidate for sheriff;
4. (4) Have obtained a high school diploma or its equivalent in educational training as recognized by the Tennessee state board of education;
5. (5) Not have been convicted of or pleaded guilty to or entered a plea of nolo contendere to any misdemeanor crime of domestic violence or any felony charge or violation of any federal or state laws or city ordinances relating to force, violence, theft, dishonesty, gambling, liquor or controlled substances;
6. (6) Be fingerprinted and have the Tennessee bureau of investigation (TBI) make a search of local, state and federal fingerprint files for any criminal record. Fingerprints are to be taken under the direction of TBI. It shall be the responsibility of TBI to forward all criminal history results to the peace officer standards and training (POST) commission for evaluation of qualifications;
7. (7) Not have been released, separated or discharged from the armed forces of the United States with a dishonorable or bad conduct discharge, or as a consequence of conviction at court martial for either state or federal offenses;
8. (8) Have been certified by a Tennessee licensed health care provider qualified in the psychiatric or psychological field as being free from any impairment, as set forth in the current edition of the Diagnostic and Statistical Manual of Mental Disorders (DSM) of the American Psychiatric Association at the time of the examination, that would, in the professional judgment of the examiner, affect the applicant's ability to perform an essential function of the job, with or without a reasonable accommodation;
9. (9)
  1. (A) Except as provided in subdivision (a)(9)(B), have at least three (3) years of full-time experience as a POST commission certified law enforcement officer in the previous ten (10) years or at least three (3) years of full-time experience as a state or federal certified law enforcement officer with training equivalent to that required by the POST commission in the previous ten (10) years; provided, that any person holding the office of sheriff on May 30, 2011, shall be deemed to have met the requirements of this subdivision (a)(9).
  2. (B) Subdivision (a)(9)(A) shall not apply in any county having a metropolitan form of government where the sheriff does not have full law enforcement powers; and
10. (10) Not have been convicted of or pleaded guilty to or entered a plea of nolo contendere to any felony charge or violation of any federal or state laws relating to controlled substance analogues.
(b)
1. (1) Any person seeking the office of sheriff shall file with the POST commission, at least fourteen (14) days prior to the qualifying deadline, the following:
  1. (A) An affidavit sworn to and signed by the candidate affirming that the candidate meets the requirements of this section; and
  2. (B) A confirmation of psychological evaluation form certified by the psychologist/psychiatrist providing psychological evaluation as provided for in subdivision (a)(8) for the purposes of sheriff candidacy qualification. The form shall be developed by the POST commission and shall include the examining psychologist's/psychiatrist's license number and state of licensure. The form shall clearly state in bold face type directly above the signature line that a person who, with intent to deceive, makes any false statement on such application commits the offense of perjury pursuant to § 39-16-702. The form shall be made available by the POST commission upon request by any candidate for the office of sheriff.
2. (2) If such affidavit and form are not filed with the POST commission by the fourteenth day prior to the qualifying deadline for the office of sheriff, such candidate's name shall not be placed on the ballot. The POST commission shall have the authority to verify the validity of such affidavit and form.
3. (3)
  1. (A) The POST commission shall verify peace officer standards and training certification of any person seeking the office of sheriff to the extent subdivision (a)(9) requires such person to have such certification. If the person does not have such certification on the date the person files the affidavit seeking to qualify as a candidate for the office of sheriff, the POST commission shall certify whether the person has the three (3) years of full-time experience as a POST commission certified law enforcement officer and whether the certification is current. If the candidate does not have a current certification, or if the person has the law enforcement experience as a state or federal law enforcement officer pursuant to subdivision (a)(9), then such candidate shall certify with the county election commission by the withdrawal deadline their exemption pursuant to subdivision (a)(9).
  2. (B) The original notarized verification form from the POST commission shall be filed by the POST commission with the county election commission by the withdrawal deadline.
  3. (C) If the POST commission or the candidate, as appropriate, has not certified to the county election commission by the withdrawal deadline a person seeking to qualify as a candidate for the office of sheriff as meeting the qualifications as provided for in this section, such person's name shall not appear on the ballot.
  4. (D) In the event that a person seeks election to the office of sheriff by the county legislative body to fill a vacancy in office, such verification must be filed with the county clerk prior to the election.
(c)
1. (1) Every person who is elected or appointed to the office of sheriff after May 30, 1997, shall, annually during the sheriff's term of office, complete forty (40) hours of in-service training appropriate for the rank and responsibilities of a sheriff. The training shall be approved by the POST commission. Any sheriff who does not fulfill the obligations of this annual in-service training shall lose the power of arrest.
2. (2) Every person who is elected to the office of sheriff after August 1, 2006, in a regular August general election for a four-year term, and is a first term sheriff, regardless of the person's previous law enforcement experience, must successfully complete the newly elected sheriffs' school prior to September 1 immediately following the person's election, and thereafter must successfully complete forty (40) hours of annual in-service training appropriate for the rank and responsibilities of a sheriff pursuant to subdivision (c)(1). The newly elected sheriffs' school shall be taught at the Tennessee law enforcement academy during the month of August, only in the years that elections for sheriffs are held. The curriculum shall be developed by the Tennessee law enforcement training academy in cooperation with the Tennessee Sheriffs' Association and must be approved by the POST commission. Any usual and customary cost associated with attending the newly elected sheriffs' school shall be paid by the county. Any such sheriff who does not fulfill the obligations of this training course shall lose the power of arrest. No fees collected for the sheriffs' school shall inure to the benefit of the Tennessee Sheriffs' Association.
(d) A person may challenge whether a candidate has the required qualifications for sheriff, as identified in subsection (a); provided, that the challenge is filed in writing with the POST commission no later than twelve o'clock (12:00) noon prevailing time on the third day after the qualifying deadline, as determined under § 2-5-101(a).
(e) If a candidate's qualifications are challenged pursuant to subsection (d), the POST commission shall:
1. (1) Notify the candidate of the challenge;
2. (2) Review and verify the candidate's required qualifications, identified in subsection (a);
3. (3) Review and verify the candidate's affidavit and psychological evaluation form, in accordance with subsection (b); and
4. (4) If the POST commission determines the candidate does not possess the required qualifications for sheriff:
  1. (A) Disqualify the candidate;
  2. (B) Notify the candidate and county election commission of its determination no later than twelve o'clock (12:00) noon prevailing time on the seventh day after the qualifying deadline, as determined under § 2-5-101(a); and
  3. (C) Request that the county election commission:
    1. (i) Not print the candidate's name on any ballot; and
    2. (ii) Remove the candidate's name from any printed ballot.
(f)
1. (1) It is an offense for a person to intentionally file a fraudulent challenge under subsection (d).
2. (2) A violation of subdivision (f)(1) is a Class A misdemeanor punishable by fine only.

§ 8-8-103. Surety bond.

Before entering into the duties of the office, the sheriff shall take an oath to support the constitutions of this state and of the United States, and an oath of office pursuant to § 8-8-104. The sheriff shall execute an official bond in an amount of one hundred thousand dollars ($100,000), or such greater amount as the county legislative body by resolution may determine. The bond must be prepared, executed, filed, and recorded in accordance with title 8, chapter 19.

§ 8-8-104. Oath of office.

The sheriff shall, besides the oaths prescribed for public officers, take an oath that the sheriff has not promised or given, nor will give, any fee, gift, gratuity, or reward for the office or for aid in procuring such office, that the sheriff will not take any fee, gift, or bribe, or gratuity for returning any person as a juror or for making any false return of any process, and that the sheriff will faithfully execute the office of sheriff to the best of such sheriff's knowledge and ability agreeably to law.

§ 8-8-105. Replacement of sureties.

The county legislative body shall demand new sureties from the sheriff from time to time if the old sureties die, remove from the county, become insolvent, or otherwise unable to pay, as it, in its discretion, may judge necessary. A failure on the part of the sheriff to comply with such requirement within thirty (30) days shall vacate the office.

§ 8-8-106. Temporary appointment by county legislative body.

If a vacancy occurs in the office of sheriff, the vacancy shall be filled as provided for in § 5-1-104(b).

§ 8-8-107. Vacancy in office — Temporary discharge of sheriff's duties.

In the event that the office of sheriff becomes vacant due to death, resignation, incapacity, or other causes, the duties of the office shall be temporarily discharged by the chief deputy, or administrative assistant or other highest ranking member of the sheriff's office, until the sheriff is able to reassume the office or until the county legislative body appoints a successor as provided for in § 5-1-104(b).

§ 8-8-108. Deputies acting during vacancy — Appointment of persons to serve process — Legislative adoption of service of process alternatives.

(a)
1. (1) In case of a vacancy in the office of sheriff, the deputies, or other authorized process servers except in counties specified in subdivision (a)(2), shall execute legal process in their hands as if the sheriff had continued in office, and shall be liable under law as in other cases.
2. (2) The provisions of subdivision (a)(1) relative to other authorized process servers shall not apply in the counties having a population of:
  3. 41,80041,900
  4. 85,72585,825
  5. 143,900144,000
  6. 287,000288,000
  8. according to the 1980 federal census or any subsequent census.
(b)
1. (1) The judge of a court of record or a general sessions judge may, upon petition filed by five (5) attorneys practicing before the court that they are unable to obtain reasonably prompt service of process from the court, appoint a person of legal age to serve any process or other papers, original or final, issued by the court, or do any act therein which the sheriff by law might do in any cause, except that such person shall not be authorized to serve process requiring the arrest of any person.
2. (2) Such appointment shall be made in writing under the hand of the judge and filed with the clerk of the court.
3. (3) The person so appointed shall have the same power conferred upon such person and proceed in the same manner prescribed by law for the sheriff in the performance of like duties.
4. (4) The fees payable to such person shall be the same as those paid to the sheriff by virtue of the law in that behalf for like service, and limited as deputy sheriff fees are limited. However, in any county having a population of seven hundred seventy thousand (770,000) or more, according to the 1980 federal census or any subsequent federal census, such fees shall not be counted as court costs, but shall be awarded by the court as a part of the judgment.
5. (5) Such judge shall require the person so appointed, before acting, to give bond to the state for the benefit of the people of the state in the penal sum of five thousand dollars ($5,000) with such surety or sureties as such judge may approve, conditioned for the faithful performance and execution by such person of such person's duties and for the payment of all moneys that may come into such person's hands by virtue of such appointment. In any county having a population of seven hundred seventy thousand (770,000) or more, according to the 1980 federal census or any subsequent federal census, the person so appointed shall be required to give bond to the state for the benefit of the state in a penal sum of fifteen thousand dollars ($15,000) with such surety or sureties as the judge may approve, conditioned for the faithful performance and execution by such person of such person's duties and for the payment of all moneys that may come into such person's hands by virtue of such appointment.
6. (6) All process or papers served by the person appointed as provided in this subsection (b) shall be evidenced by the affidavit of such person making such service.
7. (7) Every person appointed as provided in this subsection (b) shall be liable in all respects to the law as respecting sheriffs so far as same may be applicable.
8. (8) In any county having a population of seven hundred seventy thousand (770,000) or more, according to the 1980 federal census or any subsequent federal census:
  1. (A) The collection of fees for such private process service shall be solely the responsibility of the person serving the process;
  2. (B) The judges of the courts of general sessions shall promulgate rules of court to govern the application of this subsection (b) in their county; and
  3. (C) These rules established by the court shall include, but not be limited to, a requirement that the process server shall have a computer capability approved by the general sessions court clerk.
9. (9) In counties having a home rule charter form of government and where private process servers are appointed in general sessions court, the maximum fees allowed shall be established by an ordinance of the county board of commissioners. This subdivision (b)(9) shall not be in effect unless ratified by a two-thirds (⅔) vote of the board of commissioners of any such home rule county.
(c)
1. (1) A person to serve process shall be appointed upon the petition of five (5) attorneys practicing before the general sessions court requesting appointment of persons to serve process. Such petition shall be filed with the county clerk and shall attest to the fact that the attorneys are unable to obtain reasonable, prompt service from the general sessions court. A person requesting appointment to serve process must file a petition with the county clerk requesting such appointment. A person appointed to serve process must be of legal age and be qualified to serve any process or other papers issued by the general sessions court or to do any act which the sheriff might do in serving process, except that such person shall not be authorized to serve process requiring the arrest of any person. The county clerk shall approve the petition to allow a person to serve process after a background check by the Tennessee bureau of investigation and the county sheriff's office has been completed. The county clerk shall administer an oath to the petitioner to uphold the laws of this state and the constitutions of the United States and Tennessee. A petitioner shall pay a fee not to exceed one hundred dollars ($100) to the county clerk for the cost of the background checks.
2. (2) Such appointment shall be made in writing under the hand of the county clerk.
3. (3) The person so appointed shall have the same power conferred upon such person and proceed in the same manner prescribed by law for the sheriff in the performance of like duties.
4. (4) The fees payable to the person appointed to serve process shall be counted as court costs.
5. (5) The person so appointed shall be required to give bond to the state for the benefit of the state in a penal sum of fifteen thousand dollars ($15,000) with such surety or sureties as the county clerk may approve, conditioned for the faithful performance and execution by such person of that person's duties and for the payment of all moneys that may come into that person's hands by virtue of such appointment.
6. (6) All process or papers served by the person appointed as provided in this subsection (c) shall be evidenced by the affidavit of such person making such service.
7. (7) Every person appointed as provided in this subsection (c) is liable in all respects to the law as respecting sheriffs so far as it may be applicable.
8. (8)
  1. (A) The collection of fees for such private process service is solely the responsibility of the person serving the process;
  2. (B) The county clerk has the power to suspend any person appointed to serve process who has violated the state or city laws governing the laws pertaining to civil process; and
  3. (C) The process server shall have computer capability approved by the general sessions court clerk.
9. (9) The maximum fees allowed pursuant to this subsection (c) shall be established by ordinance of the county legislative body of any county to which this subsection (c) applies. This subdivision (c)(9) shall not be in effect unless ratified by a two-thirds (⅔) vote of the legislative body of any county to which this subsection (c) applies.
10. (10) Notwithstanding subsection (b), this subsection (c) applies only to counties with a charter form of government with a population in excess of eight hundred thousand (800,000), according to the 1990 federal census or any subsequent federal census, and only upon the adoption of this subsection (c) by a two-thirds (⅔) vote of the legislative body of any county to which it applies.
(d)
1. (1) Notwithstanding the language of subsections (b) and (c) to the contrary, any county may adopt, by a two-thirds (⅔) vote of its legislative body, either subsection (b) or (c) to govern the service of process in courts of general sessions in such county.
2. (2) Upon the adoption of either subsection by the county legislative body, the presiding officer of such body shall certify such adoption to the secretary of state and shall specify the subsection such county adopted. Upon receiving such certification, the secretary of state shall notify the presiding general sessions court judge of the county or the county clerk, whichever is appropriate, of such county's adoption of the appropriate subsection.

Part 2 Powers and Duties

§ 8-8-201. Duties of office.

(a) It is the sheriff's duty to:
1. (1) Execute and return, according to law, the process and orders of the courts of record of this state, and of officers of competent authority, with due diligence, when delivered to the sheriff for that purpose;
2. (2)
  1. (A) Except as provided in subdivision (a)(2)(B), attend upon all the courts held in the county when in session; cause the courthouse or courtroom to be kept in order for the accommodation of the courts; furnish them with fire and water; and obey the lawful orders and directions of the court;
  2. (B)
    1. (i) In any municipality having a metropolitan form of government and a population of over four hundred fifty thousand (450,000), according to the 1990 federal census or any subsequent federal census, the trial judges shall, within the annual budget appropriation, appoint persons to serve as court officers for the respective courts, such persons to serve at the will of, and under the direction and supervision of the appointing judge. The officers shall be paid in accordance with the general pay plan of such a municipality;
    2. (ii) It is the duty of such court officers to maintain order during sessions of the court, to serve process as ordered and to perform such other duties as may be prescribed by the judge. The court officers shall, while acting in the performance of their duties, possess and exercise police powers to the same extent as that granted to members of the metropolitan police department;
3. (3) Take charge and custody of the jail of the sheriff's county, and of the prisoners therein; receive those lawfully committed, and keep them personally, or by deputies or jailer, until discharged by law; be constantly at the jail, or have someone there, with the keys to liberate the prisoners in case of fire; provided, that if two (2) or more counties enter into an interlocal agreement providing for a jail to serve the counties which are parties to the agreement, the sheriff of any county which is party to such agreement shall not take charge and custody of the jail shared by the agreeing counties unless the interlocal agreement so provides, nor shall the sheriff have charge of the prisoners lawfully committed to such a jail unless so provided by the interlocal agreement;
4. (4) Mark on all process delivered to the sheriff to be executed, the day on which the sheriff received the same;
5. (5)
  1. (A) Execute all writs and other process legally issued and directed to the sheriff, within the county, and make due return thereof, either personally or by a lawful deputy or, in civil lawsuits only, by a lawfully appointed civil process server except in counties specified in subdivision (a)(5)(B);
  2. (B) The provisions of subdivision (a)(5)(A), relative to other authorized process servers, do not apply in the counties having a population of:
    3. 41,80041,900
    4. 85,72585,825
    5. 143,900144,000
    6. 287,000288,000
    8. according to the 1980 federal census or any subsequent census;
6. (6) Execute every notice to take depositions, delivered to the sheriff, for any party residing in the county, by delivering a copy thereof to such party in due time; mark on the original notice the time of delivering such copy, and return the same to the clerk of the court in which the suit is pending;
7. (7) Serve, in due time, any delinquent officer or principal debtor with a copy of any notice of motion delivered to the sheriff to be served on such officer or debtor, and return the original notice in due time to the clerk of the court in which the motion is to be made, with the sheriff's endorsement of service;
8. (8) Go to the house or place of abode of every defendant against whom the sheriff has process, before returning on the same that the defendant is not to be found;
9. (9) Specify in the return in what county in the state the defendant resides, when the defendant is a known inhabitant of any other county than that of the sheriff to which the process is directed;
10. (10) Use, in the execution of process, a degree of diligence exceeding that which a prudent person employs in such person's own affairs;
11. (11) Give a receipt, if required by the party, for executions delivered to the sheriff;
12. (12) Receive nothing but money, or, unless otherwise instructed, current convertible bank notes, in satisfaction of any writ of execution delivered to the sheriff;
13. (13) Levy every writ of execution first on the defendant's goods and chattels, if there are any;
14. (14) Levy the same upon lands to the amount of the whole debt, or so much of the debt as may exceed the value of the goods and chattels, if there are not, to the best of the sheriff's knowledge, goods and chattels sufficient to answer the plaintiff's demand;
15. (15) Exhaust the property of a principal before selling the property of a surety, as provided in § 26-3-105;
16. (16) Take from a defendant, on whose personal property the sheriff has levied an execution, a delivery bond, if requested, with surety, for double the amount of the execution, payable to the plaintiff, conditioned for the delivery of the property at the day and place of sale;
17. (17) Levy such execution, if the bond be forfeited, upon so much of the property of the defendant, if to be found, as shall be sufficient to satisfy it; and, if there be a deficit, then upon the surety's property, sufficient to satisfy so much of the debt as the property not delivered was valued at;
18. (18) Summon a jury to ascertain the value of the undelivered property of the principal, if the value is not set forth in the delivery bond;
19. (19) Return the execution, and the bond with it, to the tribunal from which it issued, if satisfaction of the execution cannot be had before the return day;
20. (20) Have personal property that the sheriff sells under execution present at the time of sale, unless the defendant agrees that it may be sold without being present;
21. (21) Describe land levied upon by execution or attachment, so as to identify it and distinguish it from other lands;
22. (22) Serve the defendant in possession of land with twenty (20) days' notice of the levy, and of the time and place of sale;
23. (23) Advertise the sale of any land levied on by execution, as prescribed in §§ 35-5-101 — 35-5-104;
24. (24) Pay the expenses of such advertisement out of the proceeds of the sale;
25. (25) Return every execution which is delivered to the sheriff, on or before the day of return mentioned therein, with a sufficient response endorsed thereon or attached to it;
26. (26) Pay to the party entitled to the same, or to the party's agent or attorney, on demand, any moneys collected by the sheriff on any execution from a court of record;
27. (27) Return with such execution any money collected on such execution;
28. (28) Make out, if required by the defendant, on levying any debt, damages, or costs by virtue of an execution, a bill of fees due in the case, and set down, under the bill, a true copy of the clerk's and other endorsed fees separately and distinctly, and give a receipt for the same to the defendant in the execution;
29. (29) Endorse on the execution the amount of the sheriff's own fees taken on the same, to be entered by the clerk on the execution docket;
30. (30) Pay to the party entitled thereto, or to the party's agent or attorney, any money collected by the sheriff, by virtue of an execution from a judge of the court of general sessions, on or before the return day of the execution;
31. (31) Pay to the party entitled to receive the same, or to the party's agent or attorney, any money collected by the sheriff upon any debt or demand delivered to the sheriff for collection, whether the sheriff collects or receives the money before or after the issuance of any summons, or before or after the rendition of a judgment or the issuance of an execution;
32. (32) Return every execution issued by any judge of the court of general sessions and delivered to the sheriff, with a sufficient response thereon, within thirty (30) days after the issuance of the same, either to the judge who issued it, or to the judge having possession of that judge's papers;
33. (33) Perform such other duties as are, or may be, imposed by law;
34. (34) Enforce the ordinances of a municipality; provided, that the municipality has expressed by ordinance its intent to have the sheriff enforce its ordinances, and that the municipality has filed a certified copy of its ordinances with the sheriff and the general sessions court of the county;
35. (35)
  1. (A) Take or cause to be taken a full set of fingerprints of each person arrested whether by warrant or capias for an offense which results in such person's incarceration in a jail facility or the person's posting of a bond to avoid incarceration. If fingerprints are maintained manually, two (2) full sets of fingerprints shall be obtained and sent to the Tennessee bureau of investigation. If fingerprints are maintained electronically, a set of fingerprints shall be transmitted to the Tennessee bureau of investigation. Upon receipt of the fingerprints, the Tennessee bureau of investigation shall retain one (1) set of the fingerprints as provided in § 38-6-103, and shall send one (1) set of the fingerprints to the federal bureau of investigation;
  2. (B) A person who is issued a citation pursuant to § 40-7-118 or § 40-7-120 shall not, for purposes of this section, be considered to have been arrested and the agency issuing the citation shall not be required to take the fingerprints of such person; and
36. (36) Promptly turn over and transfer custody of any inmate sentenced to the department of correction who is being housed in such sheriff's local jail awaiting transfer when called upon to do so by a state official pursuant to § 40-35-212 or § 41-8-106.
(b)
1. (1) In addition to the duties set forth in subsection (a), the sheriff shall perform the duties set forth in the following sections: 2-17-106, 5-7-108, 6-55-201, 7-51-1105, 7-51-1107, 7-51-1111, 7-86-105, 8-4-115, 8-7-110, 8-22-110, 8-26-108, 11-24-112, 16-2-505, 16-15-715, 16-15-901, 18-1-206, 20-2-103, 20-2-111, 22-2-307, 22-2-310, 26-1-402, 26-2-216, 26-2-405, 26-2-406, 26-5-116, 29-16-111, 29-17-706, 29-18-115, 33-3-611, 33-6-406, 33-6-407, 33-6-610, 33-6-611, 33-6-615, 33-6-901, 37-1-213, 37-1-310, 37-1-403, 37-1-405, 37-1-603, 37-1-605, 37-1-607, 37-5-205, 38-1-106, 38-3-102, 38-3-108, 38-3-122, 38-7-106, 38-7-108, [former] 38-7-116 [repealed], 38-8-102, 38-8-111, 38-10-102, 38-11-204, 39-14-149, 39-17-420, 39-17-429, 39-17-714, 39-17-1315, 39-17-1317, 39-17-1351, 39-17-1361, 40-6-105, 40-6-210, 40-6-212, 40-6-215, 40-7-120, 40-9-103, 40-9-124, 40-9-127, 40-10-105, 40-10-106, 40-11-106, 40-11-135, 40-11-147, 40-11-207, 40-11-211, 40-11-212, 40-13-301, 40-20-117, 40-23-103, 40-23-113, 40-23-116, 40-25-111, 40-25-135, 40-28-107, 40-30-110, 40-33-102, 40-33-104, 40-33-105, 40-33-107, 40-35-307, 40-36-201, 40-38-103, 41-1-604, 41-4-143, 41-7-105, 41-8-105, 41-11-105, 41-11-110, 41-21-308, 41-21-909, 41-22-301, 41-22-303, 41-22-307, 47-13-104, 47-25-404, 49-6-3007, 49-6-3203, 52-5-410, 53-11-451, 54-11-105, 54-14-106, 55-10-402, 55-10-410, 55-10-420, 57-3-410, 57-5-202, 57-9-101, 57-9-102, 57-9-103, 57-9-104, 57-9-106, 57-9-107, 57-9-108, 57-9-110, 57-9-111, 57-9-115, 57-9-118, 60-1-205, 62-35-131, 63-3-126, 63-5-124, 63-8-120, 63-9-110, 63-16-115, 63-17-219, 63-25-110, 65-6-133, 66-19-206, 66-19-208, 66-19-209, 66-23-111, 67-1-1202, 67-1-1203, 67-4-110, 67-4-215, 67-4-603, 67-4-1017, 67-5-2006, 68-29-136, 68-102-145, 68-120-401, 68-140-522, 70-4-106, 70-6-201, and 71-6-208.
2. (2) The sheriff shall perform such other duties as are, or may be, imposed by law or custom.

§ 8-8-202. Advance fees on process from other counties.

No sheriff or constable shall be compelled to execute any subpoena or original summons in civil cases coming from any county other than the one in which such sheriff or constable is an officer, unless the fees allowed such sheriff or constable by law for the service of such process, if demanded, are paid in advance. However, this section does not apply to summons, executions, or other orders of a court rendered in a proceeding to collect delinquent property taxes as defined in § 67-5-2502(c)(1)(D).

§ 8-8-203. Payment of collections by collecting officers.

The sheriff and every other collecting officer shall pay all penalties, fines, forfeitures, amercements, and other sums of money collected by the sheriff or such other officer, or that ought to be collected, for the use of a county, into the hands of the clerk of the court or magistrate from whom the sheriff or such other officer received the execution under which the sheriff or such other officer made, or ought to have made, the collection, on or before the return day of such execution.

§ 8-8-204. Judgment on motion for failure to pay over.

If the sheriff or officer fails to do so, the clerk or magistrate shall furnish the district attorney general with the records, executions, and such other information as may be in the clerk or magistrate's possession, to show the liability of the officer, and the district attorney general shall move for judgment, in the name of the county, against the sheriff or officer and the sheriff's or officer's sureties for the moneys by the sheriff or officer collected, or that ought to have been collected, for the use of the county. Upon judgment, when obtained, the clerk or judge shall issue execution, and enforce satisfaction of such execution.

§ 8-8-205. Acting as attorney or security prohibited — Attorney as deputy.

(a) No sheriff or deputy sheriff shall appear in any court as attorney or counsel for any party, nor become security for any party in any civil suit or criminal proceeding.
(b) Notwithstanding any other law to the contrary, the sheriff shall be permitted to appoint a duly licensed attorney as a special deputy sheriff, reserve deputy sheriff, or as a deputy sheriff.

§ 8-8-206. Purchase at own sale prohibited.

No sheriff or deputy sheriff shall become the purchaser, either directly or indirectly, of any property by such sheriff or deputy exposed to sale under any process of law, and every such purchase shall be absolutely void.

§ 8-8-207. Disobedience of process.

A sheriff's disobedience of the command of any process is a contempt of the court from which it issued, and may be punished accordingly; and such sheriff is further liable to the action of the party aggrieved.

§ 8-8-208. Service at residence of defendant.

No sheriff shall return upon any writ that the person upon whom it is to be served is not to be found in the county, unless such sheriff has actually been at the place of abode of such person.

§ 8-8-209. Return as to residence in another county.

Where such person is a known inhabitant of another county, the sheriff shall return the truth of the case.

§ 8-8-210. Bill of fees.

On levying an execution for money, the sheriff, if required, shall make out a bill of the sheriff's own and all other fees endorsed thereon, giving the items separately and distinctly, and give a receipt therefor to the party paying them, under a penalty of one hundred twenty-five dollars ($125) to any person who will sue for such amount.

§ 8-8-211. Penalty for allowing prisoner to be taken from jail and put to death by violence.

Any sheriff who, either negligently or willfully, or by want of proper diligence, firmness, and promptness in the use of all the powers with which the sheriff is vested by law, allows a prisoner to be taken from the jail of the sheriff's county, or to be taken from the sheriff's custody, and put to death by violence, commits a Class A misdemeanor in office, and, upon indictment therefor and conviction thereof, shall be fined at the discretion of the court, and shall also, by the judgment of the court, forfeit the office, and be declared forever incapable of holding any office of trust or profit in this state.

§ 8-8-212. Special deputies — Exchange of law enforcement officers.

(a) The sheriff may appoint as many special deputies as the sheriff may think proper, on urgent occasions, or when required for particular purposes.
(b) The sheriff may appoint as many private special deputies as qualify for appointment pursuant to § 38-8-118.
(c)
1. (1) The sheriff is also authorized to enter into agreements with other law enforcement agencies, including, but not limited to, other county sheriff departments, for the exchange of law enforcement officers when required for a particular purpose. Such exchanged officers shall be covered by liability insurance by the agency of their regular employment or by the agency to which such officers are being assigned. Responding officers under such agreements may be deputized by the requesting sheriff without making application to the court; provided, that such exchanged officers shall serve in such capacity only for the time necessary to complete the particular purpose for which the exchange was made.
2. (2) The law enforcement officers exchanged under this subsection (c) shall not be deemed to be special deputies, and § 8-8-303 shall in no way be applicable to such law enforcement officers while serving in the capacity for the particular purpose for which the exchange was made.

§ 8-8-213. Conservator of peace — Summoning posse.

(a) The sheriff and the sheriff's deputies are conservators of the peace, and it is the sheriff's duty to suppress all affrays, riots, routs, unlawful assemblies, insurrections, or other breaches of the peace, detect and prevent crime, arrest any person lawfully, execute process of law, and patrol the roads of the county.
(b) The sheriff shall furnish the necessary deputies to carry out the duties set forth in subsection (a), and, if necessary, may summon to the sheriff's aid as many of the inhabitants of the county as the sheriff thinks proper.

§ 8-8-214. Delivery of papers and property to successor.

The sheriff, when going out of office, shall deliver to the successor all books and papers pertaining to the office, and all property attached and levied on and in the sheriff's hands, unless authorized by law to retain the same, and all prisoners in the jail, and take a receipt therefor, which receipt will be an indemnity to the retiring officer.

§ 8-8-215. Closing of unsettled business.

The sheriff is allowed two (2) years from the time of going out of office to close unsettled business, with all the power and subject to all the limitations and restrictions of the actual sheriff.

§ 8-8-216. Service of process or other paper by employee of party prohibited — Penalty.

(a) It is unlawful for any sheriff, deputy sheriff or constable to serve any summons, writ, process or other proceeding in any civil action when such officer is a salaried or commissioned employee of any party to the action or suit wherein any such summons, writ, process or other proceeding has been issued.
(b) A violation of this section is a Class C misdemeanor.

§ 8-8-217. Service in violation of § 8-8-216 void.

Any summons, writ, process or other proceeding in a civil action which was served in violation of § 8-8-216 is void.

§ 8-8-218. Retention of service weapon upon retirement or disability — Approval by legislative body of county.

(a) Upon completion of honorable service by a full-time sheriff or deputy sheriff, the sheriff or deputy sheriff, upon retirement, may retain the sheriff's or deputy sheriff's service weapon in recognition of many years of good and faithful service. A sheriff or deputy sheriff who retires on disability retirement may also retain the service weapon.
(b) Subsection (a) shall have no effect unless it is approved by a two-thirds (⅔) vote of the legislative body of any county to which it may apply.

§ 8-8-219. Patrol cars — Color schemes — Markings — Unmarked cars.

(a) White patrol cars which have a green stripe running horizontally along the upper portion of each side may be used exclusively for county sheriffs' patrol cars, and this color scheme shall not be used by any other law enforcement official or agency. When adopted for use by a county sheriff's department, the stripe design as well as other emblems and lettering shall conform to the official uniform markings adopted by the Tennessee Sheriffs' Association and on file with the executive director of the Tennessee Sheriffs' Association. These uniform markings may be used exclusively for county sheriffs' patrol cars and shall not be used by any other law enforcement official or agency.
(b) Nothing in this section shall prohibit a county sheriff's department from operating unmarked cars for undercover or other purposes.

§ 8-8-220. Civil actions — Sheriff may appoint persons to serve process.

In any civil action when the service of process is attempted to be served and is subsequently returned unserved, the sheriff of any county may appoint a person, who is a citizen of this state and who is of legal age, to serve such service of process within the prescribed limitations on service of process. Such appointment shall be made in writing and shall be filed with the court in such civil action. A person appointed to serve process as provided above shall be paid the appropriate fees, make an appropriate bond, assume such liability as the law requires, and file an affidavit with the court in such civil action indicating service of process was served, as is provided for appointments made under § 8-8-108.

§ 8-8-221. Sheriffs to regulate incarcerations in county jails and to register persons acting as law enforcement officers.

(a) The sheriff of each county shall establish regulations governing the acceptance of persons, other than state prisoners, for incarceration in the county jail. Except for state prisoners held in the county jail, no person shall be incarcerated in the county jail without the approval of the sheriff, or the sheriff's designee, subject to approval of the court having criminal jurisdiction over the sheriff's jurisdiction, as provided by regulation.
(b) Except for duly commissioned state and municipal law enforcement officers, no person shall go armed for law enforcement purposes, carry or display a badge or other card or device purporting to identify that person as an officer of the law, wear any uniform or distinctive clothing purporting to identify that person as an officer of law, or mark any motor vehicle so as to identify it as a law enforcement vehicle, or its driver as a law enforcement officer, without registering each and any of these acts with the sheriff of the county in which such acts take place, and complying with reasonable regulations established by the sheriff to properly and consistently identify all persons in that county exercising law enforcement powers.
(c) This section applies only to counties having a population of not less than nine thousand (9,000) nor more than nine thousand one hundred (9,100), according to the 1970 federal census or any subsequent federal census, and to counties having a population of not less than seven hundred seventy thousand (770,000) nor more than seven hundred eighty thousand (780,000), according to the 1980 federal census or any subsequent federal census.

§ 8-8-222. Determination if person being served with order or protection has outstanding criminal warrant — Service of criminal warrant or notification of agency holding warrant.

A sheriff, deputy sheriff, or constable serving an order of protection or ex parte order of protection shall, prior to or at the time of service, make reasonable efforts to determine whether the person being served has an outstanding criminal warrant. If the person being served has an outstanding criminal warrant, then the sheriff, deputy sheriff, or constable shall either serve the outstanding criminal warrant or notify the agency holding the criminal warrant of the person's location.

Part 3 Liability for Wrongs of Deputies

§ 8-8-301. Liability for wrongs of deputies — Limitation.

(a) No sheriff, whether elected or appointed, nor any surety on the sheriff's bonds, shall be liable for any wrongs, injuries, losses, damages or expenses incurred as a result of any act or failure to act on the part of any deputy appointed by the sheriff, whether the deputy is acting by virtue of office, under color of office or otherwise.
(b) As used in this section and § 8-8-302, “deputy” includes a jailer appointed by a sheriff pursuant to § 41-4-101.

§ 8-8-302. Suits against counties for wrongs of deputies — Timing.

(a) Anyone incurring any wrong, injury, loss, damage or expense resulting from any act or failure to act on the part of any deputy appointed by the sheriff may bring suit against the county in which the sheriff serves; provided, that the deputy is, at the time of such occurrence, acting by virtue of or under color of the office.
(b) Notwithstanding § 28-1-105, an action brought pursuant to subsection (a) must be filed within one (1) year after the cause of action accrued.
(c)
1. (1) The county has sixty (60) days in which to answer or otherwise respond to any action brought pursuant to subsection (a).
2. (2) If, at the end of the sixty-day period, the county has failed to answer or otherwise respond to the complaint, the county shall not be in default but rather is deemed to have denied the material, well pleaded factual allegations of the complaint.

§ 8-8-303. Waiver of governmental immunity — Special deputies.

(a) The governmental immunity of the county in which the sheriff serves is waived for purposes of § 8-8-302, but to an extent not in excess of the minimum amount required for a surety bond applicable to that county's sheriff pursuant to § 8-8-103. This cap, based on the amount required for a bond, shall apply regardless of whether the sheriff is covered by a surety bond or an insurance policy pursuant to § 8-19-101.
(b) Anyone incurring any wrong, injury, loss, damage, or expense resulting from any act or failure to act on the part of any special deputy appointed by the sheriff, but not employed by the sheriff or the county, shall not bring suit therefor against the sheriff or the county, and the sheriff and county shall be immune from such suits, and the plaintiff shall be required to pursue the remedy therefor against such special deputy and/or the employer or employers of such special deputy, whether the special deputy is acting within the scope of employment or not. Such immunity from suit shall not apply in the case of special volunteer or reserve sheriff's deputies while performing official law enforcement duties under supervision or direction of the sheriff.
(c) No person may serve as a special deputy unless such person proves to the appointing sheriff financial responsibility, as evidenced by a corporate surety bond in no less amount than fifty thousand dollars ($50,000) or by a liability insurance policy of the employer in no less amount than fifty thousand dollars ($50,000).

Part 4 County Sheriff's Civil Service Law of 1974

§ 8-8-401. Short title.

This part shall be known as the “County Sheriff's Civil Service Law of 1974.”

§ 8-8-402. Local approval required.

(a) Except as provided in subsection (b), this part shall be local in effect and shall become effective in a particular county upon the contingency of a two-thirds (⅔) vote of the county legislative body approving this law.
(b) On or after June 9, 2010, § 8-8-419(a)(2) shall apply in any particular county which has adopted or which after June 9, 2010, makes this part applicable to such county, and shall also apply in any other county, notwithstanding any private act, resolution, personnel policy or charter provision to the contrary, which has adopted or which adopts a sheriff's civil service law.

§ 8-8-403. “Classified service” defined.

As used in this part, “classified service” includes all positions and employees in the sheriff's department, except for the sheriff, the sheriff's personal secretary, and the cook for the jail facility, and, in those counties deciding to do so, the chief deputy sheriff.

§ 8-8-404. Creation of civil service board.

There is created a civil service board composed of three (3) members selected by the county legislative body.

§ 8-8-405. Terms of members.

The terms of the members of the board shall be three (3) years; provided, that the initial appointments shall be as follows:
1. (1) One (1) member selected by the county legislative body for one (1) year;
2. (2) One (1) member selected by the county legislative body for two (2) years; and
3. (3) One (1) member selected by the county legislative body for three (3) years.

§ 8-8-406. Qualifications of members.

All members of the board shall be over eighteen (18) years of age, of good moral character, citizens of the United States and the state of Tennessee, and must reside in the respective county, and they shall not hold any elected or appointed office within the county.

§ 8-8-407. Compensation of board.

The members of the board shall receive such salary, if any, as determined by the county legislative body in its sound discretion.

§ 8-8-408. Chair — Personnel officer as keeper of department records and secretary of board.

The county mayor shall designate, from the three (3) members thus selected, a chair of the board. The sheriff shall appoint from among the sheriff's employees a personnel officer, who shall be the keeper of the sheriff's departmental records, and also shall serve as secretary of the civil service board.

§ 8-8-409. Powers and duties of board.

The board as a body shall:
1. (1) Adopt and amend rules and regulations for the administration of this part;
2. (2) Make investigations concerning the enforcement and effect of this part and require observance of the rules and regulations made thereunder;
3. (3) Hear and determine appeals and complaints respecting the administration of this part;
4. (4) Establish and maintain a roster of all employees of the classified service and the office of the sheriff showing their position, rank, compensation and place of residence;
5. (5) Ascertain and record the duties and responsibilities pertaining to all positions in the classified service and classify such positions in the manner hereinafter provided;
6. (6) Except as otherwise provided in this part, formulate and hold competitive tests to determine the qualifications of persons who seek employment in any position, and as a result of such tests, establish employment lists of eligibles for the various positions;
7. (7) Establish records of performance and a system of service ratings to be used to determine promotions, the order of layoffs and reemployment and for other purposes;
8. (8) Keep any other such records as may be necessary for the proper administration of this part; and
9. (9) Determine all fringe benefits to employees coming under this part.

§ 8-8-410. Preliminary or performance tests required — Exceptions.

(a) All persons in the employ of the office of the sheriff or classified service positions at the time this part becomes operative, who have served for a period longer than six (6) months, shall be retained without preliminary or performance tests, but shall thereafter be subject in all other respects to this part. Any other persons in the classified service at the time this part becomes operative shall be regarded as holding their positions under provisional appointment.
(b) Upon the expiration of a contract by a private contractor to operate a detention facility for a county which has adopted this part, the county sheriff's department may assume responsibility of the operation of such facility and may accept the transfer of any or all employees of the private contractor at the facility to employment by the sheriff's department. At the request of the sheriff to the county legislative body and upon a two-thirds (⅔) vote of the county legislative body, those transferring employees with a period of employment longer than six (6) months at the facility prior to transfer shall be retained without preliminary or performance tests, but shall thereafter be subject in all other respects to this part.

§ 8-8-411. Classification plan.

The board shall, as soon as practical after this part becomes operative, adopt a classification plan and make rules for its administration. The position classification plan may, if desired, create different classes of positions within each position in the classified service. The position classification plan shall show the duties, authorities, responsibilities and character of work required of each position and each class thereof. The board shall determine the requirements of each position and class thereof as to education, experience, capabilities, knowledge and skill. As far as practical, the probable lines of promotion to and from the classes of positions shall be indicated.

§ 8-8-412. Creation of new positions — Abolition of old positions.

The board may, upon request of and by the advice of the sheriff, create new positions or combine, alter or abolish existing positions in such manner as the board acting under the advice of the sheriff deems necessary for the effective operation of the office of sheriff. No position in the classified service shall be abolished except upon approval of the board acting in good faith upon the advice of the sheriff.

§ 8-8-413. Leaves of absence.

(a) The board shall formulate reasonable rules governing the granting of leaves of absence to members of the classified service in good standing. The board shall seek the advice of the sheriff upon any request for leave of absence before acting thereon and shall be guided by the requirements of adequate law enforcement and the operational efficiency of the office of sheriff when considering any such request for a leave.
(b) Any persons coming under the classified service who shall hereafter be inducted into the armed forces of the United States, or who shall hereafter enter the service voluntarily in a time of war or other national emergency, shall, upon application of the sheriff, receive a military leave of absence for the duration of the period of service required. The employee shall retain all rights or seniority and shall be entitled to re-employment in the same capacity and position held at the time of entering military service; however, an application for reinstatement in such position must be made by or on behalf of such employee within three (3) months after termination of active service in the armed forces.

§ 8-8-414. Eligibility lists — Eligibility and promotion tests.

(a) The sheriff shall keep the board informed by periodic reports of the employment needs of the office.
(b)
1. (1) The board shall, as often as necessary, hold tests to establish lists of persons eligible for the various positions in the classified service.
2. (2) Such tests shall be public, competitive and open to all persons who may be lawfully appointed under the rules promulgated by the board and existing prior to the announcement of the examination. Such rules may set limitations as to residence, age, health, habits, moral character and other necessary prerequisites for the performance of the duties of the position for which examination is designated.
(c) Promotion tests shall be public, competitive and free to all persons examined and appointed under this part who have held a position for at least one (1) year.
(d) All tests shall be practical and shall consist only of subjects which will fairly determine the capacity of the person examined to perform the duties of the position in which the appointment is to be made. Tests may include examination for physical fitness and manual skill. No question in any test shall relate to religious or political opinions or affiliation.
(e) The eligibles shall take rank upon a list which shall be compiled for each position, in the order of their relative excellence as determined by the tests and without reference to when the tests were given. No lists of eligibles shall be valid after one (1) year; however, the civil service board may extend an eligible period for not more than one (1) additional year.
(f) Notice of the time, place and general scope of each test, and the duties, pay and experience required for all positions for which the test is to be held, shall be given by the board to each applicant at least one (1) week preceding the test. The notice must be in writing and addressed to the last known address supplied by the applicant. Notice of promotional tests shall be given as the board may prescribe.

§ 8-8-415. Filling of vacancies — Probationary period.

(a) Whenever a vacancy occurs in any position in the classified section of the office of sheriff, the sheriff shall ask the board for the names and addresses of all eligible persons. The board shall certify the names of all persons on the eligible list for that position within thirty (30) days of the sheriff's request. The sheriff shall investigate each of the five (5) highest on the list of eligibles. If none of the five (5) eligibles are acceptable to the sheriff, the sheriff shall investigate the next five (5) eligibles on the list, one (1) after another until one (1) of the eligibles investigated is acceptable. The sheriff shall appoint this person to the position and notify the board of such action. If the civil service board fails to provide a list, then the sheriff may make appointments to vacancies after having notified the board of an intention to do so.
(b) No appointment or promotion for any position in the classified service shall be deemed complete until after the expiration of six (6) months' probationary service, during which time the sheriff may determine the effectiveness of the employee and if, in the sheriff's judgment, the employee does not meet the standards the sheriff may terminate the employment of that person.
(c) Whenever a position of the classified service is filled by promotion, and the services of the person promoted are terminated by the sheriff during the probationary period, such person shall be returned to such person's former position in the classified service unless such person's conduct during the probationary period has given grounds for dismissal for cause under this part.
(d) Any person dismissed during the probationary period shall not be eligible for a hearing before the board.
(e) A person certified to the sheriff who does not report for duty at the time so designated and who does not explain in writing within five (5) days such failure to report, may be rejected by the sheriff, who shall notify the board of the action taken and the reason for it. The person's name will then be stricken from the eligible list.

§ 8-8-416. Transfer of positions.

Employees in the classified service may be transferred from one position to another in the same class. Transfers may be instituted only by the sheriff and shall be permitted only with the consent of the sheriff.

§ 8-8-417. Procedural rules to be established — Power to gather evidence.

(a) The practice and procedure of the board with respect to any investigation by the board authorized by this part shall be in accordance with the rules and regulations to be established by the board. The rules shall provide for reasonable notice to all persons affected and for the opportunity to be heard, either in person or as represented by counsel, and to introduce testimony in their behalf at a public hearing.
(b) The board, when conducting any investigations or hearings authorized by this part, shall have the power to administer oaths, take depositions, issue subpoenas, and compel the attendance of witnesses and the production of books, accounts, papers, records, documents and testimony. If any person fails to comply with the orders of the board or of a subpoena issued by the board or any of its members, or if a witness refuses to testify on any matter on which the witness may be lawfully interrogated, the judge in any court of record within the county, on application of any member of the board, shall compel obedience by proceedings as for contempt. The sheriff or the sheriff's legal deputy shall serve such subpoenas as issued by the board.

§ 8-8-418. Report of changes in status required — Suspensions authorized — Hearings.

(a) The sheriff shall give an immediate report in writing of all appointments, reinstatements, vacancies, absences or other matters affecting the status of any member of the classified service or the performance of the duties of members of the classified service. The report shall be in the manner and form prescribed by the board.
(b) The sheriff may suspend any employee for not more than ten (10) days for cause, and there shall be no right of appeal for such suspension. The sheriff does not have the authority to suspend any employee for more than one (1) suspension of ten (10) days within any given six-month period of time without a right of appeal.
(c) If the sheriff suspends any employee for a period longer than ten (10) days, the suspended employee shall be notified in writing of the charges. The suspended employee shall thereafter have ten (10) days to request a hearing before the civil service board. Upon receiving the request, the board shall set a hearing, not more than thirty (30) days from the date of the receipt of the request.

§ 8-8-419. Political activity restricted.

(a)
1. (1) No person holding a position in the classified service shall take an active part in any political campaign while on duty.
2. (2)
  1. (A) No employee of the sheriff's department shall solicit money for political campaigns; provided, that such restriction shall not prohibit an employee, including a deputy sheriff, who is running for an elected office from soliciting and accepting campaign contributions for such person's own election campaign if the person is not on duty or in uniform when such activities occur.
  2. (B) No employee of the sheriff's office shall make any public endorsement of any candidate in any campaign for elected office; provided that, if an employee or deputy sheriff is running for an elected office then such restriction shall not apply to that employee or deputy sheriff's own campaign.
3. (3) A deputy sheriff shall not use such position to reflect the deputy sheriff's personal political feelings as those of the sheriff's department or to exert any pressure on anyone to influence that person's political views.
4. (4) No employee while on duty, nor any officer while in uniform, shall display any political advertising or paraphernalia on such person's body or automobile.
(b) However, nothing in this part shall be construed to prohibit or prevent any such employee from becoming or continuing to be a member of a political club or organization and enjoying all the rights and privileges of such membership or from attending any political meetings, while not on duty. Such employee shall not be denied freedom in the casting of a vote.
(c) Any person violating this section shall be dismissed from the service of the office of the sheriff.

Part 5 Disposal of Property by Sheriff

§ 8-8-501. Disposition of unclaimed property.

The sheriff is hereby authorized to dispose of all abandoned, stolen, and/or recovered or worthless property, other than as provided in § 8-8-504, which remains unclaimed in the sheriff's custody and possession by virtue of confiscation, abandonment or having been stolen and recovered. Such disposition shall not be made until a period of ninety (90) days has elapsed from date of acquisition of such property by the sheriff.

§ 8-8-502. Notice to owner — Time for claiming property.

Prior to disposing of such property, the sheriff shall make a reasonable effort to locate the true owner of the property and notify such owner of the sheriff's possession of the property. The true owner, when located, shall claim the property within a reasonable time.

§ 8-8-503. Court order for disposition — Disposition of proceeds.

Prior to disposing of such property under this part, the sheriff shall present to a judge of one of the criminal courts of the county a list of all such property to be disposed of, together with an affidavit that the sheriff has made a reasonable search for the true owner thereof, and that the true owner cannot be located. The sheriff shall then procure from the judge an appropriate order of the court directing the manner in which such property is to be disposed of, the proceeds to be paid over to the general fund of the county.

§ 8-8-504. Law supplemental — When property not returned.

Nothing in this part shall be construed as repealing any other law now in effect which provides for the disposition of abandoned, stolen, recovered and/or contraband property; provided, that no such property shall be returned to the owner, even if known, if the return of such property may be inimical to the public welfare.

Part 6 Correctional Officers — Civil Service

§ 8-8-601. Inclusion in civil service system.

The civil service system of a county having a metropolitan form of government includes an employee of the sheriff's office who is classified as a correctional officer.

§ 8-8-602. Civil service status of correctional officers employed as of March 22, 1993.

Each correctional officer employed by the sheriff's office on March 22, 1993, who has served for a period of not less than six (6) months, shall be retained without preliminary or performance tests, but shall be subject in all other respects to the civil service system.

§ 8-8-603. Position classification plan.

With the advice and consent of the sheriff, the civil service commission shall adopt a position classification plan for correctional officers and make rules for its administration.

§ 8-8-604. Reports — Testing.

(a) The sheriff shall keep the board informed by periodic reports of the employment needs of the office.
(b) The board shall as often as necessary conduct tests to establish lists of persons eligible for the various positions.
(c) Such tests shall be public, competitive and open to all persons who may be appointed under the criteria set by the commission. Such criteria may set limitations on residency, age, health, habits, moral character, and other necessary prerequisites for the performance of the duties of the positions.

§ 8-8-605. Vacancies.

Whenever a vacancy occurs in a position for a correctional officer, the sheriff shall ask the commission for the names and addresses of all eligible persons in accordance with the rules of the commission in order to fill the appointment.

§ 8-8-606. Applicability.

This part shall only apply to a county having a metropolitan form of government in which the sheriff has no law enforcement authority.

Chapter 9 Coroners

§ 8-9-101. County coroner — Creation of office — Election and term of office — Medical examiners as coroners.

The county legislative body is hereby granted discretionary authority to create the office of county coroner. If such office is created, the county legislative body shall elect a coroner who shall hold office for two (2) years, and until a successor is qualified. However, in those counties that have a county medical examiner, the county legislative body may vest the duties of the county coroner in the county medical examiner and shall not be required to elect a county coroner.

§ 8-9-102. Removal — Vacancies.

The county legislative body has the power to remove the coroner for misconduct or omission of duty, and may also supply any vacancy.

§ 8-9-103. Bond.

Before entering into the duties of the office, the coroner shall execute an official bond in an amount of two thousand five hundred dollars ($2,500) or such greater amount as the county legislative body by resolution may determine. The bond must be prepared, executed, filed, and recorded in accordance with title 8, chapter 19.

§ 8-9-104. Oath of office.

The coroner shall take an oath to support the constitutions of the United States and of Tennessee, and faithfully to execute the duties of the office.

§ 8-9-105. Deputies.

(a) Coroners have the power to appoint one (1) or more deputies, and to require them to give bond, with security, to save their respective principals harmless, and for the faithful discharge of their duties.
(b) In those counties which have the office of county coroner, the office of deputy coroner or deputy coroners may be created by private act, and such deputy coroner or deputy coroners shall be authorized to perform all duties which can now be performed by the coroner.

§ 8-9-106. Process directed to coroner.

In any legal proceeding, when it appears from the papers that the sheriff is a party, or, from affidavit filed, that the sheriff is interested, the process may be directed to the coroner.

Chapter 10 Constables

Part 1 In General

§ 8-10-101. Election of constables — Term of office — Reapportionment of districts — Abolition of office.

(a)
1. (1) Two (2) constables shall be elected by the qualified voters in the civil district of each county which includes the county town, and one (1) in every other civil district of the county, each of whom shall hold office for two (2) years, and until the qualification of a successor.
2. (2) All constables elected to a four-year term, as permitted by the procedure established in this subsection (a), before July 1, 1983, are declared validly elected and shall have the powers and duties established in this chapter and otherwise established by law.
3. (3)
  1. (A) Notwithstanding any other law to the contrary, a county legislative body may, by adopting a resolution by two-thirds (⅔) vote at two (2) consecutive meetings of the county legislative body, abolish the office of constable for that county or set the term of office for the constable at either two (2) or four (4) years. Any change would not be effective until the end of the current term being served by the constable.
  2. (B) This subdivision (a)(3) does not apply in counties having a population of:
    3. 13,62513,675
    4. 30,50030,800
    5. 31,20031,300
    6. 67,60067,900
    7. 73,50073,900
    8. 85,80086,100
    10. according to the 1990 federal census or any subsequent federal census.
  3. (C)
    1. (i) If the county legislative body of any county having a population of not less than fifty-one thousand nine hundred (51,900) nor more than fifty-two thousand (52,000), according to the 2000 federal census or any subsequent federal census, adopts a resolution in accordance with subdivision (a)(3)(A) to abolish the office of constable for that county, the resolution shall not become operative until approved in an election to be held in accordance with subdivisions (a)(3)(C)(ii)-(v).
    2. (ii) Upon passage of the resolution, the county election commission shall, pursuant to § 2-3-204, hold an election on the question of whether or not the office of constable shall be abolished providing options to vote “FOR” or “AGAINST” the question, after the receipt of a certified copy of a resolution from the county requesting an election be held. The ballots used in the election shall have printed on them the substance of the resolution and the voters shall vote for or against its approval.
    3. (iii) The votes cast on the question shall be canvassed and the results proclaimed by the county election commission and certified by the commission to the local governing body.
    4. (iv) The qualifications of voters voting on the question shall be the same as those required for participation in general elections. All laws applicable to general elections shall apply to the determination of the approval or rejection of the question on the ballot.
    5. (v) A majority vote of those voting in the election shall determine whether the office of constable shall be abolished. If the question is approved the office of constable shall be abolished as provided in the resolution. If the question is not approved at the election, a successive referendum on the issue shall not be held for a period of two (2) calendar years.
(b)
1. (1) Constables in counties other than counties having populations of not less than one hundred twenty-seven thousand (127,000) nor more than one hundred twenty-eight thousand (128,000), according to the 1970 or any subsequent federal census, and other than those of class 1 as established by § 8-24-101, shall be elected from constable districts established by the county legislative body. Prior to May 20, 1978, the county legislative bodies shall meet and, a majority of the members being present and concurring shall establish constable districts subject to the following limitations:
  1. (A) The number of constables to be elected shall not exceed one-half (½) the number of county commissioners;
  2. (B) Constable districts shall be reasonably compact and contiguous and shall not overlap; and
  3. (C) In establishing constable districts, population may be determined in the manner used to establish county commissioner districts. After 1980, constable districts shall be reapportioned at least as often as county commissioner districts, to ensure compliance with the limitations prescribed in this subsection (b).
2. (2) In counties having a population of not less than eleven thousand five hundred (11,500) nor more than eleven thousand six hundred (11,600), according to the 1970 federal census or any subsequent federal census, there shall be no more than one (1) constable elected per commissioner district, and in addition one (1) additional constable shall be elected for each city or town.
3. (3) In counties having a population of not less than forty-three thousand two hundred (43,200) nor more than forty-three thousand three hundred (43,300), according to the 1970 federal census or any subsequent federal census, there shall be no more than two (2) constables elected per commissioner district.
4. (4) In counties having a population of not less than twenty-three thousand four hundred seventy-five (23,475) nor more than twenty-three thousand five hundred (23,500), according to the 1970 federal census or any subsequent federal census, there shall be one (1) constable elected per county legislative district and in addition one (1) additional constable shall be elected for the county town.
5. (5) In counties having a population of not less than thirty-five thousand four hundred (35,400) nor more than thirty-five thousand four hundred seventy (35,470), according to the 1970 federal census or any subsequent federal census, there shall be one (1) constable elected per county legislative district.
6. (6) The county legislative body in any county having a population of not less than thirty-one thousand one hundred (31,100) nor more than thirty-one thousand four hundred (31,400), according to the 1990 federal census or any subsequent federal census, may, upon passage of a resolution by a two-thirds (⅔) majority vote, provide that one (1) constable shall be elected for each commissioner from each county legislative district.
7. (7) In any county having a population of not less than seventy-one thousand one hundred (71,100) nor more than seventy-one thousand two hundred (71,200), according to the 2000 federal census or any subsequent federal census, a candidate qualifying for election to the office of constable shall indicate on the candidate's nominating petition the constable district for which the candidate is seeking to qualify, as well as either Seat A or Seat B.
(c)
1. (1) The office of constable is abolished in class 2 counties as established by § 8-24-101.
2. (2) This subsection (c) shall not apply in any county having a population of not less than one hundred forty thousand (140,000) nor more than one hundred forty-five thousand (145,000), according to the 1990 federal census or any subsequent federal census.
3. (3) Notwithstanding subdivision (c)(1), after June 21, 2010, if and when the population of any county having a population of not less than one hundred seven thousand one hundred (107,100) nor more than one hundred seven thousand two hundred (107,200) or not less than one hundred thirty thousand four hundred (130,400) nor more than one hundred thirty thousand five hundred (130,500), according to the 2000 federal census or any subsequent federal census, increases to a size which would constitute any such county as a county of the second class in accordance with § 8-24-101(a)(2), subdivision (c)(1) shall not apply to such county.
(d) The office of constable is abolished in class 1 counties, according to § 8-24-101.
(e) The office of constable is abolished in any county having a population of not less than six thousand one hundred twenty-five (6,125) nor more than six thousand two hundred twenty-five (6,225), according to the 1980 federal census or any subsequent federal census.
(f) The office of constable is abolished in any county having a population of not less than fourteen thousand nine hundred twenty-five (14,925) nor more than fourteen thousand nine hundred forty (14,940), according to the 1980 federal census or any subsequent federal census.
(g) The office of constable is abolished in any county having a population of not less than seven thousand four hundred fifty (7,450) nor more than seven thousand five hundred (7,500), according to the 1980 federal census or any subsequent federal census.
(h) Effective September 1, 1990, the office of constable is abolished in any county having a population of:
3. 9,4759,550
4. 19,50019,575
5. 24,60024,650
7. according to the 1980 federal census or any subsequent federal census.
(i) The office of constable is abolished in any county having a population of not less than seventy-seven thousand seven hundred (77,700) nor more than seventy-seven thousand eight hundred (77,800), according to the 1980 federal census or any subsequent federal census.
(j) The office of constable is abolished in any county having a population of not less than fifteen thousand six hundred (15,600) nor more than fifteen thousand eight hundred fifty (15,850), according to the 1990 federal census or any subsequent federal census.
(k) It is the intent of the general assembly by the enactment of this subsection (k) to remove from the constable, in any county having a population of not less than fifty-nine thousand four hundred (59,400) nor more than fifty-nine thousand five hundred (59,500), according to the 1970 federal census or any subsequent federal census or
3. 100,300100,600
4. 118,400118,700
6. according to the 1990 federal census or any subsequent federal census, any law enforcement powers and to retain such constable for the purpose of the service of lawfully issued process.
(l) In accordance with chapter 753, § 7 of the Public Acts of 1996, upon adoption of a resolution by the county legislative body of any county to which that act applies, effective September 1, 1998, the office of constable is abolished in such county.
(m) The office of constable is abolished in any county having a population of not less than seventeen thousand two hundred fifty (17,250) nor more than seventeen thousand four hundred (17,400), according to the 1990 census or any subsequent federal census.
(n) Constables in counties having populations of not less than one hundred forty thousand (140,000) nor more than one hundred forty-five thousand (145,000), according to the 1990 federal census or any subsequent federal census, shall be elected from constable districts established by the county legislative body.

§ 8-10-102. Qualifications for office.

(a)
1. (1) To qualify for election or appointment to the office of constable, a person shall:
  1. (A) Be at least twenty-one (21) years of age;
  2. (B) Be a qualified voter of the district and a resident of the county for one (1) year prior to the date of the qualifying deadline for running as a candidate for constable;
  3. (C)
    1. (i) Any person holding the office of constable on or before June 30, 2011, shall be able to read and write;
    2. (ii) Any person elected or appointed to the office of constable on or after July 1, 2011, shall possess at least a high school diploma or high school equivalency credential approved by the state board of education; provided, however, that this subdivision (a)(1)(C)(ii) shall not apply to any person holding the office of constable on June 30, 2011, and who is re-elected to the office of constable on or after July 1, 2011, without any interruption in holding such office;
  4. (D) Not have been convicted in any federal or state court of a felony; and
  5. (E)
    1. (i) Not have been separated or discharged from the armed forces of the United States with other than an honorable discharge.
    2. (ii) This subdivision (a)(1)(E) does not apply to any county having a population of not less than eighteen thousand two hundred (18,200) nor more than eighteen thousand five hundred (18,500), according to the 1990 federal census or any subsequent federal census, if a person has served in the office of constable for ten (10) or more years.
2. (2) [Deleted by 2024 amendment.]
(b)
1. (1)
  1. (A) A person seeking the office of constable shall file with the county election commission, along with the nominating petition:
    1. (i) An affidavit signed by the candidate affirming that the candidate meets the requirements of this section. In the event that the candidate seeks election to the office of constable by the county legislative body to fill a vacancy in office, the same affidavit must be filed with the county clerk prior to the election; and
    2. (ii) A letter from a psychologist licensed in this state who has conducted a cognitive and psychological test on the candidate stating that the candidate is mentally and cognitively fit to perform the duties of a constable. In the event that the candidate seeks election to the office of constable by the county legislative body to fill a vacancy in office, the same letter must be filed with the county clerk prior to the election.
  2. (B) A constable in office on and elected prior to July 1, 2023, or a constable who complied with subdivision (b)(1)(A)(ii) and is seeking reelection on or after July 1, 2023, is not required to resubmit the letter or obtain a new letter pursuant to subdivision (b)(1)(A)(ii).
  3. (C) Candidates for the office of constable to which subdivision (b)(1)(A)(ii) applies are responsible for covering the costs of cognitive and psychological testing.
2. (2) [Deleted by 2024 amendment.]
(c) [Deleted by 2024 amendment.]

§ 8-10-103. Vacation of office by removal from district.

A constable shall vacate office by removal from the district, and is liable to a penalty of forty dollars ($40.00) for acting as constable after such removal, to be recovered before any judge of the court of general sessions of the county in which the constable resides, one-half (½) to the use of the person suing, and the other one-half (½) to the use of the county.

§ 8-10-104. Completion of in-service education required prior to exercise of law enforcement powers and authority.

(a) A constable shall not exercise any law enforcement powers and authority conferred upon the constable by §§ 8-10-108, 39-17-1315, 39-17-1350, 40-6-210, 40- 6-212, 55-8-152, 57-9-101, 57-9-103, and 57-9-201, if the constable fails to complete the in-service education requirements described in part 2 of this chapter.
(b) A constable who violates this section commits a Class C misdemeanor, subject to a fine only. Each day of a violation of this section constitutes a separate offense.

§ 8-10-105. [Reserved]

§ 8-10-106. Oath and surety bond.

(a) Before entering into the duties of the office, the constable shall take an oath to support the constitutions of this state and of the United States, and an oath of office, pursuant to § 8-10-108. Each constable shall execute an official bond in an amount of four thousand dollars ($4,000) or such greater amount as the county legislative body by resolution may determine. The bond must be prepared, executed, filed, and recorded in accordance with title 8, chapter 19.
(b) Notwithstanding any law to the contrary, the bond as required for a constable shall be a surety bond executed by a surety company authorized to do business in Tennessee as surety.

§ 8-10-107. Replacement of sureties.

The county legislative body, as in its discretion it may deem necessary, shall require constables to give new sureties whenever the old sureties die, remove from the county, or become insolvent or otherwise unable to pay.

§ 8-10-108. Oath of office.

(a) Except as provided in subsection (b), every constable shall take an oath that the constable will well and truly serve the state in the office of constable; that the constable will faithfully, and without delay, execute and return all lawful process directed to the constable; and that the constable will well and truly, according to the constable's power and ability, do and execute all other duties of the office of constable.
(b) In counties having a population of:
3. 3,7004,700
4. 6,0007,800
5. 8,4008,500
6. 8,5358,540
7. 9,2009,570
8. 10,77010,780
9. 11,50011,511
10. 11,51211,550
11. 11,70011,900
12. 12,06012,500
13. 12,55013,000
14. 14,50014,600
15. 15,30015,500
16. 15,75016,000
17. 17,00017,350
18. 18,00018,200
19. 18,30018,900
20. 19,00019,100
21. 19,13019,140
22. 21,00021,500
23. 21,60022,300
24. 23,20023,350
25. 23,35523,391
26. 23,39123,450
27. 23,50023,750
28. 24,00024,255
29. 25,60027,500
30. 27,90028,000
31. 28,55528,600
32. 28,82528,827
33. 29,25031,250
34. 31,26033,000
35. 33,70034,000
36. 35,48041,800
37. 41,90050,000
38. 57,55059,400
39. 59,50060,050
40. 60,60062,000
41. 64,00065,000
42. 101,000118,400
43. 118,700200,000
45. according to the 1960 federal census or any subsequent federal census, and in Fentress County and Hamblen County, every constable shall take an oath that the constable will well and truly serve the state in the office of constable; that the constable will cause the peace of the state to be kept, to the best of the constable's power; that the constable will arrest all such persons as go in the constable's sight armed offensively, or who commit any riot, affray, or other breach of the peace, or will use the constable's best endeavor, on complaint made, to apprehend all felons, rioters, or persons riotously assembled; and that, if such persons flee or make resistance, the constable will pursue, and make hue and cry, according to law; that the constable will faithfully, and without delay, execute and return all lawful process directed to the constable; and that the constable will well and truly, according to the constable's power and ability, do and execute all other duties of the office of constable.
(c) The oath of office may be administered to the constable by any judge of the court of general sessions or other judicial officer of the constable's county.
(d) Notwithstanding any other law or interpretation thereof to the contrary, the constables in counties having a population of not less than thirteen thousand five hundred sixty-five (13,565) nor more than thirteen thousand six hundred (13,600), according to the 1980 federal census or any subsequent federal census, shall continue to be vested with all law enforcement powers and authority conferred upon other constables by subsection (b) and §§ 39-17-505, 40-6-210, 40-6-212, 55-8-152, 57-9-101, 57-9-103 and 57-9-201.
(e) Notwithstanding any other law to the contrary, the constables in counties having a population of not less than seventeen thousand four hundred seventy-five (17,475) nor more than seventeen thousand five hundred seventy-five (17,575), according to the 2000 federal census or any subsequent federal census, shall be vested with all law enforcement powers and authority conferred upon other constables by subsection (b) and §§ 39-17-505, 40-6-210, 40-6-212, 55-8-152, 57-9-101, 57-9-103 and 57-9-201.

§ 8-10-109. Common law power reserved in certain counties.

(a) Every constable, so elected and sworn, in those counties set out in § 8-10-108(b), including counties added to § 8-10-108(b) at any time subsequent to 1969, is a conservator of the peace and vested with all the power and authority belonging to the office of constable by common law.
(b)
1. (1)
  1. (A) Notwithstanding any other law to the contrary, a county legislative body may, by adopting a resolution by a two-thirds (⅔) vote at two (2) consecutive meetings of the county legislative body, remove any law enforcement powers exercised by the constables of the county.
  2. (B) Except as provided in subdivision (b)(1)(C), any such action by the county legislative body to remove such law enforcement powers shall apply to constables elected for terms of office following the expiration of the term of office of constables in office at the time such action is taken by the county legislative body.
  3. (C) If during a constable's term of office, a constable is convicted of any felony or is removed from office under § 8-47-101 for knowingly or willfully committing misconduct in office, then with respect to such constable, the action of the county legislative body for removal of law enforcement powers shall become effective on the date such constable is removed from office or the date of the felony conviction; provided, however, that if the felony conviction is overturned and there is additional time remaining on the term of office for which the constable was elected, the law enforcement powers shall be restored to such constable until the end of such term of office.
2. (2) This subsection (b) does not apply in counties having a population of:
  3. 13,62513,675
  4. 30,50030,800
  5. 31,20031,300
  6. 67,60067,900
  7. 73,50073,900
  8. 85,80086,100
  10. according to the 1990 federal census or any subsequent federal census.

§ 8-10-110. Administrative leave during criminal prosecution — Criminal contempt — Conviction.

(a)
1. (1) If a constable elected under this part is indicted or formally charged with a misdemeanor involving gambling or moral turpitude, or a felony, then the court with jurisdiction over the criminal offense shall place the constable on administrative leave by issuing an ex parte order placing such constable on administrative leave pending a preliminary hearing.
2. (2) Once a constable is placed on administrative leave pursuant to subdivision (a)(1), the court shall conduct a preliminary hearing, pursuant to Rule 5 of the Tennessee Rules of Criminal Procedure, to determine whether probable cause exists to establish that the constable committed a misdemeanor involving gambling or moral turpitude, or a felony. If the court finds probable cause exists, then the court shall enter an order placing the constable on administrative leave until the conclusion of the criminal prosecution. If the court does not find that probable cause exists, then the court shall enter an order terminating the administrative leave of the constable.
(b) The court may hold a constable who does not comply with an order issued under subsection (a) in criminal contempt of court, pursuant to § 29-9-103.
(c)
1. (1) If a constable is placed on administrative leave under subsection (a), the clerk of court shall mail a copy of the court's order to the legislative body of the county in which the constable serves for purposes of temporarily filling the vacant seat of the constable, as necessary.
2. (2) If a constable is convicted of a misdemeanor involving gambling or moral turpitude or a felony, the clerk of court shall mail a certified copy of the conviction to the attorney general and reporter and the appropriate district attorney general, county attorney, and city attorney to determine whether ouster proceedings should be brought pursuant to chapter 47 of this title.

§ 8-10-111. Duties.

(a) It is the duty of a constable to execute all process lawfully directed to the constable, and to wait upon the court, when appointed by the county legislative body or by the sheriff, as the case may be.
(b)
1. (1) In counties governed by a metropolitan government as provided for by title 7, chapters 1-3, any constable to whom a precept or process is directed by a judge or clerk of a court of general sessions may perform the constable's duties relating thereto by delivering such precept or process within a reasonable time to the sheriff of the county, who shall serve such precept or process.
2. (2) Upon delivering the precept or process to the sheriff as provided in this subsection (b) and taking a receipt therefor, the constable will have performed the constable's function and duty relating thereto. Thereupon, the constable and the surety on the constable's bond shall be relieved of all liability for failure to serve the precept or process, and the constable shall not be subject to any penalty or fine for refusing or neglecting to serve such precept or process.
3. (3) Nothing in this subsection (b) shall change, alter, or diminish the duties of the constable under § 8-10-113.
4. (4) Duly elected constables when proceeding under this subsection (b) shall not accept any fees for their services.
5. (5) Proper action hereunder by any constable shall not constitute a failure to perform such constable's statutory duties and shall not act to vacate the office.
(c) All constables in counties having a population of not less than sixty-seven thousand five hundred (67,500) nor more than sixty-seven thousand six hundred (67,600), according to the 1980 federal census or any subsequent federal census, may serve summonses, garnishments, subpoenas, attachments and all other documents from the circuit and chancery courts.

§ 8-10-112. Failure to perform duty.

A failure on the part of the constable to comply with such requirement in such reasonable time as the court may prescribe shall vacate the office.

§ 8-10-113. Acting for sheriff and coroner.

A constable may execute process from any court whenever there is at the time neither sheriff nor coroner, or whenever both the sheriff and the coroner are incompetent, or one (1) of those offices is vacant and the person holding the other office is incompetent in the particular case.

§ 8-10-114. Grand jury process.

A constable appointed to wait upon grand juries, during the term of the constable's appointment, has power and authority to execute and return all process for enforcing the attendance of witnesses sent for by the grand jury.

§ 8-10-115. Fine for failure to serve process.

Any constable to whom a precept or process is directed by a judge of the court of general sessions who refuses or neglects to serve such precept or process may be fined for every such offense on complaint of any person prosecuting, at the discretion of the court, the fine to be paid to the person complaining.

§ 8-10-116. Penalty for improper conduct of sales.

It is a Class C misdemeanor, for which, on conviction, a constable may be removed from office and otherwise punished, for a constable to make any official sale at unlawful hours, or to purchase at the constable's own sales.

§ 8-10-117. Emergency deputation of special constable.

A judge may, in writing, specially depute any discreet person of full age, not being a party to the suit pending, to perform any particular duty devolving by law upon a constable, if no constable is at hand, and the business urgent; but no judge shall make such special deputation, unless one (1) of the parties to a suit pending, or the party's attorney, shall make oath before the judge, and file the same in writing, stating that, to the best of the party's information, there is no regular officer at hand, and that the business is urgent. The person thus deputized is vested with all the powers of a constable for the occasion, and is subject to the same obligations and penalties.

§ 8-10-118. Vacancy in office.

Any vacancy in the office of constable shall be filled by appointment of the county legislative body and by election of the people in accordance with § 5-1-104.

§ 8-10-119. Official uniform.

(a) Any constable may wear the official uniform of the type and design with the insignias of the Tennessee constable as described in subsection (b). Wearing of the uniform is permissive with the individual constable when such uniform is purchased by the constable; provided, that if such uniform is provided by the county, then the uniform shall be worn in accordance with a dress code adopted by the county legislative body or the sheriff of such county.
(b) The official uniform for the constable shall consist of:
1. (1) Taupe pants with a one-inch wide brown stripe running vertically down each side of the pants;
2. (2) Shirts of either dark brown or white, at the discretion of the constable, displaying a patch of a design approved by the Tennessee Constable Association or the Tennessee Constable Council;
3. (3) A necktie of either taupe or brown, at the discretion of the constable; and
4. (4) Black leather gear and black shoes. Western type belts, holsters and tie-downs are prohibited.
(c) This section does not apply in any county which has removed from constables any law enforcement powers.
(d) This section does not apply in counties having a population of not less than fourteen thousand six hundred fifty (14,650) nor more than fifteen thousand (15,000), according to the 1990 federal census or any subsequent federal census.

§ 8-10-120. Constable patrol cars.

(a) Constable patrol cars may be white with a brown stripe running horizontally along the upper side. This color scheme shall not be used by any other state or local law enforcement official or agency; provided, that any state or local law enforcement official or agency that is using such color scheme on March 29, 1996, may continue to use such color scheme. When adopted for use by a county constable, the stripe design and other emblems and lettering shall conform to the official uniform markings adopted by the Tennessee Constable Association or the Tennessee Constable Council on file with the director.
(b) Constable patrol cars which conform to the description in subsection (a), which are being operated as provided in § 55-9-414, and which are used as emergency vehicles, may be equipped with blue lights and/or red lights and sirens.
(c) Nothing in this section shall prohibit a county constable from operating unmarked cars for other law enforcement purposes.
(d) Any constable operating a patrol car and using the lights described in this section must have graduated from the last calendar date in-service sponsored by the Tennessee Constable Association or the Tennessee Constable Council.
(e) Each constable shall be responsible for all costs in marking patrol cars.
(f) This section shall not apply in any county which has removed from constables any law enforcement powers.
(g) This section does not apply in counties having a population of not less than fourteen thousand six hundred fifty (14,650) nor more than fifteen thousand (15,000), according to the 1990 federal census or any subsequent federal census.

Part 2 Training and Qualifications

§ 8-10-201. In-service education.

The Tennessee Constable Association, the Tennessee Constable Council, and the East Tennessee Constables Association may develop and maintain a series of in-service education courses to be offered routinely throughout the year in the various divisions of the state. These courses shall be offered at nights or on weekends so as not to interfere with the constables' other full-time work. Courses offered shall contain information pertinent to the various aspects of civil and criminal process, firearms certification, and other issues relative to the powers and duties of constables. The constables shall pay costs of the courses unless state or local funds are made available. Upon completion of the in-service course, the Tennessee Constable Association, the Tennessee Constable Council, or the East Tennessee Constables Association, as applicable, shall issue a certificate of completion to each officer.

§ 8-10-202. Course time requirements.

(a) Each constable elected under § 8-10-101 shall complete forty (40) hours of in-service course time for each twelve-month period during which the constable holds office, beginning on the date the constable is sworn into office.
(b) This section does not apply to any constable with twenty (20) years of cumulative service as a constable before May 3, 2018.

§ 8-10-203. Range qualification.

Constables must be range-qualified prior to being authorized to carry a firearm. Qualification may be sponsored by the Tennessee Constable Association, the Tennessee Constable Council, the East Tennessee Constables Association, or by the local law enforcement authority.

§ 8-10-204. Requirements for taking office — Power of arrest.

In all counties where constables are not otherwise prohibited, constables shall be duly elected, trained, and qualified. Constables who meet the provisions of this chapter shall take the oath of office, be sworn and bonded, and retain the power of arrest.

§ 8-10-205. Notification of election or appointment.

The county election council shall notify the Tennessee Constable Association, the Tennessee Constable Council, or the East Tennessee Constables Association, as applicable, within sixty (60) days of election of the constable. Where the constable is appointed by the county legislative body, the county clerk shall notify the Tennessee Constable Association, the Tennessee Constable Council, or the East Tennessee Constables Association, as applicable, within sixty (60) days of appointment of the constable. The council or county clerk shall provide the name of the county constable, the constable's current address, and telephone number.

§ 8-10-206. Applicability.

(a) Sections 8-10-201 — 8-10-205 do not apply to any constable who has served for four (4) years prior to July 1, 1993.
(b) This part shall not apply to constables whose law enforcement powers have been removed but who have retained the authority to serve lawfully issued process.

Chapter 11 County Trustees

§ 8-11-101. Election — Term of office.

(a) A county trustee is elected for each county by the qualified voters thereof, and holds office for four (4) years and until a successor is qualified.
(b) If a vacancy shall occur in the office of trustee, the vacancy shall be filled as provided for in § 5-1-104(b).

§ 8-11-102. Entry into office — Oath — Bond.

Before entering into the duties of the office, the county trustee shall take an oath to support the constitutions of this state and of the United States, and an oath of office. The county trustee shall execute an official bond in at least the minimum amount required by § 8-11-103. The county legislative body may by resolution require a greater amount of bond for the county trustee than the minimum required by § 8-11-103. The bond must be prepared, executed, filed, and recorded in accordance with title 8, chapter 19. The county legislative body may by resolution require that the county trustee enter into an additional bond at any time during the term of office of the county trustee.

§ 8-11-103. Minimum amount of bond — Determination — Surety.

(a) The minimum amount of the official bond executed by each county trustee for each term of office, as required by § 8-11-102, shall be determined from the amount of revenues handled by the trustee during the last fiscal year audited by the comptroller of the treasury, or from the last audit approved by the comptroller of the treasury which was duly prepared in counties using certified public accountants.
(b)
1. (1) If the official bond of the county trustee is executed by a surety company authorized to transact business in this state, the minimum amount of the bond shall be based on the revenues as follows:
  1. (A) Four percent (4%) up to three million dollars ($3,000,000) of the funds collected by the office; and
  2. (B) Two percent (2%) of the excess over three million dollars ($3,000,000) shall be added.
2. (2) The amounts indicated in subdivisions (b)(1)(A) and (B) shall be cumulative.
(c)
1. (1) If the official bond of the county trustee is executed by personal sureties, the minimum amount of the bond shall be based on revenues as follows:
  1. (A) Six percent (6%) up to three million dollars ($3,000,000) of the funds collected by the office; and
  2. (B) Four percent (4%) of the excess over three million dollars ($3,000,000) shall be added.
2. (2) The amounts indicated in subdivisions (c)(1)(A) and (B) shall be cumulative.
(d) [Deleted by 2023 amendment.]
(e) [Deleted by 2023 amendment.]

§ 8-11-104. Duties.

It is the duty of the county trustee to:
1. (1) Collect all the state and county taxes on property;
2. (2) Keep a fair regular account of all the moneys which the county trustee shall receive;
3. (3) Receive, according to law, all certificates for which the county stands indebted, upon proper warrant;
4. (4) When a warrant is presented to the trustee for payment, enter it in a book kept by the trustee for the purpose, ruled in columns, so as successively to show the number, payee or holder, date, day of presentation, and amount of the same;
5. (5) If there are funds in the treasury, not otherwise appropriated, immediately pay the demand and take up the warrant; otherwise, deliver it to the owner with the number endorsed, and afterwards to pay it in its numerical order;
6. (6) Keep fair and regular accounts of such payments;
7. (7) Pay all just claims against the trustee's county as they are presented, if the trustee has a sufficient sum of money in the trustee's hands not otherwise appropriated;
8. (8) Upon the trustee's resignation, or going out of office by the appointment of another person, deliver to the trustee's successor all the books and papers of the trustee's office, and especially the book in which the warrants payable are listed and numbered;
9. (9) On going out of office, make settlement immediately with the county mayor, and pay over the balance found in the trustee's hands to the trustee's successor, taking duplicate receipts;
10. (10) Deliver one (1) of the receipts to the county clerk, to be by the county clerk recorded in the revenue docket; and
11. (11) Furnish the county mayor with such papers and vouchers in the county trustee's possession as the county trustee may think necessary for perfecting any settlement with any person who is accountable for county revenue.

§ 8-11-105. Refusal to pay warrant or demand.

If the trustee refuses to pay the amount of any county warrant or legal demand upon the county, when requested by the party entitled to receive the money, it is a Class C misdemeanor, on conviction of which the trustee may be removed from office, unless the trustee produces evidence showing that disbursements have exhausted the money on hand.

§ 8-11-106. Liability to judgment on motion.

If the trustee fails to pay money to those entitled to the same, or neglects to call those to account who ought to pay money into the treasury, whereby the county suffers loss, in either case the trustee and the trustee's sureties shall be liable for the sums so not collected or paid, on motion before the circuit court.

§ 8-11-107. Receipts for costs filed.

No county trustee shall pay to any clerk any bill of costs in which other claimants are included, unless the clerk files the receipt or order of such claimant at the time the payment is made.

§ 8-11-108. Forfeiture for defaults.

The county trustee shall incur a forfeiture of five hundred dollars ($500), to the use of the county, to be recovered on motion before the circuit court, for each of the following defaults:
1. (1) For refusing at any time to furnish the county mayor with any vouchers or papers in the trustee's hands, deemed necessary by the county mayor for perfecting any settlement with any person accountable for the county revenue;
2. (2) For refusing to receive, in payment of county taxes, county warrants for which the county, by law, stands indebted; or
3. (3) For refusing to settle or pay according to law.

§ 8-11-109. Failure to pay balance on expiration of term.

If the trustee, on going out of office, fails to pay over the balance of revenue in the trustee's hands, the trustee and the trustee's sureties shall be liable to judgment, on motion of the district attorney general, before the circuit court.

§ 8-11-110. Compensation for handling funds.

(a) The compensation of the county trustee for receiving and paying over to the rightful authorities all moneys received shall be six percent (6%) on all sums up to ten thousand dollars ($10,000), and four percent (4%) on all sums above ten thousand dollars ($10,000) and up to twenty thousand dollars ($20,000), and a commission of two percent (2%) on all sums above twenty thousand dollars ($20,000).
(b) In computing the compensation of trustees, all funds — state, county, school and special — shall be taken and estimated as one, and each shall pay its respective portion of the above commissions on all sums of money received by the trustee for the state and county, respectively.
(c) At the time of the settlement with the proper officers of the state and county, and the computation of the trustee's commission on collections, the trustee shall furnish the officers, respectively, with a certified statement from the county mayor, showing the amount actually collected by the trustee and paid over to the proper state and county authorities, respectively, as above provided.
(d) The trustee shall not be entitled to any commission on money turned over by the trustee's predecessor in office, or on money borrowed for the use of the county, or received from the proceeds of a sale or sales of bonds.
(e) The trustee shall receive one percent (1%) on all moneys collected from county officers on fees and on the school fund received from the state or on money turned over to the trustee by clerks of the courts and other collecting officers.
(f) In the event any federal funds for school lunch program purposes are handled by the county trustee, the trustee shall be allowed for the handling of such funds an amount not to exceed one-fourth of one percent (¼%) of such funds handled by the trustee; provided, that such amount shall not be taken from federal funds, but the equivalent thereof shall be paid to the trustee out of either school funds or county general purpose funds as determined by a majority vote of the county legislative body.
(g) Notwithstanding any other provisions of this section or the law to the contrary, the trustee shall not be entitled to receive any compensation, commission or fee for handling funds paid by the state to the county or to a local education agency for the purpose of funding the employees' social security contribution for teachers.
(h) Notwithstanding any other provision of this section or the law to the contrary, the trustee shall be entitled to collect a different percentage fee than that which is set forth in subsection (a), upon a negotiated basis for the collection of municipal taxes as set out in an approved intergovernmental agreement.

§ 8-11-111. Vacancies.

If the office of the trustee becomes vacant due to death, resignation or removal, the duties of the trustee shall be temporarily discharged by the chief deputy, or deputy designated as temporary successor by the trustee in writing, until a successor trustee is elected or appointed and qualified according to law.

§ 8-11-112. Confidentiality of certain financial records and other personal information acquired by county trustee.

(a) An individual's credit card information, debit card information, bank account and routing information, e-mail address, and telephone number acquired by the county trustee shall not be open for public inspection pursuant to title 10, chapter 7.
(b) Notwithstanding subsection (a), the information made confidential by this section shall be open to inspection by law enforcement agencies, courts, or other government agencies performing official functions.
(c) Information made confidential by this section shall be redacted wherever possible.
(d) Nothing in this section shall limit or deny access to otherwise public information because a file, document, or data file contains confidential information.

§ 8-11-113. Qualifications for office.

To qualify for the office of trustee, a person must be a qualified voter of the county and a resident of the county for one (1) year prior to the date of the qualifying deadline for running as a candidate for trustee.

Chapter 12 Surveyors

§ 8-12-101. Election.

There shall be elected by the members of the county legislative body, a majority of the members being present, at the January meeting of the legislative body, every four (4) years, or at any subsequent meeting of the legislative body, one (1) county surveyor for each county in the state.

§ 8-12-102. Oath of office — Bond.

Before entering into the duties of the office, the county surveyor shall take an oath to support the constitutions of this state and of the United States, and an oath of office. The county surveyor shall execute an official bond in an amount of two thousand dollars ($2,000) or such greater amount as the county legislative body by resolution may determine. The bond must be prepared, executed, filed, and recorded in accordance with title 8, chapter 19.

§ 8-12-103. Term of office — Location of records.

(a) The county surveyor shall hold that office for the term of four (4) years, and until a successor is elected and qualified.
(b) The county surveyor shall keep the records of the surveyor's office at the county seat.

§ 8-12-104. Deputies.

The county surveyor has the power to appoint as many as two (2) deputies, with all the powers, rights, and duties of the surveyor, who shall hold office for and during the term of the surveyor appointing them, unless sooner removed by the surveyor, or otherwise removed according to law, and their official acts shall have the same force and effect as the acts of the surveyor. The deputies shall be appointed before the county legislative body, in open session, and the appointment entered on the minutes. They shall take the oath of office prescribed for the surveyor to be administered by the same official.

§ 8-12-105. Duty to execute surveys.

It is the duty of the county surveyor faithfully to execute and return all orders of survey directed to the surveyor from any court of record in the state, and make all surveys of lands or lots in the county, at the request of any person interested therein, on the payment or tender of the surveyor's fees.

§ 8-12-106. Oath of chain bearers — Plat.

The county surveyor shall swear the surveyor's chain bearers to perform their duties without favor or affection, make a plat of all lands or lots surveyed for the person requiring the same, and write on the back of the plat the names of the chain bearers, and the amount of the surveyor's fees.

§ 8-12-107. Compensation fixed by county legislative body.

The county legislative body may fix the compensation of the county surveyor, and the surveyor's chain bearers and markers, where the fees are not already established by law.

§ 8-12-108. Compensation allowed by courts.

All courts ordering the survey of any land or lands may allow, in addition to the fee now allowed by law, such additional compensation as the services of the county surveyor may be reasonably worth.

§ 8-12-109. Fees as costs.

When a survey is directed by a court of record, the fees of the surveyor are to be taxed in the bill of costs.

§ 8-12-110. Establishment of meridian lines.

The county legislative body of each county may, in its discretion, have established, at or near the county seat, a meridian line of 114.6 poles in length, the termini of which line shall be designated by planted stones, with the exact point on each stone marked with “A.X.,” or otherwise durably engraved.

§ 8-12-111. Testing of instruments — Notation of magnetic declination.

It is the duty of the county surveyor and the surveyor's deputies to test their instruments by the meridian line in the counties in which such lines may be established, and to note the variation of the compass, that is, the difference between the magnetic meridian and the true or astronomical meridian, at least once every six (6) months.

§ 8-12-112. Report of tests.

A report of the variation test described in § 8-12-111 shall be made by the county surveyor to the county legislative body, and the report shall be recorded on the minutes of the legislative body.

§ 8-12-113. Prior surveys undisturbed.

Nothing in §§ 8-12-110 – 8-12-114, shall be so construed as to affect surveys made under variations different from that established by those sections and before their enactment.

§ 8-12-114. Interference with meridian markers — Penalty.

It is a Class C misdemeanor for any person willfully to remove, deface or in any way to interfere with the stones marking the termini of the meridian line.

§ 8-12-115. Liability for wrongful survey — Acts of deputy.

The county surveyor is liable on the surveyor's official bond for any damages done by a wrongful survey or plat. The surveyor and the sureties on such official bond shall be liable for all malfeasance and nonfeasance of the surveyor's deputy in office, to the same extent and in the same manner as a sheriff is liable for the acts of the sheriff's deputy.

§ 8-12-116. Delivery of records to successor.

In case of the resignation, removal, or expiration of the term of office of any surveyor, the surveyor shall deliver all record books, and all other public papers belonging to the office, to the successor, and, on failure, shall be liable to an action for damages, and shall be also subject to a fine of fifty dollars ($50.00), recoverable before any tribunal having cognizance, for the county.

§ 8-12-117. Delivery after death of surveyor.

In case of the death of such surveyor, the personal representative, or other person having the possession of the books and papers of the surveyor's office, shall deliver them over to the surveyor for the time being, and, on failure or refusal, shall be liable as provided in § 8-12-116.

§ 8-12-118. Compensation for records delivered.

The county legislative body, a majority of the members being present, may make the late surveyor, or such surveyor's personal representatives, compensation for the books and papers delivered over.

Chapter 13 Registers

§ 8-13-101. Election — Term of office.

(a) A register is elected for each county by the qualified voters thereof, and holds the office for four (4) years, and until a successor is qualified.
(b) If a vacancy shall occur in the office of register, the vacancy shall be filled as provided for in § 5-1-104(b).

§ 8-13-102. Oath of office — Surety bonds.

Before entering into the duties of the office, the county register shall take an oath to support the constitutions of this state and of the United States, and an oath of office. The county register shall execute an official bond. The bond must be prepared, executed, filed, and recorded in accordance with title 8, chapter 19.

§ 8-13-103. Terms of bond.

The bond shall be in the amount of fifty thousand dollars ($50,000) in counties with a population of less than fifteen thousand (15,000), and one hundred thousand dollars ($100,000) in counties with a population of fifteen thousand (15,000) or more, according to the 2010 federal census or any subsequent federal census, or in a greater sum as the county legislative body may determine, payable to the state of Tennessee, conditioned on the true and faithful discharge of the duties of the office.

§ 8-13-104. Vacation of office.

(a) Any register who fails to give bond as required by § 8-13-103 within thirty (30) days after election, who fails to provide a client representation letter to the comptroller of the treasury within ten (10) days of a request for such letter during an audit, or who moves out of the county, shall vacate the office.
(b) Notwithstanding any provision of law to the contrary, any register who vacates the office in accordance with subsection (a) shall forfeit all compensation from the time of such vacation.

§ 8-13-105. Deputies — Appointment — Death, resignation or removal of register.

The register may appoint a deputy or deputies and, in case of the principal's death, resignation or removal, the principal deputy shall continue to act until an appointment shall be made to fill the vacancy, in the manner prescribed by law. All deeds registered by deputies are declared to be validly registered.

§ 8-13-106. Location of office.

The register shall keep the register's office in the county seat and, either personally or by deputy, shall give due attendance at the office for the purpose of performing the register's official duties.

§ 8-13-107. Records kept in office — Suitable facility.

(a) The papers and records of the office shall at all times be and remain in the register's office or other suitable facility.
(b) As used in this section, “suitable facility” means a facility that stores local government records securely against theft and natural disasters.

§ 8-13-108. Duties of office.

(a) It is the duty of the register to:
1. (1) Determine whether each instrument offered for registration is entitled to registration under the laws of this state;
2. (2) If the instrument is accepted for registration, note on the instrument the time the instrument is actually received by the register;
3. (3) Keep a notebook containing information regarding all instruments registered, except that a separate notebook for uniform commercial code instruments may also be kept. The information contained in the notebook shall include the names of the grantors, grantees, the time of receipt (date, hour and minute) and the fees received. A notebook kept for uniform commercial code instruments shall contain the same information, except that the name of the debtor may be substituted for grantor and secured party may be substituted for grantee. The notebook shall be maintained in a well-bound book or computer storage media in accordance with § 10-7-121. The notebook information shall be maintained as a permanent record;
4. (4) Enter into the appropriate notebook the required information as listed above. The register shall endeavor to make entries into the notebook in the order of time of reception as nearly as practicable, but entries shall be made without undue delay even if due to volume of instruments received the exact order of time of reception cannot be maintained. However, no instrument received on a certain day shall be entered into the notebook after instruments received on a later day;
5. (5) Record or file the instrument in the appropriate book or record series;
6. (6) Certify the fact of registration upon every instrument registered, the time it was received, the book and page or other reference where it is recorded or filed, the amount of fees received (if any), and the amount of taxes received (if any). This certification shall be entered on each instrument, and if the register determines that insufficient space exists on the instrument to enter the certification without overlaying writing on the instrument, the register may add a page to contain the certification, attach this page to the instrument being registered, and this additional page shall be considered a part of the original instrument to be registered;
7. (7) Carefully preserve as permanent records the recorded copies of all deeds, deeds of trust and other instruments affecting interests in real estate;
8. (8) Exhibit the notebooks and instruments registered to all persons wishing to inspect them, during regular business hours;
9. (9) Register, in the proper book of the register's office, the correction by the clerk of any error or omission in the clerk's certificate of probate or acknowledgment;
10. (10) Enter upon a book kept for that purpose any deposition taken to perpetuate testimony, together with the order of the judge, on tender of the fee allowed for the service;
11. (11) Procure and keep good and well-bound books, to be called books of trust deeds, etc., in which the register shall register, separately from land titles, in the order in which they are filed, all mortgages and deeds of trust on personal property, contracts, leases, powers of attorney, as to personalty, and all other instruments required to be registered that are no part of the title or conveyance of any real estate, so as to have real estate titles in books separate from other conveyances. A separate set of books, to be called books of commercial secured liens, shall be kept, in which the register shall register, separately from all other items, all liens filed under the Uniform Commercial Code, compiled in title 47, chapters 1-9, and which shall be indexed as set forth in § 47-9-519;
12. (12) Procure and keep good and well-bound books, to be called records of bankruptcies, in which the register shall register, separately from land titles, in the order in which they are filed, certified copies of petitions in bankruptcy (with schedules omitted), decrees of adjudication of bankruptcy, and orders of bankruptcy courts approving trustees' bonds which may be tendered for registration; and
13. (13) Provide a client representation letter to the comptroller of the treasury within ten (10) days of a request for such letter during any audit.
(b)
1. (1) When a system of microphotography is used to record any instruments, papers, documents or notices, each original reel of film thereof kept by the register shall be given a separate number, and shall be called a “book,” “film” or “reel” or shall be similarly designated, and each page or photograph of such instrument, paper, document or notice shall be called a “page,” “image” or such similar designation.
2. (2) Whenever, under any law, it is required that an instrument, paper, document or notice is to be identified or referred to as recorded in a book or page, or both, it shall be sufficient for purposes of identification and of compliance with such law or laws that reference be made to such instrument, paper, document or notice by the designation adopted by the register pursuant to this section.
3. (3) The recording and registering of such instruments, papers, documents or notices in the “official record book” imparts notice as required by law in like manner and effect as if the original instrument, paper, document or notice was recorded in separate books or film.
(c) In those counties having a population of not less than two hundred thousand (200,000) nor more than four hundred ten thousand (410,000), according to the 1960 federal census, the registers of the counties who maintain indexed records in accordance with title 10, chapter 7, part 2, and whose indexes are maintained in chronological order within alphabetical order may, in their discretion, be exempt from the duties in subdivision (a)(1) relative to the keeping of notebooks. All references in this section to notebooks and the requirements as to the notices and information to be entered in the notebooks shall apply to the registers' index records.
(d) All counties having complied with title 10, chapter 7, part 4, in the establishment of a county records commission, are hereby authorized to maintain a continuous recording of any and all instruments, papers or notices in one (1) general series of books or film to be designated “official record book.” The series shall be numbered consecutively beginning with number one (1).
(e)
1. (1) In counties having a metropolitan form of government with a population of four hundred thousand (400,000), or more according to the 1990 federal census, the office of register of deeds is authorized to implement an automated system for recording deeds and other instruments from remote locations. Electronic copies of such instruments are to be received within the register's office, reviewed for legibility and form, with any needed corrections, additions, modifications or changes needed to meet legal requirements for recordable form transmitted back to the sender over the system's dedicated lines. Once approved, a digitized label with the appropriate recording number, fees, taxes, date and time is affixed to the document which becomes an officially recorded document and is retained by the register of deeds. A copy of the digitized image is then transmitted back to the sender confirming that the recording has been completed. The register wishing to implement such electronic system may request technical assistance from the office of the comptroller of the treasury to advise on matters of system security and reliability.
2. (2) The office of register of deeds in such county is further authorized to implement a method to accept the optional payment of fees for recording deeds and other instruments by means of electronic funds transfer. The method implemented shall ensure that such transfer is properly documented and recorded.
3. (3) Any register implementing an automated system for recording deeds and other instruments electronically transmitted from remote locations shall file a statement with the comptroller of the treasury at least thirty (30) days prior to offering such service. The statement shall contain the following information:
  1. (A) A description of the computer hardware and software to be utilized;
  2. (B) A description of the procedures to be used to provide electronic recording of deeds and other instruments electronically transmitted from remote locations;
  3. (C) A description of the system security features;
  4. (D) A description of the register's office personnel who will be responsible for setting up remote users and for monitoring remote access activity;
  5. (E) A description of the types of records or documents to be electronically recorded;
  6. (F) A description of the integration of the electronic recording system with the register's office other automated systems such as imaging, indexing, fee collection, cash management and accounting;
  7. (G) A description of the instrument archive, document retrieval, and system backup policies and procedures;
  8. (H) The estimated cost of the system including development and implementation cost; and
  9. (I) The estimated cost savings of electronic recording of instruments.
4. (4) A register which implements an automated system for recording electronically transmitted deeds and other instruments from remote locations shall provide to the comptroller of the treasury a post implementation review of the system between twelve (12) and eighteen (18) months after the date a statement as described in this section has been filed with the comptroller of the treasury. The review shall include:
  1. (A) An assessment of the system by the register;
  2. (B) Responses from a survey of users of the system; and
  3. (C) Any recommendations for improvements to an automated system for recording deeds and other instruments electronically transmitted from remote locations.
(f) In any county having a population in excess of eight hundred ninety thousand (890,000), according to the 2000 federal census or any subsequent federal census, or any county in which the register receives endorsement from the existing county records commission or county mayor, the register may assume the functions and duties of the microfilm, public records or archives departments, or any of these, as established by the county commission.

§ 8-13-109. Payment for record books.

The different county legislative bodies or trustees shall pay for all such books procured as aforementioned, as is now done for county records.

§ 8-13-110. Indictment of register for failure to perform duties — Civil liability.

Upon failure to perform any official duties, the register may be indicted for a Class C misdemeanor and the register and the register's sureties shall be civilly responsible to any person injured by the failure.

§ 8-13-111. Fees accompanying instrument — Register to adopt policy regarding overages.

(a) The register shall not be compelled to receive a deed, in any case, and perform official duties in relation thereto, unless the legal fees for registration accompany the instrument.
(b) A register shall adopt a policy regarding the procedure to follow if the register receives instruments for recordation accompanied by fees in excess of the required amount, and that policy shall include one (1) or more of the following:
1. (1) Establishing a credit, debit or a copy account for individual customers;
2. (2) Contacting the person or entity tendering the instrument for specific instructions regarding the excess fee;
3. (3) Allowing the register's office to retain reasonable overage amounts as fees of the office; or
4. (4) Registering every instrument eligible for registration and providing a refund of the excess moneys, less a reasonable amount of the excess payments retained as fees of the office.

§ 8-13-112. Seal of office.

The county registers in the various counties may have official seals, which must contain the words, “Register's Office of (the name of county) County.”.

§ 8-13-113. Effect of certification under seal.

All instruments certified by the county register under seal shall have the same force and effect as certified instruments under seal from courts of record; provided, that instruments certified without the seal shall have the same effect that they would have had before the passage of this section and § 8-13-112.

§ 8-13-114. Acting as entry taker.

In all counties where there is no entry taker, the registers of such counties are authorized to act as such and receive remuneration as such.

§ 8-13-115. Preservation of records of entry.

The books and papers of entry belonging to the office shall be kept and carefully preserved by the register.

§ 8-13-116. Recording official discharge from the military with register of deeds.

(a) The register of deeds shall record the official discharge of persons who after 1915 have served as members of the United States armed forces, the United States armed forces reserve, or the United States armed forces auxiliary.
(b) The register of deeds shall, after September 1, 2010, record the official discharge of persons who have served as members of the United States armed forces, the United States armed forces reserves, or the United States armed forces auxiliary in a bound book separate from all other documents recorded in the register of deeds office in those counties that do not store documents electronically. No other public documents shall be recorded and stored in these designated books.
(c) The register of deeds shall keep books which originated prior to, as well as after, September 1, 2010, and which have been designated specifically for the storage of official military discharge documents in a location not accessible to the general public, so long as the books do not contain other public documents.
(d) The register of deeds, in counties that record and store documents electronically, shall not make available to the general public any display of military discharge records and shall only provide copies of such records in compliance with § 10-7-513.

§ 8-13-117. Failure to comply with entry requirements.

Any register who fails strictly to comply with §§ 8-13-114 — 8-13-116 commits a Class C misdemeanor.

§ 8-13-118. Recording of military discharge documents in the office of county register.

(a)
1. (1) If a veteran of the United States armed forces, or any other person, personally appears and presents to the county register a military discharge for recording, before accepting the document for recording, the county register shall give to the person a written notice substantially as follows:
2. (2) A military discharge may be recorded with all or a portion of the veteran's social security identification number redacted, but this is not required for recording. However, if the discharge is altered, the United States government may not accept it as a valid document for purposes of approving military benefits to the veteran or the veteran's family. A county register will not cause a military discharge record recorded in the office of the county register to be viewed over the internet, except through a subscription service approved by the county register.
3. (3) If, after giving the person offering the document the opportunity to read the notice described in subdivision (a)(1), the person still desires to have the military discharge recorded, the county register may record it. The register may record a military discharge received by mail without giving the notice described in subdivision (a)(1).
(b) A county register may record a military discharge of a veteran of the United States armed forces that is received with or without the redaction of all or a portion of the veteran's social security identification number. For a military discharge to be eligible for recording, the document must be an original or a copy authenticated as a true copy by the appropriate armed service of the United States or the United States department of defense or agency thereof. Additionally, the county register may make a copy of a military discharge eligible for recording, allow the person tendering the military discharge to make redactions on the copy made by the county register, and record the copy with the redactions.

§ 8-13-119. Qualifications for office.

To qualify for the office of register, a person must be a qualified voter of the county and a resident of the county for one (1) year prior to the date of the qualifying deadline for running as a candidate for register.

Chapter 14 Public Defenders

Part 1 District Public Defenders and Investigators

§ 8-14-101. Indigent person — Defined.

For the purposes of this part, an “indigent person” is one who does not possess sufficient means to pay reasonable compensation for the services of a competent attorney:
1. (1) In any criminal prosecution or juvenile delinquency proceeding involving a possible deprivation of liberty; or
2. (2) In any habeas corpus or other post-conviction proceeding.

§ 8-14-102. Creation of the district public defenders office — Positions and qualifications — Elections and appointments.

(a) For each judicial district, except the twentieth and thirtieth districts, the offices of district public defender, assistant district public defender and district investigator are hereby created.
(b)
1. (1)
  1. (A) The terms of office of all district public defenders shall be eight (8) years, and until their successors are elected and qualified. Each district public defender shall be elected by the qualified voters of each respective district in the regular August election. The district public defender shall be a duly licensed attorney admitted to the practice of law in this state, and shall have been a resident of the state for five (5) years and of the judicial district for one (1) year.
  2. (B) A vacancy in the office of the district public defender shall be filled by the voters of the district at the next biennial election more than thirty (30) days after the happening of the vacancy. The election shall be ordered by the governor by issuing proper writs of election to the county election commissions throughout the district, notice being given for one (1) month by publication in one (1) or more newspapers in the district. In the meantime, the governor shall appoint a suitable person to fill the office temporarily until the election takes place.
  3. (C)
    1. (i) Effective September 1, 2022, there is created the position of district public defender for the thirty-second judicial district. At the regular August election in 2022, the qualified voters of the thirty-second judicial district shall elect a person to the position of district public defender for a full eight-year term. The person elected to such position shall possess the same qualifications, powers, and duties and shall receive the same compensation, payable in the same manner, benefits, emoluments, and dignity of office as is required or provided by law for other district public defenders.
    2. (ii) The district public defender of the thirty-second judicial district is entitled to three (3) assistant public defender positions, one (1) district investigator position, one (1) administrative assistant position, and two (2) secretary positions.
    3. (iii) On September 1, 2022, the district public defender is entitled to purchase such office space and other office property necessary to establish the office of the district public defender for the thirty-second judicial district. Nothing contained herein shall be construed as prohibiting such district public defender from also establishing an additional office in the thirty-second judicial district. By September 1, 2022, all records, files, papers, and other official documents pertaining to any pending or completed case arising out of any of the counties comprising the thirty-second judicial district shall be transferred to and become the property of the office of district public defender for the thirty-second judicial district.
2. (2) The district public defender of any judicial district in which assistant district public defender positions are authorized by law shall appoint suitable persons to serve as assistant district public defenders. Any assistant district public defender shall be an attorney licensed to practice law in this state. Persons so appointed shall serve at the pleasure of the district public defender and shall perform such duties as the district public defender may require.
3. (3) The district public defender of any judicial district in which district investigator positions are authorized by law shall appoint suitable persons to serve as district investigators. Persons so appointed shall serve at the pleasure of the district public defender and shall perform such duties as the district public defender may require.
(c) No person holding the office of district public defender pursuant to this part shall be permitted to engage in the practice of law except as the duties of such office require. No person employed as a full-time assistant district public defender or as a full-time district investigator pursuant to this part shall be permitted to engage in the practice of law except as the duties of such positions require. Notwithstanding any other restrictions, attorneys with pending private legal matters at the time of employment with the office of district public defender shall have a reasonable length of time to conclude or transfer such cases in keeping with the standards of professional and ethical conduct.
(d)
1. (1) For each judicial district in which district public defenders are authorized, there shall be authorized the following number of assistant district public defender positions:
  1. Assistant district public
  3. 1 6
  4. 2 6
  5. 3 6
  6. 4 5
  7. 5 3
  8. 6 16
  9. 7 3
  10. 8 4
  11. 9 3
  12. 10 5
  13. 11 10
  14. 12 4
  15. 13 5
  16. 14 3
  17. 15 4
  18. 16 5
  19. 17 4
  20. 18 4
  21. 19 6
  22. 21 4
  23. 22 5
  24. 23 4
  25. 24 4
  26. 25 5
  27. 26 5
  28. 27 3
  29. 28 3
  30. 29 3
  31. 31 1
2. (2) It is the legislative intent to provide additional assistant district public defender positions in both the 20th and 30th judicial districts in a manner consistent with the most current weighted caseload study. Funding for these positions shall be contingent upon specific appropriation by the general appropriations act for such positions.
(e) For each district, there is authorized at least one (1) criminal investigator position and one (1) additional criminal investigator for each five (5) assistant district public defenders or majority portion of such number.
(f) A district public defender may fill a full-time employee position with two (2) part-time employees. In order to implement such assignments, available funds may be reallocated or transferred, subject to overall budgetary limits.
(g) There is authorized one (1) paralegal position for the sixth judicial district.
(h) The number of assistant district public defender positions enumerated in this section or any other law for each specified judicial district shall be the minimum number of positions authorized in the district. Nothing in this section or any other law shall be construed to prohibit or prevent the employment of additional assistant district public defenders in a particular judicial district, regardless of whether the positions are funded by a state or non-state source, or whether they are specifically enumerated in this or any other section.

§ 8-14-103. Office expenses.

The state shall provide each district public defender with suitable office space within the judicial district, together with necessary equipment and supplies and secretarial assistance. Nothing in this section shall be construed as prohibiting a county from providing another suitable office for such public defender or the public defender's personnel within the judicial district.

§ 8-14-104. District public defender — Duties.

(a) The district public defender has the duty and responsibility of representing indigent persons for whom the district public defender has been appointed as counsel by the court. Either personally or through an assistant district public defender, the district public defender shall counsel with the accused and represent such accused in the trial court. If the accused is aggrieved by the judgment of the trial court imposing a sentence of imprisonment, or dismissing a habeas corpus or post-conviction petition, the district public defender shall advise such accused fully concerning rights of appellate review.
(b) If the accused desires to appeal to an appellate court, the district public defender shall seasonably take all steps necessary to perfect the appeal, including a new trial motion when required and the filing of all essential transcripts and records with the clerk of the appellate court.
(c) The district public defender has the duty and responsibility of handling all appeals filed by an indigent person represented in the trial courts of this state.
(d) At such times and in such form and manner as may be directed by the chairs of the criminal justice committee of the house of representatives and the judiciary committee of the senate, each executive director of the district public defenders conference shall submit reports reflecting the number, kind, status, and disposition of all cases and proceedings.

§ 8-14-105. Determination of indigency — Appointment of counsel — Multiple defendants — Law students.

(a) When any person appears without counsel before any court of this state exercising original jurisdiction (whether magistrate, general sessions, municipal, juvenile, circuit, criminal or any court empowered to deprive the person of liberty) upon a criminal prosecution or juvenile delinquency proceeding involving a possible deprivation of liberty, the court shall inquire whether such person is financially able to employ counsel. If the person claims to be without such means, the court shall examine such person and any witnesses the indigent person or the court may call and proceed to determine whether the person is indigent. The determination shall not be based alone on the person's ability to make a bail bond, but the court shall consider income, property, obligations, the number and ages of dependents and any other matters deemed pertinent.
(b) In all habeas corpus and post-conviction proceedings, the court having original jurisdiction of the matter shall determine the question of the petitioner's indigency if such is claimed.
(c) In every case arising under this section, the court's determination of indigency or nonindigency shall be reduced to writing and signed by the court and filed with the papers of the cause. If the court is one of record, the court's determination shall also be entered upon its official minutes.
(d)
1. (1) If the court determines that the person is indigent, as defined in § 8-14-101, and the person has not waived the right to counsel, the court shall make and sign an order appointing the district public defender, or such other appointed counsel as provided by law, to represent the person. The original of the order shall be filed with the papers of the cause, and if the court is one of record, the order shall also be entered upon its official minutes.
2. (2) If the court appoints the district public defender to represent an accused in any proceeding under this section, but finds the accused is financially able to defray a portion or all the cost to the state of representation by the public defender, then the court shall enter an order directing the party to pay into the registry of the clerk of such court such sum of money as the court determines the accused is able to pay. Such sum shall be subject to execution as any other judgment and may also be made a condition of discharge from probation. Such sum as ordered by the court shall be paid by the accused independently and separately from any fines and costs associated with the cause, and such moneys paid by the accused and collected by the clerk of the court pursuant to this section shall be collected independently and separately from any fines and costs associated with the cause and be applied directly to the sum ordered by the court to be paid under this section. The court may provide for payments to be made at intervals, which the court shall establish, and upon such terms and conditions as are fair and just. The court may also modify its order when there has been a change in the circumstances of the accused.
3. (3) The clerk of the court shall collect all moneys paid by an accused pursuant to this section. When the accused fails to comply with the orders of the court, the clerk shall notify the court of the accused's failure to comply. The clerk shall, at the end of each month, pay to, and forward all payments received pursuant to this section to the office of the executive director of the district public defenders conference. The clerk of the court shall receive a commission of five percent (5%) of all moneys collected pursuant to the order of the court; provided, that in counties having a population of more than seven hundred thousand (700,000), according to the 1990 federal census or any subsequent federal census, such commission shall be ten percent (10%).
(e) In any case or proceeding wherein there is more than one (1) indigent person accused, one (1) such person shall be represented by the district public defender's office, and the court shall appoint an attorney to represent such other indigent persons. Such other indigent persons may also be represented by the district public defender's office; provided, that the court makes an affirmative finding prior to the appointment that no conflict of interest exists and it appears there is good cause to believe no conflict of interest is likely to arise. The original of the order shall be filed with the papers of the cause, and if the court is one of record, the order shall also be entered upon its official minutes.
(f) In any case when the trial court is of the opinion that proper representation of an indigent person or persons makes it necessary to do so, the court may for that purpose appoint one (1) or more senior law students actively participating in a legal aid clinic operated by an approved law school located in the judicial district, in accordance with Tennessee Supreme Court Rule 7. The legal aid clinic shall be notified promptly of the appointment and shall be furnished a copy of the order of appointment. The original of the order shall be filed with the papers of the cause, and if the court is one of record, the order shall also be entered upon its official minutes.
(g) All attorneys and law students appointed as provided in subsections (e) and (f) shall be paid by the state pursuant to §§ 40-14-207 and 40-14-208.
(h) Upon the appointment of the district public defender, and/or an attorney pursuant to subsections (e) and (f), no further proceedings shall be had in the case until such counsel has had reasonably sufficient time and opportunity to prepare the case for trial. District public defenders shall be authorized access to query state and federal criminal records history information as the duties of their office may require.
(i) If the court determines that the person accused or proceeded against in any criminal prosecution or other proceeding involving a possible deprivation of liberty, or the person filing a habeas corpus or other post-conviction proceeding is not an indigent person, the court shall advise such person with respect to right to counsel and afford such person a reasonable time, to be fixed by the court, and opportunity to secure counsel and shall stay further proceedings until counsel so obtained has had reasonable time and opportunity to prepare the case for trial.

§ 8-14-106. Waiver of right to counsel — Writing — Procedure for acceptance.

(a) No person in this state shall be allowed to enter a plea in any criminal prosecution or other proceeding involving a possible deprivation of liberty when not represented by counsel, unless such person has in writing waived the right to the assistance of counsel.
(b) Before a court shall accept a written waiver of the right to counsel, the court shall first advise the person in open court concerning the right to the aid of counsel in every stage of the proceedings. The court shall at the same time determine whether or not there has been a competent and intelligent waiver of such right, by inquiring into the background, experience and conduct of the person and such other matters as the court may deem appropriate. If a waiver is accepted, the court shall approve and authenticate it and file it with the papers of the cause, and if the court is one of record, the waiver shall also be entered upon its official minutes.

§ 8-14-107. Compensation.

(a) Effective July 1, 1994, the salary for district public defenders shall be an amount equal to eighty-eight percent (88%) of the salary established by law for district attorneys general. Effective July 1, 1995, the salary for district public defenders shall be an amount equal to the salary established by law for district attorneys general. On March 1, 2018, the base salary for district public defenders shall be one hundred fifty-six thousand twenty-four dollars ($156,024) and shall be adjusted on July 1 to reflect the average percentage pay increase provided for state employees by the general appropriations act. On June 30, 2024, the base salary for the district public defenders shall be two hundred five thousand three hundred twenty-eight dollars ($205,328) and shall be adjusted on July 1 to reflect the average percentage pay increase provided for state employees by the general appropriations act.
(b)
1. (1) A full-time assistant district public defender shall be compensated beginning July 1, 2023, according to the following pay schedule, which must be adjusted on July 1, 2023, and each succeeding July 1, to reflect the average percentage pay increase provided for state employees by the general appropriations act:
  2. Entry level$63,853
  3. after one (1) year$67,868
  4. after two (2) years$71,857
  5. after three (3) years$75,928
  6. after four (4) years$79,943
  7. after five (5) years$83,918
  8. after six (6) years$87,934
  9. after seven (7) years$91,977
  10. after eight (8) years$96,034
  11. after nine (9) years$100,009
  12. after ten (10) years$104,038
  13. after eleven (11) years$108,054
  14. after twelve (12) years$112,001
  15. after thirteen (13) years$116,017
  16. after fourteen (14) years$120,032
  17. after fifteen (15) years$124,021
  18. after sixteen (16) years$128,050
  19. after seventeen (17) years$131,680
  20. after eighteen (18) years$135,226
  21. after nineteen (19) years$138,607
  22. after twenty (20) years$141,823
  23. after twenty-one (21) years$146,501
  24. after twenty-two (22) years$151,331
  25. after twenty-three (23) years$156,299
  26. after twenty-four (24) years$161,833
  27. after twenty-five (25) years$167,325
3. (2) The salary levels for assistant district public defenders shall be increased by such percentage amount as shall be fixed by the general assembly in the general appropriations act. For the purpose of budget preparation, it shall be presumed that such percentage amount shall be the same as that received by other state employees.
4. (3) The executive director of the Tennessee district public defenders conference shall certify the entry level of compensation awarded to assistant district public defenders based on prior service credits. Subject to the approval of the district public defender, assistant district public defenders shall be entitled to prior service credits as follows:
  1. (A) Any assistant district public defender who has prior experience as an assistant district public defender, an assistant district attorney general, a district public defender, a district attorney general, a criminal investigator for the district public defenders, a criminal investigator for the district attorneys general, a United States attorney, an assistant United States attorney, an assistant attorney general representing the state in criminal litigation, an elected judge of a court with criminal jurisdiction, an attorney who served as a law clerk for an appellate or trial judge of a court with criminal jurisdiction or an attorney who as a commissioned officer worked as a military attorney in the field of criminal defense or criminal prosecution while on full-time active duty in the judge advocate general's corps of any of the armed services of the United States, shall be eligible to receive year-for-year credit upon the recommendation of the hiring district public defender, and subject to the approval of the executive director of the Tennessee district public defenders conference; and
  2. (B) The executive director of the Tennessee district public defenders conference may certify prior service credits for prior practice of law but not exceeding the assistant's experience as a licensed practicing attorney and, in no case, shall year-for-year credit exceed twelve (12) years.
5. (4) Implementation of salary increases pursuant to the pay schedule prescribed in subdivision (b)(1) shall be suspended for the fiscal years beginning July 1, 2003, and ending June 30, 2004, and beginning July 1, 2009, and ending June 30, 2010. In the fiscal years beginning July 1, 2004, and July 1, 2010, and in subsequent fiscal years, salary increases pursuant to the pay schedule prescribed in subdivision (b)(1) shall not include time of service between July 1, 2003, and June 30, 2004, nor between July 1, 2009, and June 30, 2010.
6. (5) The salary increase provided by subdivision (b)(1), and suspended by subdivision (b)(4) for the period July 1, 2003, through June 30, 2004, shall be reinstated effective July 1, 2017. For purposes of determining the appropriate salary classification for assistant district public defenders, credible service for the time period of July 1, 2003, through June 30, 2004, shall be included.
7. (6) The salary increase provided by subdivision (b)(1), and suspended by subdivision (b)(4) for the period July 1, 2009, through June 30, 2010, is reinstated effective July 1, 2019. For purposes of determining the appropriate salary classification for assistant district public defenders, credible service for the time period of July 1, 2009, through June 30, 2010, is included.
(c)
1. (1) Effective July 1, 2023, all full-time district investigators shall be compensated according to the following pay schedule, which must be adjusted on July 1, 2023, and each succeeding July 1, to reflect the average percentage pay increase provided for state employees by the general appropriations act:
  2. Entry level$43,180
  3. after two (2) years$46,471
  4. after four (4) years$48,944
  5. after six (6) years$52,444
  6. after eight (8) years$55,982
  7. after ten (10) years$59,276
  8. after twelve (12) years$62,963
  9. after fourteen (14) years$66,196
  10. after sixteen (16) years$69,822
  11. after eighteen (18) years$76,428
  12. after twenty (20) years$80,532
2. (2) The salary levels for district investigators shall be increased by such percentage amount as shall be fixed by the general assembly in the general appropriations act. For the purpose of budget preparation, it shall be presumed that such percentage amount shall be the same as that received by other state employees.
3. (3) The executive director of the district public defenders conference shall certify the level of compensation awarded to district investigators based on prior service credits. Subject to the approval of the district public defender, district investigators are entitled to the same prior service credits as allowed criminal investigators for the district attorneys general in § 8-7-231, as well as relevant experience as a criminal defense investigator.
4. (4) If a district public defender having a vacant district investigator position appoints a licensed attorney to that position and designates that person to serve as an assistant district public defender, the appointee may, upon recommendation of the appointing district public defender, with approval of the executive committee of the district public defenders conference be compensated as an assistant district public defender as provided for in subsection (b).
5. (5) Implementation of salary increases pursuant to the pay schedule prescribed in subdivision (c)(1) shall be suspended for the fiscal years beginning July 1, 2003, and ending June 30, 2004, and beginning July 1, 2009, and ending June 30, 2010. In the fiscal years beginning July 1, 2004, and July 1, 2010, and in subsequent fiscal years, salary increases pursuant to the pay schedule prescribed in subdivision (c)(1) shall not include time of service between July 1, 2003, and June 30, 2004, nor between July 1, 2009, and June 30, 2010.
6. (6) The salary increase provided by subdivision (c)(1), and suspended by subdivision (c)(5) for the period July 1, 2003, through June 30, 2004, shall be reinstated effective July 1, 2017. For purposes of determining the appropriate salary classification for district public defender investigators, credible service for the time period of July 1, 2003, through June 30, 2004, shall be included.
7. (7) The salary increase provided by subdivision (c)(1), and suspended by subdivision (c)(5) for the period July 1, 2009, through June 30, 2010, is reinstated effective July 1, 2020. For purposes of determining the appropriate salary classification for district public defender investigators, credible service for the time period of July 1, 2009, through June 30, 2010, is included.

§ 8-14-108. Personnel — State employees.

The personnel of the public defender system shall be state employees, entitled to all state employee benefit programs.

§ 8-14-109. Immunity of state and personnel of public defender's office.

No court in this state has any power, jurisdiction or authority to entertain any suit against the state or against any public defender or any employees thereof acting in their official capacity with a view to reach the state, its treasury, funds or property, or the funds or property of any public defender or its employees for any act of negligence arising from the execution of the employee's official duties as an employee of the district public defenders conference; provided, that this shall not be construed to bar any suit against the state or an official of the state alleging any ground or seeking any relief which could be sought under a writ of habeas corpus or petition for post-conviction relief.

§ 8-14-110. Twentieth and thirtieth judicial districts — State funding.

For the twentieth and thirtieth judicial districts, the state shall pay, in equal quarterly installments, to the county or metropolitan government which has a local public defender, an amount annually appropriated for that purpose. Such amount shall not be less than the amount appropriated in fiscal year 1992-1993. In addition to the amount appropriated in 1992-1993 the base level of state support on July 1, 2013, shall be adjusted to reflect the percent of change in the average consumer price index (all items-city average) as published by the United States department of labor, bureau of labor statistics, between that figure for the calendar year 2011 and the calendar year 2012. Each succeeding July 1, a similar adjustment shall be made, based on the percent of change in the average consumer price index between the two (2) calendar years preceding July 1 of the year in which the adjustment is made. The adjustment provided for in this section must not exceed the greater of five percent (5%) per annum or the percentage increase provided for the state public defender and district attorney general offices during the fiscal year for which the adjustment was made.

§ 8-14-111. Special personnel for expedition of post-conviction proceedings in capital cases.

The district public defender is authorized to employ, reassign, or contract with individuals utilizing special funds appropriated solely for the purpose of providing prompt and fair adjudication of post-conviction proceedings in capital sentence cases, including authority to assign the additional personnel the duties of personnel reassigned to the post-conviction cases. In no event shall the employment, contract, or expenditures under this authority extend beyond a two-year period.

§ 8-14-112. Additional assistant district public defender positions.

(a) Effective July 1, 2004, there are created eighteen (18) additional assistant district public defender positions to be designated in judicial districts as provided in this section.
(b)
1. (1) The executive director of the district public defenders conference and the administrative director of the courts shall meet and prepare a report that contains the recommendations of such officials as to the specific judicial districts in which the additional assistant district public defender positions created pursuant to subsection (a) should be designated. Such report shall be prepared in consultation with the comptroller.
2. (2) By October 1, 2004, the executive director of the district public defenders conference shall file the report prepared pursuant to subdivision (b)(1) with the speakers of the senate and house of representatives and chairs of the judiciary committees of the senate and house of representatives. Upon the filing of such report, the district public defenders recommended by the report to receive additional assistant positions shall be authorized to interview and employ persons to fill such positions.
(c) As early as is practicable during the first session of the one hundred fourth general assembly, the general assembly shall consider and enact legislation that specifically designates the judicial districts in which the persons employed in the additional assistant district public defender positions created pursuant to subsection (a) will serve.

§ 8-14-113. Direct public defender appellate division.

(a) The district public defenders conference shall establish, and the executive director shall operate, the district public defender appellate division for the purpose of representing indigent persons in direct appeals, pursuant to § 8-14-104, to the Tennessee court of criminal appeals and the Tennessee supreme court.
(b) The executive director, or the executive director's designee, shall be the director of the appellate division.
(c) An assistant public defender of the appellate division must be an attorney licensed to practice law in this state. A person so employed serves at the direction of the executive director and performs such duties as the executive director may require.
(d)
1. (1) The appellate division shall represent indigent persons upon appeal from the circuit or criminal courts in this state, pursuant to § 8-14-104.
2. (2) The appellate division may, however, refuse the appointments where necessary:
  1. (A) Due to a conflict of interest;
  2. (B) If the executive director determines the existing caseload cannot be increased without jeopardizing the appellate division's ability to provide effective representation; or
  3. (C) Where the district public defender deems it necessary for the best interests of the defendant.
(e)
1. (1) In order to effectively and efficiently use the resources of the appellate division, the executive director may:
  1. (A) Select and employ staff attorneys to perform the duties prescribed by this section; and
  2. (B) Fill a full-time employee position with two (2) part-time employees.
2. (2) In order to implement assignments, available funds may be reallocated or transferred, subject to overall budgetary limits.
(f) A person employed as a full-time assistant public defender in the appellate division pursuant to this section is not permitted to engage in the practice of law except as the duties of such position requires. Notwithstanding any other restrictions, attorneys with pending private legal matters at the time of employment with the district public defender appeals division shall have a reasonable length of time to conclude or transfer such cases in keeping with the standards of professional and ethical conduct.
(g) Effective July 1, 2019, there are authorized six (6) appellate attorney positions within the appellate division.
(h) Appellate division attorneys are to be compensated as assistant public defenders pursuant to § 8-14-107.

Part 2 District Public Defenders Conference

§ 8-14-201. Creation.

(a) There is hereby created a district public defenders conference for the state, whose membership shall consist of all district public defenders of the state whose salary is paid in whole or in part out of the state treasury. The attorney general and reporter shall be an ex officio member of the conference and act as its legal advisor.
(b) The public defender of Shelby County and the public defender of Davidson County shall also be members of the conference.

§ 8-14-202. Meetings — Purpose.

Such conference shall meet annually and at other times as herein provided for the consideration of any and all matters pertaining to the discharge of the official duties and obligations of the several members, to the end that there shall be a more prompt and efficient administration of justice in the courts of this state.

§ 8-14-203. Duties.

It is the duty of the conference to give consideration to the enactment of such laws and rules of procedure as in its judgment may be necessary to the more effective administration of justice and thus promote peace and good order in the state. To this end, a committee of its members shall be appointed to draft suitable legislation and submit its recommendations to the general assembly.

§ 8-14-204. Officers — Meetings.

The president of the conference may call meetings at will, upon at least ten (10) days written notice to members, and shall call at least one (1) meeting annually, such annual meeting to be at the same time as that held by the judicial conference of this state. The district public defenders conference shall elect annually a president, a vice president, secretary and such other officers as are necessary.

§ 8-14-205. Duty to attend meetings.

It is the official duty of each member of the conference to attend its meetings unless otherwise officially engaged, or for other good and sufficient reasons.

§ 8-14-206. Expense of attending meetings — Reimbursement.

Every member whose salary is paid in whole or in part by the state shall be entitled to have expenses paid for such attendance. Such expenses shall be paid upon the verified statement of such expenses by the district public defender incurring the same and shall be paid from the general fund.

Part 3 Executive Director of the District Public Defenders Conference

§ 8-14-301. Office of executive director — Creation — Purpose.

There is created the office of executive director of the district public defenders conference. The purpose of this office shall be to assist in improving the administration of justice in Tennessee by coordinating the defense efforts of the various district public defenders and by performing the duties and exercising the powers herein conferred.

§ 8-14-302. Office of executive director — Election — Term — Removal — Salary.

(a) The executive director of the district public defenders conference shall be elected by a simple majority of the membership of the district public defenders conference for a term of four (4) years. The election of the executive director shall be held at the annual meeting of the conference which immediately precedes July 1 of years in which presidential elections are held.
(b) The term of office of the executive director shall begin on July 1 following the election, and shall extend through June 30 of the next year in which a presidential election is held. The executive director shall, however, be subject to removal from office by vote of a majority of the conference membership at any meeting of the conference held during the term of office of the executive director. Upon removal from office of the executive director, or upon a vacancy in the office otherwise occurring during a meeting of the conference, the conference shall elect by vote of a majority of its membership a person to fill the unexpired term of office. Should a vacancy in the office of executive director occur at any other time, the executive committee of the conference shall appoint a person to the office of executive director to serve until the next meeting of the conference, at which time the conference shall, by vote of a majority of its members, elect a person to fill the unexpired term of office of the executive director.
(c) The executive director shall receive a salary equal to that fixed by law for a district public defender.

§ 8-14-303. Office of executive director — Duties.

(a) The executive director of the district public defenders conference shall:
1. (1) Work under the supervision and direction of the executive committee of the district public defenders conference;
2. (2) Assist the district public defenders throughout the state in coordinating the efforts of such district public defenders to perform their duties. Such assistance shall include, but is not limited to:
  1. (A) Obtaining, preparing and supplementing indexes to the unreported decisions of the criminal court of appeals and the supreme court of Tennessee relating to criminal matters;
  2. (B) Preparation of a basic defenders' manual and educational materials; and
  3. (C) Preparation and distribution of uniform appropriate forms;
3. (3) Initiate conference calls between district public defenders and coordinate efforts of district public defenders involved in defending cases and crimes crossing district lines;
4. (4) Serve in a liaison capacity among the various branches of state government and the divisions thereof, including, but not limited to, the courts, the general assembly, the executive department and the office of attorney general and reporter;
5. (5) Administer the accounts of the judicial branch of government which relate to the offices of the district public defenders and prepare, approve and submit budget estimates and appropriations necessary for the maintenance and operation of the offices of district public defenders and make recommendations with respect thereto;
6. (6) Draw and approve all requisitions for the payment of public moneys appropriated for the maintenance and operation of the judicial branch of government which relate to the offices of the district public defenders, and shall audit claims and prepare vouchers for presentation to the department of finance and administration, including payroll warrants, expense warrants, and warrants covering the necessary costs of supplies, materials and other obligations by the various offices with respect to which fiscal responsibility is exercised;
7. (7) Have authority, within budgetary limitations, to provide the district public defenders with minimum law libraries, the nature and extent of which shall be determined in every instance by the executive director on the basis of need. All books thus furnished shall remain the property of the state, and shall be returned to the custody of the executive director by each district public defender upon the retirement or expiration of the official duties of each such officer; and
8. (8) Manage the operations and administer the accounts that relate to the appellate division.
(b) All functions performed by the executive director which involve expenditures of state funds shall be subject to the same auditing procedures by the commissioner of finance and administration and the comptroller of the treasury as required in connection with the expenditure of all other state funds.

§ 8-14-304. Duties of executive director.

The executive director of the district public defenders conference shall attend to such duties as may be assigned to the executive director by the district public defenders conference or the executive committee of such conference.

§ 8-14-305. Executive director — Assistants and staff.

(a) The executive director shall, subject to the approval of the duly elected officers of the district public defenders conference, appoint a deputy executive director, a budget officer and a director and such other assistants and clerical personnel as are necessary to enable the performance of the duties of the office.
(b) Compensation for other assistants and clerical personnel shall be fixed by the executive director with the approval of the executive committee of the district public defenders conference.
(c) A newly elected or appointed executive director, deputy executive director, or employee licensed as an attorney is not permitted to engage in the practice of law except as the duties of such position requires. Notwithstanding any other restrictions, attorneys with pending private legal matters at the time of employment with the office of executive director shall have a reasonable length of time to conclude or transfer such cases in keeping with the standards of professional ethical conduct.

§ 8-14-306. Executive director — Office and supplies.

The executive director shall be provided with suitable office space in the supreme court building or other convenient and suitable office space and with all office equipment and supplies necessary to perform the duties of the office.

§ 8-14-307. Executive director and personnel — State employees.

The executive director and personnel of the district public defenders conference shall be state employees, entitled to all state employee benefit programs.

§ 8-14-308. Submission of budget.

Each year's budget for the operation of the office of executive director of the district public defenders conference shall be submitted to the criminal justice committee of the house of representatives and the judiciary committee of the senate prior to approval of the budget by the general assembly.

Part 4 District Public Defender's Fiscal Affairs

§ 8-14-401. Fiscal officer.

(a) Whereas the various district public defenders may be entitled to receive funding from various local, state and federal government sources, and private donors, and an orderly system for receiving and disbursing same is necessary, the district public defenders are hereby authorized and empowered to designate the executive director of the district public defenders conference as the fiscal officer for the judicial district served by a district public defender.
(b) The executive director, or the executive director's designee, is hereby authorized and empowered to receive and disburse funds so received for any lawful purpose not inconsistent with this part, subject to the guidelines established by the district public defenders conference.

Chapter 15 Auditors

§ 8-15-101. Employment by counties.

The counties are authorized to employ accountants to audit the books of the officers and employees of the counties. Prior to any county authorizing the employment of such auditors or accountants, the county shall request and must obtain the approval of the comptroller of the treasury. The employment of such auditors or accountants is subject to the requirements of § 4-3-304.

§ 8-15-102. Employment by committee — Bond.

Such auditor must be employed by a committee of not less than three (3), appointed by the county legislative body from the members of the legislative body, which committee shall require the accountant so employed to furnish bond for the faithful performance of the accountant's duties. The bond must be prepared, executed, filed, and recorded in accordance with title 8, chapter 19.

§ 8-15-103. Report.

The report of such auditor or accountant shall be furnished to the comptroller of the treasury and members of the county legislative body, and all citizens of the county shall have access to the report.

§ 8-15-104. Appropriation for expenses.

The county legislative body has the authority to appropriate funds out of the general fund of the county for the purpose of defraying the expenses of such audit.

Chapter 16 Notaries Public

Part 1 Qualifications

§ 8-16-101. Election — Residency requirement — Eligibility.

(a) There shall be elected by the members of the county legislative body as many notaries public as they may deem necessary. In addition to any other requirement imposed by law, a person must be a United States citizen or a legal permanent resident in order to hold the office of notary public. At the time of their election, all notaries must be residents of the county, or have their principal place of business in the county, from which they were elected. If an individual's principal place of business is in any county in the state of Tennessee, the individual is eligible for election as a notary in that county, although the individual may reside in a state other than Tennessee.
(b) Nothing contained within § 5-5-102(c)(2), or any other law, shall be construed to prohibit a member of a county legislative body from also serving as a notary public; provided, that such member complies with the requirements established within this part.
(c) In addition to any other eligibility requirements, each person applying for election as a notary public shall certify under penalty of perjury that such person:
1. (1) Has never been removed from the office of notary public for official misconduct;
2. (2) Has never had a notarial commission revoked or suspended by this or any other state; and
3. (3) Has never been found by a court of this state or any other state to have engaged in the unauthorized practice of law.

§ 8-16-102. Approval of notaries.

All notaries shall be approved by the governor. For purposes of this section, “approved” means to accept or to sanction, and does not mean to appoint.

§ 8-16-103. Term of office.

The term of office of notaries public shall be four (4) years, such term to begin on the date of the issuance of their commissions by the governor.

§ 8-16-104. Surety bond.

Every notary public, before entering upon the duties of office, shall give bond executed by a surety company authorized to do business in this state. If a notary public cannot obtain a bond executed by a surety company authorized to do business in this state, the county legislative body may approve two (2) or more good sureties in lieu of a bond from a surety company. The bond must be in the penalty amount of ten thousand dollars ($10,000), payable to this state, conditioned upon the faithful discharge of the notary's duties. The notary public shall present the executed official bond to the county clerk in the county where elected. The county clerk shall review the bond presented by the notary public for compliance with this section, and upon the clerk's satisfaction of compliance with this section, shall file the bond in the office of the county clerk. A person elected a notary public that performs an official act as a notary public prior to filing a bond as required by this section commits a Class C misdemeanor.

§ 8-16-105. Oath of office.

A notary public shall also take and subscribe, before the county clerk or the clerk's deputy within the notary public's county, an oath to support the constitutions of this state and of the United States, and an oath that the notary will, without favor or partiality, honestly, faithfully, and diligently discharge the duties of notary public.

§ 8-16-106. Payment of fee — Issuance of commission.

It is the duty of any person elected a notary public, who desires to qualify for such office, to pay to the county clerk of the county in which the notary resides or has principal place of business and was elected, the fee required to be paid into the office of the secretary of state for the issuance of a commission to a notary public. Thereupon, it is the duty of the county clerk to certify the notary's election to the secretary of state and forward to the latter the fee. It is the duty of the secretary of state, upon receipt of the certificate and fee, to forward such commission to the county clerk, when the same has been issued by the governor, and the county clerk shall promptly notify the person to whom such commission is issued that the same has been received in the clerk's office. The county clerk shall be entitled to a fee of seven dollars ($7.00), due with payment of the fee to the secretary of state, for the services performed according to this section.

§ 8-16-107. Delivery of commission — Clerk's record.

The county clerk shall not deliver the commission until the person elected has taken the oath and executed the bond, as required. The county clerk shall make a record of the date of the issuance and the expiration of the commission, noting the same on the bond executed by the notary public and also in the minute entry showing the notary's qualification as such notary public.

§ 8-16-108. [Reserved]

§ 8-16-109. Name change — Relocation of notary's residence or principal place of business to another county.

If a notary public's surname changes, or if a notary public moves such notary's residence or principal place of business out of the county from which the notary was elected and commissioned to another county in Tennessee, the notary shall notify the county clerk of the county from which the notary was elected and commissioned and shall pay to such county clerk a fee of seven dollars ($7.00). The county clerk shall thereupon notify the secretary of state of the change of address or name change and forward to the secretary of state two dollars ($2.00) of the seven-dollar fee received from the notary.

§ 8-16-110. Relocation of notary's residence or principal place of business to another state — Surrender of commission.

(a) If a notary public moves such notary's residence or principal place of business out of the state of Tennessee, such notary is no longer qualified to act as a Tennessee notary public and shall surrender such notary's commission.
(b) It is an offense for any person who has been commissioned as a Tennessee notary public to take acknowledgements or otherwise act in an official capacity after moving out of the state of Tennessee.
(c) A violation of this section is a Class C misdemeanor.

§ 8-16-111. [Reserved]

§ 8-16-112. Scope of authority — Powers — Electronic signature.

(a) A Tennessee notary public is authorized to act in any county in the state and has the power to acknowledge signatures upon personal knowledge or satisfactory proof, to administer oaths, to take depositions, to qualify parties to bills in chancery, and to take affidavits, in all cases. Furthermore, in all such cases the notary public's seal shall be affixed and the notary public shall sign such documents in ink by the notary's own hand unless otherwise provided by law.
(b) The requirement of a notary public's signature in ink or by the notary's hand and a seal is satisfied if an electronic signature or a digitized image of a wet signature of the person authorized to perform that act, and all other information required to be included, is attached to or logically associated with the document or signature. A physical or electronic image of a stamp, impression, or seal need not accompany an electronic signature.

§ 8-16-113. Title of notary public for the state of Tennessee.

Any notary public fulfilling the requirements of this part shall be known as a notary public for the state of Tennessee, and the official signature of such notary public shall so indicate.

§ 8-16-114. Seal of notary public for the state of Tennessee — Imprinting of seal — Electronic image — Fee.

(a) The secretary of state shall prescribe and design an official seal to be used by a Tennessee notary public. The seal of office may be imprinted by a rubber or other type of stamp. Such stamp shall imprint the seal of office in any color other than black or yellow, provided the color used to imprint the seal shall be clearly legible and appear as black when photocopied on a non-color copier. Nothing in this subsection (a) shall be construed to require a notary public to procure such a rubber or other stamp or to use a particular color of ink with the stamp prior to the expiration of the notary's term of office, and all impression notary seals shall be valid for use until the end of the notary's term of office. Notwithstanding any other law or this subsection (a) to the contrary, the use of an embossed notary seal after May 12, 2003, shall not render such an acknowledgement defective. No person shall incur any civil or criminal liability for failure to imprint the seal of office in a color required by this subsection (a) nor shall any document or title imprinted with a seal of the wrong color be invalid because of such failure.
(b) The requirement in subsection (a) of an official seal of office or stamp imprinted in color ink is satisfied by an electronically transmitted document, if the document legibly reproduces the required elements of the seal. A physical or electronic image of a stamp, impression, or seal need not accompany an electronic signature.
(c) Every notary public shall, at such notary's own expense, procure a seal of office, which the notary shall surrender to the county legislative body when the notary resigns, or at the expiration of such notary public's term of office, and which such notary's representatives, in case of such notary's death, shall likewise surrender, to be cancelled.
(d) At the notary public's request, the county clerk may obtain an official seal or any part thereof for the notary public. Any county clerk providing this service may charge a fee not to exceed twenty percent (20%) of the cost of the seal or part obtained for the notary public.

§ 8-16-115. Expiration of commission indicated on instruments.

Every certificate of acknowledgement officially executed by a Tennessee notary public shall include the true date of the notary's commission expiration. Failure to include the commission expiration date shall not render void or invalidate such certificate of acknowledgement.

§ 8-16-116. Receipt of instruments in evidence.

The attestations, protestations, and other instruments of publication or acknowledgment, made by any notary public under seal, shall be received in evidence.

§ 8-16-117. Notice of deposition of notary public.

The deposition of a notary public may be taken, whether a suit be pending or not, on ten (10) days' notice to the opposite party, if resident in the state, and forty (40) days' notice out of the state, to be read as evidence between the same parties in any suit then or afterward depending, should the notary die or leave the state before the trial.

§ 8-16-118, 8-16-119. [Reserved]

§ 8-16-120. Acting after expiration of commission.

It is unlawful for any person who has been commissioned as a notary public, either as a result of election or upon direct appointment by the governor, to take acknowledgments or otherwise act in an official capacity after the expiration of such notary's commission. A violation of this section is a Class C misdemeanor.

§ 8-16-121. Depositions taken by notaries public of other states.

A notary public, duly and lawfully commissioned by the proper authorities of another state and empowered by the law of such state to take depositions, is authorized to take depositions to be used in the courts of this state, upon the same terms that are provided for the taking of depositions by other officials in such states. But the certificate of such notary shall show the date of the commencement and expiration of the commission under which the notary may be acting.

Part 2 Consumer Protection

§ 8-16-201. Notice that notary public is not an attorney.

(a)
1. (1) A notary public who is not an attorney licensed to practice law in this state who advertises in any language the person's services as a notary public by radio, television, signs, pamphlets, newspapers, telephone directory or other written or oral communication, or in any other matter, shall include with such advertisement the notice set forth in this section in English and in the language used in the advertisement. The notice shall be of conspicuous size and shall state:
  2. “I AM NOT AN ATTORNEY LICENSED TO PRACTICE LAW IN THE STATE OF TENNESSEE, AND I MAY NOT GIVE LEGAL ADVICE OR ACCEPT FEES FOR LEGAL ADVICE.”
2. (2) An advertisement on radio or television must include substantially the same message.
(b) A notary public who is not an attorney licensed to practice law in this state is prohibited from advising or assisting in selecting or completing forms affecting or relating to a person's immigration status, unless that conduct is specifically authorized by federal law.

§ 8-16-202. Prohibited representations or advertising.

A notary public who is not an attorney licensed to practice law is prohibited from representing or advertising that the notary public is an immigration consultant, immigration paralegal or expert on immigration matters unless the notary public is an accredited representative of an organization recognized by the board of immigration appeals pursuant to 8 CFR 292.2 or any subsequent federal law.

§ 8-16-203. Compliance.

Any failure to comply with the foregoing provisions constitutes an unfair or deceptive act as provided for in § 47-18-104.

§ 8-16-204. Exceptions.

This part shall not apply to:
1. (1) Notary services offered by a state or national bank, trust company, savings and loan association, savings bank or by any affiliate or subsidiary of such state or national bank, trust company, savings and loan association or savings bank or any agent or employee thereof; or
2. (2) Any offering of notary services or listing of fees for notary services as a part of the closing of any loan transaction, extension of credit, security instrument or transfer of title.

Part 3 Online Notary Public Act

§ 8-16-301. Short title.

This part shall be known and may be cited as the “Online Notary Public Act.”

§ 8-16-302. Part definitions.

As used in this part:
1. (1) “Appear” or “appearance” or “personally appear” means:
  1. (A) Appearing physically before a notary public; or
  2. (B) Appearing before an online notary public by means of an interactive two-way audio and video communication that meets the online notarization requirements under rules promulgated by the secretary of state;
2. (2) “Credential analysis” means a process or service operating as outlined in rules promulgated by the secretary of state, through which a third person affirms the validity of a government-issued identification credential through review of public and proprietary data sources;
3. (3) “Electronic” means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities;
4. (4) “Electronic document” means information that is created, generated, sent, communicated, received, or stored by electronic means;
5. (5) “Electronic notarial certificate” means the portion of a notarized electronic document that is completed by an online notary public and contains the following:
  1. (A) The online notary public's electronic signature, electronic seal, title, and commission expiration date;
  2. (B) Other information required by the secretary of state in rule concerning the date and place of the online notarization; and
  3. (C) The facts attested to or certified by the online notary public in the particular notarization;
6. (6) “Electronic seal” means information within a notarized electronic document that confirms the online notary public's name, jurisdiction, identifying number, and commission expiration date and generally corresponds to information in notary seals used on paper documents;
7. (7) “Electronic signature” means an electronic sound, symbol, or process attached to or logically associated with an electronic document and executed or adopted by a person with the intent to sign the electronic document;
8. (8) “Identity proofing” means a process or service operating according to criteria as outlined in rules promulgated by the secretary of state, through which a third person affirms the identity of an individual through review of personal information in public and proprietary data sources;
9. (9) “Notarial act” means the performance by an online notary public of a function authorized under § 8-16-112;
10. (10) “Online notarization” means a notarial act performed by means of two-way video and audio conference technology that meets the standards adopted under § 8-16-305;
11. (11) “Online notary public” means a notary public who is a commissioned notary public and has been additionally commissioned to perform online notarizations as outlined in this part;
12. (12) “Principal” means an individual:
  1. (A) Whose electronic signature is notarized in an online notarization; or
  2. (B) Who appears before and provides an acknowledgement of or takes an oath or affirmation from the online notary public but not in the capacity of a witness for the online notarization; and
13. (13) “Remote presentation” means transmission to the online notary public through communication technology of an image of a government-issued identification credential that is of sufficient quality to enable the online notary public to:
  1. (A) Identify the individual seeking the online notary public's services; and
  2. (B) Perform credential analysis.

§ 8-16-303. Applicability of part.

This part only applies to online notarizations.

§ 8-16-304. Rulemaking.

The secretary of state shall promulgate rules necessary to implement this part, including rules to facilitate online notarizations. Rules must be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.

§ 8-16-305. Standards for online notarization.

(a) The secretary of state shall promulgate by rule standards for online notarization in accordance with this part, including standards for credential analysis and identity proofing.
(b) The secretary of state may confer with other appropriate agencies on matters relating to equipment, security, and technological aspects of the online notarization standards.

§ 8-16-306. Application — Qualifications.

(a) A person who has been commissioned as a notary public may apply to the secretary of state to be commissioned as an online notary public in the manner provided by this section.
(b) A person qualifies to be commissioned as an online notary public by:
1. (1) Satisfying the qualification requirements for appointment as a notary public under part 1 of this chapter; and
2. (2) Submitting to the secretary of state an application in the form prescribed by the secretary of state that satisfies the secretary of state that the applicant is qualified.
(c) The application required by subsection (b) must include:
1. (1) The applicant's legal name as listed in the records of the county where the applicant is commissioned as a notary;
2. (2) The applicant's physical address in this state, which includes the street address, city, state, and zip code. However, the applicant may provide a post office box number for purposes of receiving mail from the secretary of state;
3. (3) A valid email address for the applicant;
4. (4) A valid telephone number of the applicant;
5. (5) The county in this state where the notary was commissioned as well as the date the notary was commissioned and the date the notary commission expires;
6. (6) Any other information deemed necessary by the secretary of state for the purpose of determining whether the applicant qualifies to become an online notary; and
7. (7) A certification that the applicant will comply with the secretary of state's standards promulgated pursuant to § 8-16-305.
(d) The secretary of state may charge a fee for an application submitted under this section not to exceed an amount necessary to administer this part.

§ 8-16-307. Performance of notarial acts.

An online notary public:
1. (1) Is a notary public for purposes of this chapter, is subject to this chapter, and must be appointed and commissioned as a notary public under this chapter;
2. (2) May perform notarial acts as provided in part 1 of this chapter; and
3. (3) May perform an online notarization, without regard to the physical location of the principal, if the notary is physically located in this state.

§ 8-16-308. Electronic record of online notarizations.

(a) An online notary public shall keep a secure electronic record of electronic documents notarized by the online notary public. The record may be kept in one (1) or more electronic journals. The electronic record must contain for each online notarization:
1. (1) The date and time of the notarization;
2. (2) The type of notarial act;
3. (3) The type, the title, or a description of the electronic document or proceeding;
4. (4) The printed name and address of each principal involved in the transaction or proceeding;
5. (5) Evidence of identity of each principal involved in the transaction or proceeding in the form of:
  1. (A) A statement that the person is personally known to the online notary public;
  2. (B) A notation of the type of identification document provided to the online notary public;
  3. (C) A record of the identity verification made, if applicable; or
  4. (D)
    1. (i) The printed name and address of each credible witness swearing to or affirming the person's identity; and
    2. (ii) For each credible witness not personally known to the online notary public, a description of the type of identification documents provided to the online notary public;
6. (6) A recording of any video and audio conference that is the basis for satisfactory evidence of identity and a notation of the type of identification presented as evidence; and
7. (7) The fee, if any, charged for the notarization.
(b) The online notary public shall take reasonable steps to:
1. (1) Ensure the integrity, security, and authenticity of online notarizations;
2. (2) Maintain a backup for the electronic record required by subsection (a); and
3. (3) Protect the backup record from unauthorized use.
(c) The electronic record required by subsection (a) must be maintained for at least five (5) years after the date of the transaction or proceeding requiring notarization. The notary, or a guardian or personal representative of an incapacitated or deceased notary, may by agreement use a repository acting in accordance with any rules established under this chapter to maintain such records.

§ 8-16-309. Use of electronic record, signature, and seal.

(a) An online notary public shall take reasonable steps to ensure that any registered device used to create an electronic signature is current and has not been revoked or terminated by the device's issuing or registering authority.
(b) An online notary public shall keep the online notary public's electronic record, electronic signature, and electronic seal secure and under the online notary public's exclusive control, which includes access protection through the use of passwords or codes under control of the notary public. No online notary public shall allow another person to use the online notary public's electronic record, electronic signature, or electronic seal.
(c) An online notary public may only use the online notary public's electronic signature for performing online notarizations.
(d) An online notary public shall attach the online notary public's electronic signature and electronic seal to the electronic notarial certificate of an electronic document in a manner that is capable of independent verification and renders any subsequent change or modification to the electronic document evident.
(e) An online notary public shall immediately notify an appropriate law enforcement agency and the secretary of state of the theft or vandalism of the online notary public's electronic record, electronic signature, or electronic seal. An online notary public shall immediately notify the secretary of state of the loss or use by another person of the online notary public's electronic record, electronic signature, or electronic seal.

§ 8-16-310. Online notarization procedures.

(a) In performing an online notarization, an online notary public shall verify the identity of a person creating an electronic signature at the time that the signature is taken by using two-way video and audio conference technology that meets the requirements of this part and rules promulgated pursuant to this part. Identity may be verified by:
1. (1) The online notary public's personal knowledge of the person creating the electronic signature; or
2. (2)
  1. (A) Remote presentation by the person creating the electronic signature of a government-issued identification credential, including a passport or driver's license, that contains the signature and a photograph of the person;
  2. (B) Credential analysis of the credential described in subdivision (a)(2)(A); and
  3. (C) Identity proofing of the person described in subdivision (a)(2)(A).
(b) The online notary public shall take reasonable steps to ensure that the two-way video and audio communication used in an online notarization is secure from unauthorized interception.
(c) The electronic notarial certificate for an online notarization must include a notation that the notarization is an online notarization.
(d) The validity of an online notarization performed by an online notary public of this state in accordance with this chapter shall be determined by applying the laws of this state.

§ 8-16-311. Fees for online notarization.

An online notary public or the online notary public's employer may charge a fee in an amount not to exceed twenty-five dollars ($25.00) each for performing an online notarization in addition to any other fees authorized under this chapter.

§ 8-16-312. Termination of online notary public's commission.

(a) The secretary of state shall terminate the commission of an online notary public if the online notary fails to comply with this chapter.
(b) Except as provided in subsection (c), an online notary public whose commission terminates shall destroy the coding, disk, certificate, card, software, or password that enables electronic affixation of the online notary public's official electronic signature or seal. The online notary public shall certify compliance with this subsection (b) to the secretary of state as provided in rule.
(c) A former online notary public whose commission terminated for a reason other than revocation or a denial of renewal is not required to destroy the items described in subsection (b) if the former online notary public is recommissioned as an online notary public with the same electronic signature and seal within three (3) months after the former commission terminated.

§ 8-16-313. Wrongful possession of software or hardware — Penalty.

(a) It is an offense for a person who, without authorization, knowingly obtains, conceals, damages, or destroys the certificate, disk, coding, card, program, software, or hardware enabling an online notary public to affix an official electronic signature or electronic seal.
(b) A violation of this section is a Class D felony.

Chapter 17 Ethical Standards for Officials and Employees

§ 8-17-101. Legislative intent.

It is the intent of the general assembly that the integrity of the processes of local government be secured and protected from abuse. The general assembly recognizes that holding public office and public employment is a public trust and that citizens of Tennessee are entitled to an ethical, accountable and incorruptible government.

§ 8-17-102. Chapter definitions — Application to jointly created instrumentalities, utility districts and school districts.

(a) As used in this chapter, unless the context otherwise requires:
1. (1) “Commission” means the Tennessee ethics commission;
2. (2) “County” means a county, metropolitan or consolidated government, inclusive of any boards, commissions, authorities, corporations or other instrumentalities appointed or created by the county or an official of the county. Furthermore, for the purpose of this chapter, the county election commission shall be considered an instrumentality of county government; and the administrator of elections and other employees of the election commission shall be considered county employees. Likewise, for the purpose of this chapter, the county health department shall be considered a county department and its employees shall be considered county employees;
3. (3) “Ethical standards” includes rules and regulations regarding limits on, and/or reasonable and systematic disclosure of, gifts or other things of value received by officials and employees that impact or appear to impact their discretion, and includes rules and regulations regarding reasonable and systematic disclosure by officials and employees of their personal interests that impact or appear to impact their discretion. The term “ethical standards” does not include personnel or employment policies or policies or procedures related to operational aspects of governmental entities;
4. (4) “Municipality” means an incorporated city or town, inclusive of any boards, commissions, authorities, corporations or other instrumentalities appointed or created by the municipality; and
5. (5) “Officials and employees” means and includes any official, whether elected or appointed, officer, employee or servant, or any member of any board, agency, commission, authority or corporation, whether compensated or not, or any officer, employee or servant thereof, of a county or municipality.
(b) If a board, commission, authority, corporation or other instrumentality is created by two (2) or more local government entities, such creating entities shall, by amendment to the interlocal agreement or other agreement creating such joint instrumentality, designate the ethical standards that govern the jointly created instrumentality.
(c) Utility districts shall be considered separate governmental entities and shall be governed by ethical standards established by the board of commissioners of the utility district in conformity with § 8-17-105(b). Water, wastewater and gas authorities created by a private act or under the general law shall be considered separate governmental entities and shall be governed by ethical standards established by the governing board of the water, wastewater or gas authority in conformity with § 8-17-105(b).
(d) County, municipal and special school districts shall be considered separate governmental entities and shall be governed by ethical standards established by the board of education of the school district.

§ 8-17-103. Adoption of ethical standards.

(a) Not later than June 30, 2007, the governing body of each entity covered by this chapter shall adopt by ordinance or resolution, as appropriate, ethical standards for all officials and employees of such entity. To the extent that an issue covered by an ethical standard is addressed by a law of general application, public law of local application, local option law, or private act, any ethical standard adopted by a governing body shall not be less restrictive than such laws.
(b) By resolution of the county legislative body, any county having a population of eight hundred thousand (800,000) or more, according to the 2000 census or any subsequent federal census, may elect to include all of its administrative officials and employees and all of its legislative officials and employees within the meaning and scope of title 3, chapter 6, part 3, as if the county officials and employees were officials and employees of state government. Upon adopting the resolution on or before June 30, 2007, the county shall be deemed to be in compliance with the requirements of this part; provided, that the county shall periodically reimburse the Tennessee ethics commission for the commission's increased costs arising from oversight and regulation of the county officials and employees.

§ 8-17-104. Standards open to public inspection — Filing standards and amendments with ethics commission — Notifications.

(a) Each entity covered by this chapter shall maintain, for public inspection, the ethical standards of such entity and shall cause a copy of the adopted standards to be filed with the ethics commission. Any amendments or other modifications to the ethical standards shall also be filed with the commission as soon as practical after adoption by the governing body.
(b) By no later than January 1, 2024, each entity covered by this chapter shall notify the ethics commission, either in writing or electronically by email, of the primary person responsible for administering and enforcing the entity's ethical standards. The entity also shall provide the commission with the person's contact information, including the person's business address, phone number, and email address. The entity shall notify the commission of any change in such responsibility within thirty (30) calendar days of such change and shall provide the name and contact information for an interim official serving in this capacity until such time as a permanent successor can be identified.
(c) By no later than January 31, 2024, and on each January 31 thereafter, the commission shall notify the speaker of the house of representatives and the speaker of the senate, as well as the comptroller of the treasury, of each entity that is not in compliance with this part.

§ 8-17-105. Adoption of models of ethical standards.

(a) The municipal technical advisory service (MTAS) for municipalities, the county technical assistance service (CTAS) for counties, and the Tennessee School Boards Association (TSBA) for school districts, in order to provide guidance and direction, shall disseminate models of ethical standards for officials and employees of those entities. The models shall be filed with the commission. Any municipality, county or school district that adopts the ethical standards for officials and employees of local government or school districts promulgated by MTAS, CTAS or TSBA is not required to file the policy with the commission but shall notify the commission in writing that the policy promulgated by MTAS, CTAS or TSBA was adopted and the date the action was taken.
(b)
1. (1) In order to provide guidance and direction to water, wastewater, and gas authorities created by a private act or under the general law and to utility districts, the Tennessee Association of Utility Districts (TAUD) shall prepare a model of ethical standards for officials and employees of water, wastewater, and gas authorities created by private act or under the general law and of utility districts. The model must be submitted to the Tennessee board of utility regulation for its review and approval pursuant to § 7-82-702(a)(6). The board shall approve by order the TAUD model of ethical standards before the model is adopted by a water, wastewater, or gas authority created by a private act or under the general law or by a utility district. After the board approves the TAUD model, the TAUD model must be filed with the commission.
2. (2) The governing body of a water, wastewater, or gas authority created by a private act or under the general law, or of a utility district, that adopts ethical standards for its officials and employees shall either adopt the TAUD model of ethical standards approved by the board or adopt ethical standards that are more stringent than the TAUD model. If a water, wastewater, or gas authority created by a private act or under the general law, or a utility district, adopts ethical standards that are different from and more stringent than the TAUD model, then the more stringent ethical standards must be submitted to the board, which shall make a finding by order that the ethical standards adopted are more stringent than the TAUD model.
3. (3) [Deleted by 2023 amendment.]
4. (4) [Deleted by 2023 amendment.]

§ 8-17-106. Removal from office for failure to adopt ethical standards — Violations of standards.

(a) Members of a governing body of an entity covered by this chapter who fail to adopt ethical standards as provided in this chapter shall be subject to removal from office as provided in chapter 47 of this title.
(b) Violations of ethical standards by officials or employees of entities covered by this chapter shall be enforced in accordance with provisions of existing law; provided, that no civil penalties for a violation of title 3, chapter 6, part 3 shall be imposed by the ethics commission on an employee of entities covered by this chapter. The ethics commission shall instead refer the commission's findings and recommendations for appropriate action to the appropriate official with supervisory authority over the person.

Chapter 18 Eligibility, Commissions, and Oaths

§ 8-18-101. Eligibility to hold office.

All persons eighteen (18) years of age or older who are citizens of the United States and of this state, and have been inhabitants of the state, county, district, or circuit for the period required by the constitution and laws of the state, are qualified to hold office under the authority of this state except:
1. (1) Those who have been convicted of offering or giving a bribe, or any other offense declared infamous under § 40-20-112, unless restored to citizenship under title 40, chapter 29; except those who have been convicted of an infamous crime if the offense was committed in the person's official capacity or involved the duties of the person's office, in which case the person shall forever be disqualified from holding office;
2. (2) Those against whom there is a judgment unpaid for any moneys received by them, in any official capacity, due to the United States, to this state, or any county of this state;
3. (3) Those who are defaulters to the treasury at the time of the election, and the election of any such person shall be void;
4. (4) Soldiers, sailors, marines, or airmen in the regular army or navy or air force of the United States; and
5. (5) Members of congress, and persons holding any office of profit or trust under any foreign power, other state of the union, or under the United States.

§ 8-18-102. Penalty for acceptance of office by ineligible person.

(a) Any person taking on any office in this state, by election or appointment, under any of the disqualifications specified in § 8-18-101(2)–(5), commits a Class C misdemeanor.
(b) Any person taking on any office in this state, by election or appointment, under the disqualification specified in § 8-18-101(1), commits a Class A misdemeanor.

§ 8-18-103. Residence of officers.

All officers shall reside in this state, and keep their offices at such places as are or may be designated by law.

§ 8-18-104. Terms of office — Filling of vacancies.

Except as provided in title 17, chapter 4, the term of each judicial and civil officer shall be computed from September 1 next succeeding election. No appointment or election to fill a vacancy shall be made for a period of time extending beyond the unexpired term. Every officer shall hold office until a successor is elected or appointed and qualified. No special election shall be held to fill a vacancy in the office of judge or district attorney general, but at the time fixed for the biennial election of civil officers; such vacancy shall be filled at the next biennial election occurring more than thirty (30) days after the vacancy occurs.

§ 8-18-105. Terms of appointive officers.

In reckoning the time of the terms of appointees to all offices, the terms of which are limited to two (2) years and are filled exclusively by executive appointment, reference shall be had to the beginning of the term of the executive making the appointment. Regardless of the time of making such appointment, it shall not be held to extend beyond the expiration of the term of the executive making the same, but the term of such appointee shall expire with the term of the executive making the appointment. This section shall not be construed to prevent such appointee from holding such office until a successor is appointed and qualified. This section does not apply to executive appointments to fill vacancies in unexpired terms of elective offices, nor does it apply to offices purely appointive where the term of such office is more than two (2) years.

§ 8-18-106. Officers commissioned.

The following officers are commissioned, namely: senators and representatives in congress, judges of the several courts, the district attorney general of each district, judges of courts of general sessions and notaries public, and the executive officers of the state, except the governor.

§ 8-18-107. Administration of oaths of office.

(a) In all cases in which it is not otherwise provided by law, the oaths of office may be administered by any officer authorized to administer an oath. Such oaths shall be written out and subscribed by the person taking them, and shall be accompanied with the certificate of the officer administering the oaths, specifying the day and year when taken.
(b) The governor or an active or retired supreme court justice may administer the oath to a supreme court justice. The governor, an active or retired supreme court justice, an active or retired inferior court judge, or an active or retired general sessions judge may administer the oath to an inferior court judge. Except as otherwise provided by law, the governor, an active or retired supreme court justice, an active or retired inferior court judge, or an active or retired general sessions judge may administer the oath to any elected or appointed official.
(c) The oath may be administered at any time after an appointment, in the case of appointed officials, or in the case of elected officials after the election, but before the judge or public official assumes office, so long as the results of the election establishing that the person taking the oath won the election are certified by the appropriate legal authority. Even though an official may file an oath before the scheduled start of a term of office, the official may not take office until the term officially begins.

§ 8-18-108. Filing of oaths of state and judicial officers.

Such oaths shall, when taken by the governor, a judge of the supreme court, a judge of the circuit court, a chancellor, the secretary of state, the comptroller of the treasury, the state treasurer, a district attorney general, or any other officer whose duties are not limited to one (1) county, unless it is otherwise provided, be filed, with the certificate required by § 8-18-107, in the office of the secretary of state.

§ 8-18-109. Filing of oaths of county officers — Administration of oaths.

(a) Judges of courts of general sessions, sheriffs, constables, and other officers whose general duties are confined to a single county, as well as retired supreme court justices and retired inferior court or general sessions judges, shall, unless it is otherwise provided, file such oaths and certificate in the office of the county clerk.
(b) Notwithstanding any law to the contrary, the county mayor, the county clerk, judges of courts of general sessions, judicial commissioners or magistrates as authorized by a judge of the court or the county mayor, or a judge of any court of record in the county may administer the oath of office for any elected or appointed official. The oath may be administered at any time after an appointment, in the case of appointed officials, or in the case of elected officials after the election, but before the judge or public official assumes office, so long as the results of the election establishing that the person taking the oath won the election are certified by the appropriate legal authority. Even though an official may file an oath before the scheduled start of a term of office, the official may not take office until the term officially begins.

§ 8-18-110. Endorsement of time of filing.

The officer in whose office these oaths are required to be filed shall endorse thereon the day and year in which they were filed and sign the endorsement.

§ 8-18-111. Form of oath of office.

The official oath, unless otherwise expressly prescribed by law, shall be in the following form: “I do solemnly swear that I will perform with fidelity the duties of the office to which I have been appointed (or elected, as the case may be), and which I am about to assume.”

§ 8-18-112. Deputies' oaths.

Whenever any officer is authorized or required to appoint a deputy, such deputy, before proceeding to act, shall take the constitutional oaths and oath of office, which shall be accompanied by the same certificate, filed in the same office, and with the same endorsement, as the oaths of such deputy's principal. This section does not apply to deputies who may be employed in particular cases only.

§ 8-18-113. Acting without oath.

Any officer or deputy required by law to take and file such oaths, who enters upon the duties of the office without first taking and filing the same as prescribed, commits a Class C misdemeanor.

§ 8-18-114. Application of oath provisions to future offices.

Sections 8-18-107 – 8-18-113 apply to the oaths of office of all public officers of this state whose office may be established hereafter, unless the contrary be expressly provided.

Chapter 19 Bonds of Officers

Part 1 Form and Filing of Bonds

§ 8-19-101. Execution of bonds — Form — Blanket bonds — Self-insurance in lieu of bonds or insurance.

(a) The official bonds of all state and county officers, now required by law to furnish official bonds, shall be executed by such officials as principal and may be executed by some surety company authorized to do business in the state of Tennessee, as surety.
(b)
1. (1) The form of all official bonds of all state officials and employees and all county officials and employees shall be prescribed by the comptroller of the treasury, with the approval of the attorney general and reporter. Such prescribed forms shall be filed in the office of the secretary of state. All official bonds of all such officers and employees executed hereafter shall be in the prescribed form if one has been provided. To the extent any such official bond is not in the prescribed form, the same shall stand reformed by implication of law so as to comply with the prescribed form.
2. (2) Should the prescribed form be amended, the amendment shall affect only bonds and undertakings executed subsequently thereto. Bonds shall continue to be executed in their present form until a form is prescribed therefor under this law. Forms shall be prepared so as to comply with the requirements of statutes of Tennessee relating to such bonds. Where the conditions of bonds are prescribed by statute, the statute shall prevail.
(c) Nothing in this chapter or elsewhere in this code shall be construed as prohibiting the use by any county, municipality, or metropolitan government, of a blanket bond for coverage of two (2) or more of its officials. A separate rider or attachment to the blanket bond shall be prepared for each principal, and wherever in this chapter the term “bond” is used, it likewise includes a blanket bond and each rider or attachment thereto. Each rider or attachment to a blanket bond shall be signed by the named principal, shall be acknowledged by the bond sureties, shall expressly incorporate the conditions stated in § 8-19-111, shall refer specifically to the blanket bond of which it is a part, and shall be filed, approved, and otherwise processed in the manner required for bonds under this chapter.
(d) County governments shall obtain and maintain blanket surety bond coverage for all county employees not covered by individual bonds referenced elsewhere in statute. The minimum amount of such blanket bonds is one hundred fifty thousand dollars ($150,000).
(e)
1. (1) In lieu of a bond, county legislative bodies may elect to obtain and pay the premiums or other costs with respect to a policy of insurance issued by an insurance company duly authorized to do business in this state or an agreement with a pool established pursuant to § 29-20-401 or any entity established pursuant to § 29-20-401(b)(2) for administration of such agreement, that provides government crime coverage, employee dishonesty insurance coverage, or equivalent coverage that insures the lawful performance by officials and their employees of their fiduciary duties and responsibilities. Any such policy or agreement maintained must have limits of not less than four hundred thousand dollars ($400,000) per occurrence.
2. (2) A policy or agreement satisfying the requirements set forth in subdivision (e)(1) is deemed to be a blanket bond for each official or office identified in the policy or agreement for all purposes under this chapter.
3. (3) A certificate of insurance, policy, or endorsement must be recorded in the register's office and then filed with the county clerk.
4. (4) If the policy of insurance maintained by the county ceases to provide coverage to the officeholder for any reason, the officeholder has thirty (30) days from the date of termination of coverage to record and file a bond or other proof of insurance coverage.
5. (5) If a governmental entity obtains and pays premiums on an insurance policy or agreement pursuant to this subsection (e), then the monetary limits pursuant to the Tennessee Governmental Tort Liability Act, compiled in title 29, chapter 20, do not increase.
(f) A county that has elected to self-insure its liability under the Tennessee Governmental Tort Liability Act, compiled in title 29, chapter 20, may elect, by resolution adopted by two-thirds (⅔) vote of its governing body, to self-insure its risk of loss instead of obtaining the bonds or insurance required under this section, under the same terms as bonds or insurance under this chapter. A county making an election under this section shall file a copy of the resolution in the office of the register of deeds.

§ 8-19-102. Bonding requirements — Copies of bonds as evidence.

(a)
1. (1) A county official who is required by law to give an official bond shall execute such bond when the bond becomes available after election or appointment to office, but not later than thirty (30) days from the beginning of the term of office. The effectiveness of an official bond relates back to the beginning of the term of office so long as it is executed within the time allowed by law.
2. (2) The county legislative body shall appropriate sufficient funds to pay the premiums on the official bonds of county officials and such employees of the county that are required by law to be bonded. Each county shall competitively bid the purchase of official bonds and other surety bonds. Blanket bonds must be used unless such bonds are unavailable or circumstances require the bonding of an individual separately from the blanket bond agreement. A county shall only purchase bonds from a surety company authorized to do business in this state as surety. If no surety company is willing to serve as surety for a particular person who is required to give bond, the county legislative body may by resolution authorize either the use of personal sureties for such person with such personal sureties to be approved by the county mayor, or the use of a cash bond approved by the county mayor with the cash to be deposited with the county trustee.
3. (3) Notwithstanding another law to the contrary, the county legislative body is not required to approve an official bond or surety bond of a county official or employee on or after July 1, 2023. However, this does not remove the authority of the county legislative body to require bond amounts in excess of the statutory minimum as provided by law.
4. (4) The official county bond forms and other bonds required pursuant to this section must be made available for execution at the office of the county clerk.
5. (5) Each county official or employee required to execute an official bond or surety bond, other than bonds required by law to be approved by judges or chancellors, shall submit the bond for approval by the county mayor in accordance with § 8-19-112, and if sufficient and regular, the county mayor shall approve the bond in accordance with § 8-19-113.
6. (6) The bond of the county mayor must be approved by the judge of the court of general sessions in the county or the judge of the first division of such court if the county has more than one (1) general sessions court judge.
7. (7) If the bond of a county official or employee is disapproved, the approving authority shall inform the county clerk and the person executing the bond of the insufficiency or irregularity, and a new bond must be executed and submitted to the approving authority for approval. After approval, the approving authority shall transmit the approved bond to the county clerk who shall record the executed and approved official bond of each county official and surety bond of each county employee required to give bond with the county register of deeds, and, after recording, the county clerk shall file these bonds in the office of the county clerk.
8. (8) This part does not apply to notaries public.
9. (9) This part does not apply to a special deputy sheriff bonded pursuant to § 8-8-303.
(b) Where suit is necessary to enforce the obligation of any such bond or undertaking, the county clerk shall make such bond available to the proper authorities. A copy of the official bond duly certified by the county clerk is admissible as evidence in any suit on the bond to prove the execution of the bond and any condition thereof.
(c) The official bonds of state officials and state employees shall be lodged for safekeeping at an office designated by the governor.

§ 8-19-103. Recording of bonds of county officers.

The official bonds of all county officers covered by § 8-19-101 shall be recorded in the office of the register of deeds in the county in which the officers are elected or appointed.

§ 8-19-104. [Reserved]

§ 8-19-105. Loss of original of recorded bond.

When the original of any bond provided for or covered by §§ 8-19-101 – 8-19-107 shall be lost or destroyed, the record of the bond provided for shall be deemed the original and suit may be instituted on the recorded bond.

§ 8-19-106. Premiums and registration fees.

The respective counties shall pay the premiums for such bonds and the registration fees.

§ 8-19-107. Provisions supplemental.

Sections 8-19-101 – 8-19-106 are cumulative and supplemental to all existing laws.

§ 8-19-108. County official prohibited as sureties for other county officials.

No county official shall sign as surety an official bond for any other county official; provided, that when any person has signed as surety any bond of any county official, and is thereafter elected to or appointed to fill any public office, such official shall not be deemed to have violated this section and such bond signed by such official prior to such election or appointment shall continue to be good and valid for the duration of the term of office for which the principal of such bond was elected.

§ 8-19-109. Approval of county official as surety prohibited.

It is unlawful for any person, whose duty it now is or may hereafter be to approve any official bond, to approve the bond of any county official that has been signed as surety by any other county official.

§ 8-19-110. Penalty for violation.

A violation of §§ 8-19-108 and 8-19-109 is a Class C misdemeanor.

§ 8-19-111. Terms of bond.

(a) The bonds of all public officers required by law to give bond shall, unless it is otherwise provided, be made payable to the state, with such sureties as the officer or court required to approve the same is satisfied are sufficient, and conditioned, in all cases in which a different condition is not prescribed, that the officer shall faithfully discharge the duties, or any part thereof, of such office during the time such officer continues therein.
(b) In every case, provisions of this code to the contrary notwithstanding, the official bond of every county public official shall be conditioned as follows and not otherwise:
1. “That if the shall:
2. Principal
3. 1. Faithfully perform the duties of the office of of
4. Office
5. County during such person's term of office or continuance therein; and
6. 2. Pay over to the persons authorized by law to receive them, all moneys, properties, or things of value that may come into such principal's hands during such principal's term of office or continuance therein without fraud or delay, and shall faithfully and safely keep all records required in such principal's official capacity, and at the expiration of the term, or in case of resignation or removal from office, shall turn over to the successor all records and property which have come into such principal's hands, then this obligation shall be null and void; otherwise to remain in full force and effect.”
(c) “Duties,” as used in this section, includes any further and additional duties which may by law be made incumbent upon the particular office involved.

§ 8-19-112. Irregular bonds not to be approved.

The bond of any public officer which is not in the penalty, payable or conditioned as prescribed by law, shall not be approved, and the officer approving thereof, under such circumstances, not only neglects such officer's duty, but subjects the officer and the officer's sureties to an action by any person injured, and a recovery to the extent of such injury.

§ 8-19-113. Form of approval.

The approval of all official bonds shall be in writing, endorsed on the bond, and shall show the day and year on which they were approved, and be signed by the approving officer, or authenticated as the act of the court, as the case may be.

§ 8-19-114. Unapproved bond not to be filed.

No officer with whom any official bond is required to be filed shall allow the same to be filed in such officer's office unless the approval of the proper officer or court appear thereon, endorsed according to §§ 8-19-111 — 8-19-115.

§ 8-19-115. Time of filing.

Official bonds, including blanket bonds, and each rider or attachment thereto, required by law to be filed in the office of the county clerk or secretary of state, must be filed within thirty (30) days after the election or appointment of the person named in the bond, rider, or attachment.

§ 8-19-116. Endorsement of time of filing.

Every officer in whose office the official bond of any public officer is filed shall endorse thereon the day and year on which it was filed, and sign such officer's name to the endorsement, and, on failure so to do, commits a Class C misdemeanor.

§ 8-19-117. Failure to file in time.

An officer required by law to give an official bond who fails to execute the bond when the bond is available and transmit the bond to the proper officer for approval within thirty (30) days from the time the bond becomes available for execution, forfeits the office and a vacancy in the office occurs, whether or not the officer has taken an oath of office. It is the duty of the officer who is to receive the executed official bond to certify the failure to execute and transmit the bond in the time required by this section to the official or body who has the power to elect or appoint a successor to the office.

§ 8-19-118 — 8-19-120. [Reserved]

§ 8-19-121. Bond of constable.

Notwithstanding any law to the contrary, an official bond as required by law for a constable shall be a surety bond.

§ 8-19-122. When furnishing new bond required.

No bond required by this chapter shall be renewed upon its expiration or in the event of the reappointment or re-election of any officer or employee to a position for which a bond is required, but a new bond shall be furnished.

Part 2 Examination, Approval, and Transmittal of Bonds

§ 8-19-201. Examination of clerks' bonds.

The judges of the chancery and circuit courts, and of other courts of record except the supreme court, court of appeals, and court of criminal appeals, at the first term after the election, or at the term of the appointment of the clerks, shall examine and attest the bonds by law required to be given by them, and cause the same to be recorded, and a certificate of such recording to be endorsed on the same by the clerks respectively.

§ 8-19-202. [Reserved]

§ 8-19-203. Notice by office of the county clerk if bond not filed.

If, at the expiration of four (4) months after a general election, or an appointment of clerks, such bonds have not been received by the office of the county clerk, the office of the county clerk shall forthwith notify the judges of the fact. If the bond from any cause was not taken, the judge may cause the same to be taken at the next or any subsequent term. If the bond was taken, and the original transmitted, but not received, the judge presiding at the first term after receiving the notice from the office of the county clerk shall direct the clerk to make a certified copy of the same from the records of the office, and transmit it to the office of the county clerk, who shall forthwith acknowledge the receipt of the same, in writing, addressed to the clerk.

§ 8-19-204. [Reserved]

§ 8-19-205. Action upon failure to enter bond.

Upon the filing of a complaint alleging the failure of a county officer or constable to enter into an official bond as required by law, the clerk of the circuit court, or the clerk and master of the chancery court having jurisdiction shall issue a summons which shall be served, together with a copy of the complaint, upon the county officer or constable in accordance with the Tennessee Rules of Civil Procedure.

§ 8-19-206. Judgment — Filling of vacancies.

If, upon service and return of the summons and after a hearing, the circuit or chancery court finds that the county officer or constable failed or refused to enter into an official bond as required by law, the court shall enter a judgment declaring the office vacant, and the vacancy shall be filled according to law.

§ 8-19-207. Bond of persons filling vacancy.

The person selected according to law to fill the office declared vacant pursuant to § 8-19-206 shall enter into an official bond as required by law. The procedure prescribed by §§ 8-19-205, 8-19-206, and this section may be repeated as often as necessary, but only until the court finds that the county officer or constable has entered into an official bond as required by law.

§ 8-19-208. Filing of bonds of revenue officers.

The bonds of the revenue officers, shall within ten (10) days after the same have been examined or taken, and after they shall have been attested, recorded and certified, according to law, be filed in the office of the county clerk for safekeeping.

Part 3 Liability on Bonds

§ 8-19-301. Obligations covered by bonds.

Every official bond executed under this code is obligatory on the principal and sureties thereon:
1. (1) For any breach of the condition during the time the officer continues in office or in the discharge of any of the duties of such office;
2. (2) For the faithful discharge of the duties which may be required of such officer by any law passed subsequently to the execution of the bond, although no such condition is expressed therein;
3. (3) For the use and benefit of every person who is injured, as well by any wrongful act committed under color of such officer's office as by the failure to perform, or the improper or neglectful performance, of the duties imposed by law.

§ 8-19-302. Obligation on defective bond.

Whenever any officer, required by law to give an official bond, acts under a bond which is not in the penalty, payable, or conditioned as prescribed by law, or is otherwise defective, such bond is not void, but stands in the place of the official bond, subject, on its condition being broken, to all the remedies which the person aggrieved might have maintained on the official bond of such officer, executed, approved, and filed according to law.

§ 8-19-303. Estoppel to deny validity of bond.

If any officer or other person, as hereinafter provided, who is required by law or in the course of judicial proceedings to give bond for the performance of an act or the discharge of duty, receives money or property upon the faith of such bond, such officer and the officer's sureties are estopped to deny the validity of the bond or the legality of the proceedings under which the money or property was obtained.

§ 8-19-304. Bonds not discharged by single recovery.

Official bonds are not discharged by a single recovery, but proceedings may, from time to time, be instituted thereon by any person aggrieved, without assignment, until the whole penalty is exhausted.

§ 8-19-305. Amount of liability of sureties.

Sureties on the bonds of public officials shall be liable for the principal sum in default and covered by the bond and for interest thereon, at the rate of ten percent (10%) per annum for the period of delinquency, and not otherwise.

§ 8-19-306. Provisions applicable to future offices.

Sections 8-19-111 – 8-19-119 and 8-19-301 – 8-19-307 apply to the official bonds of all public officers of this state whose office may be established hereafter, unless the contrary be expressly provided.

§ 8-19-307. Provisions applicable to fiduciaries.

Sections 8-19-302 – 8-19-304 and 8-19-306 apply to the bonds of executors, administrators, guardians, special commissioners, receivers, successor custodians, and others required by law or in the course of judicial proceedings to execute bonds.

Part 4 New and Additional Bonds

§ 8-19-401. [Reserved]

§ 8-19-402. New bond from other officers.

All public officers, except those included within the blanket surety bond required by § 4-4-108, who are compelled to give official bonds may be required, by the court or officer whose duty it is to take or approve such bonds, to give additional sureties or new bonds in the following cases:
1. (1) Where the security of the original bond has become insufficient by the subsequent insolvency, death, or removal of the sureties thereto, or any of them;
2. (2) When there is good reason to fear the public interest may suffer for want of such new and additional security; and
3. (3) When the grand jury of the county, or a majority thereof, certifies the insufficiency of the original bond.

§ 8-19-403. Requisition to give additional bond.

The requisition to give additional bonds shall, in all cases, be in writing, and signed by the officer making it; shall state the day and place, when and where the officer cited shall appear and give such bond; and a copy thereof shall be personally served on such officer before the day specified in such bond.

§ 8-19-404. Form of additional bond.

Such additional bond shall be in the same penalty, conditioned, approved, and filed in the same office, as the first official bond, and under like penalties in case of failure.

§ 8-19-405. Failure to give additional bond.

Such officer shall give the additional bond within ten (10) days after the day specified in such requisition, and, failing so to do, the officer vacates the office; and the officer making the requisition shall at once certify the fact to the appointing power, by whom the vacancy shall be filled.

§ 8-19-406. Obligation of additional bond.

From the time of its approval, every such additional bond shall be of like force and obligation, and subject to the same remedies as the first official bond.

§ 8-19-407. Effect of new bond on old.

In no case provided for in any of §§ 8-19-402 – 8-19-406 are any of the official bonds, previously executed, discharged; but each remains of the same force and obligation as if the additional bonds had not been given; and any person aggrieved may have a remedy, upon either or all of such bonds, in the same or in separate proceedings.

§ 8-19-408. Contribution between sureties of different bonds.

The sureties on either bond, who have been compelled to make any payments thereon for the principal obligor, have the same remedies against the sureties on all the bonds, executed at the time of the default, as cosureties on the same bond have against each other, the damages being properly proportioned according to the penalty of the several bonds.

§ 8-19-409. Relief of surety.

Any of the sureties upon the official bond of a public officer who believes that such surety is in danger of suffering by reason of such suretyship, and desires to be relieved therefrom, may give notice, in writing, to such officer to appear before the court or officer whose duty it is to take or approve the bond, and to give new bond.

§ 8-19-410. Notice to furnish new bond.

The surety shall give the principal at least five (5) days' notice of the application, at the expiration of which time, or in such time as the court or officer may allow, not exceeding ten (10) days thereafter, new bonds shall be given.

§ 8-19-411. Failure to give new bond.

If the new bond is not given as required, the office of the principal shall be declared vacant by order to that effect, and notice given, when necessary, to the appointing power.

§ 8-19-412. New bond by consent of principal.

When an officer consents in any case, upon public or private application of any of such officer's sureties, to give a new bond, it may be taken without further proceedings, with the same effect as if executed upon order.

§ 8-19-413. Approval and filing of new bond.

On the execution of the additional bond provided for in §§ 8-19-409 — 8-19-412, it shall be approved and filed in the same way and under like penalties as the original bond, together with the notice and order under which it was given.

§ 8-19-414. Exoneration of previous sureties.

On the execution, approval and filing of such additional bond, the applicant sureties are exonerated from all liability on the bond upon which the application was made, for any breach thereof accruing subsequent to the approval of such additional bond.

§ 8-19-415. Obligation of additional bond.

Every such additional bond, approved and filed as provided in §§ 8-19-409 – 8-19-419, is binding on the obligors from the time of its approval, and subjects them to the same liabilities, proceedings, and remedies as are provided in relation to the first official bond of such officer.

§ 8-19-416. Effect of exoneration on previous liabilities.

The exoneration of the applicant sureties does not affect the previous liability of any of the obligors in the original bond; nor are any of the obligors who have not joined in such application discharged from any liability accruing after the filing of such additional bond, and the obligors who are not exonerated are liable to any person injured by a breach of such bonds, upon either or all of such bonds, according to § 8-19-407.

§ 8-19-417. Sureties' remedies.

Whenever the sureties on either bond, in such cases, have made any payments thereon on account of their principal, they are entitled to the same remedies and recoveries against the sureties in all the bonds executed at the time of default as provided in § 8-19-408.

§ 8-19-418. Release of sureties of deputies.

Sureties of deputy officers may in like manner be released by notice to their principal to appear before the officer or court taking and approving such bonds, upon similar proceedings.

§ 8-19-419. Costs of proceeding to relieve surety.

The costs of the application will be paid by the principal, and judgment may be given and execution issued for such costs.

Part 5 Unauthorized Settlements

§ 8-19-501. Reporting unlawful or unauthorized taking or abuse of public money, property or services — Method of making reports.

(a) Any official of any agency of the state having knowledge that a theft, forgery, credit card fraud, or any other act of unlawful or unauthorized taking, or abuse of, public money, property, or services, or other shortages of public funds has occurred shall report the information immediately to the office of the comptroller of the treasury.
(b) The comptroller of the treasury shall have the power to prescribe the method of making the reports.

§ 8-19-502. Demands on bonding companies — Prior approval of comptroller required.

No agency of the state nor any officer or employee of the state shall make demand on any bonding company guaranteeing the faithful performance of duty of any individual, or guaranteeing the safeguarding of state moneys or property, without the prior approval of the comptroller of the treasury.

§ 8-19-503. Unauthorized settlement with bonding company.

If any agency of the state or any official or employee of the state makes such demand and settlement, without the prior approval of the comptroller of the treasury, for the loss of moneys of the state or the unauthorized removal of state property, and at a later time it is determined through audit or other investigation that settlement of the loss was made and had on an improper or incomplete basis, then the bonding company which guaranteed faithful performance by the employee responsible for such shortage in state moneys or property shall be liable to the state for any additional moneys or property found to be due the state up to the limit of such bond. If there still are moneys or property due to be reimbursed to the state, on account of such shortage in state moneys or property, then the bonding company of the employee making such unauthorized settlement shall be liable for any remaining amount still due the state up to the limit of such bond. Any moneys collected hereunder shall be paid into the state treasury.

§ 8-19-504. Legislative intent.

It is the declared intent of this part to hold liable any person, and thereby such person's bonding company, who is responsible for shortages in state properties or moneys, for any balance of properties or moneys due the state following an unauthorized settlement without approval of the comptroller of the treasury, and to also hold liable the person responsible for such unauthorized settlement and the person's bonding company.

Chapter 20 Appointment of Deputies and Assistants

§ 8-20-101. Application for authority to employ deputies.

(a) Where any one (1) of the clerks and masters of the chancery courts, the county clerks and the clerks of the probate, criminal, circuit and special courts, county trustees, registers of deeds, and sheriffs cannot properly and efficiently conduct the affairs and transact the business of such person's office by devoting such person's entire working time thereto, such person may employ such deputies and assistants as may be actually necessary to the proper conducting of such person's office in the following manner and under the following conditions, namely:
1. (1) The clerks of the circuit, criminal, and special courts may make application to the judge, or any one (1) of the judges, of their respective courts, in term time or at chambers, by petition duly sworn to, setting forth the facts showing the necessity for a deputy or deputies or assistants, the number required and setting forth the salary that should be paid each;
2. (2) The sheriff may in like manner make application to the judge of the circuit court in the sheriff's county, for deputies and assistants, showing the necessity therefor, the number required and the salary that should be paid each; provided, that in the counties where criminal courts are established, the sheriff may apply to a judge of such criminal court; and
3. (3) The clerks and masters of the chancery courts, county trustees, county clerks and clerks of the probate courts, and registers of deeds may make application to the chancellor, or to one (1) of the chancellors, if there be more than one (1), holding court in their county by sworn petition as above set forth, showing the necessity for a deputy or deputies or assistants, the number required and the salary each should be paid.
(b) In the event a petition is filed by a court clerk, the court shall, upon request of any party, transfer the case to a court other than a court the clerk serves. No order increasing expenditures shall be effective during any fiscal year unless the petition is filed within thirty (30) days after the date of final adoption of the budget for the fiscal year, except this shall not apply to any order entered into by agreement of the parties. A new officeholder shall have thirty (30) days from taking office to file a petition and any order entered with respect to such petition may be effective during the fiscal year.
(c)
1. (1) In the event the county official agrees with the number of deputies and assistants and the compensation and expenses related thereto, as set forth in the budget adopted by the county legislative body, the county mayor and the county official involved may prepare a letter of agreement, using a form prepared by the comptroller of the treasury setting forth the fact that they have reached an understanding in this regard.
2. (2)
  1. (A) This letter of agreement shall be filed in court; however, no court costs, litigation taxes or attorneys fees shall be assessed.
  2. (B) The clerks of the circuit, criminal and special courts shall file their letters of agreement or other petitions with the judge or any one (1) of the judges in their respective courts;
  3. (C) The sheriffs shall file their letters of agreement or other petitions with the circuit court; provided, that in counties where criminal courts are established, the sheriff shall file with the criminal court; and
  4. (D) The clerk and masters, county trustees, county clerks and clerks of the probate courts and registers of deeds shall file their letters of agreement or other petitions with the chancellor or one (1) of the chancellors if there is more than one (1).
3. (3) Any county official authorized to file a salary petition pursuant to this section may use this letter of agreement without regard to whether the county official's office operates under the fee system.
(d) Unless otherwise prohibited by law or rule of the supreme court, any petition or application for the authority to appoint or employ one (1) or more additional deputies or assistants filed pursuant to this chapter shall be heard and determined by a judge or chancellor serving the judicial district in which the petition or application is filed.
(e) If a judge or chancellor serving the judicial district in which a petition is filed under this chapter recuses himself or herself from presiding over an action under this chapter, the judge or chancellor shall immediately follow the procedures and policies established by the Tennessee administrative office of the courts or Rules of the Supreme Court of the State of Tennessee governing the recusal of a judge or chancellor.

§ 8-20-102. Legislative intent — Party defendant — Hearing — Standing — Mediation — Service of petition — Preliminary conference — Discovery and litigation plan — Scheduling order.

(a) The general assembly intends this chapter to provide an expedited process for resolving salary disputes in order to provide county officials quick relief and to protect taxpayers from unnecessary costs when gridlock occurs in the county budgeting process and a salary dispute is adjudicated under this chapter.
(b) If a county official listed in § 8-20-101 files a petition pursuant to this chapter, the official shall name the county mayor as the party defendant in the petition.
(c)
1. (1) Petitions brought under this chapter must receive docket priority over all other cases other than those involving the welfare of a child and must be resolved within one hundred twenty (120) days of the petition filing date, which may be extended for up to an additional one hundred twenty (120) days in the discretion of the court or for good cause shown by the parties.
2. (2) The court shall hold a hearing on the petition and the answer thereto, for purposes of developing the facts and issues in question, and may hear proof for or against the petition. The court may allow or disallow the application, either in whole or in part, and may approve the entire number of deputies or assistants applied for or a lesser number, and may approve the salaries set out in the application or reduced salaries, as the facts justify.
(d) After passing a county's budget pursuant to applicable budgeting laws, the applicable county commission, both as a body and as individual commissioners, do not have a further role in the budgeting process and do not have standing pursuant to this chapter.
(e) A county official who files a petition and the county mayor shall engage in mediation within thirty (30) days of filing the petition. The judge or chancellor presiding over the petition may award sanctions against a party who fails to negotiate in good faith in accordance with this subsection (e).
(f) A copy of the petition must be served on the county mayor or the county mayor's agent as permitted by applicable law, who shall file an answer to the petition within five (5) days from the date of service of the petition, either admitting the allegations of the petition or denying the same, or making such answer as the county mayor deems advisable under the circumstances.
(g) The court shall schedule a mandatory preliminary conference within twenty (20) days after the answer is filed, or if a judge or chancellor is recused from the case, the court shall schedule the preliminary conference within twenty (20) days after the transfer of the case to another court or to another judge or chancellor, as applicable.
(h) At the preliminary conference, the petitioner and the defendant shall present their respective proposed discovery and litigation plans outlining anticipated discovery to the court for approval.
(i) At the preliminary conference or within ten (10) business days following the preliminary conference, the court shall enter a scheduling order that must include an approved discovery and litigation plan based on information submitted in accordance with subsection (h).
(j) The court shall determine the reasonableness of the discovery and litigation plans presented under subsection (h). In considering the reasonableness of each party's discovery and litigation plan, the court shall consider the potential harm to the economic health to the county in relation to each party's need for the discovery in order to prove their cases. Anything in excess of the following will be deemed presumptively unreasonable:
1. (1) Thirty (30) requests for interrogatories, including subparts, per party;
2. (2) Thirty (30) requests for admissions, including subparts, per party;
3. (3) Thirty (30) requests for the production of documents, including subparts, per party;
4. (4) Three (3) depositions per party, in addition to the depositions of experts; and
5. (5) Two (2) experts per party.
(k) If the court finds that a party has overcome the presumption of unreasonableness outlined in subsection (j), the court shall include specific findings in support of the scheduling order.

§ 8-20-103. Requirements for authorization.

(a) No deputy or deputies or assistants shall be allowed to any office, unless the actual officer is unable to personally discharge the duties of the office by devoting such officer's entire working time thereto, except field deputy sheriffs.
(b) In case the officer is incapacitated from any cause to perform the duties of the office, one (1) person working in the place of the officer shall neither be considered nor paid as a deputy or assistant.

§ 8-20-104. Decree — Modification.

The order of the court shall be spread upon the minutes of the court, as in the case of other judgments and decrees, and the petition and answer thereto shall be docketed, filed, and kept as permanent records of the court. The order or decree fixing the number of deputies and salaries may be changed or modified by increasing or decreasing the number of deputies and the salaries paid each, from time to time, upon application made in the manner above provided; or any such officers without such formal application may decrease either the number of deputies or assistants and the salaries of any of them where the facts justify such course.

§ 8-20-105. Reduction of number or salaries.

It is the duty of all officers mentioned above to reduce the number of deputies and assistants and/or the salaries paid them when it can be reasonably done. The court or judge having jurisdiction may, on motion of the county mayor, and upon reasonable notice to the officer in whose office the deputies or assistants to be affected are, have a hearing of such motion in term or in vacation, at chambers, and may reduce the number of deputies or assistants and/or the salaries paid any one (1) or more when the public good justifies.

§ 8-20-106. Appeal of decision.

Either party dissatisfied with the decree or order of the court in the proceedings set out above is given the right of appeal as in other cases. Pending the final disposition of the application to the court, or pending the final determination on appeal, the officer making application may appoint deputies or assistants to serve until the final determination of the case, who shall be paid according to the final judgment of the court.

§ 8-20-107. Costs and attorney's fees.

(a) The cost of all cases must be paid out of the fees of the office collected by such officers, and they and each of them must be allowed a credit for the same in settlement with the county trustee.
(b) An award of attorney's fees must be consistent with and awarded pursuant to Rule 8 of the Rules of the Supreme Court of the State of Tennessee, Rules of Professional Conduct 1.5, or the corresponding subsequent rule of the Tennessee supreme court. The court shall determine the reasonableness of attorney's fees for all parties, and in making that determination, the court shall consider the factors in Rule 8 of the Rules of the Supreme Court of the State of Tennessee, Rules of Professional Conduct 1.5.

§ 8-20-108. [Reserved]

§ 8-20-109. Removal of deputies or assistants.

Any and all deputies and assistants in any of the offices covered by this chapter shall be removable by the officer for whom they are acting, at will.

§ 8-20-110. Refunds to allow for salaries of deputies.

The various county legislative bodies are empowered to refund payments made to the county by the county and probate court clerks, chancery court clerks, circuit court clerks, and clerks of criminal and special courts, county trustees, registers of deeds, and sheriffs, in cases where such officers have failed to obtain credit for payments made by them to assistants and deputies out of the fees of their offices collected by them, and have been compelled to account therefor to the county, by reason of having neglected to apply to and obtain, from the courts authorized by law, orders authorizing the employment of such deputies and assistants; provided, that:
1. (1) It shall be made to appear that the officers could not properly and efficiently conduct the affairs and transact the business of their offices by devoting their entire working time thereto and it was actually necessary to the proper conduct of same to employ such assistants and deputies, and that only such assistants and deputies were employed, and at such salaries and under such facts, as would have been sufficient to justify the courts to whom such applications should have been made to have made orders for the employment of such assistants and deputies at the salaries paid them;
2. (2) The failure to file petitions with the courts and obtain the orders necessary for the employment of such assistants and deputies was on account of misapprehension and misunderstanding of the requirements of the law and such failure was in good faith; and
3. (3) Nothing shall be refunded to such officers on account of the employment of assistants and deputies except and only such as the officers would have been entitled to under the law had the petitions been filed and the orders obtained as required by the statute.

§ 8-20-111. Release to allow for salaries paid.

The legislative body of any county is authorized to release any county official in such official's settlements with the county from the payment of any sum or sums theretofore made by such county official for assistants or deputies, when such official would have been entitled to employ and pay such assistants and deputies had the official made application to the proper court for authority to employ them under this chapter.

§ 8-20-112. Employment or termination of employment.

In any county having a civil service system for the sheriff's department pursuant to chapter 8, part 4 of this title or other general law or a private act, or a civil service system for all county employees pursuant to a private act, the employment or termination of employment of any deputy or assistant in any offices covered by this chapter shall be pursuant to such civil service system, and § 8-20-109 shall not apply to such county.

§ 8-20-113 — 8-20-119. [Reserved]

§ 8-20-120. Sheriff's departments — Funding — Salaries — Employees.

Notwithstanding any other law to the contrary, county governing bodies shall fund the operations of the county sheriff's department. The sheriff may appoint such personnel as may be provided for in the budget adopted for such department. No county governing body shall adopt a budget absent the consent of the sheriff, which reduces below current levels the salaries and number of employees in the sheriff's department. In the event a county governing body fails to budget any salary expenditure which is a necessity for the discharge of the statutorily mandated duties of the sheriff, the sheriff may seek a writ of mandamus to compel such appropriation.

Chapter 21 Fees Charged

Part 1 General Provisions

§ 8-21-101. Express authorization required.

No officer is allowed to demand or receive fees or other compensation for any service further than is expressly provided by law.

§ 8-21-102. Advance fees unauthorized.

No officer is entitled to demand and receive fees allowed by law until the duty or service for which they are granted is performed, unless otherwise expressly provided by law.

§ 8-21-103. Penalty for excessive fees charged.

If any officer demands or receives any other or higher fees than are prescribed by law, such officer is liable to the party aggrieved in the penalty of fifty dollars ($50.00), to be recovered before any judge of the court of general sessions, and the officer also commits a Class C misdemeanor.

§ 8-21-104. Bill of costs.

Such officers shall, on demand, make out a bill of fees and costs in any case or matter, stating each item distinctly.

§ 8-21-105. Judicial decision of legal questions.

It is the duty of the courts to decide, upon application by the officer entitled to compensation, any question arising under the law, and such decision will protect the officer acting under it.

§ 8-21-106. Fees not included — Conflicts.

(a) This chapter listing fees of clerks and other officials is not to be construed to be inclusive of all fees. In cases of conflicts or apparent conflicts, the fees shall be those named in other sections dealing with the particular subject matters.
(b) Fees established for transactions under the Uniform Commercial Code, compiled in title 47, chapters 1-9, shall be exclusively those fees established therein.

§ 8-21-107. Payment of fees, fines, costs, etc., by credit card.

(a) The state, county or municipal court clerk and county clerk responsible for the collection of fees, fines, court costs or other charges is hereby authorized to:
1. (1) Accept payment by credit card of a fee, fine, court cost or other charge; and
2. (2) Collect a fee for processing the payment by credit card.
(b) As used in this section, unless the context otherwise requires, “credit card” has the same meaning as used in § 47-22-101.
(c) The clerk shall set the processing fee in an amount that is reasonably related to the expense incurred by the court in processing the payment by credit card. However, the court may not set the processing fee in an amount that exceeds five percent (5%) of the amount of the fee, court cost or other charge being paid.
(d) If a payment by credit card is not honored by the credit card company on which the funds are drawn, the clerk may collect a service charge from the person who owes the fee, fine, court cost or other charge. The service charge is in addition to the original fee, fine, court cost or other charge and is for the collection of that original amount. The amount of the service charge shall be the same amount as the fee charged for the collection of a check drawn on an account with insufficient funds.
(e) The clerk collecting a fee or charge under this chapter shall deposit the fee or charge in the general fund of the clerk's respective governmental unit.
(f) The county clerk collecting a fee or charge under this chapter shall state on any notice to the taxpayer either the percentage of the processing fee or the fee itself.
(g) The county clerk collecting a fee or charge under this chapter shall state on any notice to the taxpayer either the percentage of the processing fee for use of a credit card or the actual fee imposed for the use of a credit card.

Part 2 Secretary of State

§ 8-21-201. Secretary of state — Specific fees authorized.

The secretary of state is entitled to demand and receive, as above, and shall charge for the following services the fees annexed, among others, to be collected and paid into the state treasury:
1. (1) For all copies, transcripts, or records made, for every one hundred (100) words $ 0.10
2. (2) For commission of each notary public $ 5.00
3. (3) For commission of each commissioner of deeds $10.00
4. (4) For commission of each appointee of the governor $ 5.00
5. (5) For attaching the great seal to any document, except those herein named and pardons $ 2.00
6. (6) For each certificate, without seal of state $ 0.25
7. (7) For each charter or certificate of a municipal corporation $50.00
8. (8) For each copy of plats from the maps in the secretary of state's office $ 0.50
9. (9) For services as to charters of incorporation of sanitary districts $ 2.00
10. (10) For filing and recording trademark $ 5.00
11. (11) For license of child care agency $ 1.00
12. (12) For filing certificate of recommendation of child care agency $ 1.00
13. (13) For annual license to lying-in or maternity home $ 1.00
14. (14) For copies of executive acts, legislative proceedings, and public or private laws in the state library, ten cents (10¢) for every one hundred (100) words, and twenty-five cents (25¢) for the certificate.

§ 8-21-202. Fees not included — Conflicts.

Section 8-21-201 is not inclusive of all fees, such as those to be paid by corporations for profit, investment companies and foreign corporations. In cases of apparent conflicts, the particular sections dealing with the several subject matters shall govern.

§ 8-21-203. Signing and sealing commissions.

Except as otherwise provided, the secretary of state shall not be entitled to so receive any fee for signing and affixing the seal of the state to any commission for state or county officers.

§ 8-21-204. Commissions of judicial, constitutional, and unpaid officers.

There shall be no fees for commissions of judges or chancellors, nor for the commissions, certificates of election, or appointment of any other constitutional officer, nor for the commissions or certificates of appointment of any officer who shall serve without compensation.

§ 8-21-205. Allocation of fees collected.

Notwithstanding any other law to the contrary, ninety-seven percent (97%) of fees collected by the secretary of state for filing, processing and copying business documents pursuant to the Tennessee Business Corporation Act, compiled in title 48, chs. 11-27; Tennessee Nonprofit Corporation Act, compiled in title 48, chs. 51-68; Tennessee Limited Liability Company Act, compiled in title 48, chs. 201-248; Tennessee Revised Limited Liability Company Act, compiled in title 48, chapter 249; Tennessee Revised Uniform Limited Partnership Act, compiled in title 61, ch. 2; Tennessee Uniform Partnership Act, compiled in title 61, ch. 1 and related statutes, and fifty percent (50%) of fees collected by the secretary of state for service of process under applicable statutes shall be remitted to the general fund, and the balance of such collected fees shall be retained by the department of state to defray the cost of operating the division of the department of state administering the acts referenced in this section.

Part 3 [Reserved]

§ 8-21-301 — 8-21-305. [Reserved]

Part 4 Clerks of Court

§ 8-21-401. Schedule of fees.

(a) Except as otherwise provided by law, the costs provided in this section in civil cases are chargeable and may be collected at the time the services are requested from the clerk or other officer of the court; however, nothing in this section should be construed to limit the ability of a party to initiate a judicial proceeding by filing a pauper's oath. In cases where payment of the clerk's fees would create a substantial hardship for a party, judges are encouraged to use the discretion provided in Rule 29 of the Tennessee Rules of the Supreme Court to find that the party is indigent, even if that person does not meet the Legal Services Corporation's poverty guidelines. If a party, other than a party who initiated a proceeding under a pauper's oath, pays costs at the time the services are requested, such payment shall be deemed to satisfy the requirement for security to be given for costs, pursuant to § 20-12-120. In proceedings covered by subdivision (b)(1)(A), and in workers compensation complaints, the attorney filing the action shall have the option to sign a cost bond, in lieu of the party paying the clerk's fees at the time services are requested. The clerk shall not refuse to file an action where the attorney has opted to sign a cost bond. In any action where the clerk refuses to accept such cost bond in lieu of the party paying the clerk's fees, all costs in that action shall be forfeited by the clerk. These requirements for fees to be paid or security provided when services are requested from the clerk do not apply in criminal cases. The fees listed in this section do not include officer's fees as provided for in § 8-21-901 and elsewhere. These fees also do not include state and local litigation taxes.
(b) Fees in Civil Cases in Circuit and Chancery Court.
1. (1)
  1. (A) Unless otherwise provided, court clerks in civil cases in courts of record shall charge a standard court cost of two hundred twenty-five dollars ($225) at the institution of a case. The types of cases covered by this fee would include, but not be limited to, actions for enforcement of contracts or breach of contract actions; injunctions; all torts, personal injury and property damage cases, including malpractice actions, health care liability actions, and wrongful death suits; employment discrimination suits; civil rights suits; tax disputes; special remedies; other property disputes; and any other type of actions not otherwise designated in this section or elsewhere by law.
  2. (B) In divorce cases involving minor children, the clerk shall charge a standard court cost of two hundred dollars ($200) at the institution of a case. In divorce cases that do not involve minor children, the clerk shall charge a standard court cost of one hundred twenty-five dollars ($125) at the institution of a case.
  3. (C) In the following specific types of civil actions, the clerk shall charge a standard court cost of one hundred fifty dollars ($150) at the institution of a case:
    1. (i) Appeals to the circuit or chancery court from juvenile court, general sessions court, probate courts, municipal courts or an administrative hearing; writs of certiorari from lower courts; or administrative hearings;
    2. (ii) Transfers of cases from foreign counties;
    3. (iii) Requests for writ of mandamus;
    4. (iv) Worker's compensation actions;
    5. (v) Condemnations and inverse condemnations; and
    6. (vi) Quo warranto proceedings.
  4. (D) In the following specific types of civil actions, the clerk shall charge a standard court cost of one hundred dollars ($100) at the institution of a case:
    1. (i) Adoptions;
    2. (ii) Legitimations;
    3. (iii) Paternity cases;
    4. (iv) Restoration of citizenship;
    5. (v) Termination of parental rights;
    6. (vi) Other domestic relations matters not otherwise designated;
    7. (vii) Name changes;
    8. (viii) Minor settlements;
    9. (ix) Enforcement of foreign judgments;
    10. (x) Civil expungements where authorized by law; and
    11. (xi) Orders of protection.
  5. (E) In the following specific actions, the clerk shall charge a standard court cost of seventy-five dollars ($75.00): child support enforcement and modification, including interstate support cases and civil contempt actions, and requests for modification of a parenting plan.
  6. (F) In delinquent property tax cases, the clerk shall assess a filing fee of forty-two dollars ($42.00) per parcel. For each parcel of property for which the judge issues an order to sell, there shall be a fee of one hundred dollars ($100) for clerk's services related to that action.
2. (2)
  1. (A) For the purposes of determining the fees of the clerk of court, when any third party complaint in a civil case is filed, the party filing the complaint shall be charged the same fee as was charged at the initiation of the original civil proceeding.
  2. (B) The fee for cross-filings and counter complaints in civil cases in courts of record shall be one hundred dollars ($100).
(c) The clerks of the various courts administering estates, guardianships, conservatorships, and other probate matters are entitled to demand and shall receive for their services the following fees:
1. (1) For opening and closing an estate, other than a small estate, two hundred thirty dollars ($230);
  1. (A) For filing and docketing claims, giving notice and filing release on each claim for a decedent's estate, to be paid by claimant, eleven dollars ($11.00);
  2. (B) For filing exceptions to claims against estates, mailing notices and entering order, forty-two dollars ($42.00);
2. (2) For filing small estate affidavits, forty-one dollars ($41.00);
3. (3) For filing a request for letters of guardianship and conservatorship; issuing all initial process and cost bond; entering order and issuing certificate of guardianship and conservatorship, not including fee of the sheriff; and including final accounting and order closing, regardless of court where filed, one hundred sixty dollars ($160);
4. (4) For filing a new request for removal of disabilities of minority, and incompetence, filing affidavits and entering orders; for filing a new request to legitimate a person, change a name or correct a birth certificate and enter orders; for filing a new request for habeas corpus, filing cost bond, issuing process and enter orders, not including fee of the sheriff, one hundred dollars ($100);
5. (5) For filing requests under the mental health law, compiled in title 33, issuing notices, entering return, and entering judgments after hearing, not including fee of the sheriff, fifty dollars ($50.00);
6. (6) For filing and docketing any request on an existing case, other than a request to close the case, not otherwise provided for, eighteen dollars ($18.00);
7. (7) For entering any order on an existing case, other than closing order, not otherwise provided for, twelve dollars ($12.00);
8. (8) For issuing summons, subpoenas, citations, writs and notices, including copies of process when required by law, other than initial process, six dollars ($6.00);
9. (9) For filing any document not otherwise provided for in probate court, seven dollars ($7.00); and
10. (10) For filing, reviewing, recording annual or interim settlement or accounting and entering order approving settlement only, forty dollars ($40.00).
(d) Fees in Criminal Cases in Courts of Record.
1. (1) Unless otherwise provided in this section, court clerks in criminal cases in courts of record shall charge a standard court cost of three hundred dollars ($300). This fee shall apply per case per defendant.
2. (2) The clerk shall charge a fee of one hundred dollars ($100) for proceedings related to a violation of probation or any post-judgment actions other than expunctions.
3. (3) The clerk may charge a fee of up to one hundred dollars ($100) for expunctions.
4. (4) The clerk shall charge a fee of seventy-five dollars ($75.00) for criminal contempt actions, including criminal contempt proceedings in civil courts, for failure to appear, requests for bonding company release from final forfeiture, requests to reinstate a driver license, and requests for relief.
5. (5) Reimbursement from the state shall be limited to the fees as currently allowed by law.
(e) Fees for Proceedings in Juvenile Court.
1. (1) Unless otherwise provided in this section, court clerks in juvenile proceedings shall charge a standard court cost of one hundred dollars ($100). This fee shall apply to all juvenile proceedings not otherwise designated, including, but not limited to, requests to establish support or nonsupport, proceedings related to parentage, paternity cases, and legitimations.
2. (2) For requests for modification of child support, the clerk shall charge a fee of seventy-five dollars ($75.00).
3. (3) In the following actions, the clerk of the juvenile court shall charge a fee of forty-two dollars ($42.00): juvenile traffic cases, consent orders, diversion and nonjudicial disposition of juvenile cases, voluntary motions to grant custody, marriage waivers, attachment pro corpus, and bench warrants.
4. (4) In the following actions, the clerk of the juvenile court shall charge a fee of twenty-five dollars ($25.00): restricted licenses, drug screenings, entering order of appeal and taking appeal bond, entering judgment from appellate court, entering order allowing rehearing, and special pleas.
5. (5) In the following actions, the clerk of the juvenile court shall charge a fee of sixty-two dollars ($62.00): delinquency and unruly cases, and felony and misdemeanor cases in juvenile court.
(f) Actions in General Sessions Court.
1. (1) General sessions civil filing fee, forty-two dollars ($42.00). Unless otherwise provided elsewhere in this section, court clerks in civil cases in general sessions court shall charge a standard filing fee of forty-two dollars ($42.00). This fee is intended to cover all initial court clerk's costs for initiating a civil proceeding in general sessions court, including, but not limited to, hearings regarding short term mental health commitments, appeals of decisions denying the issuance of handgun permits, and requests not otherwise provided for. This fee shall not apply to orders of protection, which shall have the same fee, when costs are adjudged, as in courts of record, of one hundred dollars ($100).
2. (2) When a general sessions court is exercising concurrent civil jurisdiction with a court of record, the clerk shall charge the litigation taxes and court costs applicable in courts of record.
(g) Criminal Actions in General Sessions Court.
1. (1) General session criminal base fee, sixty-two dollars ($62.00). This fee shall be charged per conviction per defendant. For cases involving traffic citations, instead of sixty-two dollars ($62.00), the base court cost shall be forty-two dollars ($42.00).
2. (2) Failure to appear, forty dollars ($40.00). In cases where the defendant fails to appear or pay fines or costs and the court issues an attachment, bench warrant, capias or other process to compel the defendant's attendance at the court, the defendant shall be charged an additional fee for clerk's costs of forty dollars ($40.00).
3. (3) Calling in surety, forty dollars ($40.00). The clerk shall charge the defendant this fee each time a scire facias or other proceeding is instituted to bring in a surety, or make action against a bond in criminal cases for failure to appear.
4. (4) The clerk shall charge a fee of seventy-five dollars ($75.00) for requests for bonding company release from final forfeiture, or requests to reinstate a driver license.
5. (5) The clerk may charge a fee of up to one hundred dollars ($100) for expunctions.
(h) Clerk's Commissions.
1. (1) Except as provided in subdivisions (h)(2) and (3), for receiving and paying over all taxes, fines, forfeitures, fees and amercements, the clerk of the court is entitled to a five percent (5%) commission.
2. (2) In counties having a population of more than seven hundred thousand (700,000), according to the 1990 federal census or any subsequent federal census, the commission for receiving and paying over all taxes, fines, forfeitures, fees and amercements, shall be ten percent (10%), except as provided in subdivision (h)(3).
3. (3) For receiving and paying over all privilege taxes on litigation, the clerk of the court is entitled to a six and seventy-five hundredths percent (6.75%) commission. The total amount of commissions receivable by the clerk of the court during any fiscal year shall not be less than the amount received by such clerk during the fiscal year ending June 30, 2005; provided, that if the statewide amount of litigation tax collected during such fiscal year is less than the amount collected during the fiscal year ending June 30, 2005, then the total amount of commissions receivable by the clerk of the court for that fiscal year shall be reduced by a percentage equal to the percentage reduction in statewide litigation tax collections for that fiscal year.
(i) Other Fees of Court Clerks. The following fees apply uniformly in all courts, general sessions, juvenile, probate, circuit or chancery, and may be charged in addition to the fees for cases listed in this section:
1. (1) Standard Post-judgment Fee. Unless otherwise provided, court clerks in criminal and civil cases in all courts shall charge a standard post-judgment fee of twenty-five dollars ($25.00). This fee shall be charged per occurrence and shall be charged regardless of whether judgment is enforced by garnishment, execution, levy or other process. This fee shall also apply to post-judgment interrogatories, publications, motions to set installment payments, and orders and pleas.
2. (2) For issuing a subpoena or subpoena duces tecum, the fee shall be six dollars ($6.00).
3. (3)
  1. (A) In all cases in all courts, the clerk shall charge a fee of five dollars ($5.00) for each requested continuance.
  2. (B) In addition to the fee provided for in subdivision (i)(3)(A), the clerk shall also collect a courtroom security enhancement fee of two dollars ($2.00). The revenues from the two-dollar courtroom security enhancement fee shall be deposited into the county general fund. All revenue from this fee shall be used exclusively for the purposes of providing security and enhancing the security of court facilities in the county. For each fiscal year, the court security committee, created by § 16-2-505(d)(2), shall develop and submit recommendations to the county legislative body regarding how such funds shall be utilized.
  3. (C) The fees for continuances shall be collected at the conclusion of the case. If multiple litigants request a continuance, the judge may assess these fees to one (1) or more parties.
4. (4) For making copies as requested, other than for an original filing and other than when preparing a record upon appeal, the fee shall be fifty cents (50¢) per page.
5. (5) For making certification and seal, providing a copy of an abstract, or providing driver license certification, the fee shall be five dollars ($5.00).
6. (6) For receiving funds paid into court on confirmation of private sales or other funds paid into the clerk pursuant to court order, and collecting and paying out the proceeds, the fee shall be forty dollars ($40.00). This fee also applies where there is a pre-judgment judicial attachment or similar process to bring property into the court's possession prior to judgment. This fee shall not apply to payments of proceeds made pursuant to court order to any person from funds held by the clerk, except for court orders concerning a redemption of delinquent taxes property sale; in such case, the fee shall only be charged one (1) time against the total amount of proceeds generated from the property.
7. (7) For selling real or personal property under decree of court, and receiving, collecting, and paying out the proceeds, a commission not to exceed three percent (3%) on the amount of sales. The clerk shall collect the sheriff's fee, plus the sheriff's fee for each additional defendant, in a proceeding to sell real estate.
8. (8) The clerks of the various courts have the authority to invest idle funds held under their control, not otherwise invested. Such investments shall be in banks or savings and loan associations operating under the laws of the state or under the laws of the United States; provided, that such deposits are insured under the federal deposit insurance corporation. Such investments shall not exceed the amounts that are federally insured, unless otherwise fully collateralized under a written collateral agreement, or unless the funds are deposited with an institution that is a member of the state collateral pool. The interest on such investments shall become part of the fees of the court clerk and the clerk shall be required to account for interest received, the same as with other fees received. Any funds authorized to be invested may be invested by the clerk in the local government investment pool administered by the state treasurer.
9. (9) Nothing in this section shall be construed to relieve the clerks of courts from the responsibility of investing funds held under their control, pursuant to court order or under the rules of court. The interest on those investments shall accrue to the benefit of those directed by the court or by agreement of the parties to the litigation.
10. (10) For investing funds, the clerk shall receive a fee of five percent (5%) of the earnings of such investment.
11. (11) For preparing a record on appeal from a court of record to an appellate court, the fee shall be three hundred dollars ($300).
12. (12) Whenever the clerk is required by law or by a judge to send documents by certified or registered mail, the clerk is entitled to recover the clerk's actual costs for mailing the documents.
(j) Earmarked Funds for Computerization.
1. (1) Out of all the general filing fees charged by court clerks, two dollars ($2.00) of the amount collected shall be earmarked for computer hardware purchases or replacement, but may be used for other usual and necessary computer related expenses at the discretion of the clerk. Such amount shall be preserved for these purposes and shall not revert to the general fund at the end of a budget year if unexpended.
2. (2) Effective July 1, 2012, all the general filing fees charged by court clerks shall be increased by two dollars ($2.00). The amount collected pursuant to this two-dollar increase shall be earmarked, along with the two dollars ($2.00) in subdivision (j)(1), for the purposes set forth in subdivision (j)(1), and shall be preserved for those purposes and shall not revert to the general fund at the end of a budget year if unexpended. Pursuant to subsection (l), the fees increased by this subdivision (j)(2) shall not be assessed against the state or otherwise represent a cost to the state in criminal cases, child support actions, mental health proceedings, actions under the Tennessee Adult Protection Act, compiled in title 71, chapter 6, part 1, actions with regard to child care licensing, and collection efforts brought by the department of human services.
(k) Costs in Extraordinary Cases. In any extraordinary cases, the clerk may petition the judge to award reasonable costs, in excess of the amounts provided in this section, to reimburse the clerk for the additional services demanded by the case. In such cases, the clerk may also petition the judge to require an appropriate cost bond. For the purposes of this subsection (k), an extraordinary case is defined as one in which there are ten (10) or more plaintiffs or ten (10) or more defendants.
(l) Charges to the State Unchanged. Notwithstanding any provision of this section to the contrary, any fees increased by this section that are assessed against the state or that otherwise represent a cost to the state in criminal cases, child support actions, mental health proceedings, actions under the Tennessee Adult Protection Act. compiled in title 71, chapter 6, part 1, actions with regard to child care licensing, and collection efforts brought by the department of human services, shall be limited to the amounts chargeable prior to January 1, 2006.
(m) Indigent Parties. No clerk shall be permitted to collect any fee authorized by this section without permitting any person the opportunity to institute a cause of action by means of a pauper's oath, in accordance with Rule 29 of the Rules of the Tennessee Supreme Court.
(n) Fees for Electronic Filing and Retrieval of Court Documents.
1. (1) In any court where electronic filing, signing, or verification of papers has been authorized by local court rule and is in compliance with technological standards established by the supreme court, clerks may assess a transaction fee for each filing submitted by a party to the case. The transaction fee shall be limited to a maximum of five dollars ($5.00) per filing up to a maximum of fifty dollars ($50.00) per case. As an alternative to a transaction fee, clerks may assess an annual subscription fee for each registered user of the electronic filing system. The subscription fee shall permit the registered user unlimited electronic filing for a one-year period. The one-year period shall be defined by the clerk and shall be consistently maintained for all registered users of the electronic filing system. The annual subscription fee shall not exceed three hundred dollars ($300) for each annual period. Each of these fees shall be set in an amount necessary to defray the expenses associated with implementation and maintenance of the electronic filing and document retrieval system and shall be included in the local court rule authorizing it. Pursuant to subsection (l), these fees shall not be assessed against the state.
2. (2) Pursuant to subsection (m), neither the transaction fee nor the subscription fee shall be assessed to a party declared indigent or to that indigent party's legal representative.
3. (3) In any court where electronic filing, signing, or verification of papers has been authorized by local court rule, the state and any department or contractor of the state shall not be required to file documents electronically, notwithstanding any local court rule.
4. (4) Neither the electronic filing transaction fee or subscription fee shall limit a clerk's statutory authority to charge subscription fees or transaction fees for obtaining copies of documents maintained by the clerk as part of an electronic filing system of a separate document management system.

§ 8-21-402. Fee collected for construction and maintenance of new facilities for juvenile courts.

(a) By a two-thirds (⁄) vote of the county legislative body of any county having a population of not less than one hundred eighty-three thousand one hundred (183,100), nor more than one hundred eighty-three thousand two hundred (183,200), according to the 2010 federal census or any subsequent federal census, the clerks of all special juvenile courts and all courts of general sessions having juvenile court jurisdiction may collect the sum of seventy-five dollars ($75.00) from any person who:
1. (1) Enters a plea of guilty;
2. (2) Enters a plea of nolo contendere;
3. (3) Is adjudicated at trial, or whose case is handled under pretrial diversion or retirement; or
4. (4) Is found in violation of the terms and conditions of a probationary or valid court order.
(b) The fee described in subsection (a) shall be subject to § 8-21-401 and shall be in addition to all other taxes, costs, and fines.
(c) The purpose of the fee described in subsection (a) shall be designated for construction of new facilities for juvenile courts in their respective counties. The fee shall be deposited by the clerk of the collecting court into a dedicated county fund. The fund shall not revert to the county general fund at the end of the fiscal year, but shall remain for the purposes set out in this subsection (c). The money collected shall be used exclusively for the creation and maintenance of new facilities for juvenile courts.

§ 8-21-403. Service fees and costs for handling spousal support, child support and other payments.

(a) Each clerk of a court in this state receiving, handling and disbursing spousal support, child support, and similar moneys under and by order of court is entitled to charge and receive from the obligor the sum of five percent (5%) for any and all payments received during each calendar month for such clerk's services in so receiving, handling and disbursing same in addition to any amounts collected for support. Any support order which does not specifically include payment of the clerk's fee by the obligor is deemed to authorize the clerk to collect the fee from the obligor. The clerk's fee shall be an obligation of the obligor and shall be added to the amount of court-ordered child support, making the total obligation of the obligor the support plus the clerk's fee. The clerk is authorized to accept a partial payment of child support and shall prorate any such partial payment as to support and clerk's fee.
(b) The clerk has the authority to contract with the department of human services, subject to availability of funds, to pay for the costs of collecting child support under Title IV-D of the Social Security Act (42 U.S.C. § 651 et seq.) and the laws of this state pursuant thereto, but any expenditures for which reimbursement is sought under such a contract shall be reduced by the amount of fees collected by the contracting clerk under subsection (a). All records, papers, files, and other documents in the clerk's office pertaining to Title IV-D collections shall be open for inspection and subject to audit by the department of human services, the office of the comptroller of the treasury, or authorized agents of the federal government.

§ 8-21-404. Allowances where no fee fixed.

The court may make allowances to the clerk or other person acting as trustee, receiver, or commissioner under the appointment of the court, or to the clerk in the clerk's official capacity.

§ 8-21-405. Auctioneer expense.

If the clerk employs an auctioneer or other person to cry the sale of property, it shall be at the clerk's own expense.

§ 8-21-406. Fees in consequence of neglect of duty.

No clerk of any court shall be entitled to any fees which become chargeable to the state or county in consequence of any omission or neglect of duty on the part of such clerk.

§ 8-21-407. Imperfect transcripts on appeal.

Such clerks shall not be entitled to any fees for imperfect or incorrect transcripts made out and transmitted to a superior court, but such fees shall, on motion, be stricken out of the bill of costs, and such clerk, moreover, charged with costs of the certiorari awarded to bring up a more perfect record.

§ 8-21-408. Fees for computer searches.

In addition to fees allowable pursuant to § 10-7-506, in counties having a population of more than seven hundred thousand (700,000), according to the 1990 federal census or any subsequent federal census, and in counties having a population of not less than three hundred thirty-five thousand (335,000) nor more than three hundred thirty-six thousand (336,000), according to the 1990 federal census or any subsequent federal census, the clerks of the court as listed in § 8-21-401 may charge a fee not to exceed five dollars ($5.00) for computer searches for any public record having a commercial value.

§ 8-21-409. Fees for clerks of courts administering estates, guardianships, conservatorships and other probate matters — Indigent parties — Additional fee for data entry — Continuance fees — Investments — Fees in delinquent property tax cases — Fees for electronic filing and retrieval.

(a) The clerks of the various courts of the state administering estates, guardianships, conservatorships and other probate matters are entitled to demand and shall receive for their services the following fees:
1. (1) For filing petition, entering order, recording bond and issuing original letters of administration in intestacy cases, sixty dollars ($60.00);
2. (2) For filing petition to probate will and entering order, without issuing letters testamentary, forty-eight dollars ($48.00);
3. (3) For filing petition to probate will of three (3) pages or less in length, entering order, issuing original letters testamentary when bond is waived, recording will, sixty-six dollars ($66.00);
4. (4)
  1. (A) For filing petition to probate will of more than three (3) pages in length, entering order, issuing original letters testamentary when bond is waived, recording will, sixty-six dollars ($66.00);
  2. (B) Plus for each additional page of will in excess of three (3) pages, one dollar ($1.00);
5. (5) For filing petition to probate will of three (3) pages or less in length, entering order, issuing original letters testamentary or original letters of administration c.t.a., recording bond, seventy-two dollars ($72.00);
6. (6)
  1. (A) For filing petition to probate will of more than three (3) pages in length, entering order, issuing original letters testamentary or original letters of administration c.t.a., recording bond, seventy-two dollars ($72.00);
  2. (B) Plus for each additional page of will in excess of three (3) pages, one dollar ($1.00);
7. (7) For forwarding by mail the notice to the commissioner required by § 67-8-406(a), six dollars ($6.00);
8. (8) For giving notice to creditors of the qualification of a personal representative, as required by § 30-2-306(a), four dollars ($4.00);
9. (9) For each notice of claim against estate given as required by § 30-2-314, four dollars ($4.00);
10. (10) For filing petition for letters of guardianship, issuing process and cost bond, entering order, and issuing original certificate of guardianship, not including fee of the sheriff, sixty dollars ($60.00);
11. (11) For filing petition for removal of disabilities of minority, and entering order, thirty dollars ($30.00);
12. (12) For filing petition for removal of disabilities of insanity, filing affidavits and entering order, thirty dollars ($30.00);
13. (13) For filing petition for allowing year's support to spouses and entering all orders and reports, thirty dollars ($30.00);
14. (14) For filing petition to legitimate person, entering order, issuing certificates to be forwarded to the Tennessee office of vital records, maximum, sixty dollars ($60.00);
15. (15) For filing petition for change of name, and entering order, maximum, sixty dollars ($60.00);
16. (16) For filing inventory and recording same in inventory record book, ten dollars ($10.00);
17. (17) For entering each order not otherwise provided for, twelve dollars, ($12.00);
18. (18) For filing petition for habeas corpus, filing cost bond, issuing process, and entering order, not including fee of the sheriff, sixty dollars ($60.00);
19. (19)
  1. (A) For filing and recording annual settlement of guardians, conservators, administrators and executors and entering order approving settlement only, thirty dollars ($30.00);
  2. (B) Plus for each additional page in excess of three (3) pages, one dollar ($1.00);
20. (20)
  1. (A) For filing and recording final settlement of guardians, conservators, administrators and executors and entering order approving settlement only, thirty-six dollars ($36.00);
  2. (B) Plus for each additional page in excess of three (3) pages, one dollar ($1.00);
21. (21) For filing petition under the mental health law, compiled in title 33, issuing notices of hearing, entering returns, and entering judgments after hearing, not including fees of sheriff, fifty dollars ($50.00);
22. (22) For entering order increasing bonds of guardians, conservators, executors and administrators and recording bond, twenty-two dollars, ($22.00);
23. (23) For issuing each additional copy of letters of administration, testamentary, guardianships and conservatorships, six dollars ($6.00);
24. (24) For each certificate issued, except under acts of congress, four dollars ($4.00);
25. (25) For each certificate issued under acts of congress, six dollars ($6.00);
26. (26) For issuing supplemental certificate showing letters to be in force, six dollars ($6.00);
27. (27) For making certified copies of documents, per page, two dollars ($2.00), plus for certificate, two dollars ($2.00);
28. (28) For making photocopies of documents, per page, one dollar ($1.00);
29. (29) For filing exceptions to claims against estates, mailing notices and entering orders, forty-two dollars ($42.00);
30. (30) For filing petition for delayed or corrected birth certificate, and entering order, thirty-six dollars ($36.00);
31. (31)
  1. (A) For filing and docketing claims against decedent's estate, each claim, five dollars ($5.00);
  2. (B) For filing release of each claim, two dollars ($2.00);
32. (32) For filing and docketing petition and order not otherwise provided for, thirty dollars ($30.00);
33. (33) For issuing summons, subpoenas, citations, writs and notices, including copies of process when required by law, eleven dollars ($11.00);
34. (34)
  1. (A) For filing small estate affidavits, including certifying to one (1) copy, thirty dollars ($30.00);
  2. (B) Each additional copy, two dollars ($2.00);
35. (35) For filing petition and cost bond in causes involving sale of real estate, eighteen dollars ($18.00);
36. (36) For filing each answer in causes described in this subsection (a), seven dollars ($7.00);
37. (37) For filing each report in causes described in this subsection (a), seven dollars ($7.00);
38. (38) For issuing summons and return in causes described in this subsection (a), including copy of process, eleven dollars ($11.00);
39. (39) For entering orders pro confesso in causes described in this subsection (a), seven dollars ($7.00);
40. (40) For issuing and entering order of publication in causes described in this subsection (a), seven dollars ($7.00);
41. (41) For filing each amended petition in causes described in this subsection (a), ten dollars ($10.00);
42. (42) For entering order appointing guardian ad litem in causes described in this subsection (a), twelve dollars ($12.00);
43. (43) For entering final order in each of the causes described in this subsection (a), twelve dollars ($12.00);
44. (44) Commissions on funds paid into court on confirmation of private sales or other funds paid into the clerk pursuant to court order, and receiving, collecting and paying out the proceeds, a maximum commission of two percent (2%); and
45. (45) For selling property under decree of court and receiving, collecting, and paying out the proceeds, a commission not to exceed five percent (5%) on the amount of sales up to six thousand dollars ($6,000), and an additional amount to be fixed within such limits, in the discretion of the court.
(b) Indigent Parties. No clerk shall be permitted to collect any fee authorized by this section without permitting any person the opportunity to institute a cause of action by means of a pauper's oath in accordance with Rule 29 of the Rules of the Tennessee Supreme Court.
(c) In each new case filed, the clerk may, at the clerk's option, charge an additional fee for data entry in the amount of four dollars ($4.00). Notwithstanding any provision of this subsection (c) to the contrary, any fees increased by this subsection (c) that are assessed against the state or that otherwise represent a cost to the state in criminal cases, child support actions, mental health proceedings, actions under the Tennessee Adult Protection Act, compiled in title 71, chapter 6, part 1, actions with regard to child care licensing, and collection efforts brought by the department of human services, shall be limited to the amounts chargeable prior to July 1, 2012.
(d) Fee for entering each continuance, five dollars ($5.00).
(e) Investments.
1. (1) The clerks of the various courts have the authority to invest idle funds held under their control, not otherwise invested. Such investments shall be in banks or savings and loan associations operating under the laws of the state or under the laws of the United States; provided, that such deposits are insured under the federal deposit insurance corporation. Such investments shall not exceed the amounts that are federally insured, unless otherwise fully collateralized under a written collateral agreement, or unless the funds are deposited with an institution that is a member of the state collateral pool. The interest on such investments shall become part of the fees of the court clerk, and the clerk shall be required to account for interest received, the same as with other fees received. Any funds authorized to be invested may be invested by the clerk in the local government investment pool administered by the state treasurer.
2. (2) Nothing in this section shall be construed to relieve the clerks of courts from the responsibility of investing funds held under their control pursuant to court order or under the rules of court. The interest on those investments shall accrue to the benefit of those directed by the court or by agreement of the parties to the litigation.
3. (3) For investing funds, the clerk shall receive a fee of five percent (5%) of the earnings of such investment.
(f)
1. (1) In delinquent property tax cases, the clerks of the courts shall receive a fee for basic services, to be specified by order of the courts, against each delinquent upon the filing of the complaint. Additionally, the clerk shall receive for other services the statutory fees allowed the clerks under existing laws.
2. (2) For annually providing to the county trustee the list of delinquent taxpayers mandated by § 67-5-2403, the clerk shall receive a fee of five dollars ($5.00) for each property listed for each year, which shall be added to all the fees and costs in such suits.
(g) Fees for Electronic Filing and Retrieval of Court Documents.
1. (1) In any court where electronic filing, signing, or verification of papers has been authorized by local court rule and is in compliance with technological standards established by the supreme court, clerks may assess a transaction fee for each filing submitted by a party to the case. The transaction fee is limited to a maximum of five dollars ($5.00) per filing up to a maximum of fifty dollars ($50.00) per case. As an alternative to a transaction fee, clerks may assess an annual subscription fee for each registered user of the electronic filing system. The subscription fee must permit the registered user unlimited electronic filing for a one-year period. The one-year period must be defined by the clerk and consistently maintained for all registered users of the electronic filing system. The annual subscription fee cannot exceed three hundred dollars ($300) for each annual period. Each of these fees must be set in an amount necessary to defray the expenses associated with implementation and maintenance of the electronic filing and document retrieval system and must be included in the local court rule authorizing the electronic filing and document retrieval system. Pursuant to subsection (d), these fees are not assessed against the state.
2. (2) Pursuant to subsection (b), neither the transaction fee nor the subscription fee shall be assessed to a party declared indigent or to that indigent party's legal representative.
3. (3) In any court where electronic filing, signing, or verification of papers has been authorized by local court rule, the state and any department or contractor of the state are not required to file documents electronically, notwithstanding any local court rule.
4. (4) Neither the electronic filing transaction fee nor the subscription fee shall limit a clerk's statutory authority to charge subscription fees or transaction fees for obtaining copies of documents maintained by the clerk as part of an electronic filing system of a separate document management system.

Part 5 Appellate Court Clerks

§ 8-21-501. Supreme court clerks and deputy clerks.

(a) The clerk of the supreme court and the intermediate appellate courts and the board of judicial conduct, referred to in this section as the “clerk”, is authorized to charge and receive a fee for each individual service rendered by the clerk or may charge and receive a general filing fee for services related to each of the following types of cases and filings:
1. (1) Appeals to the supreme court, court of appeals, or court of criminal appeals, regardless of whether the appeal is instituted by a notice of appeal, petition, application, motion for review, or other means;
2. (2) Any original or other action instituted by a writ or other means filed with the supreme court, court of appeals, court of criminal appeals, or board of judicial conduct;
3. (3) Certification of questions from a federal court to the supreme court;
4. (4) Motions for full court review in a worker's compensation action;
5. (5) Motion for leave to file an amicus curiae brief;
6. (6) Motion to assume jurisdiction over an undecided case;
7. (7) Motion to waive the timely filing of a notice of appeal pursuant to Rule 4(a) of the Tennessee Rules of Appellate Procedure; and
8. (8) Motion to waive the timely filing of permission to appeal pursuant to Rule 11 of the Tennessee Rules of Appellate Procedure.
(b) In addition to any general filing fee, the clerk is authorized to collect fees for the following services:
1. (1) For certifying a copy of any papers of record in the court offices, including the affixing of a certificate and seal;
2. (2) For comparing any document with the original filed in the offices of the court for purposes of certification;
3. (3) For check in/check out of an appellate record following the mandate of a case;
4. (4) For issuing a capias, a fi.fa., a writ of execution or any other type of writ;
5. (5) For issuing a subpoena or subpoena duces tecum;
6. (6) For processing a sheriff's return;
7. (7) For making copies as requested;
8. (8) For services related to the withdrawal of an archived record; and
9. (9) For any official service performed by the clerk not otherwise provided by this section.
(c) The supreme court shall set the amount of court costs and fees authorized by statute by court order or rule.
(d) Whenever the clerk is required by law or by a judge to send documents by certified or registered mail, the clerk is entitled to recover the clerk's actual costs for mailing the documents.
(e) In any extraordinary cases, the clerk may petition the appropriate appellate court to award reasonable costs, in excess of the amounts provided in this section, to reimburse the clerk for the additional services demanded by the case. In such cases, the clerk may also petition the court to require an appropriate cost bond. The decision whether to assess additional costs shall be in the discretion of the appropriate appellate court which shall take into consideration factors such as the number of parties and the quantity of filings involved in the appeal.
(f) When electronic filing has been implemented in the appellate courts in accordance with rules promulgated by the supreme court, the clerk, with the approval of the supreme court, may charge transaction, subscription, or other types of fees to users of the clerk's electronic filing system or the clerk's electronic document retrieval system. As determined appropriate by the supreme court, these fees shall be set in an amount necessary to defray the expenses associated with implementation and maintenance of the clerk's electronic filing system and the clerk's document retrieval system. These fees shall not be assessed against the state.
(g) The clerk is hereby authorized to accept payment by electronic debit, credit, or other means of a fee, fine, court cost, or other charge and may collect a fee for processing the payment. The clerk shall set the processing fee in an amount that is reasonably related to the expense incurred by the clerk in processing the payment. However, the clerk may not set the processing fee in an amount that exceeds five percent (5%) of the amount of the fee, court cost, or other charge being paid. If a payment by electronic means is not honored by the entity on which the funds are drawn, the clerk may collect a service charge from the person who owes the fee, fine, court cost, or other charge. The service charge is in addition to the original fee, fine, court cost, or other charge and is for the collection of that original amount. The amount of the service charge shall not exceed the fee charged for the collection of a check drawn on an account with insufficient funds.
(h) Except as provided otherwise by law:
1. (1) The fees and costs provided in this statute are chargeable and may be collected at the time the services are requested from the clerk;
2. (2) No fee is refundable except pursuant to orders or policies of the supreme court; and
3. (3) Costs or fees taxed to a party pursuant to a judgment or mandate are to be settled between the parties.
(i) The supreme court shall have the authority to set all fees, charges, and surcharges of the clerk at levels sufficient to offset the costs of administering the clerk's office.
(j) Upon entry of any order or rule of the supreme court setting the filing costs, fees, charges, and surcharges, the clerk shall file a copy of the order or rule with the appropriate legislative committees that exercise jurisdiction over the issue.
(k) Nothing in this section shall limit the ability of a party to initiate a judicial proceeding by filing a pauper's oath. If a party, other than a party who initiated a proceeding under a pauper's oath, pays costs at the time the services are requested, such payment shall be deemed to satisfy the requirement for security to be given for costs pursuant to Rule 6 of the Tennessee Rules of Appellate Procedure.
(l) The fees listed above do not include officer's fees as provided for in § 8-21-901 and elsewhere. These fees also do not include state litigation taxes.
(m) All fees and costs collected pursuant to this section shall be deposited in the state treasury and designated for the operation of the state court system.

Part 6 Clerks and Masters in Chancery

§ 8-21-601. Clerks and masters in chancery.

The clerks and masters of the chancery court are allowed to demand and receive for services the fees attached to such services as provided in part 4 of this chapter. This section likewise applies to part 7 of this chapter.

§ 8-21-602. Division of fees pending collection or disbursement.

In all chancery cases, where outgoing clerks and masters have sold property under decree of court and have not collected the funds arising from the sale, or the sale has been made and the funds collected but not disbursed, and the duty shall devolve upon the incoming clerks and masters of collecting and disbursing the funds, or of disbursing the funds collected by the outgoing clerks and masters and not disbursed, it shall be the duty of the chancellor to make an equitable division of the commissions.

Part 7 County Clerks

§ 8-21-701. County clerks — Specific fees authorized.

In addition to any other fees for services established by law, county clerks are entitled to demand and receive for the following services the fees attached:
1. (1) For issuance of marriage license $10.00
2. (2) For transfer of business license from one location to another $5.00
3. (3) For certifying a notary public's election to the secretary of state pursuant to § 8-16-106 $7.00
4. (4) For receiving and forwarding notice of notary public name change or change of address pursuant to § 8-16-109 $5.00
5. (5) For taking and recording official bonds and revenue bonds $2.00
6. (6) For receiving and paying over state and county revenue, on the amount collected and paid over 5%
7. (7) For ex officio services, the legislative body may make an allowance not exceeding $50.00
8. (8) For attending to prosecution for penalties under the inspection laws, on sums collected and paid into the state treasury 10%
9. (9) For services in the recovery of penalties prescribed against breach of revenue laws in relation to licenses double fees
10. (10) For certifying a copy of a document or taking an acknowledgment or affixing seal $5.00
11. (11) For making copies, per page $0.50
12. (12)
  1. (A) For handling refunds of amounts overpaid up to $2.00
  2. (B) A county clerk shall adopt a policy establishing a procedure to be followed if the county clerk receives payments of taxes or fees in excess of the required amount, and that policy shall include one or more of the following:
    1. (i) Contacting the person or entity tendering the payment for specific instructions regarding the excess amount;
    2. (ii) Allowing the county clerk's office to retain reasonable overage amounts as fees of the office; or
    3. (iii) Providing a refund of the excess moneys, less a reasonable amount of the excess payment retained as fees of the office;
13. (13) For issuance of permits and licenses for which fees are not otherwise provided $5.00
14. (14) For filing documents for which fee is not otherwise provided $5.00
15. (15) For county clerks performing services as clerk of a court, the fees prescribed in part 4 of this chapter.

§ 8-21-702. Settlement of minor's estate.

Whenever the distributive share of any minor does not exceed two hundred dollars ($200), the county clerk shall not be entitled to more than one dollar ($1.00) for any one (1) settlement the clerk may make with the guardian of such minor.

§ 8-21-703. Fees in pension cases.

The county clerks shall not be entitled to any fees for certificates and seals in the application for pension and pensioners' money, or upon powers of attorney for that purpose, and judges of the court of general sessions shall not be entitled to fees in such cases, and the taking or receiving of fees in any such cases, by either of such officers, shall be a Class A misdemeanor.

Part 8 Special Commissioners

§ 8-21-801. Special commissioners.

Special commissioners, appointed by court to sell property, take accounts, examinations, depositions, or perform other services, are entitled to demand and receive the same fees and compensation allowed other officers for similar services; provided, however, that no special commissioner shall be permitted to receive a commission in excess of that specified pursuant to § 8-21-401(i)(7) for selling real or personal property under decree of court, and receiving, collecting, and paying out the proceeds.

§ 8-21-802. Commissioners' partition of land.

(a) Commissioners to make partition of land, and for other similar services, when no compensation is fixed by law, are entitled to demand and receive:
1. (1) For each day's actual service in partitioning land and in performing other services $1.00
2. (2) For every mile of necessary travel $0.05
(b) It is lawful for all courts appointing commissioners to make partition of land and for other similar services to allow, in addition to the above fees, such additional compensation as the services of such commissioners may be reasonably worth.

Part 9 Sheriffs and Constables

§ 8-21-901. Sheriffs and constables — Specific fees authorized.

(a) Notwithstanding any other law to the contrary, the sheriff or constable is entitled to demand and receive the respective fees for the following services where services are actually rendered:
1. (1) Service of Process.
  1. (A) For serving any process except as otherwise provided in this section or other applicable law, whether issued by a clerk for a general sessions, criminal, circuit, chancery or any other court, the sheriff or constable shall be entitled to the following fees, based on the manner in which process is served, for each item of process that must be served separately per person served:
    1. (i) For service in person $50.00
    2. (ii) For service by mail $10.00
    3. (iii) For service by acceptance or consent or any other authorized method $10.00
  2. (B) For summoning jurors in any proceeding $5.00
  3. (C) For serving or delivering any other process or notice not related to a judicial proceeding and issued by an entity other than a court $10.00
  4. (D) For returning any service of process where the sheriff or constable attempts service but is unsuccessful, the sheriff or constable shall be entitled to the same fees specified in subdivision (a)(1)(A); provided, that service is attempted in accordance with the laws of the state.
2. (2) Collection of money; returning, transporting, storing or establishing possession of property.
  1. (A) For a levy of an execution on property or levy of an attachment or other process to seize property for the purpose of securing satisfaction of a judgment yet to be rendered or for executing a writ of replevin or writ of possession $50.00
  2. (B)
    1. (i) For collecting money to satisfy a judgment, whether by execution, fieri facias, garnishment or other process, in civil cases each time collection is attempted $40.00
    2. (ii) For purposes of the payment of fees for garnishments as provided in this subdivision (a)(2)(B), all garnishments shall be deemed to be original garnishments and the sheriff or other person authorized by law to serve garnishments shall be entitled to the fee provided for in this subdivision (a)(2)(B) for each such garnishment served.
  3. (C) Whenever the sheriff or constable provides for the storage or maintenance of property including, but not limited to, vehicles, livestock and farm and construction equipment, that has been levied on by execution, attachment or other process, the sheriff or constable is entitled to demand and receive a reasonable per day fee for such services. The sheriff or constable is also entitled to demand and receive reimbursement for costs of transportation of such personal property to a suitable location for storage and maintenance when such action is necessary to secure such property. Any such fees for transportation, maintenance and/or storage shall be approved by the court issuing the execution, attachment or other process.
3. (3) Arrest and transportation of prisoners, bail bond.
  1. (A) For executing every capias, criminal warrant, summons or other leading process, making arrests in criminal cases and carrying to jail, prison or other place of incarceration and guarding defendant arrested by warrant involving taking custody of a defendant $40.00
  2. (B) For citation in lieu of arrest or criminal warrant not involving physical custody of a defendant $25.00
  3. (C) For every bail bond to be paid as cost at the time there is a disposition of the case $10.00
  4. (D) If a sheriff or constable is required to act as a guard to escort prisoners, such sheriff shall be entitled to a per mile fee equal to the mileage allowance granted federal employees. Such fee shall be separate for each prisoner and computed on the distance actually traveled with the prisoner and shall be for no more than two (2) guards. Such fee shall only apply when the sheriff or constable is required to transport a prisoner from county to county or from state to state. Similarly, the sheriff shall be entitled to the same mileage allowance when required to transport a prisoner to a hospital or other mental health facility in another county or state for a judicially ordered evaluation.
  5. (E) When two (2) or more criminal warrants are executed at the same time against the same individual, there shall be but one (1) arrest fee allowed when the fee is chargeable to the county and/or the state.
4. (4) Security Services.
  1. (A)
    1. (i) For attending on grand jury, or waiting in court per day $75.00
    2. (ii) Notwithstanding subdivision (a)(4)(A)(i), in any county having a population of not less than eighty-eight thousand eight hundred (88,800) nor more than eighty-eight thousand nine hundred (88,900), according to the 2000 federal census or any subsequent federal census, the sheriff, constable, bailiff or other court officer, as applicable, shall be entitled to receive one hundred dollars ($100) per day for attending on grand jury or waiting in court. Such daily per diem allowance shall be a minimum daily per diem and may be increased no more than once annually by resolution of the county legislative body of any county to which this subdivision (a)(4)(A)(ii) applies.
  2. (B) For waiting with a sequestered jury per day $100
5. (5) Data processing services.
  1. (A) For data processing services $2.00
  2. (B) The revenue from the two-dollar data processing fee levied by subdivision (a)(5)(A), shall be allocated by the sheriff's county for computerization, information systems and electronic records management costs of the sheriff's office. Such funds shall remain earmarked within the general fund and shall be reserved for the purposes authorized in this subdivision (a)(5)(B) at the end of each fiscal year.
(b) Notwithstanding other provisions of this section to the contrary, any fee or mileage allowance permitted under this section, which is assessed against the state or which otherwise represents a cost to the state, shall be limited in amount to the fees allowable immediately prior to May 28, 1977.
(c) The court in its discretion may award recovery of fees for process served by any private process server as part of any judgment rendered in a case but such fees awarded against a party shall not exceed the like fees as authorized by this section for services provided by sheriffs or constables.
(d) Notwithstanding this part to the contrary, a county legislative body may adopt a resolution to increase the fees to which a constable is entitled under this section, or to generally supplement the pay of a constable who is an officer of the county. A fee increase or pay supplement must be commensurate with the nature of the work, services provided, and experience of the constable.

§ 8-21-902. Fees on collection of costs.

The sheriffs and other collecting officers of this state shall be allowed the same fees for collecting and paying over costs as they are allowed by law for the collection of other moneys. They shall not be allowed to charge or receive commissions on costs in their favor.

§ 8-21-903. Judgments paid after execution issued.

The plaintiff in all judgments shall be liable to any sheriff or constable for the commission on the amount so received, if the plaintiff or the plaintiff's agent or attorney receives any or all of the judgment after an execution has been issued on the judgment and given into the officer's hands for collection.

Part 10 Registers

§ 8-21-1001. Registers.

(a) As used in this section:
1. (1) “Document” means the entire writing offered for registration in the office of the register, which may contain one (1) or more instruments as defined herein; and
2. (2) “Instrument” means a legal writing that gives formal expression to or evidence of a complete legal act or agreement requiring a separate index entry. For example, a document that contains a deed and a release of a deed of trust contains two (2) instruments, and a document that contains three (3) assignments contains three (3) instruments.
(b) The registers of this state are entitled to demand and receive for their services in registering documents the following fees, and none other:
1. (1) For military discharge No Charge
2. (2) For each plat, map or survey $15.00
3. (3) For each document that may be registered, other than documents filed pursuant to the Uniform Commercial Code, compiled in title 47, chapters 1-9, and other than a military discharge, plat, map or survey, page size not to exceed 8½″ x 14″ $10.00
4. (4) For each instrument in a document in excess of one (1) instrument $5.00
5. (5) For each page in a document in excess of two (2) pages, not to exceed 8½″ x 14″ $5.00
6. (6) For a certified copy of a plat, map or survey $5.00
7. (7) For a certified copy of a document other than a plat, map or survey, page size not to exceed 8½″ x 14″, per page $1.00
(c) Except for instruments filed under the Uniform Commercial Code, compiled in title 47, chapters 1-9, the register of each county is entitled to demand and receive for such register's services a fee of two dollars ($2.00) for each instrument recorded or filed in such register's office.
(d) The fees collected pursuant to subsection (c) and the fees collected by the register as a result of the increase in fees for the filing or recording of Uniform Commercial Code documents from ten dollars ($10.00) to twelve dollars ($12.00) for each such fee charged pursuant to title 47, chapter 9, part 5, shall be allocated by such register's county for the purchase of computer equipment and software, upgrades to computer equipment and software, and supplies, maintenance and services relating to computer equipment and software, for use in the register's office; provided, that the expenditure of these additional fees shall not be earmarked in any county that on July 1, 1998, was authorized under prior law to charge an additional recording fee of one dollar ($1.00) or two dollars ($2.00) for each document filed or recorded in the register's office that was not earmarked for a particular purpose.
(e) All private act provisions authorizing registration or recording fees to be charged by the county register in amounts additional to those authorized by general law are superseded.
(f) The county register shall not be entitled to demand and receive any fees for notices of liens for overdue child or spousal support or releases of same entered into a computer system with a terminal in the county register's office by the department of human services pursuant to § 36-5-901(b)(3).
(g)
1. (1) In addition to any other fee permitted in this section or by law, the register of any county having a population of not less than thirty-three thousand ten (33,010) nor more than thirty-three thousand five hundred (33,500), according to the 1990 federal census or any subsequent federal census, may demand and receive for such register's services a fee of two dollars ($2.00) for data processing for each document recorded in such register's office. Such fees shall be allocated by the county for the purchase of computer equipment, upgrades, imaging systems, supplies, and maintenance used in the operation of the register's office.
2. (2) This subsection (g) shall have no effect unless it is approved by a two-thirds (⅔) vote of the legislative body of any county to which it may apply.
(h)
1. (1) In any county having a population of not less than seventy-one thousand three hundred (71,300) nor more than seventy-one thousand four hundred (71,400), or in any county having a population of not less than eight hundred ninety-seven thousand four hundred (897,400) nor more than eight hundred ninety-seven thousand five hundred (897,500), according to the 2000 federal census or any subsequent federal census, the register shall waive and exempt all recording fees for official government documents filed on behalf of the county by county public officials in the course of their official duties.
2. (2) Subdivision (h)(1) shall have no effect unless it is approved by a two-thirds (⅔) vote of the legislative body of any county to which it may apply.
(i)
1. (1) Notwithstanding any provision of this section or other law to the contrary, any revenue collected from data processing fees above an amount necessary to purchase computer equipment and software, upgrades to computer equipment and software, and supplies, maintenance and services relating to computer equipment and software by a register in any county having a population of:
  3. 26,70026,800
  4. 31,30031,400
  5. 69,40069,500
  6. 182,000182,100
  7. 307,800307,900
  9. according to the 2000 federal census or any subsequent federal census, may be utilized for other purposes directly related to the official function of such office.
2. (2) Prior to any purchase relating to the official function of the register from revenue collected above an amount necessary for purchasing, upgrading, supplying and maintaining computer equipment and software by the register's office as provided in subdivision (i)(1), the register shall obtain the approval of the county legislative body for such purchase.
3. (3) This subsection (i) shall only be effective in any county to which this subsection (i) applies upon the adoption of a resolution by a two-thirds (⅔) vote of the county legislative body of such county.
(j)
1. (1) In addition to any other fee permitted in this section or by law, the register of any county may demand and receive for such register's services a two-dollar electronic filing (efile) submission fee for each electronically filed document which is recorded over the internet through such register's county electronic filing portal.
2. (2) The register shall waive and exempt all electronic filing submission fees authorized pursuant to subdivision (j)(1) for official government documents filed by local, state, or federal government entities of the United States in the course of their official government business.
3. (3) This subsection (j) shall only be effective in any county to which this subsection (j) applies upon the adoption of a resolution by a two-thirds (⅔) vote of the county legislative body of such county.

Part 11 Surveyors

§ 8-21-1101. Surveyors — Specific fees authorized.

Surveyors are entitled to demand and receive the following compensation and fees for services:
1. (1) For each search, to be paid by applicant $ 0.10
2. (2) For each search and copy required $0.25
3. (3) For recording a plat and certificate in a well-bound book, furnished by the surveyor $0.50
4. (4) For services per day, computed from the time of leaving home, and including the actual time necessary for calculating the area of such surveys $15.00
5. (5) For all services ordered by a court, at the above rates, to be taxed in the bill of cost.
6. (6) For summoning and qualifying jury to try dispute in processioning case $1.50
7. (7) For services in processioning land the same as those for similar work in other cases.

Part 12 Notaries Public

§ 8-21-1201. Fees for services — When recordation required — Notaries employed by financial institutions.

(a) A notary public or the notary's employer is entitled to demand and receive reasonable fees and compensation for the notary's services.
(b) If the notary or the notary's employer demands and receives a fee, the notary shall keep a record, either in an appropriate electronic form or in a well-bound book, of each of the notary's acts, attestations, protestations, and other instruments of publication.
(c)
1. (1) If the notary or the notary's employer does not demand or receive a fee for the notary's services, no recordation of the notary's acts, attestations, protestations, and other instruments of publication is required.
2. (2) If the notary or the notary's employer demands and receives a fee for one (1) or more services but does not separately charge a fee for the notary services, then no recordation of the notary's acts, attestations, protestations, and other instruments of publication is required.
(d)
1. (1) If the notary is an employee of a financial institution subject to the Financial Records Privacy Act, compiled in title 45, chapter 10, and the notary or employer of the notary charges a fee, and the services performed by the notary are part of the notary's duties and within the scope of the notary's employment, then access to the record shall be governed by the Financial Records Privacy Act, or the federal Right to Financial Privacy Act of 1978 (12 U.S.C. § 3401 et seq.), whichever is applicable.
2. (2) If the notary is an employee of a financial institution subject to the Financial Records Privacy Act, and the notary does not charge a fee for the services, then the records kept by the notary, if any, shall be considered records of the notary unless the financial institution adopts a written policy stating that such records are a record of the financial institution. In such case, access to the records shall be governed by the Financial Records Privacy Act or the federal Right to Financial Privacy Act of 1978, whichever is applicable.

Part 13 Legal Notices

§ 8-21-1301. Legal notices.

Where a publication of a legal notice of any kind is allowed or required by law, a newspaper publishing such notice shall charge and receive not more than its regular classified advertising rate.

Chapter 22 Accounting for Fees

§ 8-22-101. Clerks and county officers made salaried officers.

The clerks and masters of the chancery courts, the county clerks and clerks of the probate, criminal, circuit and special courts, county trustees, registers of deeds, general sessions court clerks, juvenile court clerks, and sheriffs shall be deprived of all their fees, commissions, emoluments and perquisites that shall accrue, or be received by virtue of their respective offices, except payment for special services as trustee or receiver and payment for special services as special commissioner; and they shall be compensated for their services by salaries in the manner provided in chapter 24 of this title, which salaries shall be in lieu of all other compensation.

§ 8-22-102. Bond to pay over fees.

In the official bonds executed by the officers enumerated in § 8-22-101, there shall be included a condition that the officer shall collect and duly so account to the county trustee for the fees, commissions, emoluments, perquisites, and compensation that such officer shall receive or by due diligence ought to have received by virtue of the office, to which the county is entitled by chapters 21 and 22 of this title.

§ 8-22-103. Excess fees are property of county.

All the excess fees, commissions, emoluments and perquisites, no matter whether such sums arise from fees, commissions, emoluments or perquisites by order or by direction of court, that are or may be directly or indirectly collected by virtue of their offices by the clerks of the circuit, criminal and special courts, and by the clerks and masters of the chancery courts, county clerks and clerks of the probate courts, county trustees, registers of deeds, clerks of the general sessions courts, juvenile court clerks, and sheriffs, except compensation for special services as trustee or receiver, and except, also, payment for special services as special commissioner, shall be paid to the county trustee as a part of the county revenue, and the same when accrued are declared to be the property of the respective counties wherein the same are collectible, except as herein provided.

§ 8-22-104. Accounting for and payment of fees.

(a)
1. (1) Except as otherwise provided in §§ 8-24-103, 8-24-108 and subsection (b), each of the officers enumerated in § 8-22-101 shall keep a complete account of every fee of every nature, commission or charge collected by such officer, except compensation for special services as trustee or receiver, and shall file an itemized statement thereof monthly, under oath, with the county mayor, who shall preserve the same as a part of the records of the county mayor's office.
2. (2) Each officer shall also remit to the office of the county trustee, quarterly in January, April, July and October, all of the fees, commissions and charges collected by such officer in the preceding quarter and due the county in excess of such officer's salary, together with the salaries of deputies and assistants and the expenses of the office as provided by law. Each official is authorized to retain fees, commissions and charges in an amount equal to three (3) times the officer's monthly statutory salary and the monthly salaries of the officer's duly authorized deputies and assistants. The quarterly payments are to be made to the trustee by the tenth of the month as set out above.
3. (3) The legislative body in any county may make the necessary appropriation and pay to any officer of its county as enumerated in § 8-22-101, to whom this section is applicable, the salary as fixed by § 8-24-102 and the authorized expenses fixed by law for the operation of the office including the salary of all deputies, which shall be the sole manner of compensation for those deputies as authorized pursuant to chapter 20 of this title, direct from the county trustee in twelve (12) equal monthly installments irrespective of the fees earned by such officers. In such an event, all fees allowed, collected or in any manner received by such officers will be paid, assigned, transferred, and set over to the county monthly, and when such fees are received by the clerk of any court or any other person such fees shall be transmitted monthly to the county trustee.
(b)
1. (1) In all counties of this state having a metropolitan form of government and in all counties of this state having a population according to the 1970 federal census or any subsequent federal census as follows:
  3. 5,5006,000
  4. 7,0007,500
  5. 62,00063,000
  6. 250,000300,000
  8. and except as otherwise provided in §§ 8-24-103 and 8-24-108, each of the officers enumerated in § 8-22-101 shall keep a complete account of every fee of every nature, commission, or charge collected by such officer, except compensation for special services as trustee or receiver. Each officer shall file an itemized statement thereof monthly, under oath, with the county mayor, who shall preserve same as a part of the records of the county mayor's office. Each officer shall make a remittance to the office of the county trustee of the county twice per year, on September 1 and April 1, of all of such fees, commissions, and charges in excess of the officer's salary, together with the salaries of the officer's deputies and assistants and the expenses of the office, as hereinafter provided. Such salary of the officer, the salaries of the officer's deputies and assistants and the office expenses must be shown and itemized in the statements filed in the office of the county mayor.
2. (2) No report shall be required from any officer named above where the fees and compensation received by the officer do not amount to the salary fixed in chapter 24 of this title, except that any money official whose salary is required or authorized to be supplemented out of the general funds of the county to the extent provided in §§ 8-24-106 and 8-24-107 shall keep a book account of all fees collected by the officer and make an annual report of such collections to the county mayor, as required by § 8-24-106. No part of the salary of such official for the preceding year shall be paid by the county until such report has been made, the purpose of this requirement being to enable the county mayor to determine the amount of the deficiency in annual salary which the county is required to pay, or the amount of fees collected in excess of the salary to which such official is entitled.

§ 8-22-105. Liability for failure to collect or account.

Any officer enumerated in § 8-22-101, who evades the letter or the spirit of chapters 21 and 22 of this title by failing to charge or collect from the one liable therefor, every fee, commission, perquisite, emolument, or compensation that the county may be entitled to, and which, by the exercise of reasonable diligence could have been collected, or by failing to present the statement of receipts as herein directed, shall be held individually liable to the county for the amount that should have been collected, and the same shall be charged against the officer and be deducted from the officer's salary, or collected from the officer by law.

§ 8-22-106. False statements — Felony.

Any officer enumerated in § 8-22-101 who evades the letter or the spirit of chapters 21 and 22 of this title by making or by conspiring with anyone, in any manner, to make a false or incorrect exhibit of receipts, statement of expenses, or statements as to any fact required to be stated by this chapter or chapter 24 of this title under oath, commits a Class E felony.

§ 8-22-107. Items paid for by county — Special provisions for certain counties.

(a) All necessary books, stationery, office equipment, stamps, and supplies of all kinds used in the conduct of the various offices shall be furnished and paid for by the county, including premiums on official bonds executed by the officers named in § 8-22-101.
(b) Notwithstanding subsection (a), in counties with a population of six hundred thousand (600,000) or more, according to the 1970 federal census or any subsequent census, all necessary books, stationery, office equipment, stamps and supplies of all kinds used in the conduct of the various offices of the elected county officers enumerated in this chapter shall be furnished and paid for by the county, including premiums on official bonds executed by such officers named in § 8-22-101, and all such purchases shall be accomplished through a centralized purchasing procedure in that county pursuant to the applicable laws relative to that county for purchasing. No official or officer enumerated in § 8-22-101 shall be entitled to purchase any of the aforementioned items for the officer's office by using the fees, commissions or emoluments collected by the officer.

§ 8-22-108. Payment of expenses out of fees — Exceptions — Settlement.

(a)
1. (1)
  1. (A) At the end of each month, each officer enumerated in § 8-22-101 shall pay, out of the fees, commissions, or emoluments collected by the officer by virtue of the office, all the expenses of the office in the manner provided. The officer shall also pay the salaries of the deputies and assistants who may be provided for the office for each month, and may pay to the officer the proportionate part of the officer's annual salary; but the excess of such fees, commissions, emoluments, etc., the officer shall retain to be accounted for to the county as directed.
  2. (B) However, if in any month the total amount of fees, commissions, emoluments, etc., collected by any such officer does not equal the total amount of such officer's salary, the salaries of the deputies and assistants allowed the officer, plus the other expenses of the office as provided, for the month, then the amount of such deficiency shall be allowed the officer out of any excess fees, etc., received or collected by the officer during any preceding or succeeding month or months of the terms for which the officer is elected or appointed.
2. (2) However, upon beginning a new term of office, the county trustee, when funds are available, and upon approval and direction of the governing body of each county, shall advance monthly to such officers the necessary funds with which to begin a new term of office until excess fees collected are sufficient to repay to the county trustee any and all of the sums so advanced.
3. (3) The excess fees, commissions, etc., paid over to the county trustee under §§ 8-22-101 – 8-22-113, [former] 8-22-114 [repealed], 8-22-115, [former] 8-22-116 [repealed], 8-22-117 shall be subject to the same law as applies to unclaimed funds paid into the county treasury under § 5-8-401.
4. (4) When the several terms of office of the officers are ended, a final settlement will be had between the county and the officers, and any deficiency in the salaries of such officers for any year during their tenure will be paid to them out of such funds arising from the funds paid in by those officials.
(b) Notwithstanding subsection (a), in counties with a population of six hundred thousand (600,000) or more, according to the 1970 federal census or any subsequent census, all purchases enumerated in § 8-22-107 shall be made in accordance with § 8-22-107(b).

§ 8-22-109. Credit for expenses paid.

(a) Each officer shall be entitled to credit on the officer's settlement with the county trustee for all moneys paid by the officer for salaries, including the officer's own, and for the premiums on the officer's official bonds, if the officer executed such bonds with a surety company as surety, and for other necessary office expenses, such as the preparation of transcripts of records and the like, in the conduct of the office; provided, that such officer shall produce an itemized statement evidencing such expenditures. But the payment or allowance of any salary or expense statement shall in no way prejudice or preclude the disallowance of any one (1) or more items found to be improperly included in any of the statements, when the same has been audited, nor shall it relieve such officer from refunding to the county all such items so improperly included.
(b) Among the items of expense which the clerks of the circuit and criminal courts and clerks and masters of the chancery courts shall be allowed in their settlements with the county mayors are such expenditures out of excess fees as the judges of such courts shall authorize for office equipment and supplies for their respective clerks; provided, that this subsection (b) does not apply to counties in this state having a population of not less than two hundred thousand (200,000), according to the federal census of 1960 or any subsequent federal census.

§ 8-22-110. Expenses for deputy sheriffs and jail.

(a) The sheriff of each county is authorized to include in the sheriff's expense account, as part of the expenses of the office, the necessary cost of arresting criminals, of furnishing and operating the county jail, and maintaining the state and county prisoners therein, and all other necessary and legitimate expenses incurred in the proper and efficient administration of the office.
(b) When, in case of great emergency, as in case of a strike, riot, putting down a mob, or other like emergencies, there shall be immediate need for the appointment by the sheriff of an additional number of deputies to deal efficiently with the situation and to preserve order, the sheriff may make emergency appointments of such special deputies without making application to the court, the same to serve during the term of emergency only, and shall make an itemized statement showing the services of such deputies, and the time during which such special deputies served, which shall be presented to the county mayor for auditing and allowance. The county mayor, when satisfied of the justness of such claims, shall allow the same as other claims are allowed; provided, that no such special deputy so appointed by the sheriff shall receive more than four dollars ($4.00) per day for services actually performed.

§ 8-22-111. Appropriations for salaries of deputy sheriffs.

(a) The county legislative body, however, has the power, by appropriation made according to law, to pay to deputy sheriffs appointed pursuant to §§ 8-20-103 and [former] 8-20-108 [obsolete], the salary so fixed, direct from the county treasury, within the appropriation made by the county legislative body, irrespective of the legal fees earned by such deputies. In that case, all fees allowed, collected or in any manner received by the deputies will be paid, assigned, transferred and set over to the county, and such fees when received by the deputies, the clerks of the court, the sheriff of the county or by any other person, shall be remitted monthly to the county trustee.
(b) No deputy sheriff or other person serving under § 8-20-103 or [former] § 8-20-108 [obsolete] shall claim, hold, or have any interest in any fund for services performed under those sections, this to include any fee or fees which the deputy may be entitled to receive while appearing as a witness in court, either under subpoena or voluntarily.
(c) The deputies serving under § 8-20-103 shall make all charges for services performed as now provided by law and will in no event waive, remit, or release any fee for services performed while acting under § 8-20-103.

§ 8-22-112. Report of services performed by deputy sheriffs.

Any deputy sheriff appointed and serving under §§ 8-20-103 and [former] 8-20-108 [obsolete] shall, before receiving monthly salary, submit a monthly report for the preceding calendar month showing the services performed, in which cost for such services have accrued and the court or agency from which the fees will be received. A copy of such report will be filed with the sheriff and trustee of the county. The fiscal agent of the county will in no event issue any voucher in payment of the deputies' salaries, as herein provided, until the trustee and sheriff of the county have certified in writing that such monthly report has been received.

§ 8-22-113. Fees earned by deputy sheriffs.

All of the fees received by the county trustee under §§ 8-22-111 – 8-22-113 shall be held in the general fund of the county and appropriately designated and held in a separate account so designated. At each regular meeting of the county legislative body, the trustee of the county shall report the amount of funds coming into the trustee's hands. The report, when received by the county legislative body, will be spread of record and retained as a part of the permanent records of the county.

§ 8-22-114. [Reserved]

§ 8-22-115. Audit of books of officers.

(a) The county legislative body may employ an auditor to audit the books, annually, of the officers named in § 8-22-101. The auditor, if employed, shall be employed by a committee of not less than three (3) appointed by the county legislative body of such county from the members of the county legislative body, which committee shall require the auditor so employed to furnish bond for the faithful performance of such duty.
(b) The auditor employed shall examine the books and records in each office to ascertain whether the incumbent has properly taxed all fees, commissions, emoluments, etc., which accrued or should have accrued to the county during the period covered by the audit, and whether the officer has collected all such fees as should have been collected by the officer or which could have been collected by due diligence. The auditor shall also examine the statements of receipts to ascertain if the officer has properly accounted for and paid to the county the proper amounts due it. The auditor shall also examine all expense statements and ascertain if all items of expense included therein were properly incurred and were properly chargeable against the county.
(c) Such accountant or auditor shall submit a report in writing to the county mayor as soon after the completion of the audit as practicable. If it is shown by the report that any officer enumerated in § 8-22-101 has failed properly to account to the county for any sum collected by the officer or has received credit for any item improperly allowed, in either event, the county legislative body shall take proper steps to recover from such officer all such sums.

§ 8-22-116. [Reserved]

§ 8-22-117. Tax provisions unaffected.

Sections 8-22-101 – 8-22-113, [former] 8-22-114 [repealed], 8-22-115, [former] 8-22-116 [repealed], shall not affect the state tax on litigation, nor the state tax on any transfers affecting realty, nor any other state tax which is or may be collected by any one (1) of the officers enumerated in § 8-22-101 for the benefit of the county or state, but all such taxes shall be collected by such officers and shall be accounted for by them to the state or county, as is provided by law.

§ 8-22-118. Fees of state offices accruing to state.

All fees, costs, emoluments, perquisites, and commissions appendant, or that may accrue from any source whatever, to the office of the secretary of state, the office of state treasurer, the office of commissioner of commerce and insurance, and the office of comptroller of the treasury, are declared to be the property of the state, and each of the above named officers shall collect the fees, costs, emoluments, perquisites, and commissions that now append or that may hereafter accrue, to the officer's respective office, and pay the same over at once to the state treasurer, to be used as part of the revenue of the state.

§ 8-22-119. Salary as full compensation — Accounting for fees.

In consideration of the salary stipulated to be paid to any officer named in § 8-22-118, such official shall do and perform all official services, acts, and duties as are imposed upon the officer by law, including all official acts, services, or duties, ex officio or otherwise, and the salary stipulated is expressly declared a full compensation to the officer for the performance thereof. Such official services, acts, and duties ex officio or otherwise, are declared public duties pertaining to the office, and to be performed by the officer for and in behalf of the state, as its agent and officer. All funds, fees, costs, emoluments, allowances, perquisites, and commissions pertaining to or arising from the performance of such official acts, services, and duties, shall be by the officer received, accepted, and accounted for as the agent and officer of the state, for and in behalf of the state, and as its property; and the performance of such shall be by the officer for and in behalf of the state, as the agent and officer thereof, in consideration of the allowance to the officer of the stipulated salary. It is expressly made a part of the duties of each of the aforementioned officers to demand, receive, and collect all fees, costs, emoluments, allowances, commissions, or perquisites that pertain to or are appendant to the office from whatever source, ex officio or otherwise, accruing, and pay the same over to the treasurer, as provided in § 8-22-118.

§ 8-22-120. Record of fees.

Each such officer shall keep a true and perfect record of all the fees, costs, commissions, and emoluments by such officer collected, or that may be so due the state, and, when paid to the state treasurer, shall demand and receive proper vouchers therefor, to be kept as part of the record of the office.

§ 8-22-121. Violations — Class E felony.

Any violation of any part of §§ 8-22-118 — 8-22-120 is a Class E felony.

Chapter 23 Compensation of State Officers and Employees

Part 1 Compensation for Specific Offices

§ 8-23-101. Salaries of Class 1 and Class 2 officers.

(a) The salaries of major officials of the state, whose salaries are not provided for otherwise in this code, shall be in the annual amounts indicated in the following subsections of this section, payable in periodic installments, from the state treasury on warrants of the commissioner of finance and administration, which compensation shall be in full for their services, except for reimbursement for travel expense in accordance with the official state travel policies and regulations.
(b) Class 1. Officials listed in Class 1 shall be paid an annual salary of thirty-one thousand dollars ($31,000):
1. (1) Commissioner of education;
2. (2) Commissioner of finance and administration;
3. (3) Commissioner of transportation;
4. (4) Comptroller of the treasury;
5. (5) Secretary of state; and
6. (6) Treasurer.
(c) Class 2. Officials listed in Class 2 shall be paid an annual salary of twenty-eight thousand dollars ($28,000):
1. (1) Adjutant general;
2. (2) Commissioner of agriculture;
3. (3) Commissioner of financial institutions;
4. (4) Commissioner of environment and conservation;
5. (5) Commissioner of correction;
6. (6) Commissioner of labor and workforce development;
7. (7) Commissioner of general services;
8. (8) Commissioner of human services;
9. (9) Commissioner of commerce and insurance;
10. (10) Commissioner of human resources;
11. (11) Commissioner of revenue;
12. (12) Commissioner of safety;
13. (13) Commissioner of tourist development;
14. (14) Commissioner of veterans services; and
15. (15) Commissioner of children's services.
(d)
1. (1) The compensation or allowance specified in § 3-1-106(b), (c), and (e) and in §§ 3-1-107, 8-7-105, and this section for the officials covered thereby, respectively, shall be the base compensation or allowance for each such official.
2. (2) On July 1, 1973, and on July 1, 1974, with respect to the compensation or allowance fixed in §§ 3-1-106, 3-1-107, 8-7-105 and this section, the compensation or allowance provided in each such section shall be adjusted to reflect the percentage of change in the per capita personal income of the state of Tennessee, as defined and published by the United States department of commerce, between that of the calendar year beginning two (2) years before such date and the calendar year beginning one (1) year before each such date. Each succeeding July 1, a similar adjustment shall be made, based on the difference in the state's per capita income between the two (2) years preceding the July 1 on which the adjustment is made.
3. (3) On July 1, 1975, with respect to the compensations or allowances fixed in § 3-1-106(b), (c), and (e), in §§ 3-1-107, 8-1-102, 8-7-105, and in this section, the compensation or allowance provided in each such section or subsection shall be adjusted to reflect the percent of change in the average consumer price index (all items-city average) as published by the United States department of labor, bureau of labor statistics, between that figure for the calendar year 1974 and the calendar year 1973. Each succeeding July 1, a similar adjustment shall be made, based on the percent of change in the average consumer price index between the two (2) calendar years preceding July 1 of the year in which the adjustment is made. However, no reduction shall be made by way of adjustment on account of any decrease in the average consumer price index between two (2) successive calendar years. No adjustment based on the percent of change in the state's per capita personal income from year to year shall be made after July 1, 1974.
4. (4) No annual adjustment as provided in this subsection (d) shall be made after July 1, 1978, with respect to the base salaries as adjusted fixed for major state officials by subsections (b) and (c), nor after July 1, 1978, with respect to the base salaries and allowances as adjusted of district attorneys general, fixed by § 8-7-105; nor after July 1, 1978, with respect to the base salary as adjusted of the governor, fixed by § 8-1-102; nor after July 1, 1978, with respect to the allowances fixed in § 3-1-106(b), (c) and (e) and the compensation and allowances fixed in § 3-1-107, all pertaining to members of the general assembly.
5. (5)
  1. (A) On July 1, 1980, the base salaries and allowances as adjusted of district attorneys general shall be annually adjusted to reflect any actual percentage pay increases provided to all state employees generally, as provided for in the general appropriations act, but the adjustment shall not exceed five percent (5%).
  2. (B) Except in the case of assistant district attorneys general who are no longer eligible for a step increase under § 8-7-201, no adjustment made under the terms of subdivision (d)(5)(A) shall be considered in computing the salaries of assistant district attorneys general under § 8-7-201.
(e) The compensation of the commissioner of economic and community development shall be fixed by the governor upon recommendation of the [former] Tennessee board for economic growth [abolished] and shall be paid from the appropriation available to the department of economic and community development; however, in no event shall the commissioner's salary exceed the salary level established for the other commissioners whose salaries are set by the governor.
(f)
1. (1) Notwithstanding other provisions of this section to the contrary, on and after July 1, 1984, increases, if any, in the annual salary of the major state officials enumerated in subsections (b) and (c) shall be fixed by the governor, except as is set forth in subdivision (f)(2). Upon the creation of a vacancy in any of the positions enumerated in subsections (b) and (c), the governor may decrease the salary for the position prior to appointing a successor; provided, that nothing herein shall be construed to authorize the governor to decrease the salaries of the major state officials set forth in subdivision (f)(2).
2. (2) Increases in the annual salary of the comptroller of the treasury, the secretary of state and the state treasurer shall be the same as that of the commissioner of finance and administration.
3. (3) For the purposes of this subsection (f), the annual salary shall be defined as the annual salary in effect on June 30, 1984, and each subsequent June 30.
(g) For the purposes of § 9-8-303, the salary of a Class 1 commissioner shall not be less than seventy-five percent (75%) of the salary of the secretary of state.

§ 8-23-102. Salaries of administrative department heads.

The salaries provided to the officers created by title 4, chapter 3, and by §§ 49-1-202, and 68-1-101, shall be the sole compensation paid to these officials from state funds, or from any funds under the control of or for the use of the state government.

§ 8-23-103. Salaries of judges, justices and chancellors.

Beginning on September 1, 1990, the base salaries for judges and chancellors shall be as follows:
(1)
1. (A) Chancellors, circuit court judges, criminal court judges and law and equity judges shall receive seventy-eight thousand dollars ($78,000) per annum. Judges of the court of appeals and the court of criminal appeals shall receive a salary three thousand five hundred dollars ($3,500) per annum in excess of that received by the trial judges. Justices of the supreme court shall receive a salary seven thousand five hundred dollars ($7,500) per annum in excess of that received by the trial judges; and
2. (B)
  1. (i) Chancellors, circuit court judges, and criminal court judges shall receive a base salary of one hundred forty thousand dollars ($140,000) per annum beginning September 1, 2006. Judges of the court of appeals and the court of criminal appeals shall receive a salary that is five thousand dollars ($5,000) per annum in excess of that received by the trial judges effective September 1, 2006. Justices of the supreme court shall receive a salary that is ten thousand dollars ($10,000) per annum in excess of that received by trial judges effective September 1, 2006. Beginning on July 1, 2007, and on each July 1 thereafter, subdivision (2) shall be applied to determine what, if any, adjustments are to be made to the base salaries set out in this subdivision (1)(B)(i).
  2. (ii) In addition to the base salary effective September 1, 2006, as set out in subdivision (1)(B)(i), the chief justice of the supreme court shall receive five thousand dollars ($5,000) per annum, and the presiding judges of the court of appeals and the court of criminal appeals shall receive two thousand five hundred dollars ($2,500) per annum.
(2) On July 1, 1991, the base salaries fixed in this section shall be adjusted in accordance with the formula contained in § 8-23-101(d)(3) reflecting the percentage of change between calendar year 1989 and calendar year 1990. Each succeeding July 1, a similar adjustment shall be made based upon the percentage of change in the average consumer price index between the two (2) calendar years preceding July 1 of the year in which the adjustment is made. However, no reduction shall be made by way of adjustment on account of any decrease in the average consumer price index between two (2) successive calendar years. No adjustment provided for herein shall exceed five percent (5%) per annum except when the change in the average consumer price index exceeds ten percent (10%), in which event the adjustment shall be equal to five percent (5%) plus one percent (1%) for each one percent (1%) or fraction thereof beyond ten percent (10%).

§ 8-23-104. Payment of judicial salaries.

All such salaries shall be payable in monthly installments, by the commissioner of finance and administration, out of the treasury of the state.

§ 8-23-105. Salaries of supreme court clerks, chief deputy clerks, and staffs.

The salaries of the clerk of the supreme court, the chief deputy clerks of the supreme court and their respective staffs shall be fixed by the chief justice of the supreme court in consultation with the administrative director of the courts and in accordance with administrative guidelines and policies.

§ 8-23-106, 8-23-107. [Reserved]

§ 8-23-108. Clerks, stenographers, and research assistants of supreme court judges.

(a) The chief justice and each associate judge of the supreme court are authorized to employ at the expense of the state a clerk or stenographer, who shall each receive compensation in the amount to be fixed by the chief justice and the administrative director of the courts, payable monthly. Such compensation shall be paid out of funds appropriated by the general assembly for the supreme court.
(b) The chief justice and each associate judge of the supreme court are authorized to employ, at the expense of the state, a research assistant, whose compensation shall be fixed by the supreme court and who shall serve at the pleasure of the judge employing such assistant.
(c) The secretaries when required to be absent from their official residences attending court, in different sections of the state with the members of the courts they represent, shall be reimbursed for their travel and hotel expenses in the same manner as the judges whom they are serving are reimbursed for such expense.

§ 8-23-109. Clerks and stenographers of court of appeals — Research assistants for criminal court of appeals judges.

(a) Each judge of the court of appeals is authorized to employ at the expense of the state a clerk or stenographer who shall each receive compensation in the amount to be fixed by the presiding judge of each grand division of the court of appeals and the administrative director of the courts, payable monthly. Such compensation shall be paid out of funds appropriated by the general assembly for the court of appeals.
(b) The chief justice may, upon application to the chief justice showing the necessity therefor by any judge of the court of criminal appeals, approve the employment of a research assistant for such judge, and upon approval, such judge is authorized to employ, at the expense of the state, a research assistant to assist the judge in the discharge of the judge's duties, whose compensation shall be the same as authorized by law for the research assistant of each justice of the supreme court. The research assistant shall be a graduate of or student at an accredited law school.
(c) The secretaries when required to be absent from their official residences attending court, in different sections of the state with the members of the courts they represent, shall be reimbursed for their travel and hotel expenses in the same manner as the judges whom they are serving are reimbursed for such expense.

Part 2 General Provisions

§ 8-23-201. Compensation for extra services or overtime — Maintenance for certain officers and employees — Employees performing duties for other agencies.

(a)
1. (1) No officer or employee in the several departments and agencies of the state government, employed at fixed compensation, shall be paid for any extra services, in an ex officio or other capacity, except:
  1. (A) Officially designated or auxiliary court reporters;
  2. (B) Qualified interpreters of the deaf;
  3. (C) When such officer's or employee's total annual income, including overtime payment, derived from the primary employment is less than eight thousand dollars ($8,000), that officer or employee may hold a part-time position that requires no more than four (4) hours of active duty per working day; or
  4. (D) As herein provided.
2. (2)
  1. (A) This does not, however, prevent payment of compensation to state employees for hours worked in excess of the normal work week when such extra work is performed at the direction of the supervising department or agency head, authorized in advance by the commissioner of human resources and approved in advance by the commissioner of finance and administration. Neither this additional compensation nor compensatory time shall be available to the following persons:
    1. (i) Officials whose salaries are provided by § 8-23-101;
    2. (ii) Officials whose salaries are based on those provided for in § 8-23-101;
    3. (iii) All persons employed at the executive grade levels;
    4. (iv) The executive director or chief executive of any department or agency; and
    5. (v) Any executive of a state entity whose salary is set by a board or commission.
  2. (B) Compensation to other state employees, including those compensated under the doctors and dentists pay plan, for hours worked in excess of the normal work week shall only be provided under policies prepared by the commissioner of human resources and the commissioner of finance and administration and in consultation with the comptroller of the treasury and the attorney general and reporter.
3. (3) Nothing in this section shall be construed to require the payment of overtime to any officer or employee except under circumstances in which overtime would be paid otherwise.
(b) State officers and employees subject to appointment by the department of human resources shall be provided maintenance, including, but not limited to, housing and meals, only under policies prepared by the commissioner of finance and administration in consultation with the commissioner of human resources, the comptroller of the treasury, and the attorney general and reporter.
(c) The commissioner of finance and administration, in consultation with the commissioner of human resources and with the approval of the attorney general and reporter and the comptroller of the treasury, is hereby authorized to promulgate rules and regulations establishing procedures for allowing state employees to perform duties for agencies other than the one with which they are employed by either contract between agencies or by direct payment to the individual. Unless specifically provided otherwise by such rules and regulations, such contracts for services as are entered into shall be subject to the approval of the commissioner of finance and administration and the commissioner of personnel, and a copy filed with the comptroller of the treasury.

§ 8-23-202. Pay periods — Pay plan for all state officials and employees — Plan for direct deposit of compensation.

(a) The “pay period” for state employees shall be semimonthly. On or about the last day of every such “pay period,” all state employees shall be paid for the preceding semimonthly period or any part thereof for which compensation is due.
(b) The provisions of § 8-23-101 to the contrary notwithstanding, the department of human resources and the department of finance and administration may develop a semimonthly pay plan for all officials and employees of state government, with the exception of persons employed by the University of Tennessee and the colleges and universities under the jurisdiction of the state board of regents. However, any pay plan for officials and employees of the legislative branch is subject to approval by the speaker of the senate and the speaker of the house of representatives, and any plan for the judicial branch is subject to approval by the presiding judges of the superior courts and the attorney general and reporter.
(c) The commissioner of finance and administration is authorized to require that salaries of state employees be paid through direct-deposit procedures in accordance with policies established by the commissioner.

§ 8-23-203. Blind employees.

All blind persons employed in the state of Tennessee whose salary is paid by the state of Tennessee shall be paid not less than the federal minimum wage as provided by the Fair Labor Standards Act of 1938 (29 U.S.C. § 201 et seq.).

§ 8-23-204. Payroll deduction for certain associations.

(a)
1. (1) As used in this section, unless the context otherwise requires:
  1. (A) “Employee” means an officer or employee who is a regularly employed, full-time employee of the executive branch of state government;
  2. (B) “Employee association” means any association of employees complying with subdivision (a)(2), except when otherwise noted herein; and
  3. (C) “State agency” means any department, commission, board, office or other agency of the executive, legislative or judicial branch of state government.
2. (2) Any employee of a state agency may authorize deductions for the payment of membership dues and benefit premiums to be made from the employee's compensation for payment to an employee association, if such employee association meets all of the following criteria:
  1. (A) It grants membership to any employee who applies for membership without regard to such employee's job classification, state agency or location;
  2. (B) It grants the same rights and privileges of membership to all its members;
  3. (C) It provides equal services to its members without regard to the job classification, state agency or location of employment within the state of a member;
  4. (D) It has a membership of not less than twenty percent (20%) of the employees of state agencies in the executive, legislative or judicial branch;
  5. (E) It has as one (1) of its objectives the promotion of an efficient and effective work force for state government in Tennessee, and if affiliated in any manner with another organization, the other organization shall have similar objectives;
  6. (F) It is itself a wholly domestic employee organization which is not a part of a multi-state employee organization which controls it or has any right of control; and
  7. (G) It is an independent association that will not merge or join with another employee or labor organization without over fifty percent (50%) of its members affirmatively voting to become so merged or joined.
3. (3) Any employee association whose membership consists exclusively of employees of a single correctional institute and which has an agreement for payroll deduction of dues entered into prior to July 1, 1977, may continue or renew such agreement without compliance with the requirements established in the criteria in subdivision (a)(2).
4. (4) Any employee association seeking to qualify under subdivision (a)(2) shall file an initial statement showing the actual number of employees who are members with the commissioner of finance and administration. The commissioner may request an employee association to file an annual certification that it complies with all the requirements of this section. Decisions by the department of finance and administration with regard to an employee association's ineligibility to receive automatic payroll deductions shall not be final until audited and approved by the comptroller of the treasury.
5. (5)
  1. (A) Any professional education association whose active membership consists of at least twenty percent (20%) of the total combined faculty as active members may make an agreement for payroll deduction of dues without compliance with the criteria in subdivision (a)(2), if such association has as a purpose and goal the elevation of the professional status and socio-economic welfare of the members of the teaching profession, or facilitation of cooperation among teachers and research scholars for the promotion of higher education and research. Such agreements shall be applicable to the teachers and faculty on the campuses and institutions of the University of Tennessee and the state university and community college system. Such professional education associations must have existed for more than fifty (50) years and have a total of five (5) or more chapters or affiliates on the campuses and institutions of the University of Tennessee and the state university and community college system.
  2. (B) The provision of subdivision (a)(5)(A) requiring a professional education organization to maintain at least twenty percent (20%) of the total combined faculty as active members in order to qualify for deduction of dues shall not apply to any professional association which has had and has exercised the privilege of deduction of dues for at least four (4) years prior to May 31, 1993.
6. (6) Any professional education association whose active membership consists of education employees may make an agreement for payroll deduction of dues at state special schools if such a professional education association meets all of the following criteria:
  1. (A) It solicits membership from all certificated employees;
  2. (B) It grants the same rights and privileges of membership to all its active members;
  3. (C) It provides equal services to its active members;
  4. (D) It has a membership of not less than forty percent (40%) of the currently employed certificated employees at each of the state special schools as of July 1, 1991, and can offer proof of continued membership each fiscal year; and
  5. (E) It has as one (1) of its objectives the promotion of education and the elevation of the professional status of the members of the teaching profession.
7. (7)
  1. (A) Any member of the Tennessee highway patrol may authorize payroll deductions for the payment of membership dues to be made from the member's compensation for payment to an organization of members of the Tennessee highway patrol, if such organization meets the following criteria:
    1. (i) It solicits membership from all commissioned members of the Tennessee highway patrol;
    2. (ii) It grants the same rights and privileges of membership to all its members;
    3. (iii) It provides equal services to its members; and
    4. (iv) It has a membership of not less than twenty percent (20%) of the currently employed commissioned members of the Tennessee highway patrol.
  2. (B) Any organization that meets the criteria in subdivisions (a)(7)(A)(i)-(iv) and that seeks to accept the payment of membership dues through payroll deductions shall file with the commissioner of finance and administration an initial statement that states the actual number of employees who are commissioned members of the Tennessee highway patrol. The commissioner may request an organization to file an annual certification that it complies with all the requirements of this subdivision (a)(7). Decisions by the department of finance and administration with regard to an organization's ineligibility to receive automatic payroll deductions shall not be final until audited and approved by the comptroller of the treasury.
8. (8)
  1. (A) Any wildlife resource officer of the Tennessee wildlife resources agency (TWRA) may authorize payroll deductions for the payment of membership dues to be made from the officer's compensation for payment to an officers association of the TWRA, if:
    1. (i) The officers association solicits membership from all wildlife resource officers of the TWRA;
    2. (ii) The officers association grants the same rights and privileges of membership to all of its members;
    3. (iii) The officers association provides equal services to its members;
    4. (iv) The officers association has a membership of at least twenty percent (20%) of the currently employed wildlife resource officers of the TWRA; and
    5. (v) The dues will not be used for political activities. For purposes of this subdivision (a)(8)(A)(v), “political activities” means electoral activities, independent expenditures, or expenditures made to any candidate, political party, or political action committee.
  2. (B) An association that meets the criteria in subdivisions (a)(8)(A)(i)-(v) and that seeks to accept the payment of membership dues through payroll deductions must file with the commissioner of finance and administration a statement that includes the specific number of wildlife officers employed by the TWRA who are members of the association. The commissioner may request the association to certify that it complies with the requirements of this subdivision (a)(8)(B). The department of finance and administration shall not make a final decision regarding an association's eligibility to receive automatic payroll deductions until the association is audited and approved by the comptroller of the treasury to accept the payment of membership dues under this subdivision (a)(8).
(b)
1. (1) Any employee of the state of Tennessee who engages or participates in a work stoppage or who authorizes or encourages a work stoppage commits gross misconduct, shall immediately and permanently forfeit the right to have deductions from compensation authorized in this section, and may be subject to immediate termination of employment. The commissioner of finance and administration is authorized and required to cease and discontinue deducting membership dues under this section for an organization or association, if the commissioner determines that twenty-five percent (25%) or more of the members of the organization or association in a single work location or facility have engaged in a work stoppage of any kind after June 19, 1981. If the organization or association has members at more than one (1) work location or facility, upon the determination that the members of an organization have engaged in a work stoppage, the commissioner shall cancel and revoke the deduction of membership dues for the members of the organization employed at the work location or facility where the work stoppage has occurred.
2. (2) For the purposes of this subsection (b), a work stoppage includes the failure to report for duty, the willful absence from one's position, the stoppage of work or the abstinence in whole or in part from the full, faithful and proper performance of the duties of employment, for the purpose of inducing, influencing or for the purpose of coercing a change in conditions, compensation, rights, privileges or obligations of employment, or of intimidating, coercing or unlawfully influencing others from remaining in or from assuming public employment.
3. (3) Any employee or other person who procures or attempts to procure, or causes or induces any other person to procure or attempt to procure, an automatic deduction authorization form provided for in this section by fraud, misstatement of material fact, misrepresentation of the authenticity of a signature, or in knowing and willful violation of this section, commits gross misconduct. Any such automatic deduction authorization form shall be void and shall be of no effect.
(c) The following procedures, in addition to the procedures promulgated by the department of finance and administration pursuant to subsection (f), shall govern when an employee authorizes a deduction from compensation for the payment of membership dues to be paid over to an employee association:
1. (1) To authorize the deduction for the payment of membership dues, an employee shall complete an authorization form which contains the employee's signature and the following information:
  1. (A) Employee's name;
  2. (B) Employee's social security number;
  3. (C) State agency of employment;
  4. (D) Facility or location of employment; and
  5. (E) The following statement:
    2. “I, the undersigned, understand that this authorization is to become effective immediately. I understand that I may revoke this authorization by written notification at any time. Any deductions made from my compensation within thirty (30) days of the effective date of this authorization shall be refunded by the association if revocation is made within such thirty (30) day period. I also understand that the amount of the membership dues deduction may increase or decrease if the association approves an increase or decrease of dues in accordance with its bylaws and rules of procedure. Upon notification to me by the association of an increase or decrease in dues, I understand that I will again have an opportunity to revoke this authorization and receive a refund equal to one (1) month's dues if revocation is made within a thirty (30) day period from the date of notification.”;
2. (2) The deductions for the payment of membership dues from compensation authorized pursuant to this section shall be made from the compensation of an employee on the first payday of each month, and shall be paid over to the employee association within forty-eight (48) hours after such payday. If a state agency has a single monthly payday, such deduction shall be paid over to the employee association within forty-eight (48) hours of such payday;
3. (3) Any employee who authorizes deductions for the payment of membership dues as provided in this section may, at any time, revoke the authorization for payroll deduction. If revocation of such authorization is made within thirty (30) days of the initial authorization by an employee, any such deductions made and paid over to the employee association shall be refunded to the employee by such association upon receipt of written notice of revocation from the employee;
4. (4) Upon receipt of certification by an employee association that such association has approved an increase or decrease of dues in accordance with its bylaws and rules of procedure, the commissioner of finance and administration or the appropriate chief fiscal officer shall have the new amount of such dues deducted from the compensation of employees who have completed an authorization form for membership dues deduction. The certified increase or decrease shall be effective on the first payroll occurring at least thirty (30) days after the receipt of such certification by the commissioner or the appropriate chief fiscal officer;
5. (5) Forms which authorize such deductions for the payment of membership dues shall not be larger than eight and one-half inches (8½″) by eleven inches (11″) nor smaller than three inches (3″) by five inches (5″);
6. (6) It is the responsibility of the employee association to prepare and deliver such forms to the payroll officers of the various state agencies;
7. (7) The commissioner or the appropriate chief fiscal officer shall provide to an employee association a complete listing of all employees who have authorized deductions pursuant to this section. The information compiled under this subsection (c) shall not be used by the commissioner or respective chief fiscal officer for any other purpose except that described herein.
(d) Retired employees of the state of Tennessee may, in writing, authorize deductions to be made from their retirement allowance to be paid to any employee association qualified under subsection (a). No such retired employee shall be considered in determining the total number of state employees in the executive branch or in determining the membership in an employee association for the purposes of subdivision (a)(2).
(e) Any automatic deduction authorization form for the payment of membership dues filed with the various state agencies prior to May 24, 1984, which has not been revoked by the employee, shall be considered a valid authorization form for the purposes of this section, and the automatic payroll deduction from such employee's compensation shall be continued or shall resume immediately if such deductions have been stopped for reasons other than the employee's revocation.
(f) The procedures governing the payroll deduction of membership dues pursuant to this section shall be in accordance with regulations promulgated by the commissioner in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. The procedures governing payroll deductions for the payment of membership dues in effect on June 1, 1983, shall be deemed fully and duly promulgated, except to the extent they conflict with this section, and shall remain in full force and effect unless altered or amended by the general assembly or the commissioner.
(g) If an employee association receiving membership dues by payroll deduction becomes joined or affiliated through merger or otherwise with another employee or labor organization, any member of the employee association may revoke such member's automatic deduction authorization form immediately or at any other time of such member's choosing by notifying the department of finance and administration or the appropriate chief fiscal officer that such member wishes to revoke such member's authorization.

§ 8-23-205. Compensation of board and commission members.

Any other law to the contrary notwithstanding, no member of any board or commission, established by law or pursuant to law, which receives an appropriation, regardless of the source of funding, shall receive any compensation, whether denominated per diem or by whatever name called, except for days in which such member actually works four (4) or more hours performing duties directly relating to that board's or commission's activities, or for time or days spent attending meetings of that board or commission where a quorum is present. The chair or head of each board or commission, the department head to which such board or commission is attached administratively, and the commissioner of finance and administration, shall prescribe procedures to ensure compliance, such procedures to contain, as a minimum, a certification of time worked by each member claiming compensation.

§ 8-23-206. Longevity pay.

(a) In addition to all compensation otherwise payable, each employee of the executive, judicial or legislative branch of state government, except those specifically excluded in subsection (d), shall be paid longevity pay on the following basis:
1. (1)
  1. (A)
    1. (i) A full-time employee, or an employee who is eligible to accrue annual and sick leave under §§ 8-50-801 and 8-50-802, must be employed with one (1) or more agencies, offices, departments, or other subdivisions of the executive, judicial, or legislative branch of state government thirty-six (36) months to be eligible for longevity pay. Such employment need not be in the same office for the entire period;
    2. (ii) A full-time employee of the department of education shall be eligible for the same longevity pay as other full-time employees of state government if the qualifications for the position held by such employee in the department of education requires the employee to have three (3) years experience as a professional employee in a Tennessee public school system;
  2. (B) A part-time employee may be eligible for longevity pay if such employee:
    1. (i) Is retired from state employment;
    2. (ii) While so employed full time did not receive a longevity bonus; and
    3. (iii) Is employed on a regular, but part-time basis. Such an employee shall receive longevity pay based on years of service prior to retirement, plus the total of such employee's part-time employment. If the employee has the requisite months of service to qualify for longevity pay, the employee shall receive longevity pay on the employee's service anniversary date in each year in which the employee is employed part time. Payment of any longevity pay shall not increase or decrease the amount of such employee's retirement pay;
  3. (C) Any former member of the general assembly upon becoming a full-time employee shall be an eligible employee under this section and shall be credited for each year of legislative service as twelve (12) months of employment for all time served in the general assembly when determining longevity pay;
2. (2) Longevity pay shall be computed in accordance with the following schedule:
  1. (A) In the 1988-1989 fiscal year and subsequent fiscal years, the rate shall be one hundred dollars ($100) times the number of years of service with each twelve (12) months of service equivalent to a calendar or full year ($100 x total years of service equals longevity pay);
  2. (B)
    1. (i) It is the legislative intent that the faculty of the universities, community colleges, and technical institutes shall be granted longevity pay at the rate of one hundred dollars ($100) per year in the 1988-1989 fiscal year, and subsequent fiscal years;
    2. (ii) Faculty members who work on a ten (10) months per year contract basis shall receive one (1) year's longevity service for each such contract period worked;
    3. (iii) Faculty members who work on a ten (10) months per year contract basis and who will either continue in service for the following academic year or retire shall be paid longevity pay at the time of the final payment of compensation for services which are completed for that ten (10) month contract period;
3. (3)
  1. (A) For employees with from thirty-six (36) months to one hundred eighty (180) months of service (three (3) to fifteen (15) years), longevity payments shall be made at the end of the month following the month in which an eligible employee's service anniversary date falls;
  2. (B) For employees with more than one hundred eighty (180) months of service, the longevity payment shall be made to each such employee on October 1 in each year, without regard to any break in active service which may have occurred prior to such payment;
  3. (C) For purposes of this section only, the longevity payment date shall be the service anniversary date as determined by the department of human resources and shall only be advanced as a result of breaks in service or periods of leave without pay for a major fraction of a month. Full-time employees who have prior part-time service consisting of at least a one thousand six hundred (1,600) hour annual schedule shall receive longevity credit for each month of such part-time service in which the employee was scheduled to work a full month and actually worked one-tenth (⁄) of one (1) hour more than half the schedule. Longevity benefits provided by the two (2) preceding sentences shall not be paid retroactively. The number of years of service at the Memphis Area Vocational Technical School and the number of years of service at the Knoxville Area Vocational Technical School will be used in computing number of years of service for longevity pay purposes for employees of each of those institutions;
  4. (D) For certified professional employees leaving Tennessee public schools to become employed full time as staff of the department of education, the longevity payment shall be made at the end of the month following the month in which an eligible employee's state government service anniversary date falls. Longevity payments shall be computed to include three (3) years' service experience in any Tennessee public school system;
  5. (E) A full-time employee with thirty-six (36) months of full-time service shall receive payment for prior part-time hourly service if the length of such prior part-time service is equivalent to not less than five (5) years of full-time experience.
4. (4) Although paid annually, longevity pay shall be subject to deductions for retirement and shall be included in base compensation for purposes of determining the level or amount of benefits to be paid to an employee under that program;
5. (5)
  1. (A) Any wildlife officer of the Tennessee wildlife resources agency who is retiring pursuant to § 8-36-205 shall, upon such retirement, receive longevity pay prorated for each month of employment since the period for which such officer last received an annual longevity payment. Such prorated payment shall be subject to deductions for retirement and shall be included in base compensation for purposes of determining the level or amount of benefits to be paid to such officer;
  2. (B) This subsection (a) applies to each wildlife officer who retires on or after June 30, 1986;
  3. (C) Any wildlife officer receiving a payment in the form of a retirement incentive pursuant to state law shall not be entitled to receive the longevity pay as provided by this subsection (a).
(b)
1. (1) Longevity payments shall be made for each year of service, beginning from the completion date of the third year of service (thirty-six (36) months); however, longevity payments for certified professional employees set forth in subdivision (a)(1)(A) and employed in a full-time position of the department of education which required three (3) years' experience as a certified professional employee in a Tennessee public school system shall begin from the completion date of the first twelve (12) months of service.
2. (2) In the 1989-1990 fiscal year, the maximum level of benefits shall be reached at the twenty-first year of service (two hundred fifty-two (252) months); in fiscal years thereafter, the maximum level of benefits shall increase by one (1) year (twelve (12) months) each fiscal year until the 1993-1994 fiscal year and fiscal years thereafter, when the maximum level of benefits shall be reached at the twenty-fifth year of service (three hundred (300) months); provided, that subsequent to the 1989-1990 fiscal year, the increase in the maximum level of benefits is contingent upon funds being specifically allocated for that purpose in the general appropriations act. It is the legislative intention that each year that such funds are so appropriated such appropriation shall be recurring. No payment shall exceed the applicable longevity dollar amount for the year times the applicable years of service.
3. (3) In the 2006-2007 fiscal year, and in fiscal years thereafter, the maximum level of benefits shall be reached at the thirtieth year of service (three hundred sixty (360) months). No payment shall exceed the applicable longevity dollar amount for the year times the applicable years of service.
(c) The longevity pay provided by this section shall not be in place of any merit raise, step increase, incentive pay or cost-of-living raise, but shall be in addition to all such increases. Longevity pay provided in this section shall be issued by separate check or by automated clearing house (ACH) transaction to the qualified employee, unless the employee elects not to receive a separate longevity check or separate payment by ACH transaction; provided, however, that employees of the board of regents shall not be issued separate checks for longevity pay. It is declared to be the intent of the general assembly to reward those not otherwise rewarded for experience and faithful service to the state and to encourage career employees to remain in service to the state.
(d) This section shall not apply to:
1. (1) Officials popularly elected to fixed terms in office, including the governor, judges and members of the general assembly;
2. (2) Persons receiving automatic annual raises under § 8-7-201, or otherwise, or to such person who would have been eligible for such automatic annual raises in years when no such raise was implemented pursuant to chapter 355 of the Public Acts of 2003, and chapter 531 of the Public Acts of 2009;
3. (3) Persons receiving separate longevity pay under § 4-7-111;
4. (4) State-employed teachers in the department of education who are paid based on local teachers' pay scales which increase based on years of experience;
5. (5) Employees of the University of Tennessee extension who hold joint appointments with the United States department of agriculture; or
6. (6) Employees of the executive branch in the state service, as defined by § 8-30-102, hired after June 30, 2015.
(e) Effective July 1, 2002, an employee of any board, commission or agency created by the supreme court of Tennessee shall be eligible for longevity pay under the same terms and conditions that apply to state employees. Eligible employees who have prior service with any such board, commission or agency shall receive longevity credit for each year of such service; provided, that such service would otherwise be creditable for longevity purposes. Longevity benefits provided by this subsection (e) shall not be paid retroactive. The benefits shall be payable only for periods commencing after June 30, 2002, and shall be paid at the end of the month following the month in which the employee's service anniversary date falls.
(f) The longevity pay required in this section for state employees shall apply to present state employees for service performed that meets all of the following criteria:
1. (1) The service was performed while working for the health department of a home rule municipality;
2. (2) The service performed was substantially similar to service performed by employees of the state department of health;
3. (3) The service was performed for a municipality for which public health services were performed by the federal government before the municipality was incorporated;
4. (4) The service was performed for the municipality because the state, during a transition period, permitted the county in which the municipality was located to omit the municipality from the area where state-funded health services were provided, which in effect required the municipality to bear these costs; and
5. (5) The service was performed in years immediately prior to the employee becoming a state employee engaged in public health-related work.
(g) The departments of human resources and finance and administration may formulate rules which shall govern the longevity pay authorized in this section.

§ 8-23-207. Rights and benefits of employees of boards, commissions and agencies.

Effective July 1, 2002, any self-sustaining board, commission or agency created by the supreme court of Tennessee shall be deemed a state agency and all employees of such boards, commissions or agencies shall be deemed state employees and shall be entitled to the same rights and benefits enjoyed by other state employees. Except as otherwise provided in this title, any payments or benefit accruals that would have been payable to or accrued by such employees had they been deemed state employees prior to July 1, 2002, shall not apply retroactively but shall apply for periods commencing after June 30, 2002.

§ 8-23-208. Commission on compensation — Duties — Members — Recommendations.

(a) There is hereby created the commission on compensation. It is the duty of the commission to convene on or about October 1, 1999, and biennially thereafter, to make recommendations to the governor and the general assembly concerning the compensation of the governor, commissioners, constitutional officers, legislators and other officials as may be requested by the governor or speakers of the senate or house of representatives.
(b) The commission shall consist of six (6) members, two (2) each to be appointed by the governor, the speaker of the senate and the speaker of the house of representatives. Commission members shall serve without compensation but shall be entitled to reimbursement for expenses in accordance with the comprehensive travel regulations. A commission member shall continue to serve until a successor is appointed by the appropriate appointing authority. Commission members shall not be employed by any governmental entity.
(c) The commission shall elect such officers as it deems necessary and shall conduct its business as it may agree; provided, that all meetings and proceedings of the commission shall be subject to chapter 44, part 1 of this title.
(d) Upon request, the office of comptroller of the treasury shall provide staff assistance to the commission in carrying out its duties.
(e) The commission shall report its recommendation to the governor and the general assembly by December 15 each year in which it is convened, and the governor shall include such recommendations and funding therefor in the recommended budget for the ensuing fiscal year.
(f) In making its recommendations, the commission shall consider the duties and responsibilities of each official, compensation paid to others with similar duties and responsibilities both within and without the state, the need to attract and retain highly qualified individuals in state service, and the positive impact on public policy of a citizen legislature which is broadly representative of the state's population.

§ 8-23-209. Benefits for nurses on reduced schedule.

Notwithstanding any law to the contrary, the commissioner of human resources, in consultation with the commissioner of finance and administration, the state treasurer and other affected agency heads, may develop and implement a plan to employ nurses under which an employee may accrue full benefits while working a reduced schedule.

Chapter 24 Compensation of County Officers and Clerks of Court

§ 8-24-101. Classification of counties.

(a) For purposes other than determining compensation for the various county officers enumerated in § 8-24-102, the counties are divided into classes as follows:
1. (1) Counties having a population of four hundred thousand (400,000) or more shall constitute counties of the first class;
2. (2) Counties having a population of one hundred fifty thousand (150,000) or more, but less than four hundred thousand (400,000), shall constitute counties of the second class;
3. (3) Counties having a population of fifty thousand (50,000) or more, but less than one hundred fifty thousand (150,000), shall constitute counties of the third class. Within the third class, counties having a population of seventy-four thousand five hundred (74,500) or more shall constitute subclass A, and counties having a population of less than seventy-four thousand five hundred (74,500) shall constitute subclass B;
4. (4) Counties having a population of twenty-three thousand three hundred (23,300) or more, but less than fifty thousand (50,000), shall constitute counties of the fourth class;
5. (5) Counties having a population of twelve thousand (12,000) or more, but less than twenty-three thousand three hundred (23,300), shall constitute counties of the fifth class;
6. (6) Counties having a population of five thousand five hundred (5,500) or more, but less than twelve thousand (12,000), shall constitute counties of the sixth class;
7. (7) Counties having a population of three thousand seven hundred seventy (3,770) or more, but less than five thousand five hundred (5,500), shall constitute counties of the seventh class; and
8. (8) Counties having a population of less than three thousand seven hundred seventy (3,770) shall constitute counties of the eighth class.
(b)
1. (1) The population of counties for purposes of this section shall be determined by the 1970 federal census and the most recent succeeding federal census.
2. (2) Except that the population of counties which have a population of not less than thirty-four thousand four hundred (34,400) nor more than thirty-four thousand five hundred (34,500), according to the 1970 federal census or any subsequent federal census, for purposes of this section shall be determined by the 1970 federal census and any succeeding census taken in the county or counties.

§ 8-24-102. Compensation of county officials.

(a) For the purposes of determining the compensation to be received by the various county officers, “general officers” includes assessors of property, county clerks, clerks and masters of chancery courts, clerks of probate courts, clerks of circuit courts, clerks of general sessions courts, clerks of criminal courts, juvenile court clerks, county trustees and registers of deeds.
(b) Beginning July 1, 2001, general officers shall receive minimum compensation per year as follows:
2. County PopulationGeneral Officers
3. 920,000 and more$94,805
4. 500,000 to 919,999$89,805
5. 400,000 to 499,999$85,805
6. 275,000 to 399,999$83,305
7. 250,000 to 274,999$77,805
8. 225,000 to 249,999$74,805
9. 200,000 to 224,999$71,805
10. 175,000 to 199,999$68,805
11. 150,000 to 174,999$65,805
12. 125,000 to 149,999$62,805
13. 100,000 to 124,999$59,805
14. 65,000 to 99,999$58,305
15. 50,000 to 64,999$55,805
16. 35,000 to 49,999$50,805
17. 23,000 to 34,999$48,805
18. 12,000 to 22,999$44,805
19. less than 11,999$39,305
(c) The population of counties, for purposes of this section, shall be determined by the 2000 federal census or the most recent succeeding federal census or a special census as provided in this subsection (c). A county may not move from one population to another except for a succeeding federal census or a special census. For the purpose of moving from one population classification to another, each county may take not more than three (3) special censuses at its own expense at any time during the interim between the regular decennial federal censuses. The special census shall be taken by the federal census bureau or in a manner directed by and satisfactory to the commissioner of economic and community development. The population of the county shall thereafter be revised in accordance with the special census, effective July 1 following certification of the census results by the federal census bureau or the commissioner of economic and community development to the secretary of state and the comptroller of the treasury.
(d) On July 1, 2002, and each July thereafter, the minimum compensation for county officials, as provided by this section, shall be increased by a dollar amount equal to the average annualized general increase in state employees' compensation, including the equivalent percentage increase in average state employees' salaries represented by appropriated funds made available to address classification compensation issues, during the prior fiscal year multiplied by the compensation established herein for the county officials of the county with the median population of all counties; provided, however, that the annualized general increase tied to the increase in state employees' compensation shall not exceed five percent (5%) in any given year; provided further, notwithstanding the dollar amount provided in this section, that the percentage increase provided for county officials by this subsection (d) shall not be less than the percentage increase established for county officials of the county with the median population of all counties. On or before May 1 of each year, the commissioner of finance and administration shall certify to the comptroller of the treasury the average annualized general increase in state employee's compensation during that fiscal year. “Average annualized general increase in state employee's compensation” means the average percentage increase in base salaries for state employees, plus the equivalent percentage increase in average state employees' salaries represented by recurring appropriation amounts provided to improve the level of retirement benefits, longevity benefits, and deferred compensation benefits or other similar benefits that are made available to state employees, not including health insurance benefits.
(e) The county mayor's compensation shall be at least five percent (5%) higher than the salary paid to any other county constitutional office of the respective counties. The minimum salary set out above shall apply only to a county mayor who devotes full time to the county mayor's office. The salary of a county mayor who devotes less than full time to the county mayor's office shall be determined by resolution of the county legislative body prior to the election of such official. For purposes of this subsection (e), “county official” does not include the judge of general sessions court.
(f) The state share of the cost pursuant to the Constitution of Tennessee, Article II, § 24 for any increased expenditure required by a county by this section shall be provided from the unallocated tax revenue of state-shared taxes enumerated in § 9-4-5301.
(g) The compensation for the sheriff and chief administrative officer of the county highway department shall be at least ten percent (10%) higher than the salary paid to the general officers of the county. The county legislative body of each county may increase or decrease the compensation of the chief administrative officer of the county highway department so long as the compensation is maintained at or above the minimum level established herein.
(h) All general officers of the county shall be paid the same salary with the exception of any education incentive payments made to certified public administrators under § 5-1-310 and any payments made to the assessor of property under § 67-1-508.
(i) The county legislative body of each county may increase or decrease compensation of county officials so long as the compensation is maintained at, or above, the minimum levels established herein.
(j)
1. (1) Any action by a county legislative body to exceed the minimum level of compensation for county officials established pursuant to this section must be included in a resolution scheduled for consideration on the agenda of the meeting. All meetings of the county legislative body shall comply with the requirements of the open meetings act, compiled in chapter 44, part 1 of this title.
2. (2) Notwithstanding subsection (h) to the contrary, a county legislative body may provide to a clerk of court who serves more than one (1) court in the county additional compensation in the amount of ten percent (10%) of the clerk's base compensation. The increase shall be for the purpose of compensating the clerk for the additional duties and time required to serve multiple courts. For the purposes of this section, a clerk and master shall be considered eligible for this additional compensation, if the clerk serves as clerk of the court that exercises probate jurisdiction. In order for the increase to be valid, it must be adopted by resolution of the county legislative body. For the purpose of subsection (g), any additional compensation provided to a general officer under any provision of this section shall be included when determining the salary paid to the general officers of the county.

§ 8-24-103. Fees in lieu of salary.

(a)
1. (1) The county legislative body in any county shall make the necessary appropriation and pay to the sheriff of its county the maximum salary fixed by § 8-24-102, and the authorized expenses fixed by law for the operation of the sheriff's office, including the salary of all the sheriff's deputies, which shall be the sole manner of compensation for those deputies, as authorized pursuant to chapter 20 of this title, direct from the county trustee in twelve (12) equal monthly installments, irrespective of the fees earned by the sheriff.
2. (2) In such an event, all fees allowed, collected, or in any manner received by the sheriff will be paid, assigned, transferred, and set over to the county. When such fees are received by the sheriff, the clerk of any court or any other person, they shall be transmitted monthly to the county trustee.
3. (3) No sheriff shall claim, hold, or have any interest in such funds for services performed under § 8-24-102, fees paid the sheriff as a witness for appearing in court, the boarding of prisoners at the county jail, ex officio services, or fees from any other source whatsoever, except that this provision and subdivision (a)(2) are not intended to prevent the county legislative body from paying the sheriff in such county an amount in addition to the maximum salary allowed by § 8-24-102 for ex officio services as superintendent of the workhouse, if the workhouse in such county is combined with the jail as provided for by title 41, chapter 2.
4. (4) Any sheriff serving under this provision shall make a charge for all services performed by such sheriff as now provided by law, and such sheriff shall have no authority to waive, remit, or release any fee for any service or services performed.
(b) The provisions of this section, or any part or portion thereof, are severable, and in the event that any provision, or part or portion of any provision of this section, is declared to be unconstitutional, such a declaration or decree shall not affect the remainder of this section.

§ 8-24-104. [Reserved]

§ 8-24-105. [Reserved]

§ 8-24-106. Records of fees where supplemental salary required.

(a) Each official whose salary is required to be supplemented from the county general fund shall keep a book account of all fees collected and make an annual report of the collections to the county mayor. No funds shall be paid from the general funds of the county to supplement salaries until such report has been filed with the county mayor.
(b) These reports and records shall be entered in a well-bound book by the county clerk and kept on file in that office.
(c) This report shall be used as a basis to compute any supplementary compensation required or authorized to be paid in order to aggregate, with the fees collected, the required annual compensation or the authorized compensation in case of the office of sheriffs in the counties where penal farms have been established as provided in [former] § 8-24-105 [repealed].

§ 8-24-107. Payment of minimum salary.

If the total fees collected by the officials enumerated in § 8-22-101, after deduction for the legally authorized expenses of the office, including, but not limited to, salaries of deputies and assistants, are not sufficient to pay the salary required by § 8-24-102, then the remainder of such salary shall be paid out of the general funds of the county by warrant drawn on the general funds of the county in the hands of the trustee.

§ 8-24-108. Sheriff and clerk of criminal court — Supplemental salaries.

(a) In the event that the fees, etc., collected by the sheriffs in any of the counties within §§ 8-24-101 – 8-24-103 and 8-24-106 – 8-24-109 do not in any month amount to a sum sufficient to pay all other necessary and legitimate expenses incurred in the proper and efficient administration of the sheriff's office, including the guaranteed compensation of the sheriff, then the shortage of such compensation and expenses as herein provided shall be paid out of the public funds of the counties each month.
(b) In the event that fees, etc., collected by the clerks of the criminal court in any of the counties within §§ 8-24-101 – 8-24-103 and 8-24-106 – 8-24-109, do not in any month amount to a sum sufficient to pay all proper, necessary and legitimate expenses incurred in the proper and efficient administration of the sheriff's office, including the maximum compensation allowable to the clerk of the criminal court, then the shortage of such compensation and expenses herein provided shall be paid out of the public funds of the county each month.

§ 8-24-109. Ex officio services as clerk of special court.

(a) If in any county there is, or may hereafter be created, a special chancery, circuit, criminal, county or probate court where the clerk and master or clerk is clerk of the special court by virtue of such clerk's office in the county, no additional salary shall be allowed such clerk and master or clerk for transacting business of such special courts, but the services shall be performed by virtue of the office the clerk and master or clerk of the special court holds and for the salary provided for such officer in the class to which the county belongs by the classification in § 8-24-101; provided, that:
1. (1) When the clerk and master, or clerk of the court, cannot, for want of time, properly and efficiently conduct the affairs and transact the business of clerk and master or clerk of the special court, then such official shall file a sworn petition in the special court with the chancellor or judge holding the special court, in term or at chambers, in the manner and form provided in §§ 8-20-101 – 8-20-106 and have action taken thereon as is provided; and
2. (2) Where the clerk and master or clerk of the special court holds such office by appointment of the chancellor or judge of the special court, the clerk and master or clerk of the special court shall make application to the chancellor or judge of the special court, by sworn petition, in term or at chambers, setting forth the facts, showing the approximate amount of fees collected yearly in the office, and whether or not a deputy or deputies should be appointed for the proper and efficient conduct of affairs of the office and the salary to be allowed such deputy, and have such proceedings thereon as to the fixing of the salary of any deputy or deputies as provided by §§ 8-20-101 – 8-20-106.
(b) The provisions of this section prohibiting additional salaries or compensation to clerks and clerks and masters of special courts shall not apply to chancery courts now having or hereafter having exclusive jurisdiction and powers with respect to the probate of wills and administration of estates. When such clerk or clerk and master shall serve as clerk or clerk and master of a chancery court now having or hereafter having exclusive jurisdiction and powers with respect to the probate of wills and administration of estates, it shall be lawful for such clerk or clerk and master to receive additional compensation, and payable as may be provided in the law, and any amendments thereto, creating such court.

§ 8-24-110. [Reserved]

§ 8-24-111. Ex officio services of sheriff.

The county legislative bodies of the different counties shall, at their first session in each and every year, make such allowance as they, in their discretion, think sufficient to compensate their sheriffs for ex officio service.

§ 8-24-112. [Reserved]

§ 8-24-113. Private acts fixing salary of county mayor unaffected.

Sections 8-24-102, this section and 8-24-114 shall not be construed to repeal or modify in any way any private act of the state fixing any salary of any county mayor in an amount greater than the minimum salaries set out in § 8-24-102. In determining whether the salary of any such county mayor has been fixed by private act in an amount in excess of the minimum salary set out in § 8-24-102, the entire salary provided for by such private act shall be included, regardless of whether such salary is paid by the county, the state of Tennessee, or both.

§ 8-24-114. County legislative body authorized to fix salary of county mayor in excess of statutory amount.

The county legislative bodies of the various counties are hereby granted authority to fix the salary of any county mayor in an amount in excess of the amount guaranteed in § 8-24-102 or § 8-24-113.

§ 8-24-115. County commissioners in counties of 100,000 to 600,000.

The compensation of county commissioners of any county having a population of not less than one hundred thousand (100,000) nor more than six hundred thousand (600,000), according to the United States census of 1970, shall be not less than twenty-five thousand dollars ($25,000) a year, but any such county may by private act provide for annual compensation in a larger amount. The salary fixed by this section shall control over any prior private or public enactment providing for an automatic salary adjustment for any county commissioner and any such provision is hereby declared to be superseded by this section.

Chapter 25 Deferred or Tax-Sheltered Compensation Programs

Part 1 Government Employees Deferred Compensation Plan Act

§ 8-25-101. Title.

This part shall be known as the “Government Employees Deferred Compensation Plan Act,” and may be so cited.

§ 8-25-102. Definition of employee.

For the purposes of this part, “employee” means any person, whether appointed, elected, or under contract wherein an employee-employer relationship is established, providing services for the state of Tennessee, state agencies, counties, municipalities, or subdivisions of such governmental bodies in Tennessee, for which compensation is paid.

§ 8-25-103. Deferred compensation plans — Approval of plans — Approval of companies providing plans.

(a) The state of Tennessee or any Tennessee political subdivision or instrumentality of such subdivision may, by contract, agree with any employee to defer, in whole or in part, any portion of that employee's income and may subsequently purchase or contract with any company licensed to do business in this state to provide a deferred compensation plan, as requested by the employee.
(b) The commissioner of finance and administration, the chair of the finance, ways and means committee of the senate, the chair of the finance, ways and means committee of the house of representatives, and the chair of the board of trustees for the Tennessee consolidated retirement system shall serve as trustees of any deferred or tax-sheltered compensation plans established pursuant to this chapter on behalf of state employees, including employees of institutions of higher education. For the purposes of this section, the term “state employees” shall not include kindergarten through grade twelve (K-12) teachers and other local education agency employees. Such plans include, but are not limited to, plans established pursuant to §§ 401(k), 403(b), 415(m), 457(b), and 457(f) of the Internal Revenue Code (26 U.S.C. §§ 401(k), 403(b), 415(m), 457(b), and 457(f)). The chair of the board of trustees for the Tennessee consolidated retirement system shall develop a plan document for the implementation and administration of deferred or tax-sheltered compensation plans established by the trustees. The terms of any deferred or tax-sheltered compensation plan established on behalf of state employees, including employees of institutions of higher education, may be modified by the chair of the board of trustees for the Tennessee consolidated retirement system with the concurrence of the commissioner of finance and administration.
(c) [Deleted by 2024 amendment.]
(d) Any deferred compensation program implemented and operating under the authority of this part shall conform to all applicable laws, rules and regulations of the internal revenue service governing state deferred compensation plans.

§ 8-25-104. Responsibility for implementing programs — Payroll deductions — Billing and administration — Requiring participation.

(a)
1. (1) The responsibility for implementing any deferred or tax-sheltered compensation plans maintained on behalf of employees of institutions of higher education pursuant to § 403(b) of the Internal Revenue Code (26 U.S.C. § 403(b)) shall be delegated to the chair of the board of trustees for the Tennessee consolidated retirement system with the approval of the remaining trustees. Through this delegation, the chair of the board of trustees for the Tennessee consolidated retirement system is authorized to establish the terms of the plans; offer investment options in accordance with the investment and administrative plan services approved by the trustees; complete the financial reporting and financial statements for the plans; assume the fiduciary duties for the plans; enter into contracts or agreements for the administration of the plans; carry out the day-to-day operations and responsibilities for the implementation of the plans, and any other duties not inconsistent with this chapter. The chair of the board of trustees for the Tennessee consolidated retirement system may assume responsibility for the implementation of any deferred or tax-sheltered compensation plans existing before or after March 16, 2018, that are maintained on behalf of employees of institutions of higher education or pursuant to § 403(b) of the Internal Revenue Code (26 U.S.C. § 403(b)).
2. (2) The responsibility for implementing the deferred compensation program for employees of state agencies, including employees of institutions of higher education, shall be delegated to the chair of the board of trustees for the Tennessee consolidated retirement system, with the approval of the remaining trustees.
3. (3) The responsibility for implementing the deferred compensation plan for state employees who are not paid on either the centralized state payroll system or by an institution of higher education, may be delegated as determined by the chair of the consolidated retirement board.
4. (4) Whenever plans are operated for state employees, including employees of institutions of higher education, pursuant to authority delegated herein to officials other than the chair of the consolidated retirement board, they shall be operated under the terms and conditions set out in contracts entered into by the chair of the consolidated retirement board for the purpose of effectuating this part.
5. (5) The responsibility for implementing the deferred compensation program for all other employees, as defined hereunder, shall be delegated to the appropriate officer, board, or committee, as designated by the local legislative body of such other agencies, counties or municipalities.
(b) Payroll deductions shall be made, in each instance, by the appropriate payroll officer.
(c) The chair of the consolidated retirement board or appropriately designated local officer, board or committee of such deferred compensation program may contract with a private corporation, institution and/or custodial bank to provide consolidated billing and all or any other administrative services deemed necessary or appropriate for the administration and operation of the program. The chair of the consolidated retirement board or appropriately designated local officer, board or committee of such deferred compensation program may assess the costs associated with administrating the program to the respective participating employees in order that any such plans adopted shall operate without cost to or contribution from this state.
(d) Notwithstanding any law to the contrary, the chair of the consolidated retirement board, with the concurrence of the commissioner of finance and administration, has the authority to implement an automatic deferred or tax-sheltered compensation plan. Such plan shall provide that any person who becomes a full-time state employee on or after the implementation date of the plan, including a full-time employee of an institution of higher education, who is eligible to participate in one of the deferred or tax-sheltered compensation plans established pursuant to parts 1 or 3 of this chapter shall participate in at least one of the plans as a condition of employment, unless such employee files with that person's employer a notice of that person's election not to participate.
(e) Any notice of non-election shall be made in such format and through such medium as prescribed by the chair of the Tennessee consolidated retirement system and must be filed with that employee's employer by no later than thirty (30) calendar days from the date of the notice of automatic deferral letter. Any employee who does not file a notice of non-election within the prescribed period shall be automatically enrolled in the state's salary reduction plan established in part 3 of this chapter with a salary deferral of two percent (2%) of that employee's compensation. All contributions made by or on behalf of the employee shall be directed to such default option as shall be established by the chair of the consolidated retirement board until such time as the employee selects a different investment option or options. Notwithstanding this section or any other law to the contrary, future deferrals may be cancelled or adjusted at any time by the employee provided the employee notifies that employee's employer in such format and through such medium as may be prescribed by the chair of the Tennessee consolidated retirement system at least one month before the payday on which the cancellation or change is to be effective; provided, however, that any adjustment in the deferrals, other than a cancellation, cannot cause the amount of the deferrals to be less than twenty dollars ($20.00) per month, or if the employee is paid twice a month, ten dollars ($10.00) semimonthly, or such other lower amount as may be established under chapter 25, part 3 of this title. In addition, any adjustment in the deferrals cannot cause the amount of the deferrals to exceed the maximum allowed under the Internal Revenue Code.
(f)
1. (1) Any employee who affirmatively declines to make employee deferrals after the first automatic enrollment contribution was made may make an election to withdraw that employee's entire automatic enrollment contribution. This election must be submitted no later than ninety (90) calendar days after the payroll date in which the first automatic enrollment contribution is made on behalf of the employee. The amount of the distribution shall be the value of the automatic enrollment contributions plus or minus investment gains or losses as of the date the distribution is processed. Automatic enrollment contributions made after such date shall remain in the plan and shall be subject to the plan's regular distribution rules. Further, an employee who has made an election to withdraw and who thereafter leaves employment and is then rehired by the same employer as defined in this subsection (f) or, by the same political subdivision in the case of a political subdivision employee, before a twelve-continuous month absence shall not be permitted to make another election to withdraw that participant's automatic enrollment contribution.
2. (2) For purposes of this subsection (f), “same employer” means the employer for which the person last worked prior to separation from covered employment. All departments, agencies and instrumentalities in the executive, legislative and judicial branches of state government, including public institutions of higher education, shall be deemed one and the same employer. All public schools within the Tennessee public school system, except for public institutions of higher education, shall be deemed one and the same employer.
3. (3) Notwithstanding the vesting provisions of the plan's document, the employer matching contributions described in § 8-25-303 that are attributable to the distribution of the automatic enrollment contributions shall be forfeited and placed in a forfeiture account. Amounts in the forfeiture account shall be used in the manner provided in the plan document established for the profit sharing and/or salary reduction plan established under chapter 25, part 3 of this title. The employer matching contributions described in § 8-25-303 shall not be made if a permissible withdrawal is taken pursuant to this subsection (f) before the date the matching contribution is allocated.
(g) The initial two percent (2%) automatic enrollment contribution described in this section shall be subject to a percentage annual increase thereafter if provided for in the plan document established for the profit sharing and/or salary reduction plan established under chapter 25, part 3 of this title.
(h) The automatic deferrals shall be contributed on a pre-tax basis and shall continue until the employee affirmatively elects otherwise.
(i) Notwithstanding any law to the contrary, a political subdivision, or an instrumentality of a political subdivision that has at least one thousand (1,000) employees, may implement, adopt, or administer an automatic deferred or tax-sheltered compensation plan for employees of that political subdivision or instrumentality that constitutes an eligible automatic contribution arrangement under § 414(w) of the Internal Revenue Code of 1986 (26 U.S.C. § 414(w)). Such deferred or tax-sheltered compensation plan may provide, subject to the notice, election to withdraw, and other requirements of § 414(w) of the Internal Revenue Code of 1986, as amended, and regulations promulgated thereunder, that employees or a classification of employees eligible to participate in the plan on or after implementation of the plan must participate in the plan as a condition of employment unless such covered employee files notice with the sponsoring employer indicating that person's election not to participate in the manner and in the time period prescribed by the sponsoring employer.

§ 8-25-105. Investment of funds from program.

(a) Notwithstanding any other law to the contrary, the chair of the consolidated retirement board, and the appropriately designated local officer or local board responsible for implementing a deferred compensation program are hereby authorized to invest the moneys held pursuant to any such deferred compensation plan in investment options that meet the requirements of the Internal Revenue Code.
(b) It is the intent of the general assembly that a variety of investment options be offered to participants in the plan, which may include one (1) or more commingled funds in which assets in the custody of the state treasurer that consist exclusively of assets of exempt pension and profit sharing trusts and individual retirement accounts, custodial accounts, retirement income accounts, governmental plans and tax-exempt trusts under the Internal Revenue Code of 1986 and Rev. Rul. 81-100, as modified by Rev. Ruls. 2004-67, 2008-40 and 2011-1 are pooled, solely for investment purposes, in a common or group trust fund. The assets so invested shall be subject to all the provisions of the group trust instruments establishing and governing such trust or trusts. Those instruments of group trusts, including any subsequent amendments, are hereby incorporated by reference and made a part of the plan.

§ 8-25-106. Program supplemental.

A plan established by this part shall exist and serve in addition to other retirement, pension, or benefit systems established by the state of Tennessee, state agencies, counties, municipalities, or other political subdivisions. A deferred compensation plan established by this part shall not supersede, make inoperative, or reduce any benefits provided by the consolidated retirement system or programs established by any counties, municipalities, or other political subdivision thereof, or any other retirement, pension, or benefit program established by law.

§ 8-25-107. Other benefits unaffected by deferral.

Notwithstanding another law to the contrary, and except as provided in § 8-34-101(14)(D), any compensation deferred under this part must be considered part of an employee's compensation for purposes of another employee retirement, pension, or benefit program. A deferral of income under the deferred compensation program shall not effect a reduction of any retirement, pension, or other benefit program provided by law.

§ 8-25-108. Federal income tax computation.

Notwithstanding this part or another law to the contrary, any sum deferred under the deferred compensation program shall not be included for the purposes of computation of any federal income taxes withheld on behalf of any employee, unless the deferred sum is designated by the employee as a Roth contribution pursuant to § 8-25-116.

§ 8-25-109. Confidentiality of records.

(a) Any medical records submitted to, or compiled by, any person or entity providing deferred compensation plan services pursuant to this part are confidential and shall not be disclosed except as follows:
1. (1) To the extent that the employee or the employee's legal representative consents to disclosure;
2. (2) To the extent of performing duties hereunder, to employees of persons or entities providing the plan services;
3. (3) In compliance with a subpoena or a court order;
4. (4) To other governmental agencies; provided, that such agencies maintain the same level of confidentiality as that required hereunder;
5. (5) To the comptroller of the treasury or the comptroller's designees for the purpose of audit; or
6. (6) In any administrative proceeding or court action between the employee or the employee's legal representative and a person or entity providing plan services hereunder.
(b) Nothing contained herein applies to statistical medical information if such information is not identified with a particular employee. Further, nothing contained herein applies to records concerning the identity of employees receiving or applying for benefits, to the amount of benefits to which a particular employee is or may be entitled to receive, nor to any other nonmedical related information unless such information is made confidential by other statute of this state.

§ 8-25-110. Production of records described in subpoena.

(a) Except as provided in subsection (e), when a subpoena duces tecum is served upon any person or entity administering or providing services to a deferred compensation plan established pursuant to this part in an action or proceeding in which the person or entity is not a party, and such subpoena requires the production of all or any part of the records of the deferred compensation plan relating to a present or former plan participant, it shall be sufficient compliance if the person or entity within fourteen (14) days after being served with a subpoena duces tecum, shall file with the court clerk or the issuer, either by personal delivery or certified or registered mail, a true and correct copy (which may be a copy reproduced on film or other reproducing material by microfilming, photographing, photostating or other approximate process, or a facsimile, exemplification or copy of such reproduction or copy) of all records specifically described in such subpoena.
(b) The records shall be accompanied by an affidavit of a custodian, stating in substance that:
1. (1) The affiant is the duly authorized custodian of the records and has authority to certify the records; and
2. (2) The copy is a true copy of all the records described in the subpoena.
(c) If the person or entity has none of the records described, or only part thereof, the custodian shall so state in the affidavit and file the affidavit and such records as are available in the manner prescribed in this section.
(d)
1. (1) The copy of the record shall be admissible in evidence to the same extent as though the original thereof were offered and the custodian had been present and testified to the matters stated in the affidavit.
2. (2) The affidavit shall be admissible in evidence and the matters stated therein shall be presumed true in the absence of a preponderance of evidence to the contrary.
3. (3) When more than one (1) person has knowledge of the facts, more than one (1) affidavit may be made.
(e) The personal attendance of the custodian may be commanded only if personal attendance is necessary to resolve a good faith dispute concerning the accuracy of the information to be furnished. Where personal attendance of the custodian is required, the subpoena duces tecum shall contain a clause which reads: “The procedure authorized pursuant to § 8-25-110 will not be deemed sufficient compliance with this subpoena.”

§ 8-25-111. Election to become a participating employer in deferred compensation program — “Governmental entity” defined — Election of employer for matching of contributions — No increased cost to state.

(a) Notwithstanding any law to the contrary, any governmental entity as defined in subsection (b) may elect to become a participating employer in any deferred compensation program established on behalf of state employees under this part or under part 3 of this chapter; provided, that such participation shall be subject to the approval of the chair of the Tennessee consolidated retirement system and in conformity with such terms and conditions as may be prescribed by the chair. If such approval is given, then all employees of the respective entity shall be eligible to participate in any such deferred compensation program, except for the employer matching as provided for in § 8-25-303.
(b) For purposes of this section, “governmental entity” means any Tennessee local governmental entity, including, but not limited to, any municipality, metropolitan government, county, utility district, school district, public building authority, and development district created and existing pursuant to the laws of this state, or any instrumentality of government created by any one (1) or more of the named local governmental entities or by an act of the general assembly. Notwithstanding any provision of this section to the contrary, no entity shall be eligible to participate in any such deferred compensation program if the chair of the Tennessee consolidated retirement system determines, in the chair's sole discretion, that the entity's participation could have a potential adverse effect on the program's status as a qualified plan under the Internal Revenue Code (U.S.C. title 26), and regulations. In making such determination, the chair may rely on the advice of a nationally recognized counsel in the area of governmental employee benefit plans.
(c) Any entity described in subsection (a) that elects to become a participating employer under part 3 of this chapter shall have the option of providing for employer matching of contributions in any amount for which the entity is willing to contribute; provided, that the amount of employer matching shall not exceed the maximum allowed under the Internal Revenue Code, and shall conform to all applicable laws, rules and regulations of the internal revenue service governing profit sharing and/or salary reduction plans.
(d) It is the legislative intent that the state shall realize no increased cost as a result of such entities' participation in any such deferred compensation program. All costs associated with such participation, including administrative costs, shall be the responsibility of such entities and/or the entities' participating employees.
(e) A local board of education may elect to participate in the plan separately from the political subdivision with which it is associated. A political subdivision may elect to participate in the plan without extending coverage to the employees of the local board of education that is associated with the participating political subdivision. In the event that a political subdivision withdraws its participation in the deferred compensation plan, the local board of education, which is a part of the political subdivision, may continue its participation in the plan separately.

§ 8-25-112. Attorney for the chair of the Tennessee consolidated retirement system.

(a) Counsel for the treasury department shall serve as the attorney for the chair of the Tennessee consolidated retirement system with respect to any deferred or tax-sheltered compensation plans established pursuant to this chapter on behalf of state employees, including employees of institutions of higher education.
(b) Notwithstanding any law to the contrary, in cases where the interest of any deferred or tax-sheltered compensation plans referred to in subsection (a) require additional counsel, the chair of the Tennessee consolidated retirement system, with the approval of the attorney general and reporter, is authorized to contract with such additional counsel, who shall be paid such compensation for services as the chair may deem just.

§ 8-25-113. Authority of trustees of deferred or tax sheltered compensation plans to contract for investment management services, personal services, professional services and consultant services.

The trustees of any deferred or tax sheltered compensation plans established pursuant to this part are expressly authorized to contract for investment management services, personal services, professional services and consultant services for the deferred compensation programs. The trustees shall provide for the powers, duties, functions and compensation of any investment managers, professionals or consultants so engaged. Any contract for investment management services, personal services, professional services and consultant services may be procured in the manner prescribed by the trustees without regard to the requirements of [former] § 12-4-109 [see the Compiler's Notes], if it is determined that the services are necessary or desirable for the efficient administration of the deferred compensation programs. All expenses and fees incidental to the procurement of services shall be charged to and paid from participant accounts.

§ 8-25-114. Plan required to honor claims under qualified domestic relations order.

Notwithstanding any other law to the contrary, any deferred compensation program established on behalf of state employees under this part or under part 3 of this chapter shall honor claims under a qualified domestic relations order at a time designated by the state treasurer. For purposes of this section, “qualified domestic relations order” has the same meaning as provided in § 414(p) of the Internal Revenue Code of 1986 (26 U.S.C. § 414(p)); provided, that such order may only relate to the provision of marital property rights for the benefit of the former spouse of the deferred compensation program participant.

§ 8-25-115. Length of service award program.

(a) The state treasurer may inquire with local governments and volunteer fire departments about establishing a length of service award program pursuant to § 457 of the Internal Revenue Code as amended, and all applicable rules, regulations, notices, and interpretations released by the United States treasury, including the internal revenue service, referred to in this section as the “code”. Based on the results of this inquiry, the state treasurer may establish a length of service award program.
(b) The commissioner of finance and administration; the chair of the finance, ways and means committee of the senate; the chair of the finance, ways and means committee of the house of representatives; and the state treasurer shall serve as trustees for the length of service award program that may be established pursuant to this section.
(c) If the state treasurer establishes a length of service award program, then the state treasurer shall develop a plan that includes provisions for the implementation, administration, operation, marketing, investment options, customer service, and investment management services for the program, which must be approved by the remaining trustees. The state treasurer may modify the terms of the plan with the concurrence of the commissioner of finance and administration.
(d) The state treasurer is authorized to carry out the purposes of this section, the purposes and objectives of the program and the trustees' plan, and the powers delegated by any other state law or rule, or the code, including, but not limited to, the following power to:
1. (1) Select and provide for investment options or investment products;
2. (2) Purchase insurance from insurers licensed to do business in this state providing for coverage against any loss in connection with the program's property, assets, or activities;
3. (3) Make, execute, and deliver contracts, conveyances, and other instruments necessary and proper for the implementation of the program;
4. (4) Contract for the provision of services necessary or convenient for the administration, implementation, operation, or management of the length of service award program;
5. (5) Contract with recordkeepers, financial consultants, actuaries, auditors, investment managers, and other consultants and professionals, as necessary, to carry out the duties under this section and the plan established by the trustees. These services may be procured in a manner prescribed by the trustees, if the trustees determine that the services are necessary or desirable for the efficient administration of this section. All expenses and fees incidental to the procurement of services must be charged to and paid by the participating party;
6. (6) Administer and operate the program at the direction of the trustees' plan;
7. (7) Promote, advertise, market, and publicize the program;
8. (8) Impose and collect application fees and other administrative fees and charges in connection with any transaction under this section;
9. (9) Promulgate reasonable rules that are necessary to carry out the purpose of this section, and to ensure that the program is in compliance with the code and other applicable provisions of federal and state laws and rules. The rules must be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5;
10. (10) Enter into participation agreements with any entity permitted by the code for participation in the length of service award program;
11. (11) Operate and provide for the operation of the program in a manner that qualifies the program under the code and take action necessary to maintain such qualification;
12. (12) Seek rulings from the secretary of the United States department of treasury and the internal revenue service relating to the program; and
13. (13) Make program changes to maintain compliance with applicable federal and state laws and rules.
(e) An entity constituting an eligible employer pursuant to the code may elect to participate in the length of service award program as prescribed by the trustees to provide benefits to bona fide volunteers who provide firefighting and prevention services, emergency medical services, or ambulance services. An eligible employer may withdraw from participation in the program pursuant to the program's plan document. As used in this section, “eligible employer” and “bona fide volunteer” have the same meanings as provided in § 457 of the Internal Revenue Code.
(f) The state treasurer:
1. (1) Shall carry out the day-to-day administration, operations, and responsibilities of the length of service award program;
2. (2) Shall exercise the powers, duties, and responsibilities to implement this section;
3. (3) May assign duties and responsibilities to the state treasurer's staff or private vendors and contractors, as the state treasurer deems necessary and proper; and may consult with professionals as necessary about the administration of the program; and
4. (4) May establish policies, guidelines, and operating procedures in accordance with this section.
(g) If the trustees determine that the program is financially infeasible or is not beneficial to bona fide volunteers, eligible employers, citizens of the state, or the state itself, the trustees may suspend or terminate the program immediately.
(h) It is the legislative intent of this section that there be no increase in costs to the state as a result of an eligible employer's participation in the length of service award program. All costs associated with such participation, including administrative costs, are the responsibility of the participating eligible employers. Administrative costs may be imposed by the state even if a participating eligible employer is later found to not constitute an eligible employer under the code.
(i) Notwithstanding subsection (h), the state treasurer may develop, implement, and administer a program to award grants to eligible employers for the purpose of funding of a length of service award program established under this section. In the fiscal year beginning July 1, 2023, and ending June 30, 2024, and in each fiscal year thereafter, the state treasurer may award to an eligible employer a grant of a maximum of two hundred dollars ($200) for each bona fide volunteer of the eligible employer up to a total maximum amount of five thousand dollars ($5,000), for the purpose of matching eligible employers' contributions; provided, however, that in any fiscal year during which an eligible employer requests and is to be awarded a grant pursuant to this section, the eligible employer, as a condition of and prior to receipt of such grant, is required to certify to the state treasurer the number and names of its volunteers and to make the minimum contribution of at least two hundred dollars ($200) for each volunteer. The state treasurer shall develop an application form for eligible employers to request a grant and shall establish the period of time in which grant applications may be made. Grant amounts must be contributed to a volunteer's length of service award account. Grants pursuant to this section are subject to the availability of funds, including, but not limited to, state appropriations. This section is not a promise, guarantee, or obligation by the state to make grants pursuant to this section.
(j) The appropriated funds for the grant program must be expended on grant awards; provided, however, that a portion of the appropriated funds in each fiscal year must be used to pay expenses incurred for the administration of the program, including, but not limited to, third party administrators, attorneys, consultants, accountants, auditors, and other professionals.

§ 8-25-116. Roth contribution features.

(a) The state treasurer, with the approval of the commissioner of finance and administration, may adopt a new feature to one (1) or more of the state's deferred compensation plans, which plans include, but are not limited to, the 401(k), 403(b), and 457(b) plans that would permit state employees, including employees of institutions of higher education, to designate some or all of the employees' contributions as Roth contributions to the plans at the time the contributions are made, in accordance with § 402A of the Internal Revenue Code (26 U.S.C. § 402A).
(b) A political subdivision or instrumentality of the state that makes available to its employees a profit sharing or salary reduction plan, including, but not limited to, those approved by the internal revenue service under §§ 401(k), 403(b), or 457(b) of the Internal Revenue Code (26 U.S.C. § 401(k); 26 U.S.C. § 403(b); and 26 U.S.C. § 457(b)), may, by resolution or ordinance of its governing body, adopt a Roth contribution feature to its plan as described in this section.
(c) Any Roth contribution feature adopted pursuant to this section must conform to all applicable laws, rules, and regulations of the internal revenue service.

Part 2 Optional Retirement Program for Employees of Public Institutions of Higher Education

§ 8-25-201. Short title.

This part shall be known and may be cited as the “Optional Retirement Program for Employees of Public Institutions of Higher Education.”

§ 8-25-202. Establishment of program.

There is established an optional retirement program for employees of public institutions of higher education operated by the board of regents and the board of trustees of the University of Tennessee.

§ 8-25-203. Trustees — Duties — Delegation of duties — Cost of administration — Selection of investment products.

(a) The commissioner of finance and administration, the chair of the finance, ways and means committee of the senate, the chair of the finance, ways and means committee of the house of representatives, and the chair of the consolidated retirement board shall serve as trustees of the optional retirement program established under § 8-25-202.
(b) The trustees shall establish an investment policy for the assets of the optional retirement program.
(c) The trustees may delegate to the state treasurer the duty to carry out the day-to-day operations and responsibilities for the administration of the optional retirement program. In exercising the delegation, the state treasurer shall be authorized to exercise such powers as are vested in the trustees that are necessary to fulfill the delegated duties and responsibilities; may assign any duties and responsibilities to the state treasurer's staff or private vendors and contractors, as the state treasurer deems necessary and proper; and may consult with professionals as necessary about the administration of the program. In administering the program, the state treasurer may make such rules as deemed necessary and proper for the effective functioning of the program. Any such rules shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. The state treasurer may also establish policies, guidelines, and operating procedures in exercising the state treasurer's delegation from the trustees, including, but not limited to, complying with all applicable state and federal laws and rules.
(d) The state treasurer may assess the costs associated with administering this program to the participating employees in order that such plan shall operate without administrative cost to or contribution from the state.
(e) The trustees shall designate a company or companies from which administrative services are to be purchased under the optional retirement program. The trustees may delegate to the state treasurer the authority to procure these administrative services in a manner prescribed by the trustees.
(f) The trustees, at the request of the board of trustees of the University of Tennessee and the board of regents, may authorize the adoption of optional features to such programs. Any such authorization shall be subject to the approval of the council on pensions. For the purposes of this subsection (f), “optional features” does not include optional investment products.
(g) The investment products offered to participants in the optional retirement program are subject to the approval of the trustees, and the trustees reserve the right to refuse or discontinue any product offered. The companies providing administrative services to the optional retirement program shall provide a report to the trustees at least semi-annually about participant use of the investment products offered.

§ 8-25-204. Election of retirement system or optional retirement program — Time of election — Failure to elect — Transfer of membership.

(a) Notwithstanding any other law to the contrary, any individual who is exempt from the Fair Labor Standards Act (29 U.S.C. § 201 et seq.) and who is employed in a state-supported institution of higher education, including, but not limited to, the Tennessee colleges of applied technology, may elect membership either in the retirement system established in § 8-34-201 or in the optional retirement program established under this part. In all cases of doubt, the state treasurer shall determine whether the employee is eligible to participate in the optional retirement program.
(b) As used in this part, the term “retirement system” has the same meaning as in § 8-34-101.
(c) Each eligible employee who elects to participate in an optional retirement program rather than the retirement system shall make the election in the manner prescribed by the state treasurer and shall file the election with the state treasurer and with the institution where the employee is employed. Any such election shall be irrevocable.
(d) Any such eligible employee who is not already a member of the retirement system and who has not accumulated creditable service thereunder as a member of a local retirement fund shall make this election on the employee's initial date of employment with a state-supported institution of higher education.
(e) Any member of the retirement system or any member of a local retirement fund having rights under the retirement system may elect to participate in the optional retirement program established under this part in lieu of participating in the retirement system while employed in a state-supported institution of higher education. Any such election shall become effective no later than the first day of the month following thirty (30) days' written notice to the retirement system and to the institution where the employee is employed. Such notification shall be made in a manner prescribed by the state treasurer.
(f) Any eligible employee who fails to make the election as prescribed in this section shall be a member of the retirement system.
(g) Notwithstanding any provision of this part or any other law to the contrary, any employee who, on or after January 1, 2005, attains either five (5) or more but less than six (6) years of creditable service in the optional retirement program, or five (5) or more but less than six (6) years of creditable service in the retirement system and the optional retirement program combined, shall have the option of transferring membership from the optional retirement program to the retirement system under the following terms and conditions:
1. (1) The employee is employed in a position covered by the retirement system;
2. (2) The election must be made in the manner prescribed by the state treasurer and filed with the state treasurer and the institution where the employee is employed by no later than the end of the calendar year following the year the employee completes five (5) years of creditable service;
3. (3) Any such transfer shall include both past and prospective membership;
4. (4) The transfer shall be irrevocable;
5. (5) The employee must pay to the retirement system a sum equal to twelve and sixty-five hundredths percent (12.65%) of the employee's earnable compensation during the period of the employee's membership in the optional retirement program, plus interest on the amount at the rate provided in § 8-37-214;
6. (6) Notwithstanding § 8-37-220, the payment required under this subsection (g) shall be made in a lump sum to the retirement system by no later than the end of the calendar year following the year the employee completes five (5) years of creditable service, and may be funded in whole or in part from amounts transferred from the employee's accounts in the optional retirement program, from other eligible retirement accounts, or from other funds available to the employee. For the purposes of this subdivision (g)(6), amounts transferred from an eligible retirement account shall have the same meaning as described in § 8-37-214(g)(1). Any difference between the payment required under this subsection (g) and the amount transferred from the optional retirement program or an eligible retirement account shall be paid to the retirement system within sixty (60) days following the transfer, but in any event no later than the end of the calendar year following the year the employee completes five (5) years of creditable service. Notwithstanding § 8-35-111 or any other law to the contrary, if the payment is not funded in whole or in part from amounts transferred from the optional retirement program, the employee shall be permitted to retain ownership of the amounts without violating § 8-35-111;
7. (7) The employee shall have no rights, benefits, or privileges in the retirement system until the full amount of the payment required under this subsection (g) is received by the retirement system. In the event the employee fails to remit the full amount by the time specified in subdivision (g)(6), the employee shall irrevocably lose the employee's right to transfer membership from the optional retirement program to the retirement system; and
8. (8) All payments made under this subsection (g) shall be credited to the state accumulation fund pursuant to § 8-37-301 and not to the individual accounts of members in the members' fund.
(h) Any individual participating in the optional retirement program established under this part whose position is reclassified from exempt to non-exempt from the Fair Labor Standards Act (29 U.S.C. § 201 et seq.) after at least one (1) year of service in the exempt position shall maintain participation in the optional retirement program with respect to such non-exempt position.

§ 8-25-205. Employer contributions.

(a) The employer shall make employer contributions at the rate of ten percent (10%) of each eligible employee's earnable compensation, plus one percent (1%) of the part of the eligible employee's earnable compensation in excess of the employee's covered compensation.
(b) The amount of salary taken into account in determining such contributions shall not exceed the maximum dollar limitation imposed by Section 401(a)(17) of the Internal Revenue Code (26 U.S.C. § 401(a)(17)). For any person becoming a participant in an optional retirement program before July 1, 1996, the dollar limitation under Section 401(a)(17) of the Internal Revenue Code shall not apply to the extent the amount of compensation that is allowed to be taken into account under the plan would be reduced below the amount that was allowed to be taken into account under the plan as in effect on July 1, 1993.

§ 8-25-206. Rollover of taxable portion of lump sum payment to eligible retirement plan.

(a) Any employee or any spouse or any non-spousal beneficiary of an active, inactive, or retired employee who is eligible for a lump sum payment under this part may request the relevant optional retirement company to rollover the taxable portion of such payment directly to an eligible retirement plan.
(b) For purposes of this section, “eligible retirement plan” means:
1. (1) For employee transfers only, a qualified 403(a) annuity plan or a qualified 401(a) retirement plan; provided, that the plan accepts direct rollovers;
2. (2) For member or spousal transfers, an individual retirement account or any other plan eligible under the Internal Revenue Code to receive such direct rollovers from a qualified plan; provided, that the plan accepts direct rollovers; or
3. (3) For non-spousal beneficiary transfers, an individual account or annuity treated as an inherited individual retirement account under Section 402(c)(11) of the Internal Revenue Code (26 U.S.C. § 402(c)(11)), or any other plan eligible under the Internal Revenue Code to receive such direct rollovers from a qualified plan; provided, that the plan accepts such direct rollovers.
(c) Prior to making such a rollover, the relevant optional retirement company may require the individual requesting the rollover to establish that the receiving plan or account meets the requirements of this section and the Internal Revenue Code.
(d) This section shall be administered in accordance with the direct rollover provisions of the Internal Revenue Code.

§ 8-25-207. Computation of retirement benefits under retirement system — Benefits under optional retirement program.

(a) When any eligible employee in an optional retirement program retires with retirement credit in the retirement system, the employee's retirement allowance from the retirement system shall be computed and paid in accordance with chapters 34 – 37 of this title.
(b) Employees who elect to participate under the optional retirement program shall be limited to the benefits of such optional retirement program, upon and after retirement.

§ 8-25-208. Eligibility to participate in retirement system — Effect on contributions previously accumulated in retirement system — Resumption of participation in retirement system upon unavailability of optional program.

(a) An eligible employee who elects to participate in an optional retirement program established under this part will be ineligible to participate in the retirement system during such period as the employee is employed by a state-supported institution of higher education.
(b) While participating in an optional retirement program, such member's accumulated contributions, if any, and creditable service in the retirement system shall remain unchanged as of the date of election of an optional retirement program under this part.
(c) Interest shall continue to be credited to the employee's accumulated contributions in the retirement system.
(d) In the event that a participant in an optional retirement program assumes or returns to a position in a public school where an optional retirement program or a local retirement fund is not available, the participant shall at that time begin or resume participating in the retirement system.

§ 8-25-209. Transfer of accumulated contributions in retirement system to optional retirement program — Effect of transfer.

Any employee participating in an optional retirement program whose benefits are limited to those of that program pursuant to § 8-25-207, may authorize the transfer of the employee's accumulated contributions deposited with the retirement system to such optional retirement program upon request made to the retirement system. Such transfer shall be made within ninety (90) days of the retirement system's receipt of the request, and shall be considered to be a withdrawal of accumulated contributions and shall terminate membership in the retirement system, in accordance with § 8-35-104. Any such transfer constitutes a waiver of all rights in the retirement system and may not be redeposited with the retirement system pursuant to § 8-37-214.

§ 8-25-210. Claims under qualified domestic relations order.

Any optional retirement program established pursuant to this part shall honor claims under a qualified domestic relations order. For purposes of this section, “qualified domestic relations order” has the same meaning ascribed to it in Section 414(p) of the federal Internal Revenue Code of 1986 (26 U.S.C. § 414(p)); provided, that such order may relate only to the provision of marital property rights for the benefit of the former spouse of the optional retirement program participant.

§ 8-25-211. Cash withdrawal from program — Effect of cash withdrawal.

Upon retiring or otherwise terminating employment, an employee participating in an optional retirement program may elect to receive a cash withdrawal of such employee's accumulated account or accounts if permitted by the relevant optional retirement product and the Internal Revenue Code, as amended, and all rules, regulations, notices, and interpretations released by the United States treasury, including the internal revenue service. Any employee who receives a cash withdrawal pursuant to this section shall not be entitled to reestablish the withdrawn amount or any period of service represented by that amount in either the optional retirement program, the retirement system, or any other Tennessee state retirement program.

§ 8-25-212. Establishment of service in retirement system following receipt of limited lump sum distribution of contributions from optional program — Sum to be paid to retirement system.

Any member of the retirement system who participated in the optional retirement program and received a limited lump sum distribution of contributions pursuant to [former] § 8-25-205(c)(1) [repealed] shall be entitled to establish service and salary credit in the retirement system for the period during which those contributions were made to the member's optional retirement account. To establish service, the member must pay to the retirement system a sum equal to twelve and sixty-five hundredths percent (12.65%) of the member's earnable compensation during the period those contributions were made to the member's optional retirement account, plus interest on that amount at the rate provided in § 8-37-214.

§ 8-25-213. Effect of reemployment on other than full-time basis of person receiving benefits from optional retirement program.

A person returning to service on other than a full-time basis in a position covered by the optional retirement program or the Tennessee consolidated retirement system may take or continue taking distributions from the optional retirement program during the period of reemployment; provided, that the person:
1. (1) Is subject to the applicable work and compensation limits set forth in § 8-36-805(1) and (2);
2. (2) Is not eligible for additional contributions to the person's optional retirement account and shall not establish retirement credit in the retirement system for a period of the reemployment during the reemployment; and
3. (3) Is subject to applicable federal and state laws, rules, regulations, notices and guidance, and optional retirement program plan terms relative to distributions, including, but not limited to, in-service distributions.

Part 3 Profit Sharing or Salary Reduction Plans

§ 8-25-301. State plans authorized.

The state treasurer is directed to develop and obtain internal revenue service approval of a profit sharing or salary reduction plan for state employees as permitted by the internal revenue service. The responsibility for implementation of the plan for employees of institutions of higher education may be delegated by the state treasurer to the chancellor of the board of regents for employees of institutions thereunder and to the president of the University of Tennessee for employees of institutions thereunder. The responsibility for implementing the plan for state employees who are not paid on either the centralized state payroll system or by an institution of higher education may be delegated as determined by the state treasurer. It is the intent of the general assembly that a variety of investment options be offered to participants in the plan, which may include one (1) or more commingled funds in which assets in the custody of the state treasurer that consist exclusively of assets of exempt pension and profit sharing trusts and individual retirement accounts, custodial accounts, retirement income accounts, governmental plans and tax-exempt trusts under the Internal Revenue Code of 1986 and Rev. Rul. 81-100, as modified by Rev. Ruls. 2004-67, 2008-40 and 2011-1 are pooled, solely for investment purposes, in a common or group trust fund. The assets so invested shall be subject to all the provisions of the group trust instruments establishing and governing such trust or trusts. Those instruments of group trusts, including any subsequent amendments, are hereby incorporated by reference and made a part of the plan.

§ 8-25-302. “Profit” defined.

As used in this part, “profit” means the excess revenue over expenditures prior to the expenditure of the amount which may be optionally made available for employees in cash or placed in trust by the state on behalf of the employees under the plan.

§ 8-25-303. Employer matching authorized.

(a)
1. (1) Subject to subsection (c), the state shall provide for employer matching of contributions to the plan on behalf of participating state employees who are eligible to participate in the Tennessee consolidated retirement system, or the optional retirement program established pursuant to part 2 of this chapter, and on behalf of participating seasonal or temporary state employees under twenty-five (25) years of age who are paid on the centralized state payroll system. Notwithstanding § 8-35-111, beginning on July 1, 2021, any such employer match shall equal one hundred percent (100%) of the amount contributed by each state employee to the plan per month, up to a maximum of fifty dollars ($50.00) per month or, alternatively, up to a higher maximum that may be specifically prescribed in the annual general appropriations act. Subject to the approval of the department of finance and administration, state employees, other than employees of an institution of higher education, may elect in the manner prescribed by the state treasurer to have the employer matching based on the amount contributed by the employee from the employee's longevity pay in lieu of the monthly matches as otherwise provided in this subsection (a). If the employee makes the election, the employer match shall equal the amount contributed by the state employee from the employee's longevity pay, up to the maximum annualized employer match that could have been made had the match been made on a monthly basis. Subject to the approval of a state supported institution of higher education, employees of that institution may elect in the manner and under the conditions provided in this subsection (a) to have the employer matching based on the amount contributed by the employees from the employees' longevity pay in lieu of the monthly matches as otherwise provided in this subsection (a).
2. (2) Notwithstanding subdivision (a)(1) or any other law to the contrary, for fiscal years beginning on July 1, 2010, and July 1, 2011, the state may provide for employer matching of contributions to the plan on behalf of eligible, participating state employees. The amount, if any, provided by the state for employer matching contributions shall be specifically prescribed in the general appropriations act each such year.
3. (3) Notwithstanding subdivision (a)(1) or another law to the contrary, for the fiscal year beginning on July 1, 2022, the state employer match equals two hundred percent (200%) of the amount contributed by each state employee to the plan per month, up to a maximum of one hundred dollars ($100) per month. In subsequent fiscal years, the employer match reverts to the calculation described in subdivision (a)(1).
4. (4) Notwithstanding subdivision (a)(1) or another law to the contrary, for the fiscal year beginning on July 1, 2023, the state employer match equals one hundred percent (100%) of the amount contributed by each state employee to the plan per month, up to a maximum of one hundred dollars ($100) per month. In subsequent fiscal years, the employer match reverts to the calculation described in subdivision (a)(1).
(b) Notwithstanding this or any other provision to the contrary, the amount of the employer matching shall not exceed the maximum allowed under the Internal Revenue Code (26 U.S.C.) and shall conform to all applicable laws, rules and regulations of the internal revenue service governing profit sharing and/or salary reduction plans for state employees.
(c) It is the legislative intent that the employer match pursuant to this section shall be provided each fiscal year as the general appropriations act sets forth the dollar amount to be matched and contains an appropriation to provide for such matching amount. Further, it is the legislative intent that the amount, terms and conditions of any employer matching of contributions pursuant to subsection (a) for employees of institutions of higher education shall be governed in accordance with the same provisions affecting state employees who are paid on the centralized state payroll system. Notwithstanding this subsection (c), an institution of higher education may authorize the employees of that institution to elect to have the employer matching based on the amount contributed by the employees from the employees' longevity pay in accordance with subsection (a) regardless of whether the matching is authorized for employees who are paid on the centralized state payroll system.

§ 8-25-304. Alternative plans — Additional participation in state plan.

(a) Any political subdivision or instrumentality of the state, by resolution or ordinance of its governing body, is authorized to make available to its employees a profit sharing or salary reduction plan approved by the internal revenue service.
(b) Any entity other than a political subdivision participating in the Tennessee consolidated retirement system which has fewer than five (5) employees may request permission of the state treasurer to participate in the state plan. The state treasurer shall have full authority to grant permission, taking into account the number and location of employees of the entity, its financial soundness, the entity's status with the Tennessee consolidated retirement system, and other factors deemed relevant by the state treasurer. If permission is granted, such participation shall be in accordance with the terms specified by the state treasurer.

§ 8-25-305. [Repealed]

§ 8-25-306. Attorney for the treasurer with regard to profit sharing or salary reduction plans.

(a) Counsel for the treasury department shall serve as the attorney for the treasurer with respect to the plan.
(b) Notwithstanding any law to the contrary, in cases where the interests of the plan requires additional counsel, the treasurer, with the approval of the attorney general and reporter, is authorized to contract with such additional counsel, who shall be paid such compensation for services as the treasurer may deem just.

§ 8-25-307. Confidentiality of records.

Any medical records submitted to, or compiled by, any person or entity providing profit sharing and/or salary reduction plan services pursuant to this part are confidential and shall not be disclosed except as provided under § 8-25-109.

§ 8-25-308. Production of records described in subpoena.

Section § 8-25-110 applies whenever a subpoena duces tecum is served upon any person or entity administering or providing services to a profit sharing and/or salary reduction plan established pursuant to this part.

§ 8-25-309. Assessing costs of administering program to participating employees.

The state treasurer may assess the costs associated with administering this program to the participating employees in order that such plan shall operate without administrative cost to or contribution from this state.

§ 8-25-310. Alternative social security replacement plan for classes of employees not covered by agreement under § 8-38-103.

The state treasurer, with the approval of the commissioner of finance and administration, may adopt a new feature to the plan that would provide for an alternative social security replacement plan that satisfies the requirements of § 3121(b)(7)(F) of the Internal Revenue Code (26 U.S.C. § 3121(b)(7)(F)), as may be amended, and any rules and regulations promulgated thereunder for any classes of state employees, including employees of institutions of higher education, whose service is not covered by an agreement entered into under § 8-38-103. Any such plan may require the withholding as deferred compensation from the wages otherwise payable to those employees of up to seven and one-half percent (7½%) of wages, as the term “wages” is defined for social security purposes, or such other amount as may be required as an alternative to social security contributions.

Part 4 Cafeteria Plans for State Employees

§ 8-25-401. Development and implementation of plan — Automatic payment — Administration of plan.

(a) The commissioner of finance and administration and the state treasurer, with the concurrence of the state insurance committee, are authorized to develop and implement a cafeteria plan for state employees as permitted by § 125 of the Internal Revenue Code of 1986 (26 U.S.C. § 125). The commissioner of finance and administration and the state treasurer are further authorized to offer state employees a qualified transportation fringe benefit plan in accordance with § 132(f) of the Internal Revenue Code of 1986 (26 U.S.C. § 132(f)), or any subsequent corresponding United States Internal Revenue Code section. The responsibility for development and implementation of such plans for employees of institutions of higher education is delegated to the chancellor of the board of regents and to the president of the University of Tennessee for employees of institutions under the University of Tennessee. Any political subdivision or instrumentality of the state, by resolution or ordinance of its governing body, is authorized to make available to its employees either a cafeteria plan as permitted by § 125 of the Internal Revenue Code of 1986, or a qualified transportation fringe benefit plan in accordance with § 132(f) of the Internal Revenue Code of 1986, or both.
(b) Any employer who has implemented a cafeteria plan pursuant to this section shall arrange for its employees' health insurance premiums and dental insurance premiums to be automatically paid through the cafeteria plan beginning January 1, 2008. Participation in other benefit options provided pursuant to this section is not automatic and requires an affirmative election by the employee authorizing the necessary payroll deductions and salary reductions for funding the benefits.
(c) Plans implemented pursuant to this section may either be administered internally or the party responsible for administration may contract with any person or entity otherwise eligible to provide for the services.
(d) With concurrence of the state insurance committee, the state treasurer may credit plan savings and assess the costs associated with administering these programs to the state agencies of participating employees, it being the intent that state agency payroll savings deriving from the plan be the funding source for administration.

§ 8-25-402. Confidentiality of records.

Any information concerning an employee's medical diagnosis, treatment or referral for treatment maintained by any person or entity providing cafeteria plan services hereunder is confidential and shall not be disclosed except as provided under § 8-25-109.

Chapter 26 Reimbursement of Expenses

§ 8-26-101. Expenses of judicial officers.

The officials and employees named hereby below shall be reimbursed out of the state treasury for the expenses enumerated and to the extent set forth below:
1. (1)
  1. (A) The justices of the supreme court, judges of the intermediate appellate courts, criminal court judges, circuit court judges and chancellors shall be reimbursed for their necessary office rent, office supply and equipment expenses, and travel expenses pursuant to policies and guidelines promulgated by the supreme court;
  2. (B) From the appropriation made in the appropriations act for the operation of such courts, the justices, judges, and chancellors shall be reimbursed for necessary travel expenses incurred by them during their absence from the counties of their residence on official business; provided, however, that such travel expenses shall be limited to board and lodging and mileage or conveyance expense each way necessary to travel on official business. Any justice, judge, or chancellor seeking reimbursement for official expense under this section shall file with the director of the administrative office of the courts, or other official upon whom this duty may be lodged by law, a statement of such amounts necessarily expended in the discharge of such official duties, and upon receipt of this verified statement, a warrant for reimbursement for such expenses shall be issued.
2. (2)
  1. (A) The state is hereby authorized to provide office equipment and supplies to district attorneys general, such equipment to be furnished on the basis of need. All such office equipment shall remain the property of the state and shall be returned to the custody of the executive director of the district attorneys general conference by each district attorney general upon the expiration of the district attorney general's official duties. The purchases made under this section shall be in conformity with rules and regulations to be prescribed by the executive director, the comptroller of the treasury, and the commissioner of finance and administration;
  2. (B) District attorneys general are authorized the necessary expenses in the preparation and prosecution of cases in the name of the state. All expenditures of this section shall be made in accordance with such rules and regulations formulated by the executive director;
  3. (C) Each district attorney general shall prepare an annual budget request, relating to items authorized in subdivisions (2)(A) and (2)(B), to be submitted to the executive director of the district attorneys general conference. The executive director shall review all requests and formulate a budget for all district attorneys general which the executive director shall submit to the commissioner of finance and administration for review and approval;
  4. (D) No approval for any expenditure of state funds authorized in the above subdivisions shall be given in excess of the amount appropriated for such purposes by the general assembly;
  5. (E) The several district attorneys general in all districts containing more than one (1) county shall be reimbursed for the necessary traveling expenses incurred while upon official business, outside the county of their residence, as prescribed under the comprehensive travel regulations for employees of the state. Any subsequent changes in the amounts or types of reimbursable expenses as prescribed under the comprehensive travel regulations then shall apply automatically, and without further action, to the several district attorneys general at such times as changes become effective as to employees of the state;
  6. (F) All expense accounts submitted by any district attorney general shall be submitted upon forms provided and prescribed by the judicial cost accountant. In addition thereto, such expense accounts shall be submitted during the month following the month in which the expense was incurred, and all such expense accounts must be verified by such district attorney general. If any person fails to comply with this section, the expense account shall be disallowed and the same shall not be paid;
  7. (G) Secretarial help is hereby authorized for district attorneys general. Such secretarial help is to be furnished on the basis of need and is subject to the approval of the executive director, the comptroller of the treasury and the commissioner of finance and administration;
  8. (H)
    1. (i) The executive director, in conjunction with the commissioner of human resources, shall determine the salary scales to be applied to secretaries to district attorneys general. Those persons employed under this section shall be paid monthly from state funds;
    2. (ii) Such salary scales may be applied to the secretarial and clerical positions heretofore created by law, notwithstanding the fixing of salaries for such positions by prior legislative enactment. This subdivision (2)(H) shall not in any way affect salaries or compensation paid by any county in the state to secretarial or clerical employees of any district attorney general, nor shall it affect any public or private act creating or establishing such secretarial or clerical positions, except as provided by this subdivision (2)(H);
  9. (I) Upon the determination by a district attorney general that secretarial help is needed in order for the district attorney general to maintain the district attorney general's office effectively, the district attorney general shall submit a request for secretarial help to the executive director;
  10. (J) The executive director, upon receipt of the request for secretarial help, shall review the same and in accordance with subdivisions (2)(G) and (H) shall determine the extent of help needed and fix the salary therefor;
  11. (K) The executive director may prescribe such rules and regulations as in the executive director's judgment are necessary to best administer subdivisions (2)(G)-(J);
3. (3) Traveling expenses under this section shall be as established for employees of the state, with the amount of reimbursement allowed for each mile necessarily traveled on official business being such established amount for state employees.

§ 8-26-102. Expense accounts of judicial officers.

Any person seeking reimbursement for official expenses under § 8-26-101 shall file with the commissioner of finance and administration, or other official upon whom the commissioner's duties may be placed by law, a sworn itemized statement of the amounts necessarily expended by such person in the discharge of such official duties, as granted in § 8-26-101, and upon the receipt of such verified statement the commissioner shall issue a warrant in reimbursement of such expenses.

§ 8-26-103. Office expense of appellate court clerks.

All necessary books, stationery, office equipment, stamps and supplies of all kinds used in the conduct of the offices of the clerks of the supreme court and the court of appeals shall be furnished and paid for by the state, without regard to fees collected by the clerks.

§ 8-26-104. Office expense of clerks of court and trustees.

The clerks of the courts other than appellate and county trustees are entitled to be paid, out of the county treasury of their counties, the necessary costs of all blank or record books, stationery and blanks required by them in the discharge of their official duties.

§ 8-26-105. Jailers' fees — State subsidies.

(a) The county legislative body or governing body of each county has the authority to pass a resolution fixing the amount of jailers' fees which may be applied to misdemeanant prisoners. The rate fixed shall apply to such prisoners confined in the county jail or county workhouse or workhouses, but not meeting the conditions required for a state subsidy under title 41, chapter 8.
(b) In lieu of the reimbursement for jailers' fees allowed in § 8-26-106, the state shall provide a subsidy pursuant to title 41, chapter 8.
(c) References in other sections to jailers' fees for state prisoners specified in this section shall be deemed to be references to the subsidies specified in § 41-8-106(d).

§ 8-26-106. Reimbursement of jailer for keeping state prisoners.

Upon the adoption by the county legislative body of a resolution fixing jailers' fees, it is made the duty of the county clerk to promptly transmit to the judicial cost accountant a certified copy of the resolution. The judicial cost accountant shall allow jailers' fees for that particular county for state prisoners at the amount fixed by the resolution on the same terms as the county according to § 8-26-105.

§ 8-26-107. Fees for witnesses committed to jail.

Jailers shall be allowed the same fees for keeping witnesses committed to jail as they are allowed by § 8-26-105 for keeping prisoners, the same to be taxed in the bill of costs and paid in the same manner as other costs in the same cases.

§ 8-26-108. Transportation of prisoner by sheriff.

(a) When the sheriff is required by law to remove a person on a writ of habeas corpus, change of venue, or otherwise, or to remove a person of unsound mind to or from an asylum, the sheriff shall make out a statement of expenses, itemized, of the sheriff, of the person being conducted, and of an escort, if one was necessary, and shall make oath that the same is true and correct. The sheriff shall present the same to the county mayor, for auditing and allowance, and if approved by the county mayor, it shall be allowed as other claims are allowed.
(b) Where a municipality or other governmental agency in the state of Tennessee owns, leases or contracts for the use of an airplane for the purpose of air travel facilities, and such facilities are used in going after and returning any fugitive from another part of the state, the municipality or other governmental agency shall be reimbursed the cost of the plane fare for the sheriff, deputy, guard, or escort, and the fugitive, in the amount which may be charged by any regular commercial airline, plus such other expenses as may be necessary for meals, lodging and such other actual expenses incurred going to and from the airport. The sheriff, deputy, guard or escort may also utilize regular commercial airlines where the cost of such transportation is comparable economically to ground transportation.

§ 8-26-109. Form and contents of expense accounts generally — Vouchers.

Every state and county officer, who is authorized by law to incur official expenses which are to be paid by the state or any county or out of any public funds of any character, is directed and required to make out accurate, itemized statements of such expenses, showing the date and amount of each separate item, and the purpose for which it was expended. The correctness of such expense account and the fact that it was actually incurred in the performance of official duty must be sworn to by such official before some officer qualified to administer oaths. In every instance where it is practicable to obtain a voucher representing the expense incurred, except for railway or pullman fare, such official shall obtain a voucher and attach same to the expense account. Such vouchers shall be numbered and referred to by number.

§ 8-26-110. Filing and audit of expense claims.

(a) Such expense accounts shall be filed with the official or department whose duty it is to audit or audit and pay same, and shall not be allowed or approved by such official or department until made out as so provided. It is the duty of the official auditing such expense account to address an inquiry in writing to the officer making same, requiring a written explanation of any item or items wherever desirable.
(b) This section and § 8-26-109 do not apply to expense allowances when the general assembly provides an expense allowance of a fixed and definite amount for a definite period of time.
(c) Provided, however, in any county having a population of not less than two hundred seventy-six thousand (276,000) nor more than two hundred seventy-seven thousand (277,000), according to the 1970 federal census or any subsequent federal census, no county officer shall be required to file a statement as provided in § 8-26-109, for any expenses for which there has been appropriated by the general assembly or through a salary suit a sum certain to pay such expenses.

§ 8-26-111. False oath to expense account.

The willful making of a false oath to such an expense account shall be perjury, punishable as provided by statute.

§ 8-26-112. Expenses of salaried county officers, clerks and masters.

(a) In counties having a population of one hundred thousand (100,000) or more, according to the last federal census, any salaried county official who is paid from county funds and who holds office by election of the people, by election of the county legislative body, or by election of any other county board or commission, and any clerk or master appointed by a chancellor, shall be reimbursed from county funds for the actual expense which such county official, clerk or master may incur as an incident to holding such office. Such expenses include, but are not limited to, lodging while away from such person's official residence, and traveling expenses both within and without the county of such person's official residence. However, the county legislative body may by resolution determine what expenses will be reimbursable, and the county mayor will prescribe forms on which such expenses will be reported, and will examine such expense reports when submitted to determine if the expense is reimbursable, and if so forward the expense report to the proper disbursing officer for payment.
(b) In all other counties of the state, the county legislative body may by resolution elect to pay the expenses of elected county officials, and may promulgate rules of procedure as to how expenses will be reimbursed and determine what expenses are reimbursable. In such county so resolving, it will be the duty of the county mayor to prescribe forms on which expenses will be reported, and it is further made the county mayor's duty to examine such expense report to determine if all expenses so listed as reimbursable are legally reimbursable expenditures within the schedule as determined and announced by the county legislative body and, if such listed expenses are reimbursable, then to forward the expense report to the proper disbursing officer for payment.
(c) No expenses will be paid under this section which are now authorized and paid under any other law.

§ 8-26-113. Vehicles for salaried county officers.

Subject to appropriation by the county legislative body, counties may provide vehicles for the use of any salaried county official who is paid from county funds and who holds office by election of the people, by election of the county legislative body, or by election of any other county board or commission, and any clerk or master appointed by a chancellor, or, in the alternative, may provide a monthly car allowance to such salaried county officials.

§ 8-26-114. Moving expenses for involuntary transferees.

Any officer or employee in the several departments and agencies of the state who is transferred involuntarily to a work location which is farther than fifty (50) miles removed from such officer's or employee's previous location shall be reimbursed for all reasonable moving expenses incurred at the time and in connection therewith by the commissioner of finance and administration from the general fund. In order to qualify for such reimbursement, the officer or employee must certify to the commissioner prior to moving that such is being made as a result of the transfer, that the officer or employee did not request such transfer and that it is being made involuntarily. The commissioner is authorized to promulgate reasonable rules for the administration of this provision. All reimbursement for moving expenses shall be in accordance with the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general and reporter.

§ 8-26-115. Airplane travel limited to standard coach fare.

No official, officer, or employee compensated with state funds shall be reimbursed for airplane travel in an amount in excess of standard coach fare for the applicable flight. Unless an emergency situation arises and the purchase or reimbursement for the purchase of tickets for travel by air in excess of the standard coach fare for such emergency situation is approved by the comptroller, no state funds shall be otherwise used to purchase air travel at rates in excess of standard coach fare for the applicable flight.

§ 8-26-116. Claims for official travel expenses of state employees and members of boards and commissions.

Notwithstanding any law to the contrary, claims for official travel expenses of state employees and members of boards and commissions shall be subject to the uniform travel rules and regulations issued by the commissioner of finance and administration pursuant to § 4-3-1008, except for employees and members of boards and commissions attached to the court system and the general assembly, who shall be subject to travel rules and regulations under the law applying to them and approved by the head of those departments.

Chapter 27 Group Insurance for Public Officers and Employees

Part 1 Administration of Insurance Committees

§ 8-27-101. “Committees” defined — Administrative duties of division of benefits administration — Promulgation of rules.

(a) As used in this part, “committees” means the state insurance committee created in § 8-27-201, the local education insurance committee created in § 8-27-301, and the local government insurance committee created in § 8-27-701.
(b) The division of benefits administration of the department of finance and administration shall serve as staff to the committees.
(c) The committees may delegate administrative duties to the division of benefits administration, subject to the requirements of this chapter and the plan documents approved by the committees. These duties include, but are not limited to, the procurement functions described in § 8-27-103; provided, that all contracts are approved by the committees.
(d) The committees, acting collectively or individually, may promulgate rules and regulations under the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, concerning the operations of the plans under their jurisdiction.

§ 8-27-102. Resolution of disputes regarding eligibility and enrollment for plans and benefit structure — Appeals regarding voluntary benefits.

(a) The committees may delegate to a subcommittee or to the division of benefits administration the ability to resolve disputes regarding eligibility and enrollment for the plans and the benefit structure of the plans administered by those committees. Appellants shall be allowed to review the files regarding their appeals and to submit a written statement in support of the appeal. The disclosure of records related to appeals is subject to the federal Health Insurance Portability and Accountability Act of 1996 (HIPAA) (42 U.S.C. § 1320d et seq.) and other federal and state confidentiality laws.
(b) Appeals regarding voluntary benefits as defined in § 8-27-104 are the responsibility of the contractors providing those benefits.

§ 8-27-103. Authority to enter into contracts necessary to administer plans — Participation with health maintenance organizations.

(a) The committees, acting individually or collectively, have the authority to enter into contracts with insurance companies, claims administrators, and other organizations for some or all of the insurance benefits or services, including actuarial and consulting advice, necessary to administer the plans authorized in parts 2, 3, and 7 of this chapter. The procurement of the contracts shall be governed by title 4, chapter 56, and the rules promulgated pursuant to that chapter.
(b) The contracts described in subsection (a) may include self-insured contracts with health maintenance organizations established pursuant to the Health Maintenance Organization Act of 1986, compiled in title 56, chapter 32, notwithstanding any language in title 56 to the contrary. The committees shall permit participation with those health maintenance organizations only in locations for which the organization has been issued a certificate of authority by the department of commerce and insurance.

§ 8-27-104. “Voluntary benefits” defined for purposes of parts 1, 2, 3 and 7.

For the purposes of parts 1, 2, 3, and 7 of this chapter, “voluntary benefits” means those benefits the committees deem necessary and reasonable to afford coverage in addition to the basic health plan or plans, and any fully employer-paid benefits offered by the committees.

Part 2 State Insurance Committee

§ 8-27-201. State insurance committee created — Members — Vacancies — Alternative representative.

(a) There is created a state insurance committee, to be composed of the commissioner of human resources, the state treasurer, the commissioner of commerce and insurance, the comptroller of the treasury, the commissioner of finance and administration, the chair of the senate finance, ways and means committee, the chair of the house of representatives finance, ways and means committee, a member to be appointed by the board of directors of the Tennessee state employees association, and three (3) state employees. For purposes of this part, “state insurance committee” means the state insurance committee created by this subsection (a).
(b)
1. (1) Two (2) state employees shall be selected in accordance with a procedure adopted by the state insurance committee. The chair of the state insurance committee and the chair of the consolidated retirement system board of trustees may develop a procedure to coordinate the process for selection of state employee members to each entity.
2. (2) One (1) state employee shall be an employee of either the University of Tennessee or the state university and community college system selected under a procedure developed by the Tennessee higher education commission and approved by the state insurance committee.
3. (3) A vacancy on the state insurance committee caused by death or resignation of a state employee member shall be filled by the same selection procedure by which the previous employee member was selected.
(c) The commissioner of human resources, the state treasurer, the commissioner of commerce and insurance, the comptroller of the treasury, and the commissioner of finance and administration are authorized to designate an alternate representative to attend, participate, and vote at meetings of the state insurance committee when that respective member is unable to attend. The designation shall be made in writing to the chair of the state insurance committee.

§ 8-27-202. Group insurance plan — Authority of committee — Authorized components of plan.

(a) The state insurance committee shall approve for eligible state employees a group insurance plan, which shall consist of:
1. (1) One (1) or more basic health plans as the state insurance committee deems necessary and reasonable;
2. (2) All benefits with defined coverage amounts fully paid for by the employer. These benefits shall be available to eligible employees who have not enrolled in the health insurance plans offered by the state insurance committee; and
3. (3) Voluntary benefit plans as may be necessary and reasonable.
(b) The state insurance committee is authorized to determine the premiums, benefits package, funding method, administrative procedures, eligibility provisions, and rules relating to the plans established by this part.
(c) The basic health and plans fully paid by the employer plans referenced in subdivisions (a)(1) and (2) shall be the only basic group insurance plans offered to state employees.

§ 8-27-203. Responsibility for payment of premiums.

(a)
1. (1) From the appropriations made each year in the general appropriations act, the various departments, agencies, boards, and commissions of state government shall pay, on behalf of each participating covered individual within the respective departments, agencies, boards, and commissions, eighty percent (80%) of the cost of the coverage option for employees and employees' dependents, determined by the state insurance committee to be the basic health plan for funding purposes. In addition to this basic health plan for funding purposes, the state insurance committee may offer other plan options.
2. (2) The state insurance committee may, in its discretion, establish the financial obligations for each coverage level in the basic plan. The payments made on behalf of participating employees may vary among the different coverage levels. The state insurance committee may establish a certain threshold of life insurance in computing the payment to be made on behalf of participating employees.
(b) From the appropriations made each year in the general appropriations act, the various departments, agencies, boards, and commissions of state government shall pay, on behalf of each participating employee within the respective departments, agencies, boards, and commissions, defined coverage amounts for all fully employer-funded benefits and all partially employer-funded voluntary benefits.
(c) The premium for voluntary benefit plans as the state insurance committee may adopt pursuant to § 8-27-202 shall be paid in full or in part by the employee.
(d) Payroll deductions from salary paid by the state and from retirement benefits paid by the Tennessee consolidated retirement system shall be available for the payment of premiums of any aforementioned plan.

§ 8-27-204. Eligibility for plans — Temporarily disabled employees — Dependents.

(a)
1. (1) State employees shall be eligible for the plans authorized under § 8-27-202. The state insurance committee shall establish procedures for enrolling state employees and collecting required premiums. For purposes of eligibility, “state employee” means:
  1. (A) Any person who is a state official, including members of the general assembly and legislative officials elected by the general assembly;
  2. (B) Any person who is employed in the service of, and whose compensation is payable by, the state;
  3. (C) Any person who is employed by the state whose compensation is paid, in whole or in part, from federal or other funds; or
  4. (D) Any commissioner of the Tennessee public utility commission.
2. (2) The following persons are not eligible for the state group insurance plan:
  1. (A) Any person performing services on a contractual or percentage basis; or
  2. (B) Any part-time or seasonal employee who works less than an average of thirty (30) hours per week. The average shall be calculated on an annual basis.
3. (3) The group insurance plan for state employees shall include as eligible employees, each officer and employee of the several departments and agencies of state government who, having been employed by the state for at least twenty-four (24) months, will work one thousand four hundred fifty (1,450) hours or more in a fiscal year, whether compensated on an hourly, daily, monthly, or piecework basis. The various departments, agencies, boards, and commissions of state government shall pay, on behalf of each participating employee within the respective departments, agencies, boards, and commissions, the same rate of the cost of the participating employee's participation in the group insurance plan as is paid for other employees pursuant to subsection (b) while the participating employee is on active status. The participating employee may maintain such insurance coverage during the time the employee is not on active status for a period not to exceed three (3) months in any one (1) fiscal year and shall be responsible for paying one hundred percent (100%) of the cost of such insurance during such time. This subdivision (a)(3) shall not apply to employees hired on or after July 1, 2015.
4. (4) The state insurance committee may determine criteria to extend eligibility to additional employees, subject to the availability of funds as certified by the commissioner of finance and administration.
(b) The state insurance committee shall develop procedures for special enrollment of employees consistent with applicable state and federal laws.
(c) Any employee who leaves the state payroll because of a work-related injury and who qualifies for temporary benefits after application to the board of claims shall be considered an eligible employee for the purpose of participating in the state group insurance plan during the period of temporary disability; provided, that the employee was participating in the state group insurance plan at the time the work-related injury occurred. The various departments, agencies, boards, and commissions shall pay all of the cost of the insurance premium for employees described in this subsection (c). Nothing in this subsection (c) shall permit payment by the group insurance plan for medical expenses incurred because of any work-related injury qualifying the employee for benefits from the board of claims.
(d) The state insurance committee shall extend eligibility to the dependents of state employees who are eligible for the state group insurance plan. The state insurance committee may determine which dependents are eligible, and what documentation is required to establish eligibility, subject to the requirements of state and federal law. Eligibility standards for dependents shall be approved at public meetings of the state insurance committee and published in the plan documents. The state may deny coverage to the spouses of state employees who are eligible for similar group health insurance through the spouses' employers. Any denial of coverage made pursuant to this subsection (d) and based on an employee's spouse's eligibility for similar group health insurance through the spouse's employer shall apply only to employees whose employment commenced on or after July 1, 2015.

§ 8-27-205. Health benefit for retired state employees — Schedule of premiums — Disabled retirees — Dependents of retirees — Applicability — Implementation of defined contribution plan or related investment vehicle.

(a) The state insurance committee may establish basic health plan benefits, and voluntary benefits, as the state insurance committee deems necessary and reasonable, for state employees, as defined in § 8-27-204(a)(1), who are retired, and may establish eligibility criteria for the benefits. The health benefit may be available to:
1. (1) Eligible retired state employees, eligible retired employees of the University of Tennessee, and eligible retired employees of the state university and community college system who are drawing retirement benefits through the Tennessee consolidated retirement system; and
2. (2) Eligible retired employees of the University of Tennessee and the state university and community college system who are participants in another retirement plan offered through their employment with the University of Tennessee or the state university and community college system, regardless of whether such retired employee is drawing a retirement benefit.
(b)
1. (1)
  1. (A) The state insurance committee shall establish a schedule of premiums and is authorized to establish a schedule of defined contributions for retirees eligible for the health benefits established under this part. The schedule shall be graduated to reflect the retiree's length of service.
  2. (B) Retirees with thirty (30) or more years of service shall receive eighty percent (80%) of the scheduled premium or defined contribution.
  3. (C)
    1. (i) Except as provided in subdivisions (b)(1)(C)(ii) and (iii), retirees with twenty (20) years of service, but less than thirty (30) years of service, shall receive seventy percent (70%) of the scheduled premium or defined contribution.
    2. (ii) Any Tennessee highway patrol member who is a retiree with twenty-five (25) years of service shall receive eighty percent (80%) of the scheduled premium or defined contribution.
    3. (iii) Any commissioned member of the Tennessee wildlife resources agency or Tennessee bureau of investigation who is a retiree with twenty-five (25) years of service shall receive eighty percent (80%) of the scheduled premium or defined contribution.
  4. (D) Retirees having less than twenty (20) years of service shall receive sixty percent (60%) of the scheduled premium or defined contribution.
2. (2) “Years of service,” as used in this subsection (b), means:
  1. (A) Only those years of service rendered by the retiree as a state employee, as defined in § 8-27-204(a)(1), or as a teacher as defined in § 8-34-101, and upon which the retiree's monthly retirement allowance is based; or
  2. (B) Those years of service rendered by a retiree prior to July 1, 2002, as an employee of any board, commission, or agency created by the supreme court of Tennessee, regardless of whether the retiree established that service in the consolidated retirement system pursuant to § 8-35-115.
(c) Any retired state employee who is participating in the insurance plan authorized by this section and who is in receipt of a disability retirement allowance pursuant to chapter 36, part 5 of this title, shall not be required to discontinue coverage in the basic health plan authorized by § 8-27-202(a)(1) upon eligibility for Part A of Medicare and may continue in the plan as a retired state employee to the point at which Medicare eligibility would have been attained had the disability not occurred; provided, that the retired state employee remains eligible for the disability retirement allowance and that Part B of Medicare is retained. The insurance premium shall be the same as that charged to nondisability retirees who are not yet eligible for Medicare. Any retired state employee who is granted a service retirement under chapter 36 of this title shall also qualify for a continuation of insurance coverage if the retired state employee meets the conditions set forth in this subsection (c) and the eligibility criteria established by the state insurance committee.
(d) The state insurance committee shall extend eligibility to the dependents of retired state employees who are eligible for the retiree coverage authorized in this section. The state insurance committee may determine which dependents are eligible, and what documentation is required to establish eligibility, subject to the requirements of state and federal law. Eligibility standards for dependents will be approved at public meetings of the state insurance committee and published in the plan documents. The state may deny coverage to the spouses of retired state employees who are eligible for similar group health insurance through their employers. Any denial of coverage made pursuant to this subsection (d) and based on a retiree's spouse's eligibility for similar group health insurance through the spouse's employer shall only apply to the spouse of a retiree whose employment commenced on or after July 1, 2015.
(e)
1. (1) The retiree coverage authorized under this section shall not be available to any retiree whose employment with the state commenced on or after July 1, 2015. Any retiree whose first employment with the state commenced before July 1, 2015, and who returns to state service after that date shall not be prohibited from retiree coverage under this section; provided, that the retiree did not accept a lump sum payment from the Tennessee consolidated retirement system before July 1, 2015. Any retiree whose first employment with a participating local education agency, as defined in § 8-27-301, commenced before July 1, 2015, and who initiates state service after that date shall not be prohibited from retiree coverage under this section; provided, that the retiree did not accept a lump sum payment from the Tennessee consolidated retirement system before July 1, 2015.
2. (2) A Tennessee highway patrol member who is a retiree with twenty-five (25) years of service and is excluded from coverage under subdivision (e)(1) shall receive eighty percent (80%) of the scheduled premium or defined contribution, regardless of date of hire.
(f)
1. (1) The commissioner of finance and administration, the chair of the finance, ways and means committee of the senate, the chair of the finance, ways and means committee of the house of representatives, and the chair of the consolidated retirement board shall serve as trustees of any defined contribution plan or related investment vehicle established as a health benefit by the state insurance committee under this section. The trustees shall have the authority to implement any such defined contribution plan or related investment vehicle. Notwithstanding § 8-27-103(a), such authority shall include, but not be limited to, administering any contract related to such defined contribution plan or related investment vehicle, procuring services necessary or desirable for efficient administration of the investment vehicles used for the health benefit and overseeing the investment policy for any investment vehicles used.
2. (2) The trustees shall delegate the duty to conduct the day-to-day responsibilities for managing the investment vehicles to the state treasurer.
3. (3) The costs associated with administering any such defined contribution plan or related investment vehicle shall be assessed to the funds generated by any such defined contribution plan or related investment vehicle and, if necessary, to the employee benefits trust.
4. (4) This subsection (f) shall be effective September 1, 2015.

§ 8-27-206. Group life insurance plan for national guard members — Payment of premiums — Eligibility of surviving spouse and dependent children to participate in plan under § 8-27-202.

(a) The state insurance committee shall approve a group life insurance plan for national guard members called up to active duty, providing benefits as the state insurance committee deems necessary and reasonable. From the appropriations made each year in the general appropriations act, the military department is authorized to pay, on behalf of each participating national guard member called up to state active duty, the cost of each individual's premium on the state-approved group life insurance plan for national guard members called up to state active duty. It is expressly provided that there shall be only one (1) such approved state plan.
(b)
1. (1) The surviving spouse and eligible dependent children of a state employee maintaining family coverage through the state group insurance plan, who is a member of the Tennessee army national guard or the Tennessee air national guard, and who has been activated for federal duty or who has been called up on state active duty, and who is subsequently killed in the performance of that duty, may continue to participate in the group insurance plan for state employees established pursuant to § 8-27-202.
2. (2) The cost of the coverage provided in this section to the surviving spouse and dependent children shall be equal to the amount paid by active employees for the same coverage. The military department shall pay the employer portion of the premium.
3. (3) The criteria for determination of eligibility of dependent children shall be the same as the criteria established by the state insurance committee for state employees and their families.
4. (4) In the event that the surviving spouse is or becomes eligible for insurance coverage through a subsequent marriage or employment, the extension of coverage authorized in this section shall be terminated on the first day of the following month. The state insurance committee may establish specific conditions for extensions in instances where preexisting conditions may apply during the transfer of coverage.
5. (5) In the event that insurance coverage under the state plan is terminated for the surviving spouse pursuant to subdivision (b)(4), but the surviving spouse is unable to secure through the new coverage insurance coverage for the eligible dependent children, the eligible dependent children may continue coverage under this section; provided, that the eligible dependent children continue to meet all dependent eligibility requirements.
6. (6) This section shall be retroactive to September 11, 2001. As individuals who are qualified for such extension are identified, elect coverage, and pay the appropriate contribution, the coverage shall be provided on a prospective basis.

§ 8-27-207. State employees killed in performance of duty — Coverage of surviving spouse and dependents.

(a) The surviving spouse of a state employee killed in the performance of duty may continue to participate in the group insurance plan for state employees. The coverage may include the surviving spouse and any dependent children. The dependent children shall be subject to the same eligibility provisions applicable to active state employees and their children.
(b) The cost of the coverage provided in this section to the surviving spouse and dependent children shall be equal to the amount paid by active employees for their coverage. The agency employing the employee at or immediately preceding the employee's death shall pay the employer portion of the premium.
(c) For purposes of this section, the determination as to whether a state employee was killed in the performance of duty shall be made pursuant to title 9, chapter 8.
(d) In the event that the surviving spouse is or becomes eligible for insurance coverage through a subsequent marriage or employment, the extension of coverage required in this section shall be terminated on the first day of the following month. The state insurance committee may establish specific conditions for extensions in instances where preexisting conditions may apply during the transfer of coverage.
(e) In the event that insurance coverage under the state plan is terminated for the surviving spouse pursuant to subsection (d), but the surviving spouse is unable to secure through the new coverage insurance coverage for the eligible dependent children, the dependent children may continue coverage under this section; provided, that the dependent children continue to meet all dependent eligibility requirements.
(f) This section shall be retroactive. As individuals who are qualified for such extension are identified, elect coverage, and pay the appropriate contribution, the coverage shall be provided on a prospective basis.

§ 8-27-208. Election by senator, representative or governor to retain group insurance upon retirement or completion of term — Election by surviving spouse or dependent children — Retention of health insurance if person is convicted of a felony.

(a)
1. (1) Upon retirement from the general assembly, any senator or representative, and upon completion of a term of office, the governor, may elect to retain retiree health benefits by participating in the plan authorized by the state insurance committee pursuant to § 8-27-205(a) and (b). The surviving spouse or dependent children of any senator, representative, or governor, who dies in office or who is a member of the state retirement system may elect to retain health benefits by participating in either the applicable active or retiree health benefit and paying the required contribution amount. If the surviving spouse or dependent children are ineligible to receive a retirement pension benefit, the spouse or dependent children may participate in the state employees group insurance plan by making payment for the required cost to the office of legislative administration.
2. (2) The right to continue coverage under the state employees group insurance plan provided under this section shall not apply to any senator, representative, governor, or their dependents, when first election to any of these offices did not occur before July 1, 2015.
(b) No member or former member of the general assembly may elect to retain health benefits pursuant to this section if that person is convicted in any court of this state, or in any federal court, after November 2, 2010, of a felony arising out of that person's official capacity as a member of the general assembly. If the spouse or dependent children of the member or former member are otherwise eligible to participate in the state employees group insurance plan but for the conviction, then the coverage shall continue to be available; provided, the monthly contributions are made pursuant to subsection (a). Upon initial conviction, or upon a plea of guilty or nolo contendere, any person subject to this section who is already participating in the health benefit shall have that benefit for that person stopped immediately without being entitled to any refund of premiums, copayments, or other costs previously paid to retain the insurance. In the event the conviction of the former member is later overturned in any court, and the former member is acquitted or granted a full pardon, the former member may elect to participate in the group insurance on the first day of the following month.

§ 8-27-209. Supplemental medical insurance for retired state employees and teachers covered by Medicare benefits.

(a) The state insurance committee may provide a supplemental medical insurance benefit as the state insurance committee deems necessary and reasonable for retired state employees, as defined in § 8-27-204(a)(1), who are covered by Medicare benefits, and may establish eligibility criteria for the benefit. The supplemental medical insurance benefit may be made available to:
1. (1) Eligible retired state employees, eligible retired employees of the University of Tennessee, and eligible retired employees of the state university and community college system who are drawing retirement benefits through the Tennessee consolidated retirement system; and
2. (2) Eligible retired employees of the University of Tennessee and the state university and community college system who are participants in any other retirement plan offered through their employment with the University of Tennessee or the state university and community college system, regardless of whether such retired employee is drawing a retirement benefit.
(b) If, pursuant to any contract for insurance coverage authorized by this section, the provider or administrator returns or refunds any amounts by which premiums or fees exceed expenses, the amounts shall be used only for the supplemental medical insurance program for retired employees, and in no instance shall the returns or refunds be used to reduce the amount of state funding that would otherwise be required under subsection (c).
(c)
1. (1) From appropriations made in the general appropriations act each year for that purpose, the state insurance committee is authorized to pay an amount on behalf of each participating retiree toward the cost of supplemental medical insurance provided pursuant to this part.
2. (2) [Deleted by 2023 amendment.]
(d)
1. (1) The state insurance committee shall, within the appropriations available, establish a contribution level for participating retirees with thirty (30) or more years of service. For participating retirees with twenty (20) years of service, but less than thirty (30) years of service, the state insurance committee shall make a contribution on behalf of participating retirees at not more than seventy-five percent (75%) of the contribution made for participating retirees with thirty (30) or more years of service. For participating retirees with fifteen (15) years of service, but less than twenty (20) years of service, the state insurance committee shall make a contribution on behalf of those retirees at not more than fifty percent (50%) of the contribution made for participating retirees with thirty (30) or more years of service. Retirees with less than fifteen (15) years of service may participate in such supplemental medical insurance as may be provided pursuant to this part, but the state insurance committee shall make no contribution on such retirees' behalf.
2. (2) [Deleted by 2023 amendment.]
(e) The supplemental medical insurance benefit authorized under this section shall not be available to any person otherwise qualified under subsection (a) whose initial employment with the state or other qualifying employer commenced on or after July 1, 2015. The rights of election, transfer, and enrollment conferred by this section shall not be available to any person whose initial employment with the state or other governmental agency qualifying the person for plan membership commenced on or after July 1, 2015.
(f) As used in this section:
1. (1) “Retiree” means:
  1. (A) A former state employee, or employee of the University of Tennessee, or the state university and community college system, who is drawing an allowance through the Tennessee consolidated retirement system; and
  2. (B) A former employee of the University of Tennessee, or the state university and community college system, who participates in the optional retirement system established in § 8-25-202, regardless of whether the former employee draws a monthly retirement allowance; and
2. (2) “Years of service” means only those years of service rendered by the retiree as a state employee, University of Tennessee employee, or state university and community college system higher education employee, or teacher in a local education agency, and upon which the retiree's monthly retirement allowance is based.

§ 8-27-210. First responders killed in line of duty — Coverage of surviving spouse and dependents.

(a) As used in this section, “first responder” means paid, full-time law enforcement officers and firefighters who are employed by the state or a local government in this state. “First responder” also includes capitol police officers, employees of the Tennessee highway patrol, Tennessee bureau of investigation, and Tennessee wildlife resources agency, and park rangers employed by the division of parks and recreation in the department of environment and conservation.
(b) The state insurance committee may, in approving a health insurance plan that covers first responders, offer or continue to provide health insurance benefits to the surviving spouse and children, including any unborn child, of a first responder killed in the line of duty for a period not to exceed two (2) years after the death of the first responder.

§ 8-27-211. Healthcare incentive program for state employees and retirees.

(a) As used in this section:
1. (1) “Governmental entity” includes a county or municipal government;
2. (2) “Public hospital” means a hospital located in a county having a metropolitan form of government with a population of more than five hundred thousand (500,000), according to the 2020 federal census or any subsequent federal census, and that is owned by a metropolitan hospital authority created under the Metropolitan Hospital Authority Act, compiled in title 7, chapter 57; and
3. (3) “State employee” includes a university employee and an employee under the state board of regents.
(b) Public hospitals have the authority, upon approval of the hospital's governing body, to establish a state employee and retiree healthcare incentive program that will allow for the waiver of applicable out-of-pocket expenses associated with medical, surgical, or mental health care at the public hospital, including deductibles, except those deductibles associated with a high deductible plan, copays, and co-insurance, for state employees and retirees and their covered dependents participating in the state group insurance plan under this part.

Part 3 Local Education Insurance Committee

§ 8-27-301. Local education insurance committee created — Part definitions.

(a)
1. (1) There is created a local education insurance committee to be composed of the governor, who may designate the commissioner of education to attend in place of the governor as a full voting member, a representative of local school boards to be selected by the Tennessee School Boards Association, the state treasurer, the commissioner of commerce and insurance, the comptroller of the treasury, the commissioner of finance and administration, and three (3) teachers appointed to represent the three (3) grand divisions under the procedure contained in § 8-34-302(a)(9).
2. (2) The state treasurer, the commissioner of commerce and insurance, the comptroller of the treasury, and the commissioner of finance and administration are authorized to designate an alternate representative to attend, participate, and vote at meetings of the local education insurance committee when that respective member is unable to attend. The commissioner of education also has the authority to designate an alternate representative if the commissioner of education is designated by the governor, pursuant to this subsection (a), to serve on the local education insurance committee. The designation of an alternate representative shall be made in writing to the chair of the local education insurance committee.
(b) As used in this part:
1. (1) “Claims data” means:
  1. (A) A general claims data set aggregated by month and year, for the most recent thirty-six (36) months of available data, and describing the claims experience with the following information:
    1. (i) Number of enrolled employees, including whether the individual is active or a retiree;
    2. (ii) Number of members;
    3. (iii) Charges submitted;
    4. (iv) Allowed amount;
    5. (v) Deductible amount;
    6. (vi) Copayments;
    7. (vii) Coinsurance amounts;
    8. (viii) Third-party amounts; and
    9. (ix) Net payment; and
  2. (B) A large claims data set aggregated by month and year, for the most recent thirty-six (36) months of available data, and describing the net or allowed payments for individuals exceeding twenty-five thousand dollars ($25,000), and describing the claims experience with the following information:
    1. (i) Fund code designating whether the individual is active or a retiree;
    2. (ii) Year of birth;
    3. (iii) Principal diagnosis code;
    4. (iv) The net or allowed amount paid on behalf of the individual; and
    5. (v) A sequential member reference number rather than the individual's name;
2. (2) “Instructional employee” means those persons employed by a local education agency as teachers, as defined in § 8-34-101, and who are not eligible for insurance coverage under § 8-27-202;
3. (3) “Local education agency” or “LEA” has the same definition as used in § 49-3-104 and includes educational cooperatives created pursuant to the Educational Cooperation Act, compiled in title 49, chapter 2, part 13;
4. (4) “Local education insurance committee” means the local education insurance committee created in subsection (a); and
5. (5) “Support staff employees” means those persons employed by a local education agency who are not instructional employees.

§ 8-27-302. Group insurance plan — Authorized components — Authority of committee — Availability of plans and voluntary benefits.

(a) The local education insurance committee shall approve a group insurance plan for eligible employees of local education agencies that shall consist of the following:
1. (1) One (1) or more basic health plans as the local education insurance committee deems necessary and reasonable; and
2. (2) Voluntary benefit plans as may be necessary and reasonable. The local education insurance committee may provide for voluntary benefits as part of the basic health plans or as separate plans.
(b) The local education insurance committee is authorized to determine the premiums, benefits package, funding method, administrative procedures, eligibility provisions, and rules relating to the plans established by this section.
(c) The basic health plans shall be offered to local education agencies; provided, that voluntary benefits are available only in local education agencies in which the local board votes to be responsible for the coverage costs provided for in § 8-27-303.
(d) The basic health plans provided for in subsection (a) and the equal or superior benefit plans provided for in § 8-27-303 shall be the only state-supported insurance plans for local education employees.
(e) If a local education agency participates in the basic health plans provided for in subsection (a), those plans shall be the only basic health plans that the local education agency may make available to its employees.
(f) Nothing in this part shall require a local education agency to make available to its employees any insurance plan approved by the local education insurance committee.
(g)
1. (1) Except as otherwise provided in subdivision (g)(5), within thirty (30) days of receipt of a written request for claims data from a local education agency (LEA), the local education insurance committee shall provide claims data for the purpose of underwriting and premium rating as described in subdivision (g)(2) if:
  1. (A) The LEA, as part of its written request for claims data, identifies the HIPAA covered entity the local education insurance committee should provide with the claims data, including contact information necessary for transmittal of the claims data; and
  2. (B) The LEA submits a confidentiality agreement from each proposed recipient along with the request, which includes the recipient's certification that it is a HIPAA covered health plan as defined by the federal Health Insurance Portability and Accountability Act of 1996 (HIPAA) (42 U.S.C. § 1320d et seq.).
2. (2) Upon the covered entity's receipt of the requested claims data, the LEA may request certification of the accuracy and completeness of the claims data by an outside independent consultant, selected and retained by the local education insurance committee. The LEA shall reimburse the state for the fees charged by the outside consultant for review and certification, pursuant to the hourly rates in the state's consulting agreement.
3. (3) No contract or memorandum of understanding may limit the local education agency's access to claims data in a manner contrary to this subsection (g).
4. (4) The release of claims data pursuant to this subsection (g) must meet the minimum standards established by the federal Health Insurance Portability and Accountability Act of 1996 (HIPAA) (42 U.S.C. § 1320d et seq.) and the rules and regulations promulgated by federal authorities in connection with HIPAA.
5. (5)
  1. (A) Notwithstanding subdivision (g)(1), the thirty-day response requirement does not apply if more than ten (10) requests for claims data under this subsection (g) are pending.
  2. (B) Upon request by an LEA, the local education insurance committee shall provide information regarding pending requests and the response time.

§ 8-27-303. Payment of premiums — Eligibility of local education agency to receive direct payments — Deduction from retirement benefits for payment of insurance premiums.

(a)
1. (1)
  1. (A) From the appropriations made each year in the general appropriations act for that purpose, the department of education is authorized to pay, on behalf of each eligible instructional employee of a local education agency, and the employee's dependents, an amount, determined annually in the general appropriations act, on the total cost of the person's participation in the basic health plan.
  2. (B) Each local education agency shall pay on behalf of each instructional employee, participating in the health insurance coverage authorized by § 8-27-302(a), as a minimum, the percentage specified in the general appropriations act of the premium collected on behalf of each employee of the local education agency.
  3. (C) From the appropriations made each year in the general appropriations act for that purpose, the department of education is authorized to pay, on behalf of each eligible support staff employee of a local education agency, and the employee's dependents, an amount, determined annually in the general appropriations act, on the total cost of the person's participation in the basic health plan. The amount set for support staff employees may be different from the amount set in subdivision (a)(1)(B).
  4. (D) Each local education agency shall pay on behalf of each support staff employee, participating in the health insurance coverage authorized by § 8-27-302(a), at a minimum, the percentage specified in the general appropriations act of the premium collected on behalf of each support staff employee of the local education agency.
  5. (E) Distribution of a like amount to each eligible employee through a flexible spending arrangement authorized by § 125 of the Internal Revenue Code (26 U.S.C. § 125) shall satisfy the requirements of this subsection (a). The amounts shall be certified to the commissioner of education and the director of each local education agency by the local education insurance committee each fiscal year.
2. (2) If a local education agency makes medical insurance available to its instructional employees and support staff employees and the benefits are equal or superior to the benefits of the basic health plan established pursuant to § 8-27-302(a), the local education agency shall be eligible to receive directly the payments provided for in subdivision (a)(1). Participation in an insurance trust, county-wide policy, self-insurance, or similar benefit plan shall not disqualify the local education agency from these payments. The determination of the equivalency or superiority of the local benefits shall be made by an outside, independent firm or consultant. The local education insurance committee shall contract with the firm or consultant under the procedures in § 8-27-103(a). A written report shall be supplied to the local education agency in the event that local medical benefits are determined not to be equal or superior. In order to be reviewed for eligibility, a local education agency shall make application to the local education insurance committee. Any local education agency whose insurance was determined to be inferior to the basic health plan shall be eligible to receive directly the payments provided for in subdivision (a)(1) if, upon evaluation by the local education insurance committee, the revised local insurance plan was determined to be equal or superior to the basic health plan. Section 8-27-305 shall not be used in determining the equivalency or superiority of the local benefits. Local education agencies shall not be eligible for direct payments without approval of the local education insurance committee.
3. (3) A school board member of a local education agency may participate in the basic health plan as authorized in § 8-27-302(a)(1), if the member pays the total monthly premium for the coverage the member selects. The department of education shall not assume any liability for such participation, and the total cost of such a person's participation shall be borne by the individual, unless the local education agency assumes liability for all or a portion of the cost. Nothing contained herein shall require the termination or modification of existing insurance plans covering a local education agency's retired teachers or other employees.
(b) Each person for whom payments are made under subsection (a) shall pay the remaining portion of the total costs, but the board of the local education agency may assume all or a portion of these costs.
(c) The additional cost of voluntary coverage provided for by § 8-27-302(a)(2) shall be paid by the participating local education agency and its participating employees.
(d) All administrative costs incurred by the state group insurance office or the insurer that are associated with the administration of the basic plans or the Medicare supplement plan offered herein shall be borne by the plan and included in the premium payments.
(e)
1. (1) Payments made by the state in accordance with subsection (a) may be made by direct transfer from the state treasury to the plan, by payroll deduction, or otherwise as the local education insurance committee and the department of finance and administration deem most efficient. These payments shall not be subject to § 8-11-110.
2. (2) Payments due from local education agencies or participating employees shall be made as directed by the local education insurance committee.
(f) The local education insurance committee shall periodically evaluate local plans determined to be equal or superior to the basic plan to ensure that such plans maintain benefits equal or superior to the basic health plan. Local education agencies shall fully cooperate with the local education insurance committee in these evaluations. The local education insurance committee shall issue a written report to the local education agency explaining the results of the evaluations, giving the agency an opportunity to respond to the local education insurance committee's findings. If, as a result of an evaluation, a local plan is determined to be inferior to the basic health plan, the local education insurance committee shall discontinue direct payments to the affected local education agency not later than ninety (90) days after the final determination by the local education insurance committee. During this period of time, the local education agency may implement improved benefits in the local plan and submit the revised local plan for evaluation. If the local education insurance committee determines that the revised local plan is equal or superior to the basic health plan, direct payments to the agency may continue. If benefits in the local plan are not improved or the revised local plan is determined inferior to the basic health plan, the local education agency may elect to:
1. (1) Enroll in the basic health plan pursuant to §§ 8-27-302 and 8-27-304; or
2. (2) Maintain the local plan and not receive state support for the local plan.
(g) Local education agencies whose local insurance plan is determined equal or superior to the basic health plan shall file with the local education insurance committee any changes in the benefits offered under the local plan at least thirty (30) days prior to the effective date of the changes.
(h)
1. (1) The local education insurance committee shall provide for the financing of the plan, including the disposition of government grants and subsidies to assist in the funding and provision of health insurance for enrolled individuals.
2. (2) Local education agencies enrolled in the plan shall cooperate with the local education insurance committee in implementing and complying with the determinations of the local education insurance committee as set forth in subdivision (h)(1). This cooperation includes entering into contracts or memoranda of understanding reflecting the financial determinations of the local education insurance committee.
3. (3) The local education insurance committee is authorized to take either or both of the following actions in response to a local education agency's failure to cooperate with the local education insurance committee as required by this section:
  1. (A) Assess and collect from the local education agency the costs incurred by the agency's failure to cooperate; and
  2. (B) Terminate the local education agency's participation in the plan.
4. (4) The termination of the local education agency's participation shall be in effect for two (2) years, and shall be in effect regardless of any language in this chapter to the contrary regarding reinstatement to the plan.
5. (5) The local education agency shall have the right to request reconsideration of its exclusion before the local education insurance committee. The local education insurance committee's decision of the request for reconsideration shall be final.
(i) The Tennessee consolidated retirement system is authorized to make deductions from the retirement benefits that any retired teacher or other retired local government employee receives from the Tennessee consolidated retirement system for payment of insurance premiums for any local government group insurance coverage provided to such retirees.

§ 8-27-304. Eligibility for enrollment in plans — Withdrawal of local education agency from basic health plan — Participation of surviving spouse and eligible dependents of local education employee killed in line of duty as national guard member.

(a) During a period established by the local education insurance committee after the implementation in each local education agency of the basic health plan provided for in § 8-27-302, enrollment shall be open to all eligible employees regardless of preexisting conditions. Thereafter, the local education insurance committee may permit supplemental enrollments and shall provide for the entrance of newly employed eligible employees into the plan.
(b) Enrollment in any insurance plan for local education employees under this part shall be open to any teacher as defined in § 49-5-501, who transitions from part-time to full-time employment, notwithstanding the teacher's failure to participate in the plan as a part-time employee.
(c)
1. (1) A local education agency seeking to enroll in any plan offered by the local education insurance committee shall provide in its request for enrollment:
  1. (A) Verification that a majority of eligible employees of the LEA have agreed to enrollment in the plan. The local education insurance committee may waive the majority requirement if, in its discretion, there is good cause to do so; and
  2. (B) Information necessary for processing the enrollment including names and required identifying information, financial information necessary to process payments, and signed memoranda of understanding.
2. (2) The local education insurance committee reserves the right to audit participation and to terminate agencies whose participation falls below a majority of eligible employees.
(d) An educational cooperative shall comply with the Educational Cooperation Act, compiled in title 49, chapter 2, part 13, for five (5) years before the educational cooperative is eligible to have its employees participate in the health insurance plan authorized in this section.
(e) Any local education agency may withdraw from the basic health plan authorized in § 8-27-302 following at least twenty-four (24) months of participation in that plan. The local education agency shall comply with the equivalency provisions of § 8-27-303(a)(2) and the requirements in subsection (c) prior to withdrawal from the basic health plan with the exception that the local education insurance committee shall not waive the verification requirement in subdivision (c)(1)(A). Upon withdrawal, the local education agency shall be responsible for coverage for all retirees and other former employees eligible to continue healthcare coverage who were covered at the time of the termination of employment with the local education agency. The local education insurance committee may establish conditions for local education agencies that withdraw to resume coverage through the basic plan.
(f)
1. (1) The surviving spouse and eligible dependent children of a local education employee maintaining family coverage through the local education group insurance plan and who is a member of the Tennessee army national guard or the Tennessee air national guard and who has been activated for federal duty or who has been called up on state active duty, and who is subsequently killed in the performance of that duty, may participate in the group health insurance plan for local education employees established pursuant to § 8-27-302(a)(1).
2. (2) The cost of the coverage provided in this section to the surviving spouse and dependent children shall be equal to twenty percent (20%) of the monthly premium for active employee coverage. The military department shall pay the balance of the monthly premium.
3. (3) The criteria for determination of eligibility of dependent children shall be the same as the criteria established by the local education insurance committee for participating employees and their families.
4. (4) In the event that the surviving spouse is or becomes eligible for insurance coverage through a subsequent marriage or employment, the extension of coverage authorized in this section shall be terminated on the first day of the following month. The local education insurance committee may establish specific conditions for extensions in instances where preexisting conditions may apply during the transfer of coverage.
5. (5) In the event that insurance coverage under the local education plan is terminated for the surviving spouse pursuant to subdivision (f)(4), but the surviving spouse is unable to secure, through the new coverage, insurance coverage for the eligible dependent children, the dependent children may continue coverage under this section; provided, that the dependent children continue to meet all dependent eligibility requirements.
6. (6) This section shall be retroactive to September 11, 2001. As individuals who are qualified for such extension are identified, elect coverage, and pay the appropriate contribution, the coverage shall be provided on a prospective basis.

§ 8-27-305. Health benefit for retired local education employees — Eligibility criteria — Schedule of premiums — Disabled retirees — Applicability — Implementation of defined contribution plan or related investment vehicle.

(a) The local education insurance committee may establish basic health plans and voluntary benefits, as the local education committee deems necessary and reasonable, for retired local education employees. The benefits may be made available to all eligible retired local education employees; provided, that an eligible retired local education employee who is vested in the Tennessee consolidated retirement system must be drawing retirement benefits through that system to be able to also participate in the health benefits authorized by this section.
(b) The local education insurance committee is authorized to establish the eligibility criteria for the benefits authorized in subsection (a) and the administrative requirements for the collection of premiums.
(c)
1. (1) The local education insurance committee is authorized to establish a schedule of premiums or a schedule of defined contributions subject to funding by the general assembly for retirees eligible for the health benefits established under this part. The schedule of defined contributions shall be graduated to reflect the retiree's length of service. Retirees with thirty (30) or more years of service will receive forty-five percent (45%) of the scheduled premium or defined contribution. Retirees with twenty (20) years of service, but less than thirty (30) years of service, will receive thirty-five percent (35%) of the scheduled premium or defined contribution. Retirees having less than twenty (20) years of service will receive twenty-five percent (25%) of the scheduled premium or defined contribution.
2. (2) “Years of service,” as used in this subsection (c), means only those years of service rendered by the retiree as a teacher, as defined in § 8-34-101, or as a state employee, as defined in § 8-27-204(a)(1), and upon which the retiree's monthly retirement allowance is based.
3. (3) To the extent that premiums are assessed and retirees pay less than the total monthly premium, and to the extent that the benefit payments exceed the anticipated premium for eligible retirees who were not retired during the prior calendar year, that expense shall be reimbursed by the state through a direct appropriation to the local education group insurance plan.
(d) Any retired local education employee who is participating in the health benefit authorized by this section and who is in receipt of a disability retirement allowance pursuant to chapter 36, part 5 of this title, shall not be required to discontinue coverage in the basic health plan authorized by § 8-27-302(a)(1) upon eligibility for Part A of Medicare and may continue in the plan as a retired employee to the point at which Medicare eligibility would have been attained had the disability not occurred; provided, that the retired employee remains eligible for the disability retirement allowance and that Part B of Medicare is retained. The insurance premium shall be the same as that charged to nondisability retirees who are not yet eligible for Medicare. Any retired local education teacher who is granted a service retirement under chapter 36 of this title shall also qualify for a continuation of insurance coverage if the teacher meets the conditions set forth in this subsection (d) and the eligibility criteria established by the local education insurance committee.
(e) The retiree coverage authorized under this section shall not be available to any retiree whose employment with a participating agency commenced on or after July 1, 2015. Any retiree whose first employment with a participating agency commenced before July 1, 2015, and who returns to service with a participating agency after that date shall not be prohibited from retiree coverage under this section; provided, that the retiree did not accept a lump sum payment from the Tennessee consolidated retirement system before July 1, 2015. Any retiree whose first employment with the state of Tennessee commenced before July 1, 2015, and who initiates service with a participating local education agency after that date shall not be prohibited from retiree coverage under this section; provided, that the retiree did not accept a lump sum payment from the Tennessee consolidated retirement system before July 1, 2015.
(f)
1. (1) The commissioner of finance and administration, the chair of the finance, ways and means committee of the senate, the chair of the finance, ways and means committee of the house of representatives, and the chair of the consolidated retirement board shall serve as trustees of any defined contribution plan or related investment vehicle established as a health benefit by the local education insurance committee under this section. The trustees shall have the authority to implement any such defined contribution plan or related investment vehicle. Notwithstanding § 8-27-103(a), such authority shall include, but not be limited to, administering any contract related to such defined contribution plan or related investment vehicle, procuring services necessary or desirable for efficient administration of the investment vehicles used for the health benefit and overseeing the investment policy for any investment vehicles used.
2. (2) The trustees shall delegate the duty to conduct the day-to-day responsibilities for managing the investment vehicles to the state treasurer.
3. (3) The costs associated with administering any such defined contribution plan or related investment vehicle shall be assessed to the funds generated by any such defined contribution plan or related investment vehicle and, if necessary, to the employee benefits trust.
4. (4) This subsection (f) shall be effective September 1, 2015.

§ 8-27-306. Supplemental medical insurance benefits.

(a) If, on January 1, 1988, a local education agency made supplemental medical insurance benefits available to its retirees who are covered by Medicare benefits, and the benefits of the plan are equal or superior to the plan offered to retirees pursuant to § 8-27-209, the local education agency shall be eligible to receive directly the payments provided for in § 8-27-209(d). Participation in an insurance trust, county-wide plan, self-insurance, or similar benefit plan shall not disqualify the local education agency from these payments.
(b) The determination of the equivalency or superiority of the local benefits shall be made by an outside, independent firm or consultant. The local education insurance committee shall contract with the firm or consultant under the procedures in § 8-27-103(a). A written report shall be supplied to the local education agency in the event that local plan is determined not to be equal or superior.
(c) Local education agencies having medical benefits that are not equal or superior to the plan offered pursuant to § 8-27-209 shall not be eligible for direct payments.
(d) Any payment made by the state pursuant to this part shall first be used to reduce or eliminate any contribution required of retirees participating in such local plan and shall not result in a reduction of financial support of such plan by the local education agency.
(e) The supplemental medical insurance authorized under this section shall not be available to any person otherwise qualified under subsection (a), whose initial employment with a qualifying employer commenced on or after July 1, 2015. The rights of election, transfer, and enrollment conferred by this section shall not be available to any person whose initial employment with the state or other governmental agency qualifying them for plan membership commenced on or after July 1, 2015.

§ 8-27-307. Supplemental medical insurance program for retired employees — Use of funds — Funding limitations — Employee qualifications.

(a) Subject to the approval of the state insurance committee as created in § 8-27-201 and the local education insurance committee, all retired local education employees participating in the Tennessee consolidated retirement system may participate in the supplemental medical insurance program established in § 8-27-209; provided, that retired employees are covered by Medicare benefits and are also drawing a monthly retirement allowance from the Tennessee consolidated retirement system.
(b) If, pursuant to a contract for insurance coverage authorized by this section, the provider or administrator returns or refunds any amounts by which premiums or fees exceed expenses, the amounts must be used only for the supplemental medical insurance program for retired employees. The returns or refunds must not be used to reduce the amount of state funding that would otherwise be required under subsection (c).
(c)
1. (1) From the appropriations made in the general appropriations act each year for that purpose, the state insurance committee may pay an amount on behalf of each participating retiree toward the cost of supplemental medical insurance provided pursuant to this section at the same level and on the same terms that are established by the state insurance committee pursuant to § 8-27-209(d).
2. (2) As used in this subsection (c):
  1. (A) “Retiree” means a former teacher employed by a local education agency who is drawing a monthly retirement allowance from the Tennessee consolidated retirement system, and does not include other former local education employees; and
  2. (B) “Years of service” means only those years of service rendered by the retiree as a state employee, University of Tennessee employee, or state university and community college system higher education employee, or teacher in a local education agency, and upon which the retiree's monthly retirement allowance is based.
(d) Except as provided in subsection (c), the state insurance committee shall not pay an amount toward the costs of supplemental medical insurance provided pursuant to this section.
(e) Former local education employees, other than those specified in subsection (c), who elect to participate in the program shall pay the total cost of such coverage. The chief governing body of a local education employer may pass a resolution to make contributions toward the expense of such coverages; provided, that the amount, terms, and conditions of contributions must be, at all times, the same as that established by the state insurance committee pursuant to § 8-27-209(d). As used in this subsection (e), for determining the employer's contribution level, “years of service” means only those years of service rendered by the retired employee to the resolving employer and upon which the retired employee's monthly retirement allowance is based. The resolution to make contributions on behalf of retired employees must remain in effect until revoked by the chief governing body.
(f) The budget of an employer electing to make contributions must include an amount sufficient to pay contributions on behalf of its retired employees covered by the supplemental insurance program. The employer shall pay the contributions to the insurer in a manner directed by the state insurance committee.
(g) The supplemental medical insurance benefit authorized by this section is not available to a person otherwise qualified under subsection (a) whose initial employment with a participating local education agency or other qualifying employer commenced on or after July 1, 2015. The rights of election, transfer, and enrollment conferred by this section is not available to a person whose initial employment with a participating local education agency, the state, or other governmental agency qualifying the person for plan membership commenced on or after July 1, 2015.

Part 4 Group Insurance for Local Governments

§ 8-27-401. Group insurance for county employees authorized — Persons eligible.

(a) Notwithstanding any other provision to the contrary, county legislative bodies or other governing bodies are authorized to provide group life, hospitalization, disability, or medical insurance for county employees.
(b) For purposes of this part:
1. (1) “County employee” may include, subject to the approval of the county legislative bodies:
  1. (A) Retired county employees, officials, and their surviving spouses. Where any county has offered such coverage prior to May 10, 1994, no further action by the legislative body shall be required; and
  2. (B) Volunteer firefighters who have successfully completed the Tennessee commission on firefighting personnel and standard education certification exam for Firefighter I and practiced as a volunteer firefighter for at least one (1) year from the completion of such exam prior to making application for benefits pursuant to this part; and
2. (2) “Volunteer firefighter” means any member or personnel of a fire department, volunteer fire department, rescue squad or volunteer rescue squad, including, but not limited to, a junior member, a board member, or an auxiliary member of the department or squad.

§ 8-27-402. County budget to cover county's share of premiums.

The budget of any county electing to provide such group insurance shall include an amount sufficient to pay such portion of such insurance premium as approved by the governing body.

§ 8-27-403. Approval of contracts with insurance companies — Policy terms.

(a) The county mayor or a delegated committee of the governing body may prepare and present to the governing body for approval a contract or contracts with one (1) or more insurance companies or other corporations which may exist under title 56, chapter 27, 28, or 29 authorized to do business in the state of Tennessee, or to one (1) or more insurance trusts which have contracted with an insurance company or companies or corporations, as set out above, authorized to do business in this state for a policy or policies of group insurance to provide for the payment of group life, hospitalization, disability, or medical expenses for designated county employees. Such approval shall be by majority vote of the governing body and shall be executed in the name of the county. Such contracts may from time to time be amended, modified, or changed by majority vote of the governing body.
(b) The policy or policies shall conform to the standard provisions of group insurance policies as set forth in this code.
(c) In any county having a population of not less than one hundred seven thousand one hundred (107,100) nor more than one hundred seven thousand two hundred (107,200), according to the 2000 federal census or any subsequent federal census, the provisions and requirements of the County Purchasing Law of 1957, compiled in title 5, chapter 14, part 1, shall not apply to the county mayor or any delegated committee of the governing body either responsible for presentment or approval of a contract pursuant to this part.

§ 8-27-404. First responders killed in line of duty — Coverage of surviving spouse and dependents — Reimbursement by state.

(a) As used in this section:
1. (1) “Emergency medical technician” includes an emergency medical technician advanced and paramedic;
2. (2) “First responder” means paid, full-time law enforcement officers, firefighters, and emergency medical technicians who are employed by a local government in this state; and
3. (3) “Local government” means any county, metropolitan government, municipality, or other political subdivision of this state.
(b) If a local government offers health insurance benefits to first responders, the local government may offer or continue to provide health insurance benefits to the surviving spouse and children, including any unborn child, of a first responder killed in the line of duty for a period not to exceed two (2) years after the death of the first responder.
(c) If a local government offers or provides health insurance benefits in accordance with subsection (b), the local government shall notify the commissioner of finance and administration.
(d) This state shall reimburse a local government that provides health insurance benefits in accordance with this section in an amount equal to that portion of health insurance premiums or expenses for COBRA coverage for benefits for which the local government is responsible.

Part 5 Insurance for County Employees and Officials

§ 8-27-501. Counties authorized to provide insurance for employees and officials — Persons eligible.

(a) Counties are hereby expressly authorized to provide group life, hospitalization, disability, or medical insurance for all county employees and officials.
(b) For the purpose of the application of this part, “county employee” may include, subject to the approval of the county legislative bodies, retired county employees, officials, and their surviving spouses. Where any county has offered such coverage prior to May 10, 1994, no further action by the legislative body shall be required.

§ 8-27-502. Committee to carry out law — Insurance contracts — Approval — Modifications.

(a) In counties desiring to provide such insurance coverage for employees and officials, the county legislative body or other governing body of the county shall appoint a committee of the county legislative body or other governing body of the county to carry out the intent of this part.
(b) Such committee shall prepare and present for approval a contract or contracts with one (1) or more insurance companies, or other corporations which may exist under title 56, chapter 27, 28, or 29 authorized to do business in the state, or with one (1) or more insurance trusts which have contracted with an insurance company, or companies, or corporation, as set out above, authorized to do business in the state for a policy or policies of group insurance to provide for the payment of group life, hospitalization, disability, or medical expenses for county employees and officials. Such approval shall be by a majority vote of the county legislative body or other governing body of the county and shall be executed in the name of the county by the county mayor.
(c) Such contracts may from time to time be amended, modified, or changed by a majority vote of the county legislative body or other governing body of the county.
(d) The policy or policies shall conform to the standard provisions of group insurance policies as set forth in this code.
(e) In any county having a population of not less than one hundred seven thousand one hundred (107,100) nor more than one hundred seven thousand two hundred (107,200), according to the 2000 federal census or any subsequent federal census, the provisions and requirements of the County Purchasing Law of 1957, compiled in title 5, chapter 14, part 1, shall not apply to the county legislative body or any committee of the county legislative body either responsible for presentment or approval of a contract pursuant to this part.

§ 8-27-503. Employees and officials may accept or reject coverage — Compensation of county employee who rejects or opts out of insurance policy.

(a) When a county shall so approve and make available to its employees and officials such insurance protections, the employees and officials shall still have the election of accepting or rejecting such coverage.
(b) If a county employee rejects or opts out of an insurance policy offered or provided to the employee by the county under § 8-27-501(a), the county may compensate the employee up to fifteen percent (15%) of the total premium that would have otherwise been paid by a county on behalf of the employee as long as the county continues to offer such insurance coverage to its employees.

§ 8-27-504. Contributions by county — Salary deductions.

For the purpose of financing such insurance programs, the county may bear the expense of such coverages, as the county legislative body or other governing body of the county shall so determine, up to an amount equaling one hundred percent (100%) of the cost of such program, and the participating employees and officials shall have deducted from their salaries an amount which will be sufficient to pay the remainder of the cost for the coverage.

§ 8-27-505. Appropriation for county's share — Contributions deposited in county insurance fund.

The county legislative body or other governing body of the county shall appropriate from the funds of the county, an amount annually which shall be sufficient to pay the county's portion of such insurance premiums. These amounts shall be remitted periodically as required to the county trustee, and shall be deposited in a fund to be known as the “county insurance fund.” The amounts deducted from the salaries of participating county employees and officials shall also be deposited to the county insurance fund within three (3) days after the amount has been deducted, and from this fund, the cost of the insurance program shall be paid upon a warrant drawn by the county mayor.

§ 8-27-506. Discontinuance of insurance program.

Once a county has provided an insurance program under this part, such program may not be discontinued in its entirety unless two-thirds (⅔) of the members of the county legislative body or other governing body of the county shall so decide by a vote on such resolution; and then the program may not be discontinued in its entirety until the county employees and officials have been given at least three (3) months' notice.

Part 6 Insurance for Employees and Officials of Municipal Corporations and Special School Districts

§ 8-27-601. Municipal corporations and special school districts authorized to provide insurance for employees and officials — Persons eligible.

(a) All municipal corporations and special school districts are hereby expressly authorized to provide group life, hospitalization, disability, or medical insurance for all employees and officials of such municipal corporations and special school districts and for the dependents of these employees and officials. All persons employed as teachers, principals, superintendents and otherwise in the municipal or special school district school system shall be eligible for all insurance programs and benefits conferred by this part.
(b) For the purpose of the application of this part, “municipal corporation or special school district employee” may include, subject to the approval of the legislative body of the municipal corporation or special school district, retired municipal corporation or special school district employees, officials, and their surviving spouses. Where any municipal corporation or special school district has offered such coverage prior to May 10, 1994, no further action by the legislative body shall be required.

§ 8-27-602. Committee for preparation of insurance contract — Approval — Modifications.

(a) In municipal corporations and special school districts desiring to provide such insurance coverage for employees and officials, the aldermen or other governing body of the municipal corporation or special school district shall appoint a committee of aldermen or other governing body of the municipal corporation or special school district to carry out the intent of this part.
(b) Such committee shall prepare and present for approval a contract or contracts with one (1) or more insurance companies, or other corporations which may exist under title 56, chapter 27, 28 or 29 authorized to do business in the state of Tennessee, or with one (1) or more insurance trusts which have contracted with an insurance company or companies or corporations as set out above authorized to do business in this state for a policy or policies of group insurance to provide for the payment of group life, hospitalization, disability, or medical expenses for municipal corporation or special school district employees and officials. Such approval shall be by a majority vote of the aldermen or other governing body of municipal corporation or special school district, and shall be executed in the name of the municipal corporation or special school district by the mayor or chief executive officer of such municipal corporation or special school district.
(c) Such contracts may from time to time be amended, modified, or changed by a majority vote of the aldermen or other governing body of the municipal corporation or special school district.
(d) The policy or policies shall conform to the standard provisions of group insurance policies as set forth in this code.

§ 8-27-603. Employees and officials may accept or reject coverage.

When a municipal corporation or special school district shall so approve and make available to its employees and officials such insurance protections, the employees and officials shall still have the election of accepting or rejecting such coverage.

§ 8-27-604. Municipal corporation or special school district may share cost of program — Salary deductions.

For the purpose of financing such insurance programs, the municipal corporation or special school district may bear the expense of such coverages, as the aldermen or other governing body of the municipal corporation or special school district shall so determine, up to an amount equaling one hundred percent (100%) of the cost of such program, and the participating employees and officials shall have deducted from their salary an amount which will be sufficient to pay the remainder of the cost for the coverage.

§ 8-27-605. Contributions deposited in insurance fund — Special account for special school districts.

The aldermen or other governing body of the municipal corporation or special school district shall appropriate from the funds of the municipal corporation or special school district an amount annually which shall be sufficient to pay the municipal corporation's or special school district's portion of such insurance premiums. These amounts shall be remitted periodically as required to the treasurer of the municipal corporation or special school district and shall be deposited in a fund to be known as the “insurance fund.” The amounts deducted from the salaries of participating municipal corporation or special school district employees and officials shall also be deposited to the insurance fund within three (3) days after the amount has been deducted, and from this fund, the cost of the insurance program shall be paid upon a warrant drawn by the mayor or chief executive officer; provided, that in the case of special school districts, the matching funds provided by the governing body and the amounts deducted from the salaries of the participating special school district employees and officials may be accounted for by creating a special account within the regular school operating fund and the special “insurance fund” referred to above need not be maintained.

§ 8-27-606. Discontinuance of insurance program.

Once a municipal corporation or special school district has provided an insurance program under this part, such program may not be discontinued in its entirety unless the governing body of the municipal corporation or special school district shall so decide by a vote on such resolution; and then the program may not be discontinued in its entirety until the employees and officials of such municipal corporations or special school districts have been given at least three (3) months' notice.

§ 8-27-607. Supplemental to other authority — Previous insurance plans unaffected.

The authority conferred by this part is in addition and supplemental to, and is not in substitution for, the power or authority conferred by any other general or special law, or any other implied power or authority of municipal corporations and special school districts, and does not affect insurance plans heretofore adopted.

Part 7 Local Government Insurance Committee

§ 8-27-701. Local government insurance committee created — Members — Alternative representative.

(a) There is created a local government insurance committee, to be composed of the commissioner of finance and administration, the comptroller of the treasury, the state treasurer, a member to be appointed by the Tennessee Municipal League, and a member to be appointed by the Tennessee County Services Association.
(b) The commissioner, the comptroller of the treasury, and the state treasurer are authorized to designate an alternate representative to attend, participate, and vote at meetings of the local government insurance committee when that respective member is unable to attend. The designation shall be made in writing to the chair of the local government insurance committee.
(c) For purposes of this part, “local government insurance committee” means the local government insurance committee created by subsection (a).

§ 8-27-702. Group insurance plan for employees of local governments and quasi-governmental organizations — Availability of plans — Authority of committee.

(a)
1. (1) The local government insurance committee has the authority to establish a group insurance plan for employees of local governments and quasi-governmental organizations. The local government insurance committee shall establish the definition of “employee”.
2. (2) Any entity applying to participate in the local government insurance plan as a quasi-governmental organization after July 1, 2015, shall demonstrate to the satisfaction of the local government insurance committee that:
  1. (A) The entity was created by an act of the general assembly or by an ordinance or similar enactment of a local government;
  2. (B) The entity performs governmental functions; and
  3. (C) The entity is under governmental supervision by having government officials on its governing board, being subject to audit by the comptroller of the treasury, or subject to review by a committee of the general assembly.
3. (3) An entity does not qualify as a quasi-governmental organization because the entity has entered into a services contract with the state or any of its agencies.
(b) Such plan is authorized to be established, contingent upon sufficient participation on the part of eligible organizations to make the plan economically feasible as determined by independent actuarial analysis.
(c) The local government insurance committee shall approve such voluntary benefit plans as may be necessary and reasonable. The local government insurance committee may provide for voluntary benefits as part of the basic health plans or as separate plans.
(d) The local government insurance committee is authorized to determine the premiums, benefits package, funding method, administrative procedures, eligibility provisions, and rules relating to the plans established by this section.
(e) If a local government agency participates in the basic health plans provided for in subsection (a), those plans shall be the only basic health plans that the local government agency may make available to its employees.

§ 8-27-703. Responsibility for costs of health plan — Local government agency cooperation with committee — Effect of failure to cooperate.

(a) The costs of the health plan, including plan administration, shall be fully borne by agencies and their members.
(b) Nothing in this part shall require a local government agency to make available to its employees any insurance plan approved by the local government insurance committee.
(c)
1. (1) The local government insurance committee shall provide for the financing of the plan, including the disposition of government grants and subsidies to assist in the funding and provision of health insurance for enrolled individuals.
2. (2) Local government agencies enrolled in the plan shall cooperate with the local government insurance committee in implementing and complying with the determinations of the local government insurance committee as set forth in subdivision (c)(1). This cooperation includes entering into contracts or memoranda of understanding reflecting the financial determinations of the local government insurance committee.
3. (3) The local government insurance committee is authorized to take either or both of the following actions in response to a local government agency's failure to cooperate with the local government insurance committee as required by this section:
  1. (A) Assess and collect from the local government agency the costs incurred by the agency's failure to cooperate; and
  2. (B) Terminate the local government agency's participation in the plan.
4. (4) The termination of the local government agency's participation shall be in effect for two (2) years, and shall be in effect regardless of any language in this chapter to the contrary regarding reinstatement to the plan.
5. (5) The local government agency shall have the right to request reconsideration of its exclusion before the local government insurance committee. The local government insurance committee's decision of the request for reconsideration shall be final.

§ 8-27-704. Eligibility for enrollment in plans — Participation of surviving spouse and eligible dependents of plan participant killed in line of duty as national guard member.

(a) County officials, as defined in § 8-34-101, shall be allowed to participate in any plan established by the local government insurance committee even if the county does not participate. The cost of participation shall be determined by the local government insurance committee, and the official may be required to bear the full cost of participation.
(b) For purposes of this part and determining eligibility to participate within a health insurance plan established pursuant to this section, “employees of local governments and quasi-governmental organizations” includes, but is not limited to, utility district commissioners appointed or elected pursuant to § 7-82-307. Nothing in this subsection (b) shall diminish the requirements in §§ 8-27-702(b), 8-27-703(a) and 8-27-703(b).
(c) Local government agencies seeking to enroll in any plan offered by the local government insurance committee shall provide, in its request for enrollment, the following:
1. (1) Verification that a majority of eligible employees of the local government agency have agreed to enroll in the plan. The local government insurance committee may waive the majority requirement if, in its discretion, there is good cause to do so; and
2. (2) Information necessary for processing the enrollment, including names and required identifying information, financial information necessary to process payments, and signed memoranda of understanding.
(d) The local government insurance committee reserves the right to audit participation and to terminate agencies whose participation falls below a majority of eligible employees.
(e)
1. (1) The surviving spouse and eligible dependent children of a participant in the health plan authorized in § 8-27-702, who maintains family coverage, who is a member of the Tennessee army national guard or the Tennessee air national guard, who has been activated for federal duty or who has been called up on state active duty, and who is subsequently killed in the performance of that duty, may participate in the group health insurance plan authorized in this section.
2. (2) The cost of the coverage provided in this section to the surviving spouse and dependent children shall be equal to twenty percent (20%) of the monthly premium paid by employees for the same coverage. The military department shall pay the balance of the monthly premium.
3. (3) The criteria for determination of eligibility of dependent children shall be the same as the criteria established by the local government insurance committee for participating employees and their families.
4. (4) In the event that the surviving spouse is or becomes eligible for insurance coverage through a subsequent marriage or employment, the extension of coverage authorized in this subsection (e) shall be terminated on the first day of the following month. The local government insurance committee may establish specific conditions for extensions in instances where preexisting conditions may apply during the transfer of coverage.
5. (5) In the event that insurance coverage under the local government plan is terminated for the surviving spouse pursuant to subdivision (e)(4), but the surviving spouse is unable to secure, through the new coverage, insurance coverage for the eligible dependent children, the dependent children may continue coverage under this section; provided, that the dependent children continue to meet all dependent eligibility requirements.
6. (6) This subsection (e) shall be retroactive to September 11, 2001. As individuals who are qualified for such extension are identified, elect coverage, and pay the appropriate contribution, the coverage shall be provided on a prospective basis.

§ 8-27-705. Health benefit for retired local government employees — Eligibility for coverage — Implementation of defined contribution plan or related investment vehicle.

(a) The local government insurance committee may establish basic health plan benefits and voluntary benefits, as the local government insurance committee deems necessary and reasonable, for retired local government employees. The health benefits may be made available to all eligible retired local government employees; provided, that an eligible retired local government employee who is vested in the Tennessee consolidated retirement system must be drawing retirement benefits through that system to receive the health benefits authorized by this section.
(b) The local government insurance committee is authorized to establish the eligibility criteria for the benefits authorized by subsection (a) and the administrative requirements for the collection of premiums.
(c)
1. (1) The commissioner of finance and administration, the chair of the finance, ways and means committee of the senate, the chair of the finance, ways and means committee of the house of representatives, and the chair of the consolidated retirement board shall serve as trustees of any defined contribution plan or related investment vehicle established as a health benefit by the local government insurance committee under this section. The trustees shall have the authority to implement any such defined contribution plan or related investment vehicle. Notwithstanding § 8-27-103(a), such authority shall include, but not be limited to, administering any contract related to such defined contribution plan or related investment vehicle, procuring services necessary or desirable for efficient administration of the investment vehicles used for the health benefit and overseeing the investment policy for any investment vehicles used.
2. (2) The trustees shall delegate the duty to conduct the day-to-day responsibilities for managing the investment vehicles to the state treasurer.
3. (3) The costs associated with administering any such defined contribution plan or related investment vehicle shall be assessed to the funds generated by any such defined contribution plan or related investment vehicle and, if necessary, to the employee benefits trust.
4. (4) This subsection (d) shall be effective September 1, 2015.

§ 8-27-706. Supplemental medical insurance program.

(a) Subject to the approval of the state insurance committee as created in § 8-27-201 and the local government insurance committee, retired county judges, county officials, and employees of employers participating in the Tennessee consolidated retirement system pursuant to chapter 35, part 2 of this title may participate in the supplemental medical insurance program established in § 8-27-209; provided, that retired employees are covered by Medicare benefits and are drawing a monthly retirement allowance from the Tennessee consolidated retirement system. The state shall not assume any cost nor provide any funding toward the payment of premiums.
(b) Except as provided in subsection (c), retired employees electing to participate in the program shall pay the total cost of such coverage.
(c) The chief governing body of any employer of an employee described in subsection (a) may pass a resolution to make contributions toward the expense of such coverages; provided, that the amount, terms, and conditions of contributions shall be, at all times, the same as that established by the state insurance committee pursuant to § 8-27-209(d). Years of service, as used in § 8-27-209(d) for determining the employer's contribution level, means only those years of service rendered by the retired employee to the employer and upon which the retired employee's monthly retirement allowance is based. The resolution to make contributions on behalf of retired employees shall remain in effect until revoked by the chief governing body.
(d) The budget of any such employer electing to make contributions shall include an amount sufficient to pay contributions on behalf of its retired employees covered by the supplemental insurance program. The contributions shall be paid to the insurer by the employer in a manner directed by the state insurance committee.
(e) The supplemental medical insurance authorized under this section shall not be available to any person otherwise qualified under subsection (a) whose initial employment with a qualifying employer commenced on or after July 1, 2015.

Part 8 Post-employment Benefits

§ 8-27-801. Part definitions.

As used in this part, unless the context otherwise requires:
1. (1) “Authorized local education employees” means local education employees who have been authorized by the trustees to participate in the trust based upon the trustees' decision to establish a trust for local education employees and the employing local education agencies' contribution of the share of other post-employment benefits liabilities to the trust, as determined by the trustees;
2. (2) “Other post-employment benefits” or “post-employment benefits” means non-pension benefits paid on behalf of former state employees, former state employees' beneficiaries, authorized local education agency employees or the authorized local education agency employees' beneficiaries after separation from service. The benefits may include, but shall not be limited to, medical, prescription drugs, dental, vision, hearing, Medicare part B or part D premiums, life insurance, long-term care, and long-term disability; and
3. (3) “Trustees” means the four (4) trustees designated in § 8-27-205(f).

§ 8-27-802. Establishment of investment trusts for purpose of pre-funding other post-employment benefits — Investment of trust funds.

(a) The trustees shall establish an investment trust or trusts for the purpose of pre-funding other post-employment benefits accrued by employees of the state, to be paid as they come due in accordance with the arrangements between the state, the plan members, and their beneficiaries. The trustees may, in their discretion, also choose to establish an investment trust or trusts for the purpose of pre-funding other post-employment benefits accrued by authorized employees of local education agencies, to be paid as they come due in accordance with the arrangements between the local education agency, the plan members, and their beneficiaries.
(b) The trustees must adopt, in writing, an investment policy or policies authorizing how assets in the trust or trusts may be invested.
(c) The trust or trusts may invest in any security or investment in which the Tennessee consolidated retirement system is permitted to invest; provided, that investments by the trust shall be governed by the investment policies and guidelines adopted by the trustees in accordance with this part. The trustees shall delegate to the state treasurer the responsibility for the investment and reinvestment of trust funds in accordance with the policies and guidelines established by the trustees.
(d) The trust must conform to all applicable laws, rules, and regulations of the Internal Revenue Service, if any.

§ 8-27-803. Trusts to be irrevocable — Administration of trusts — Protection of trust assets, income and distributions.

(a) Any trust created under this part shall be an irrevocable trust and the assets thereof shall be preserved, invested and expended solely pursuant to and for the purposes of this part and shall not be loaned or otherwise transferred or used for any other purpose. The assets of the trust or trusts shall be expended solely to:
1. (1) Make payments for other post-employment benefits pursuant to and in accordance with terms of the state's post-employment benefit plans;
2. (2) Make payments for other post-employment benefits pursuant to and in accordance with the terms of certain local education agencies' post-employment benefits plans, at the discretion of and subject to requirements established by the trustees; and
3. (3) Pay the cost of administering the trust.
(b) The state treasurer shall administer any trust created under this part. The attorney general and reporter shall approve the terms of any trust created under this part.
(c) Any investment trust so created shall have the powers, privileges and immunities of a corporation; and all of its business shall be transacted, all of its funds invested, and all of its cash and securities and other property held in trust for the purpose for which received.
(d) Notwithstanding any law to the contrary, all assets, income and distributions of the investment trust shall be protected against the claims of creditors of the state, plan administrators, and plan participants, and shall not be subject to execution, attachment, garnishment, the operation of bankruptcy, the insolvency laws or other process whatsoever, nor shall any assignment thereof be enforceable in any court.

§ 8-27-804. Initial funding of trust — Disposition of unexpended funds — Commingling of funds transferred to trust.

(a) The initial funding of any trust created under this part for state employees and their beneficiaries shall be from appropriations made in the general appropriations act for such purpose. Initial funding for a trust created for authorized local education agency employees and their beneficiaries may come from appropriations made in the general appropriations act for such purpose or other sources as authorized by the trustees.
(b) Unexpended funds remaining in any trust or trusts created under this part in any fiscal year shall not revert to the general fund;
(c) The funds transferred to any trust created under this part may be commingled with, co-invested with, and invested or reinvested with other assets transferred to the trust or trusts. All or a portion of the trust or trusts may be invested, reinvested and co-invested with other funds, not a part of the trust or trusts, held by the state treasurer, including, but not limited to, assets of the Tennessee consolidated retirement system and the state pooled investment fund established pursuant to title 9, chapter 4, part 6. The state treasurer shall account for such trust funds in one (1) or more separate accounts in accordance with this section and other law.

§ 8-27-805. Powers of trustees.

In addition to the powers granted by any other provisions of this part, the trustees shall have the powers necessary or convenient to carry out the purposes and provisions of this part and the purposes and objectives of the investment trust or trusts, including, but not limited to, the following express powers:
1. (1) To invest any funds of the trust in any instrument, obligation, security, or property that constitutes legal investments, as provided in the investment policy adopted pursuant to § 8-27-802(b);
2. (2) To contract for the provision of all or any part of the services necessary for the management and operation of the investment trust;
3. (3) To contract with financial consultants, auditors, and other consultants as necessary to carry out its responsibilities under this part;
4. (4) To contract with an actuary or actuaries in determining the level of funding necessary by the state or certain local education agencies, if authorized by the trustees, to fund the other post-employment benefits offered by the subdivision; and
5. (5) To prepare annual financial reports, including financial statements following the close of each fiscal year relative to the activities of the trust or trusts. The statements and reports shall be prepared in accordance with the governmental accounting standards board. The annual report, including financial statements, all books, accounts and financial records of any trust created under this part shall be subject to audit by the comptroller of the treasury.

§ 8-27-806. Part does not grant rights or privileges to other post-employment benefits.

Nothing in this part shall be construed to define or otherwise grant any rights or privileges to other post-employment benefits. The rights and privileges, if any, shall be governed by the terms of the state's or the local education agency's post-employment benefit plans.

§ 8-27-807. Participation in other post-employment investment trust.

Nothing in this part prohibits a local education agency from participating in any other post-employment benefits investment trust created pursuant to chapter 50, part 12 of this title.

Part 9 Self-Funded Plan of Insurance

§ 8-27-901. Definitions.

As used in this part:
1. (1) “Administrator” means:
  1. (A) An individual, either employed by, or contracted with, the sponsor or the plan to provide administrative services on behalf of the plan; or
  2. (B) An entity with whom the sponsor contracts to provide administrative services on behalf of the plan;
2. (2) “Days” means calendar days, unless otherwise noted;
3. (3) “Insured” means any individual, other than the primary insured, who receives benefits under the plan;
4. (4) “Plain language” means writing designed to ensure the reader understands the meaning of the passage as quickly, easily, and completely as possible, avoiding verbose, convoluted language, and jargon;
5. (5) “Plan” means a self-funded plan of insurance established and funded by a sponsor pursuant to this part for the purpose of providing group life, hospitalization, disability, on-the-job injury or work-related injury program, or medical insurance, where funding for the plan is primarily derived from local tax revenues, which are used to fund, in excess of fifty-one percent (51%), the total costs of the plan, and where the benefits are paid directly through the sponsor's general assets or through a trust fund established for that purpose. A “plan” includes those to which the primary insured pays to the plan a nominal fee for the primary insured and any insureds whose relationship to the primary insured allows them to receive benefits under the plan. Whether or not the plan contracts with an administrator is not a factor in determining whether the plan meets this definition;
6. (6) “Plan document” means a document by which a plan is established and operated;
7. (7) “Plan participant” means either a primary insured or insured;
8. (8) “Primary insured” means the individual employed by, or contracted with, the sponsor and to whom, based on the individual's status as an employee or contractor, the plan provides benefits;
9. (9) “Reimbursement interest” means the plan's right of recovery of benefit amounts paid by the plan on behalf of the plan participant from the participant's recovery from a third-party tortfeasor arising from the injury or illness of the plan participant caused by such tortfeasor. “Reimbursement interest” does not include pre- or post-judgment interest;
10. (10) “Request for subrogation or reimbursement interest” or “RSRI” means a form drafted by the plan in plain language and included in the SPD that the plan participant, their attorney, or other party in interest, may use to request that the plan provides notice of its subrogation or reimbursement interest;
11. (11) “Settlement” means an agreement reached between a plan participant and the plan, or between the plan participant and a third-party tortfeasor or the third-party insurer, or both;
12. (12) “Sponsor” means a county, municipality, municipal corporation, or special school district in this state that establishes and funds a plan;
13. (13) “Subrogation interest” means the right to recovery that the plan has in any litigation or settlement arising from the injury or illness of a plan participant caused by a third-party tortfeasor. “Subrogation interest” does not include pre- or post-judgment interest;
14. (14) “Summary of material modification” or “SMM” means a summary of any material amendment to the plan adopted by the sponsor, including, but not limited to, changes in deductibles, co-pays, and eligibility requirements; covered services or benefits; formulas; methodologies; schedules; networks; prior authorization requirements; and drug tiers;
15. (15) “Summary plan description” or “SPD” means a summary of the plan document, which may or may not be part of the plan document;
16. (16) “Third-party administrator” or “TPA” means an organization with which the plan contracts to process claims or manage certain other aspects of the plan, including, but not limited to, customer service, plan design, benefits notification, subrogation services, general plan administration, and appeals review;
17. (17) “Third-party for medical services” or “third party” means a person or entity that contracts with either the plan or the third-party administrator to provide payment for claims of healthcare items or services for plan participants. The term includes, but is not limited to, a health and liability insurer, an administrator of an ERISA plan, an employee welfare benefit plan, a workers' compensation plan, CHAMPUS, Medicare, and other parties that are by statute, contract, or agreement legally responsible for payment of a claim for a healthcare item or service;
18. (18) “Third-party insurer” means an insurer that provides insurance coverage to a third-party tortfeasor, regardless of whether the coverage is personal or commercial, including, but not limited to, automobile, income replacement, premises liability, home owners, umbrella, group life, health, workers compensation, hospitalization, and disability; and
19. (19) “Third-party tortfeasor” means an individual or entity who commits a tort against a plan participant that causes a plan participant to require medical treatment for which the plan makes payments to a provider of medical services for the benefit, or on behalf, of the plan participant.

§ 8-27-902. Plan document contents — SPD contents.

(a) The plan document must include:
1. (1) The name of the plan administrator and the designation of any named fiduciaries other than the plan administrator under the claims procedure for deciding benefit appeals;
2. (2) A description of the benefits provided;
3. (3) The standard of review for benefit decisions;
4. (4) Who is eligible to participate, which includes designating classes of employees, establishing an employment waiting period prior to eligibility for plan participation, designating the hours per week an employee must work in order to be eligible for plan participation, and establishing tiers of coverage;
5. (5) How much the primary insured must pay towards the cost of each tier of coverage;
6. (6) The plan sponsor's amendment and termination rights and procedures and how plan assets will be distributed if the plan is terminated;
7. (7) Rules restricting and regulating the use of personal health information (PHI), if the plan sponsor uses PHI;
8. (8) Subrogation, reimbursement, coordination of benefits, and offset provisions;
9. (9) Procedures for allocating and designating administrative duties to a TPA or committee;
10. (10) To the extent the plan has assets, the manner in which it is funded;
11. (11) Information regarding COBRA (Consolidated Omnibus Budget Reconciliation Act of 1985 (42 U.S.C. § 300bb-1 et seq.)), HIPAA (Health Insurance Portability and Accountability Act of 1996 (42 U.S.C. § 1320d et seq.)), and other federal mandates;
12. (12) Preexisting condition exclusions;
13. (13) Special enrollment rules;
14. (14) Mental health parity;
15. (15) Coverage for adopted children and domestic partners;
16. (16) Qualified medical support orders; and
17. (17) Minimum hospital stays following childbirth.
(b) The summary plan description must include, at a minimum:
1. (1) A summary description of all benefits and costs to insureds under the plan, including co-pays, deductibles, and premiums for different tiers of coverage, if applicable;
2. (2) A list of eligible plan participants;
3. (3) Contact information for the administrator;
4. (4) Contact information for the sponsor;
5. (5) A mailing address for each type of notice required by this part; and
6. (6) A copy of any forms required by the plan or by this part.

§ 8-27-903. Subrogation — Reimbursement.

(a) A plan shall not recover a medical payment paid to, or on behalf of, a plan participant under a plan unless:
1. (1) The medical payment has been incorrectly paid; or
2. (2) The plan participant recovers, or is entitled to recover, from a third-party tortfeasor or third-party insurer reimbursement for all or part of the costs of care or treatment for the injury or illness for which the medical payment is paid.
(b) The plan is subrogated to all rights of recovery against any person or entity for the cost of care or treatment for any injury or illness caused by a third-party tortfeasor for which medical payment is provided, contractual or otherwise, by the plan for the benefit of, or on behalf of, a plan participant. The subrogation right attaches automatically as a lien against any proceeds received by the plan participant from a third-party tortfeasor for the cost of care or treatment for any injury or illness caused by the third-party tortfeasor for which medical payment is provided.
(c) The plan has a right of reimbursement from any plan participant for the cost of care or treatment for any injury or illness caused by a third-party tortfeasor for which medical payment is provided, contractual or otherwise, by the plan for the benefit of, or on behalf of, a plan participant. The reimbursement right attaches automatically as a lien against any proceeds received by the plan participant from a third-party tortfeasor for the cost of care or treatment for any injury or illness caused by the third-party tortfeasor for which medical payment is provided. The right of reimbursement is contingent upon:
1. (1) The plan stipulating that the reimbursement proceeds be held for the exclusive purpose of providing benefits to plan participants and their beneficiaries; and
2. (2) The plan stipulating that the plan waives its right of reimbursement when the plan participant is adjudged permanently disabled and thereby receives corresponding benefits from the social security administration or suffers a catastrophic loss, including, but not limited to, death; long-term or permanent disability; loss of a limb, extremity, or eye; permanent loss of fifty percent (50%) or more of sight or hearing; a prolonged vegetative state; permanent mental impairment; protracted and complex recovery requiring multiple or successive surgeries; or any other similar, life-altering loss.
(d) A plan is not required to choose between the plan's right of subrogation or right of reimbursement. However, once the plan has received the total amount of medical payments made on behalf of a plan participant, whether under a right of subrogation or a right of reimbursement, the plan's subrogation and reimbursement interests are extinguished.
(e) The plan may elect, on a case by case basis, whether to waive its subrogation or reimbursement interests. If the plan elects to waive one (1) interest, the waiver does not extinguish the other. If the plan elects to waive either its subrogation or reimbursement interests, the plan shall promptly notify the insured or the insured's attorney, in writing sent by certified mail with either return signature or electronic receipt.
(f) The plan shall not withdraw or reduce payments to a provider of medical services in order to recover funds obtained by a plan participant from a third-party tortfeasor or third-party insurer for medical services rendered by the medical-services provider if the plan has reason to know that the funds were obtained without the knowledge or direct assistance of the provider.
(g) If the plan asserts its right to subrogation or reimbursement, the plan shall clearly state the assertion in plain language in the SPD, informing the primary insured of the plan's rights of recovery against third parties and plan participants, and that the primary insured should seek the advice of an attorney regarding those rights of recovery to which the plan may be entitled.
(h) If a plan has a third-party administrator, recovery for any benefits incorrectly paid must be exclusively from such third-party administrator.

§ 8-27-904. Plan participant rights and duties.

(a) By accepting payment of benefits pursuant to a plan authorized by this part, a plan participant has assigned to the plan the right of third-party insurance benefits or other recovery rights to which the plan participant may be entitled, which must be noted in plain language in the SPD.
(b) By accepting payment of benefits pursuant to a plan authorized by this part, a plan participant acknowledges the plan's right to reimbursement, which must be noted in plain language in the SPD.
(c) A plan under this part may deem a plan participant ineligible for continued or future coverage under the plan, if the plan participant:
1. (1) Receives payment from a third-party tortfeasor, third-party insurer, third party for medical payments, or other individual or entity originally paid by the plan for the benefit of, or on behalf of, the plan participant; and
2. (2) Fails or refuses to promptly reimburse the plan for the amounts paid by the plan.
(d) A plan shall not remove a plan participant under a plan pursuant to subsection (c) unless the plan or administrator provides the primary insured with written notice of intent to remove the plan participant. The plan or administrator shall send the notice at least ninety (90) days prior to the date the plan participant will lose benefits under the plan by certified mail with signed or electronic receipt. To be effective the notice must at a minimum include:
1. (1) The name of the plan participant to be removed from the plan;
2. (2) The date the plan participant will cease to be covered under the plan;
3. (3) The reason for removal from the plan;
4. (4) The name, title, phone number, mailing address, and email address of an individual with the authority to cancel or change the plan participant's removal, if the removal violates the terms of the plan, or as the sponsor permits.
(e) The plan shall not prevent a provider from receiving payment for services already rendered to a provider even if the plan participant is removed from participation in a plan pursuant to subsection (c). However, this subsection (e) does not require the plan to pay benefits to medical services providers if the benefits have already been paid to a plan participant.

§ 8-27-905. Third parties.

(a) A third party, upon receiving a request from a plan, shall provide information identifying persons covered by third parties for medical services. As a condition of doing business in this state or providing coverage to residents of this state, and subject to subsection (c), a third-party for medical services shall, upon request from a plan or an administrator, electronically provide full eligibility files that contain information to determine the period a plan participant may be or may have been covered by the third party. The eligibility files must include the nature of the coverage that is or was provided by the third party; the name, address, date of birth, social security number, group number, and identifying number of the plan under which the plan participant may receive benefits; and the effective and termination dates for the coverage.
(b) A third party is not liable to a policyholder for proper release to a plan or an administrator of the information contained in the eligibility files provided pursuant to subsection (a).
(c) The third party shall provide the eligibility files pursuant to subsection (a) upon receipt of written request from a plan or an administrator with the third party establishing confidentiality requirements for the information. The plan or administrator may serve the request on the third party electronically or by mail.
(d) Third parties shall respond to all written inquiries by a plan regarding a claim for payment for any healthcare item or service that are submitted not later than three (3) years after the date of the provision of the healthcare item or service, or within three (3) years of conclusion of litigation. Third parties shall respond to a plan's or administrator's request for payment by providing payment on the claim, a written request for additional information with which to process the claim, or a written reason for denial of the claim within ninety (90) days of receipt of written proof of loss or claim for payment for healthcare services provided to, for the benefit of, or on behalf of, a plan participant. Such response from a third-party notice may be sent to the plan electronically if the plan administrator has provided an email address or other electronic means of communication, or by certified mail with either a return signature or electronic receipt. Notwithstanding title 56, a failure to pay or deny a claim within one hundred eighty (180) days after receipt of the claim constitutes a waiver of any objection to the claim and an obligation to pay the claim.

§ 8-27-906. Information to be provided — Notifications — RSRI.

(a) A plan shall list the address or addresses to which all notices required by this section must be sent in the plan document, in the SPD, and in all materials the plan provides to the primary insured regarding benefits under the plan, including information published on the internet or on a sponsor's intranet or electronic portal. The address must be an address that accepts certified mail.
(b) At each enrollment renewal period, the plan shall mail to each primary insured, at the primary insured's last address of record provided to the plan, an SPD that provides an RSRI form and details about the current plan benefits. To the extent that the sponsor maintains an intranet or other electronic portal for the benefit of its employees, such information must be readily available on this platform at all times and to all primary insureds and employees who may be eligible to participate in the plan. If the sponsor maintains a platform that satisfies the foregoing, the platform may be used in lieu of the plan mailing each primary insured an SPD; provided, that for each new enrollment period all primary insureds and employees who may be eligible to participate in the plan are required to electronically acknowledge receipt of, and access to, the SPD via the platform.
(c) SMMs must be drafted in plain language and be provided to each primary insured under the plan within sixty (60) days after the date of adoption of any material reduction in benefits or material increase in cost to plan participants. An SMM may be provided either by certified mail or via the sponsor's intranet or electronic portal; provided, that the primary insured is required to electronically acknowledge receipt of such SMM via the platform. At a new enrollment period the plan may use an SMM to disclose only the changes to the plan rather than drafting a new SPD; provided, that the plan also provides a copy of the original SPD to which the changes apply, and provided that primary insureds and employees who may be eligible to participate in the plan are required to electronically acknowledge receipt of, and access to, the SMM via the platform.
(d) Before the entry of the judgment or settlement in a personal injury case, the plan participant or the plan participant's attorney, or other individual or the individual's attorney, who has an interest in recovery under this part, shall notify the plan by completing the plan's RSRI form or in writing, either of which must be sent by certified mail, with return receipt signature or electronic verification, at the address provided in the SPD or plan document, requesting that the plan determine the amount, if any, of the plan's subrogation or reimbursement interest. Written notice must, at a minimum, provide the plan participant's full name; date of birth; social security number, if known; and the date the plan participant's claim arose. If the plan participant's attorney or representative is on notice that the plan has an interest in the judgment or settlement and fails to provide notice to the plan as required by this section, upon motion by the plan, the plan participant's attorney's interest in any recovery must be reduced by up to fifty percent (50%) with the forfeited amount paid to the plan. If the plan participant is unrepresented and fails to provide notice as required by this section, upon motion by the plan the court shall award to the plan from the plan participant's recovery an amount that, in the court's discretion, reimburses the plan for amounts the plan lost due to the plan participant's failure or refusal to provide the plan with the notice required under this section. Such amount may be up to the full amount of the plan's subrogation or reimbursement interest to the extent that such interest may be satisfied from the recovery proceeds, without reduction and irrespective of the plan participant's claims.
(e) Within ninety (90) days of receipt of the notice required by subsection (d), a plan having a subrogation or reimbursement interest shall respond to the individual who provided the notice in writing sent by certified mail, with either return receipt signature or electronic verification, providing the amount of the subrogation or reimbursement interest, or both, a request for additional information or documentation, or notice that additional time is necessary to determine the amount of the plan's subrogation or reimbursement interest, or both. If additional time is necessary, a plan shall provide a response containing the amount of the subrogation or reimbursement interest, or both, within one hundred eighty (180) days of receipt of the notice required by subsection (d), unless treatment of the plan participant, or billing of the plan by medical services providers, is ongoing. If a plan or plan administrator notifies the plan participant or the plan participant's attorney that the plan is unable to provide the amount of its subrogation or reimbursement interest, or both, because treatment or billing is ongoing, the notification is a valid response, and the plan's subrogation or reimbursement interest, or both, is not extinguished. The plan participant or the plan participant's attorney bear the burden of additional requests to the plan to ascertain the amount of the plan's subrogation or reimbursement interest, or both. The plan participant or the plan participant's attorney shall then inform the court regarding the results of the notice, if any, to the plan. If the plan fails to respond within the period specified in this subsection (e), then the plan's subrogation or reimbursement interest, or both, is extinguished and disbursements may be made without recourse upon the plan participant or the plan participant's attorney, or other individual who may have an interest in such disbursements.
(f)
1. (1) This section does not preclude the plan from declining to provide its subrogation or reimbursement interest, or both, until the plan receives one (1) or more of the following:
  1. (A) The plan participant's affidavit attesting that treatment beyond routine follow-up for injuries sustained in the incident at issue has ceased beyond routine follow-up;
  2. (B) The plan participant's attorney's affidavit attesting to the amount of available recovery, including the sources of all such recovery, the amount of interest the attorney is claiming in any recovery, and whether to the best of the attorney's knowledge and belief, the plan participant's medical care for injuries sustained in the incident at issue has ceased beyond routine follow-up; and
  3. (C) The plan participant's treating physician's statement indicating the plan participant's date of maximum medical improvement, return to work date, permanent impairment or disability, and anticipated additional treatment beyond routine follow-up.
2. (2) A plan's request for the information listed in subdivision (f)(1) does not extinguish the plan's subrogation or reimbursement interest and is not considered for purposes of calculating the plan's one hundred eighty (180) day response period.
(g) If the plan participant or the plan participant's attorney received a timely response from the plan, but the amount of the subrogation or reimbursement interest, or both, remains in dispute, upon motion by the plan, the trial judge shall hold a hearing in accordance with subsection (h). After trial and at the time of the entry of the judgment or settlement in a case in which the plan has a subrogation or reimbursement interest, or both, under this section, it is the responsibility of the trial judge to calculate the amount of the subrogation or reimbursement interest, or both, and incorporate the court's findings concerning such interest in the final judgment or settlement.
(h) The trial judge shall base the gross amount of the subrogation or reimbursement interest upon the findings of the verdict at trial concerning medical expenses and evidence introduced after the trial about the total sum of moneys paid by the plan for medical expenses for injuries arising from the incident that is the basis of the action. The trial judge shall reduce the gross amount of the subrogation or reimbursement interest by one (1) or more of the following factors, as applicable:
1. (1) To the extent that the plan participant plaintiff is partially at fault in the incident giving rise to the litigation, the subrogation or reimbursement interest is reduced by the percentage of fault assessed against the plan participant plaintiff;
2. (2) To the extent that the finder of fact allocated fault to a person who was immune from suit, the subrogation or reimbursement interest is reduced by the percentage of fault assessed against the immune person;
3. (3) To the extent that the finder of fact allocates fault to a governmental entity that has its liability limited under state law, and the fault of the entity, when multiplied by the total dollar value of the damages found by the finder of fact, exceeds the amount of judgment that can be awarded against the entity, the subrogation or reimbursement interest is reduced proportionately by a percentage derived by dividing the uncollectable portion of the judgment against the plan by the total damages awarded; or
4. (4) To the extent that the finder of fact allocated fault to a person that the plan participant plaintiff did not sue, the plan's subrogation or reimbursement interest is reduced by the percentage of fault assessed against the nonparty.
(i) After the calculations described in subsection (h) are performed, the trial judge shall reduce the subrogation or reimbursement interest pro rata by the amount of reasonable attorneys' fees and litigation costs incurred by the plan participant plaintiff in obtaining the recovery.
(j) The amount determined from the calculations required under subsections (h) and (g) is the net subrogation or reimbursement interest. If a plan participant plaintiff or the plan participant's attorney collects the judgment, each has the obligation to promptly remit the net subrogation or reimbursement interest and attorneys' fees and costs to the counsel or other individual specified in the plan document or SPD, as required by the final judgment. If the plan participant plaintiff and the plan participant's attorney collect only a portion of the final judgment, each has the obligation to promptly remit a pro rata share of the net subrogation interest and attorneys' fees and costs to the counsel or other individual specified in the plan document or SPD, as required by the final judgment. If the plan participant plaintiff and the plan participant's attorney later collect additional moneys against the judgment, there is a continuing obligation on both to remit a pro rata share of the moneys collected as required by the final judgment.
(k) If a plan participant plaintiff or the plan participant's attorney, or both, fail to timely remit to the counsel or other individual specified in the plan document or SPD the plan's pro rata portion of judgment moneys received, upon motion by the plan, the court may, in its discretion, award to the plan attorney's fees for the cost of the motion, interest on moneys withheld, as well as the amounts withheld, and order those who failed to timely release funds to forfeit to the plan all sums received in payment of the judgment. If the court finds that a motion under this subsection (k) was filed in bad faith, the court may award to the plan participant plaintiff or the plan participant's attorney, or both, attorney's fees for the cost of the motion, and order the plan to forfeit its net subrogation or reimbursement interest.
(l) If the case between the plan participant plaintiff and the defendant is settled before trial and the parties and the plan are unable to reach an agreement on the amount of the subrogation or reimbursement interest, then the trial judge shall hold a hearing to determine the gross and net subrogation or reimbursement interests, taking into account the criteria listed in subsection (h) and the likelihood of collecting any judgment against parties determined to be at fault. Expert foundation is not required to prove any claimed damages. An aggrieved party may appeal the court's decision.

§ 8-27-907. Limitations.

If a plan participant initiates suit against a plan or administrator for any action taken on behalf of the plan with respect to benefits under the plan, recovery is limited to accrued benefits due under the terms of the plan, a declaratory judgment on entitled-to benefits, or an injunction against a plan's or administrator's improper refusal to pay benefits. Relief under this section does not include damages, but it may include reasonable attorney's fees.

§ 8-27-908. Intent of general assembly.

It is the intention of the general assembly that §§ 8-27-905 — 8-27-907 be used in lieu of application of the “made whole” doctrine for any recovery authorized under this part. Sections 8-27-905 — 8-27-907 apply to cases that have been settled when no lawsuit has been filed.

§ 8-27-909. Request by plan participant for plan document.

The plan document must be made available to all plan participants for review, either electronically or in printed format, upon a plan participant's request.

§ 8-27-910. Compliance with request or subpoena for information protected under HIPAA.

(a) A covered entity, whether public or private, shall comply with a request or subpoena for information protected under the federal Health Insurance Portability and Accountability Act of 1996 (HIPAA) (42 U.S.C. § 1320d et seq.) when the request or subpoena:
1. (1) Is made by:
  1. (A) An individual, who is not the subject of the information;
  2. (B) The individual's guardian, power of attorney, or executor of the individual's estate;
  3. (C) An attorney,
  4. (D) A private entity, or
  5. (E) A law enforcement agency;
2. (2) Is accompanied by a qualified protective order signed by the court in which the matter is pending; and
3. (3) Provides sufficient notice as described in subsection (c).
(b) As used in this section:
1. (1) “Covered entity” has the same meaning as defined in the federal Health Insurance Portability and Accountability Act of 1996 (HIPAA) (42 U.S.C. § 1320d et seq.); and
2. (2) “Qualified protective order” means:
  1. (A) An order of a court, administrative judge, or tribunal, or a stipulation by the parties to the litigation or administrative proceeding, that
    1. (i) Prohibits a party from using or disclosing protected health information for a purpose other than the litigation or proceeding for which the information was requested; and
    2. (ii) Requires the return to the individual who is the subject of the protected information or the individual's counsel of, or destruction of, the protected health information, including all copies made, at the end of the litigation or proceeding; or
  2. (B) A subpoena that:
    1. (i) Is signed by the court in which the matter is pending; and
    2. (ii) Provides sufficient notice as described in subsection (c).
(c)
1. (1) To provide sufficient notice under this section, the party seeking protected health information must provide to the covered entity a written and notarized statement and accompanying documentation indicating that reasonable efforts have been made to:
  1. (A) Ensure that an individual who is the subject of the information requested has been notified of the request, or
  2. (B) Secure a qualified protective order for the information.
2. (2) The notice described in subdivision (c)(1) must include sufficient detail to permit the individual who is the subject of the information requested to identify the court in which the matter for which the information sought is pending, and raise an objection with the court.
3. (3) The notarized statement described in subdivision (c)(1) must require that the party seeking protected health information file a separate statement and accompanying documentation demonstrating:
  1. (A) That a period of forty-five (45) days has lapsed since the individual was provided with the notice; and
  2. (B)
    1. (i) The individual or the individual's representative has not filed an objection; or
    2. (ii) If an objection has been filed, the filed objections have been resolved by the court and the disclosures being sought are consistent with that resolution.
(d) A local government entity may opt out of the requirements of this section upon passage of a resolution by a simple majority vote of the entity's governing body.

Chapters 28, 29 [Reserved]

Chapter 30 State Service

Part 1 General Provisions

§ 8-30-101. Purpose — Policy — Construction — Governance.

(a) The purpose of this chapter is to establish in the state a system of personnel administration that will attract, select, retain and promote the best employees based on merit and equal opportunity, and free from coercive political influences. Because the citizens of the state deserve services from the best employees, the goal of the state personnel system is to provide technically competent employees to render impartial services to the public at all times and to render such services in an ethical and honorable manner. Specifically, the intent of the general assembly is to further this purpose by allowing agencies greater flexibility in personnel management in order to enhance the overall effectiveness and efficiency of state government. The general assembly further intends that state government operate within a framework of consistent best practices across all state agencies and entities and that the state's most valued resource, its employees, be managed in a manner designed to enhance work force productivity and demonstrate sound business practices.
(b) It is the policy of the state that agencies treat all employees in accordance with the following principles:
1. (1) Assuring fair treatment of applicants and employees in all aspects of personnel administration without regard to race, color, national origin, gender, age, disability, religion or creed, or political opinions or affiliations. This “fair treatment” principle includes compliance with all applicable state and federal equal employment opportunity and nondiscrimination laws;
2. (2) Recruiting, selecting, and promoting employees on the basis of their relative skills, abilities, competencies and knowledge, including an open process to consider qualified applicants for initial employment;
3. (3) Providing equitable and adequate compensation based on merit, performance, job value, and competitiveness within applicable labor markets;
4. (4) Training and developing employees, as needed, to assure a high level of performance and to provide work force knowledge and skills needed to maintain and advance the state's goals and objectives;
5. (5) Retaining employees on the basis of the adequacy of their performance, correcting inadequate performance when possible and appropriate, and separating employees whose performance and personal conduct is inadequate, unsuitable or inferior; and
6. (6) Assuring that employees are protected against coercion for partisan political purposes and are prohibited from using their official authority for the purpose of interfering with, or affecting the result of, an election or nomination for office.
(c) This chapter shall be liberally construed in order to increase governmental efficiency and responsiveness and to secure the employment of qualified persons in the state preferred service.
(d) The personnel administration system adopted under this chapter shall govern and limit all other state employment matters and every appointing authority.

§ 8-30-102. Application of chapter.

(a) Except as provided in subsection (b), this chapter applies to all personnel in state service. “State service” means all officers and positions of trust or employment in the service of state government in the executive branch and all boards, commissions and agencies of state government, except those specifically excluded in this chapter.
(b) This chapter does not apply to the following:
1. (1) The legislative branch of state government including, but not limited to, employees of the fiscal review committee, and employees of any other committee, office or other entity created pursuant to law or resolution of either house of the general assembly for the purpose of serving either or both houses of the general assembly in executing its duties under the constitution of Tennessee;
2. (2) The judicial branch of state government including, but not limited to, employees of the administrative office of the courts;
3. (3) The office of the secretary of state;
4. (4) The office of the state treasurer;
5. (5) The office of the comptroller of the treasury;
6. (6) The office of the attorney general and reporter;
7. (7) The offices of the district attorneys general and the district public defenders;
8. (8) The schools, institutions, and entities governed by the state university boards, the board of regents, and the board of trustees of the University of Tennessee, including the members of the teaching staffs and the staffs of the boards themselves; and only certified professional employees of the Tennessee School for the Blind, Tennessee School for the Deaf, West Tennessee School for the Deaf, Alvin C. York Institute, and any other special school hereafter established;
9. (9) Any administrative boards and commissions, or any other officers or employees, attached to the entities listed in subdivisions (b)(1)-(8) for administrative purposes;
10. (10) The Tennessee higher education commission and all employees of that commission;
11. (11) All employees of the Tennessee advisory commission on intergovernmental relations;
12. (12) The Tennessee housing development agency and all employees of that agency; and
13. (13) All employees of the Tennessee rehabilitative initiative in correction board.
(c) The commissioner shall, upon request of the heads of any of the excluded entities enumerated in subsection (b), perform any of the functions set forth in this chapter. Such a request shall not be deemed to make this chapter applicable to those entities.

§ 8-30-103. Chapter definitions.

As used in this chapter, unless the context otherwise requires:
1. (1) “Appointing authority” means a commissioner, department, officer or agency having power to make appointments to, and separations from, positions in state service;
2. (2) “Board of appeals” means the state employees' appeals board established by § 8-30-108 of this chapter;
3. (3) “Class” or “class of positions” means a group of positions in state service determined by the commissioner to have sufficiently similar duties, authority, and responsibility such that:
  1. (A) The same qualifications may be reasonably required for; and
  2. (B) The same schedule of pay may be equitably applied to;
  3. all positions in the group;
4. (4) “Commissioner” means the commissioner of human resources appointed under § 8-30-104;
5. (5) “Department” means the department of human resources pursuant to § 8-30-104. The term includes the commissioner;
6. (6) “Executive service” means all other positions that have not been placed under the preferred service and as are described in § 8-30-202;
7. (7) “Official station” means the town or city where the employee performs a majority of the employee's duties;
8. (8) “Preferred service” means all offices and positions of employment in the state service that have been placed under the preferred service provisions of this chapter;
9. (9) “State agency” means an authority, board, branch, commission, committee, department, division, or other instrumentality in state service that is subject to this chapter; and
10. (10) “State service” shall have the same meaning assigned in § 8-30-102(a).

§ 8-30-104. Authority of commissioner — Supervisory personnel — Designees.

(a) The commissioner, as executive head of the department of human resources, shall direct and supervise all administrative and technical human resources activities of state service. In addition to other authority and responsibilities imposed upon the commissioner by law, the commissioner shall have the authority to:
1. (1) Survey the administrative organization and procedures, including personnel procedures, of all state agencies, and submit to the governor measures to do the following among state agencies:
  1. (A) Secure greater efficiency and economy;
  2. (B) Minimize the duplication of activities; and
  3. (C) Effect better organization and procedures;
2. (2) Prescribe rules and regulations for the administration and execution of this chapter in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5;
3. (3) Develop personnel policies, methods, procedures, and standards for all state agencies;
4. (4) Establish and maintain a roster of all employees in state service;
5. (5) Appoint such departmental employees, experts, and special assistants as may be necessary to carry out this chapter;
6. (6) Establish, execute and administer a classification and compensation plan for all employees in state service;
7. (7) Approve or disapprove and record the appointments, transfers, demotions, promotions, suspensions, dismissals, layoffs, reclassifications, reappointments, resignations, sick, annual, compensatory and special leave, and hours of service of employees;
8. (8) Implement a job performance evaluation system for employees in state service;
9. (9) Make available education development specialists, who will administer educational and training programs for employees in the state service, including legal compliance, professional skills, talent development and leadership development. The commissioner shall approve any out-service training for state employees;
10. (10) Require that appointing authorities notify the employee of the right to appeal the employee's dismissal, demotion or suspension, if any such right exists, and the time in which the employee must exercise the employee's right to appeal;
11. (11) Make available employee relations specialists to:
  1. (A) Offer assistance in employment related problems; and
  2. (B) Help employees understand the procedures that are available for appeals;
12. (12) Evaluate the need for existing positions and approve new positions in state service and compensation for such positions;
13. (13) Check all payrolls and other compensation for personal services, and supply the information to the commissioner of finance and administration, before the same may be properly authorized for payment;
14. (14) Investigate personnel, salary rate and ranges, and employment conditions in state service as may be requested by the governor, and require the attendance of witnesses and production of documentary evidence pertinent to any such investigation;
15. (15) Process for payroll entry the personnel records of the state special schools; the state board of education shall have the exclusive authority to employ such personnel and determine their compensation;
16. (16)
  1. (A) In consultation with the commissioner of finance and administration, to designate a position or positions of appropriate classification within each executive branch agency of state government as chief fiscal officer or officers for that agency. Qualifications and appointments to fill any such position that, from time to time, may be vacant shall be in accordance with procedures established by the commissioner of human resources, with the approval of the commissioner of finance and administration;
  2. (B) For the purposes of this subdivision (a)(16), “chief fiscal officer” means the position within a state agency that has overall daily responsibility for oversight of the agency fiscal operation;
17. (17) Implement, administer, and enforce this chapter and rules and policies adopted under this chapter; and
18. (18) Perform any other lawful acts that the commissioner considers necessary or desirable to carry out this chapter.
(b) All supervisory personnel, during the time such person is employed by the state to hold such position, shall be physically present in Tennessee while supervising employees working within Tennessee unless business reasons require out-of-state travel. Supervisory personnel shall include any person who oversees, directs or manages the work, work flow, or employees in the performance of their daily duties. Nothing in this subsection (b) shall be construed as prohibiting telework policies issued by the department.
(c) The commissioner and appointing authorities may appoint a designee as they deem necessary to act within the scope of this chapter.

§ 8-30-105. Rules have force and effect of law.

Rules adopted under this chapter shall have the force and effect of law, and may include any provision relating to state employment consistent with the laws of this state, which may be necessary or appropriate to give effect to the provisions and purposes of this chapter.

§ 8-30-106. Powers of department.

To carry out the purposes of this chapter, the department may do the following:
1. (1) Contract with persons outside the department as the commissioner deems necessary;
2. (2) Administer oaths;
3. (3) Issue subpoenas to compel the attendance of witnesses and the production of documents related to any investigation or hearing authorized by this chapter and secure enforcement of such subpoenas by petition to the chancery court of Davidson County; and
4. (4) Maintain such action or proceeding at law or in equity as the commissioner considers necessary or appropriate to secure compliance with this chapter and the rules, regulations and orders issued hereunder.

§ 8-30-107. Compliance with chapter — Penalty.

(a) All officers and employees of the state shall comply with this chapter and the rules, regulations and orders established pursuant to this chapter, unless a specific exemption applies.
(b) A state officer or employee who fails to comply with any provision of this chapter or with any rule, regulation or order thereunder commits a Class C misdemeanor.

§ 8-30-108. Board of appeals.

(a) There is created and established in the department of human resources a board of appeals. The board shall be comprised of a minimum of nine (9) members and a maximum of eighteen (18) members, in the discretion of the commissioner.
(b) The members of the board of appeals shall be citizens of the state. No member of the board of appeals shall be a member of any state or national committee of a political party or shall hold or be a candidate for any public office.
(c)
1. (1) The governor shall appoint the members of the board of appeals from the public at large, and shall strive to appoint members that reflect the geographic, racial, and gender diversity of the state population.
2. (2)
  1. (A) Members appointed pursuant to Chapter 800 of the Public Acts of 2012, and serving on March 1, 2014, shall continue to serve until the expiration of such members' terms and, thereafter, persons shall be appointed in accordance with subsection (a) for a term ending six (6) years from the date of the expiration of the term for which the members' predecessors were appointed.
  2. (B) If the commissioner determines that additional members shall be appointed to serve on the board in accordance with Chapter 689 of the Public Acts of 2014, then the governor shall appoint such members to serve initial terms of six (6) years. Thereafter, such members shall be appointed for a term ending six (6) years from the date of the expiration of the term for which the member's predecessor was appointed.
3. (3) A person appointed to fill a vacancy occurring prior to the expiration of such term shall, however, be appointed for only the remainder of the unexpired term.
4. (4) The governor may remove a member of the board of appeals for cause. Removal for cause may include, but is not limited to, three (3) consecutive absences from a meeting of the board of appeals.
(d) The commissioner shall establish the compensation for the members of the board of appeals. The members shall be entitled to reimbursement for reasonable necessary travel expenses in accordance with the state comprehensive travel regulations promulgated by the department of finance and administration and approved by the attorney general and reporter.
(e) The board of appeals shall elect one (1) of its members as chair. The board of appeals shall meet at least once every three (3) months and at such other times as shall be specified by call of the chair, the commissioner of human resources, or the governor. Notice of each meeting shall be given in writing to each member by the commissioner, and such notice shall specify the place and the time of the meeting. Three (3) members shall constitute a quorum.
(f) In addition to the duties expressly imposed upon the board of appeals elsewhere in this chapter, the board of appeals shall have jurisdiction to hear appeals brought pursuant to this chapter and regulations promulgated pursuant thereto. The board of appeals shall also be the final step in the appeals procedure provided for preferred service employees.

Part 2 Preferred and Executive Service

§ 8-30-201. Division of state service into preferred service and executive service.

State service is divided into the preferred service and executive service.

§ 8-30-202. Executive service positions — Preferred service positions — Determination of equivalent positions.

(a) The following positions shall be executive service positions:
1. (1) Any officer or employee appointed by the governor and all positions in the governor's office;
2. (2) Any deputy commissioner or equivalent authority in each department or state agency;
3. (3) Any assistant commissioner or equivalent authority in each department or state agency;
4. (4) Wardens and directors of correctional facilities identified in title 41 and chief officers of mental health institutes or developmental centers identified in title 33;
5. (5) The head of a division or major unit within a state agency or a regional director or manager for a state agency, regardless of the title of the position, who, as a substantial part of the position's duties, provides meaningful input on:
  1. (A) The development of policy goals; or
  2. (B) The implementation of policy;
6. (6) The highest ranking employee of a state agency who has a primary responsibility for one (1) or more of the following functions:
  1. (A) Public information and legislative affairs;
  2. (B) Fiscal, budget and audit matters;
  3. (C) Security or internal affairs;
  4. (D) Information technology systems; and
  5. (E) Human resources;
7. (7) A clinical director, medical director, or other licensed physician;
8. (8) A licensed attorney engaged in the practice of law and representing the state in such capacity;
9. (9) Any position serving in a confidential capacity to a commissioner, deputy commissioner, assistant commissioner or equivalent authority; and
10. (10) An employee of the department of mental health and substance abuse services who is a psychiatric hospital assistant superintendent, psychiatric hospital administrator, or psychiatric hospital nurse executive.
(b) An employee in the executive service is an employee at will and serves at the pleasure of the employee's appointing authority.
(c) All other full-time positions in state service shall be in the preferred service.
(d) An employee becomes a member of the preferred service upon successful completion of the probationary period under this chapter.
(e) Preferred service employees include any commissioned member of the department of safety, below the rank of captain, serving in the capacity of executive security, who has been so certified by the commissioner of safety to the commissioner of human resources.
(f) The commissioner shall determine equivalent levels for the purpose of assigning positions not specifically addressed in subsection (a) to the preferred or executive service. Such determination may be based on duties, responsibilities and reporting relationships and shall not be subject to review through any procedure. However, within any department, implementation of this provision shall not jeopardize federal funding resources.

§ 8-30-203. Determination of authority, duties and responsibilities of state preferred service positions — Classification plan — Role of commissioner — Statement of minimum qualifications — Upgrades in classification plan.

(a) The commissioner, after consulting with appointing authorities and other qualified authorities, shall determine, or cause to be determined, the authority, duties, and responsibilities of all positions in the state preferred service.
(b) The commissioner shall prepare a classification plan that groups all positions in the preferred service in classes, based on the authority, duties, and responsibilities of each position. The classification plan must set forth, for each class of positions, the class title and a statement of the authority, duties, and responsibilities of the class. Each class of positions may be subdivided, and classes may be grouped and ranked in such manner as the commissioner considers appropriate.
(c) The commissioner shall periodically:
1. (1) Review the positions in the state preferred service; and
2. (2) Reallocate the positions to the proper classes based on the duties and responsibilities of the positions at the time of the review under subdivision (c)(1).
(d) The commissioner shall also prepare a statement of minimum qualifications for each class of positions in the preferred service.
(e) When any position classification is upgraded in the classification plan, all employees in that position classification shall receive any necessary salary adjustment so that the employee's salary does not fall below the minimum range of the classification.

§ 8-30-204. Commissioner approval for establishing new preferred service position or making material change.

Before establishing a new position in the preferred service or making a material change in the authority, duties, or responsibilities of a position in such service, an appointing authority shall receive approval from the commissioner in writing.

§ 8-30-205. Changes in classification plan.

The commissioner may, at any time, allocate any new position to a class, or change the allocation of any position to a class, or make changes in the classification plan. If any change is made in the classification plan by which a class of positions is divided, altered, or abolished, or the classes are combined, the commissioner shall reallocate the positions and/or the affected employee to the appropriate class.

§ 8-30-206. Approval required for classification title — Use of working job titles.

No person shall be appointed to or employed in a position in the preferred service under a classification title that has not been approved by the commissioner as appropriate to the duties to be performed. Nothing in this section prohibits the use of working job titles assigned by the appointing authority.

§ 8-30-207. Compensation plan — Merit pay system — Periodic salary increases.

(a) The commissioner shall prepare and recommend to the governor a compensation plan for all employees. Such compensation plan shall include, for each class of positions, a minimum and maximum rate, and such intermediate rates as the commissioner considers necessary or equitable. In establishing such rates, the commissioner shall consider the ability to effectively recruit for positions in state service, the prevailing rates of pay for the services performed and for comparable services in public and private employment, living costs, other benefits received by employees, and the state's financial condition and policies. The compensation plan shall take effect when approved by the governor. The commissioner may initiate and recommend amendments, from time to time, to the governor. Each employee shall be paid at one (1) of the rates set forth in the compensation plan for the class of positions, in which the employee is employed. The commissioner may approve payment at a rate above that assigned to the employee's position in the compensation plan when the commissioner determines it to be in the interest of the state. Nothing in this chapter shall be construed to affect salary surveys and compensation schedules conducted and implemented pursuant to statute, including, but not limited to title 4, chapter 7, part 2.
(b) Notwithstanding any law to the contrary, the commissioner shall establish guidelines to govern the distribution of any funds which may be available for merit pay for members of the state service.
1. (1) The guidelines shall establish objectively measurable criteria, which ensure that the merit pay system:
  1. (A) Rewards above-average performance;
  2. (B) Improves efficiency;
  3. (C) Encourages participation in programs that will improve job performance and skills; and
  4. (D) Does not permit, facilitate or promote discrimination on account of race, color, national origin, gender, age, disability, religion or creed, veteran's status or political opinions or affiliations.
2. (2) Such guidelines shall also provide that merit pay funds are consistently distributed in a fair and equitable manner.
3. (3) All employees shall be eligible for merit pay pursuant to rules promulgated by the department.
(c) Each employee whose job conduct and performance are satisfactory shall receive a periodic salary increase, if and when, authorized by the legislature; provided, that employees at or above the top step of their salary ranges shall not be eligible for such a salary increase. Periodic salary increases shall only be awarded to employees who have completed twelve (12) continuous months of state service as of July 1 each year. Employees who have not completed twelve (12) continuous months of state service as of July 1 each year shall be eligible for a periodic salary increase upon completion of twelve (12) continuous months of state service. Periodic salary increases shall be subject to availability of funds as provided in the general appropriations act for each fiscal year.

§ 8-30-208. State compensatory time.

The commissioner shall establish guidelines for the accumulation and use of state compensatory time not governed by the Fair Labor Standards Act (2 U.S.C. § 1313, et seq.). Employees who accumulate the maximum number of hours of state compensatory time or more shall be paid for each additional hour of overtime worked based on that employee’s hourly wage. Payment shall be made at the end of each pay period for eligible hours accumulated during the previous pay period.

§ 8-30-209. Assignment to higher level classification — Approval — Duration — Compensation.

No preferred service employee shall be assigned to perform the majority of the duties and responsibilities of a position in a higher level classification than that of the position occupied by the employee, without the approval of the appointing authority. When an employee is so assigned, the duration of such assignment may not exceed ninety (90) days without the approval of the commissioner. The commissioner, in consultation with the commissioner of finance and administration, shall establish a procedure under which an employee who is assigned to perform the majority of the duties and responsibilities of a higher level classification for a period in excess of ninety (90) days shall receive additional compensation for such assignment.

§ 8-30-210. Certification of payroll voucher or account.

(a) No employee may receive payment, unless the commissioner or the commissioner's agent has certified that the employee has been appointed and employed in accordance with this chapter and the rules, regulations and orders issued thereunder.
(b) If the commissioner wrongfully withholds certification of the payroll voucher or account of any employee, the employee may maintain a proceeding in a court of record to compel the commissioner to certify such payroll voucher or account.

§ 8-30-211. Recovery of moneys unlawfully paid.

(a) The commissioner may bring an action to recover any sum paid contrary to any provision of this chapter or of any rule, regulation or order thereunder from:
1. (1) Any employee who made, approved or authorized such payment or who signed or countersigned a voucher, payroll, check or warrant for such payment;
2. (2) The sureties on the official bond of any such officer; or
3. (3) Any employee who incorrectly or improperly received any payment from the state.
(b) All moneys recovered in any such action shall be paid into the state treasury.

Part 3 State Employment

§ 8-30-301. Commissioner’s duties to inform prospective applicants — Hiring requirements — Assessments confidential.

(a) The commissioner shall inform prospective applicants for state employment of the process for obtaining state employment.
(b) The commissioner shall give public notice of a job opening at least one (1) week prior to the closing of the application period.
(c) The commissioner shall include the duties of, and pay for, the position or the class, the qualifications required for such position, and any other information that the commissioner considers pertinent and useful. The notice shall also state the requisite assessment method.
(d) All assessments administered by the department, the total bank of questions from which such assessments were developed and the answers thereto shall be confidential and shall not be public records or state records open for public inspection in accordance with § 10-7-503.

§ 8-30-302. Reassignment of executive service position to preferred service — Commissioner certification of minimum qualifications.

(a) If an executive service position is reassigned to the preferred service, the incumbent employee may, within one (1) year, be given a noncompetitive assessment in a manner prescribed by the commissioner.
(b)
1. (1) The commissioner shall certify whether each employee has met the minimum qualifications to retain the position. Upon certification, the employee shall be classified as a preferred service employee.
2. (2) An employee who is not certified shall be dismissed from the position as soon as is practicable, but no later than sixty (60) days after certification, unless the appointing authority notifies the commissioner that the employee has rendered satisfactory service and should be retained.

§ 8-30-303. Assessments to establish lists of pools of candidates — Substitution of working test period for applicant with disability — Written notification of results — Corrections of errors in assessment results.

(a)
1. (1) The commissioner shall, from time to time, conduct the assessments that the commissioner considers necessary for the purpose of establishing pools of candidates.
2. (2) The assessments shall be competitive and shall be designed to determine the qualifications, fitness and ability of the applicant to perform the duties of the class of positions for which a pool is to be established. The assessment may consist of a written, oral, or physical exam, or a demonstration of skills, or any combination of such types. The assessment may also consist of an evaluation of education, experience, skill, ability, competency, knowledge, aptitude, capacity, character, and other qualifications as, in the judgment of the commissioner, may determine and measure the relative ability of the applicant.
3. (3) No part of an assessment shall be framed to elicit information concerning the race, color, national origin, gender, age, disability, religion or creed, or political opinions or affiliations of an applicant.
4. (4) An assessment may be used in lieu of an interview by the commissioner or an appointing authority to satisfy any requirements of this chapter. If an assessment is used in lieu of an interview, notice of such use may be included in the job announcement.
(b) The commissioner may substitute a working test period in lieu of a written assessment for an applicant with a disability, who has been certified as unable to perform such a test by the department. The working test period shall not exceed one (1) year.
(c) The commissioner shall notify each applicant in writing of the results of the assessment as soon as reasonably practicable.
(d) A manifest error in the assessment result shall be corrected, if called to the attention of the commissioner within one (1) month after the establishment of the pool of candidates. The correction, however, shall not invalidate any appointment previously made from such pool.

§ 8-30-304. Rejection of applicants — Notification of rejection.

(a) The commissioner may reject the application of any person for admission to an assessment or may strike the name of a person from a pool, if the department determines that the applicant:
1. (1) Lacks any of the required qualifications;
2. (2) Is incapable of performing the essential functions of the position that the applicant is seeking;
3. (3) Has been convicted of a crime rendering the applicant unsuitable for a particular position;
4. (4) Has been dismissed for cause from state service;
5. (5) Has made a false statement of a material fact; or
6. (6) Committed or attempted to commit a fraud or deception in connection with submitting an application or attempting to secure an appointment to state service.
(b) Any person whose name is removed from a pool of candidates for any reason shall be notified.

§ 8-30-305. Establishment and maintenance of pool of candidates.

(a) The commissioner shall establish and maintain a pool of candidates for the various classes of positions as the commissioner deems necessary or desirable to meet the needs of the service.
(b) At the time a pool of candidates is established, the commissioner shall determine the period during which such pool shall remain in force.
(c) No person who is required to register for the federal draft under 50 U.S.C. Appx. § 453 shall be eligible for employment with the state of Tennessee until such person has registered for such draft.

§ 8-30-306. Filling position in preferred service proposed by appointing authority.

(a)
1. (1) Whenever an appointing authority proposes to fill a position in the preferred service, the authority shall submit to the commissioner a statement showing the position to be filled, the duties for such position, the official station, the minimum qualifications and preferred skill, abilities, competencies and knowledge of the person to be appointed.
2. (2) The commissioner shall refer a pool of candidates who meet the minimum qualifications for the position.
3. (3) An appointing authority shall offer an invitation to interview to a minimum of three (3) applicants from the referred pool of candidates, if three (3) or more applicants are in the pool. If fewer than three (3) applicants are in the pool of candidates, then the appointing authority shall invite each person in the pool to interview.
4. (4) Within thirty (30) calendar days after being referred a pool of candidates, the appointing authority shall appoint one (1) of the applicants in the pool of candidates.
(b) Upon the request of the appointing authority, the commissioner may establish employment, promotional, unit, divisional or any other pool of candidates as deemed necessary or appropriate.
(c) If the official station of the vacancy to be filled is permanently located outside the geographic boundaries of the state, then the appointing authority may fill the vacancy without complying with subsections (a) and (b).
(d) In applying this chapter, no person shall give any weight to political opinions or affiliation. No person holding a position in the preferred service shall solicit, directly or indirectly, or require any other person to solicit, directly or indirectly, donations or contributions for any political party, candidate, cause or purpose in order to acquire or deny a position in state service or to materially affect the retention, promotion or demotion of any employee in state service.

§ 8-30-307. Invitations to interview candidates who are armed forces veterans — Preference to veterans — Spouse or surviving spouse of veteran.

(a) When invitations to interview candidates are extended, whether for appointment or promotion, and the pool of candidates includes any person who has been honorably discharged from the army, navy, air force, marine corps or coast guard or any member of the reserve components, as defined in 10 USC § 10101, who performs active federal service in the armed forces of the United States, these persons must be invited to interview.
(b) If a veteran is on the pool of candidates, and if the minimum qualifications and the skills, abilities, competencies and knowledge of the veteran and any another applicant being interviewed for the position are equal, preference shall be given to the veteran for the position.
(c) When invitations to interview candidates are extended, whether for appointment or promotion, the spouse or surviving spouse of a veteran must be invited to interview, if the spouse or surviving spouse is a qualified voter in Tennessee or has been a resident of this state for two (2) years preceding such person's application, and one (1) of the two (2) following circumstances exists:
1. (1) As a result of such military service, the veteran suffered a one hundred percent (100%) service-connected disability or is permanently and totally disabled; or
2. (2)
  1. (A) The veteran died in the line of duty during such military service; and
  2. (B) The surviving spouse has not remarried since the death of the veteran.
(d) Any appointing authority who passes over an eligible veteran and selects an eligible nonveteran shall file with the commissioner, within thirty (30) days, the reasons for so doing, which reasons will become a part of the veteran's record, but will not be made available to anyone other than the veteran, except in the discretion of the appointing authority.

§ 8-30-308. Probationary period of employment for preferred service employees.

(a) Every person appointed to a position in the preferred service shall be subject to a probationary period of employment. The probationary period shall commence immediately upon appointment and shall continue for such time, not less than one (1) year, as shall be established by the commissioner. At any time during the employee's probationary period the appointing authority may remove the employee if, in the opinion of the appointing authority, the employee's performance or conduct during the probationary period indicates that such employee is unable or unwilling to satisfactorily perform or is not satisfactorily performing the employee's duties, or that the employee's habits, dependability, or conduct do not merit continuance in the service.
(b) During the last month of an employee's probationary period, the appointing authority shall notify the commissioner in writing whether the performance and conduct of the employee have been satisfactory and whether continued employment is recommended.
(c) An employee in the preferred service who accepts another preferred service position within the same state agency shall serve a subsequent probationary period for a time period of not less than one (1) year. An employee serving a subsequent probationary period may appeal a suspension, demotion, or separation from service; provided, that an employee shall not appeal a demotion that returns the employee to the employee's immediately preceding former position.

§ 8-30-309. Temporary appointments.

(a) When an appointing authority desires to fill a position in the preferred service, and the commissioner cannot timely evaluate the pool of candidates for such vacancy, the commissioner may authorize the appointing authority to fill the position by temporary appointment for a period not to exceed six (6) months. A temporary appointee shall hold a position only until an appropriate pool has been established, the required evaluation is completed, and the appointment of the preferred service employee begins. No temporary appointment shall be renewed.
(b) An appointing authority may, with the approval of the commissioner, temporarily fill an existing preferred service position, for a period not to exceed ninety (90) days, by utilizing a temporary staffing service having a contract with the state to provide short-term temporaries. This subsection (b) applies only to the utilization of vendor-supplied temporaries.
(c) If the position to be filled is not officially vacant, the appointing authority must obtain the commissioner's approval to overlap the position with another prior to making an appointment.

§ 8-30-310. Emergency appointments.

When an emergency occurs, affecting the ability to fill a position in the preferred service under any other provision of this part, an appointing authority, in order to prevent stoppage of public business or loss or serious inconvenience to the public, may appoint any qualified person to such position with the approval of the commissioner. Any such person shall be employed only during such emergency and for a period not exceeding one hundred twenty (120) days. No such appointment shall be renewed.

§ 8-30-311. Unskilled and custodial positions.

(a) For positions involving basic clerical, unskilled or semiskilled labor, or domestic, attendant or custodial work, when the character or place of the work makes it impracticable to supply the needs of the service by appointments made in accordance with the procedure prescribed by this part, the commissioner may adopt, or authorize the use of, such other procedures as the commissioner determines to be appropriate in order to meet the needs of the service.
(b) The commissioner may provide input on all contracts with the private sector to perform the functions or jobs listed in subsection (a). The commissioner may be involved in the communications with any employee whose job may be terminated as the result of a contract with a private party.

§ 8-30-312. Transfers.

(a) An appointing authority may at any time assign an employee from one position to another position in the same job classification or rank within the same department. Upon making such assignment, the appointing authority shall give written notice of such action and the reasons for such action to the commissioner.
(b) A transfer of an employee from one department to another may be made with the approval of the commissioner and of the appointing authorities. The appointing authority, or authorities, with the approval of the commissioner, shall have authority to make such a transfer for any reason that they may deem to be for the good of the service. Their actions shall not be subject to appeal except as provided in this chapter.
(c) No employee shall be transferred from a position in one class to a position in another class of a higher rank or for which there are substantially dissimilar requirements for appointment, unless the employee is appointed to such latter position after certification of the employee's name from a pool of candidates in accordance with this chapter.
(d) Any change of an employee from a position in one class to a position in a class of a lower rank shall be considered a demotion, except that the employee shall not be considered to have been demoted and shall not be required to serve a period of probation, if the change from a position in one class to a position in a class of a lower rank occurred:
1. (1) At the employee's request, with the concurrence of the department or agency; or
2. (2)
  1. (A) Because of a change in the organizational structure of the government entity;
  2. (B) Because of the abolishment of a position;
  3. (C) As the result of a reduction in force;
  4. (D) For reasons caused by organizational necessity; or
  5. (E) As a result of compliance with § 8-30-205.

§ 8-30-313. Performance standards and expected outcomes — Job performance evaluations.

(a) In cooperation with appointing authorities, the commissioner shall establish, and may periodically amend:
1. (1) The standards of performance for employees;
2. (2) The expected outcomes for employees; and
3. (3) A system of job performance evaluations based upon the standards described in subdivisions (a)(1) and (2).
(b) Employee performance standards and expected outcomes must be specific, measurable, achievable, relevant to the strategic objective of the employee's state agency or division, and time sensitive.
(c) Each appointing authority shall, at periodic intervals (but at least annually), make, and report to the commissioner, job performance evaluations for the employees in the appointing authority's department or state agency. Upon request by the commissioner, the appointing authority shall provide the information on which the appointing authority relied in evaluating job performance.
(d) The performance evaluations of state service employees shall not be considered public records under § 10-7-503. Nothing in this subsection (d) shall be construed to limit access to these records by law enforcement agencies, courts, or other governmental agencies performing official functions.
(e) Job performance evaluations may be used as follows:
1. (1) To determine salary increases and decreases within the limits established by the compensation plan developed under this chapter;
2. (2) As a factor in making or denying promotions; and
3. (3) As a means of determining employees:
  1. (A) Who are candidates for promotion or transfer; or
  2. (B) Who, because of a low job performance evaluation, are candidates for demotion, dismissal or reduction in force.
(f) In the process of establishing the system of job performance evaluations, the department shall afford representatives of recognized employee groups an opportunity to present facts, views or arguments related to the proposed system of job performance evaluations.

§ 8-30-314. [Reserved]

§ 8-30-315. Employee suspension for disciplinary purposes.

An appointing authority may suspend without pay an employee, for disciplinary purposes, for such length of time as the authority considers appropriate, not exceeding thirty (30) days in any twelve-month period. With the approval of the commissioner, an employee may be suspended for a longer period pending the appeal or the processing of an appeal in accordance with this chapter.

§ 8-30-316. Dismissal, demotion or suspension for cause.

(a) An employee in the preferred service who has successfully completed a probationary period becomes a preferred service employee and may be dismissed, demoted, or suspended for cause. The dismissal of a preferred service employee will take effect immediately after the appointing authority gives notice to such employee and files a written statement with the commissioner. The employee shall continue to receive compensation for ten (10) days following the date of dismissal.
(b) An appointing authority may dismiss any employee when the authority determines that the good of the service will be served thereby. Whenever an employee is dismissed “for the good of the service,” the notice of termination must outline the reasons for dismissal.
(c) If an employee in state service willfully refuses or fails to appear before any legislative committee, or any officer, board or body authorized to conduct any hearing or inquiry, the employee shall forfeit the employee's position and shall not be eligible for appointment to any position in state service.
(d) Any employee who is absent from duty for more than three (3) consecutive work days without giving prior written or electronic notice to the appointing authority or appropriate manager that specifies the reason for such absence, and without securing permission to be on leave, or who fails to report for duty or to the immediate supervisor or the appointing authority within two (2) work days after the expiration of any authorized leave of absence, is considered as having resigned not in good standing, absent extenuating circumstances beyond the control of the employee causing the employee's absence or preventing the employee's return. An employee deemed to have resigned in accordance with these circumstances shall have the right to appeal such action through the appeal procedure described herein.
(e) The commissioner may dismiss an employee if the commissioner finds that the employee was appointed as a result of fraud.
(f) A preferred service employee is entitled to appeal a dismissal, demotion, or suspension as provided in § 8-30-318.
(g) A notice of termination shall include the reason for the termination in clear and concise language and shall state the facts that led to the termination.

§ 8-30-317. [Reserved]

§ 8-30-318. Appeal procedure for employees.

(a) The department shall promulgate rules and guidelines establishing an appeal procedure for employees, which shall include the orderly conduct of proceedings.
(b) An employee in the preferred service system, who has successfully completed the required probationary period, may file an appeal concerning the application of a law, rule, or policy to the dismissal, demotion, or suspension of the employee. If the term of the suspension is less than three (3) days, the right to appeal is limited to an appeal to the commissioner under Step II, codified as subdivision (g)(1)(B). An employee shall not be entitled to appeal a suspension of less than three (3) days to the board of appeals.
(c) An executive service employee, however, does not have standing to file an appeal under this section.
(d) An employee who files an appeal under this section must file the appeal as soon as possible after the occurrence of the act or condition complained of, and not later than fourteen (14) calendar days after the date the employee became aware, or by the exercise of reasonable diligence should have become aware, of the occurrence giving rise to the appeal. If an employee fails to file the appeal within the fourteen-calendar-day period, then the right to appeal under this chapter lapses and is deemed to have been waived in its entirety by the employee.
(e) For the purposes of this chapter, an appeal is filed when the appointing authority, the commissioner, or the board of appeals, depending on whether the appeal is being made under Step I, II, or III as provided in subsection (g), receives a written or electronic copy of the appeal. If a physical copy of the appeal is mailed to the agency, then the timeliness of the appeal must be determined by the date postmarked on the envelope.
(f) A remedy granted under this section must not extend back more than thirty (30) calendar days before the appeal was filed.
(g) The following appeal procedure is established:
1. (1)
 1. (A) Step I: The appealing employee must reduce the appeal to writing and file the appeal with the appealing employee's appointing authority. In the appeal, the employee must provide a statement detailing why the discipline issued was in error and should be overturned or reduced. The appointing authority or appointing authority's designee must conduct an investigation if necessary, meet with the employee, and issue a decision, in writing, no later than twenty (20) calendar days after the date the appointing authority receives the appeal. The appointing authority or designee shall provide to the employee in advance of the meeting a copy of all relevant evidence in the appointing authority's or designee's possession. The appointing authority or designee shall make all reasonable efforts to gather all relevant evidence that is germane to the meeting prior to conducting the meeting for purposes of providing the information to the employee. If evidence is part of an active criminal investigation or prosecution by a law enforcement agency, or is otherwise deemed confidential under existing law, then the evidence must not be provided in advance of the hearing; provided, that the employee must be presented with the evidence during the meeting if the evidence will be relied upon by the appointing authority for purposes of issuing a decision. If applicable, the employee must acknowledge in writing that the employee was presented with the evidence. Unless otherwise provided for in this section, all evidence in possession of the appointing authority or designee prior to the meeting that was not provided to the employee in accordance with this subdivision (g)(1)(A) must not be considered by the appointing authority for purposes of issuing a decision. Prior to issuing a decision, the appointing authority or designee may independently collect new evidence regarding a factual issue raised during a proceeding under Step I. If the appointing authority or designee independently collects new evidence, then the appointing authority or designee must provide a copy of the new evidence, as soon as practicable, to the employee. Copies of confidential evidence must not be distributed to the employee, but the employee must be afforded an opportunity to be presented with the evidence. The employee, not later than three (3) business days after receiving the evidence, may submit a response to the appointing authority or designee in support of opposition to the new evidence, and may include with the response other evidence obtained by the employee relating to the response. The appointing authority or designee must not issue a decision until the employee has been afforded the opportunity to respond to all new evidence in accordance with this subdivision (g)(1)(A), unless doing so violates the twenty-calendar-day timeframe;
 2. (B)
 1. (i) Step II: If the appointing authority or designee does not find in favor of the employee or does not issue a timely decision, then the employee may appeal to the commissioner of human resources by filing the appeal no later than fourteen (14) calendar days after the date of the appointing authority's written decision or, in the case of a failure to issue a timely decision, the date on which the appointing authority's written decision was due. The commissioner of human resources must review the appeal and the appointing authority's decision, if any, and issue a decision in writing no later than thirty (30) calendar days after the date the appeal was filed with the commissioner. Prior to issuing a decision, the commissioner may independently collect new evidence regarding factual issues raised during a proceeding under Step I. If the commissioner independently collects such evidence, then the commissioner must provide a copy of the evidence to the employee as soon as practicable. Copies of confidential evidence must not be distributed to the employee, but the employee must be afforded an opportunity to be presented with such evidence. No later than three (3) business days after receiving the evidence, the employee may submit a response to the commissioner in support of or opposition to the new evidence, and may include with the response other evidence obtained by the employee relating to the response. The commissioner shall not issue a decision until the employee has been afforded the opportunity to respond to all new evidence or information in accordance with this subdivision (g)(1)(B)(i), unless doing so violates the thirty-calendar-day timeframe;
 2. (ii) At Step II, it is the duty of the employee to provide a written justification to the commissioner describing why the employee believes the Step I decision was in error and ought to be overturned, reduced, or amended. If there was not a timely Step I decision, then at Step II, it is the duty of the employee to provide a written justification to the commissioner describing why the employee believes the original dismissal, demotion, or suspension was in error and ought to be overturned, reduced, or amended. The written justification must specifically address the employee's individual circumstances and the merits of the Step I decision, if applicable. An employee failing to provide a written justification to the commissioner is not eligible to appeal to Step III.
 3. (C)
 1. (i) Step III: Subject to the prohibition in subdivision (g)(1)(B)(ii), an employee or an appointing authority may appeal the commissioner's Step II decision in writing to the board of appeals no later than fourteen (14) calendar days after receiving written notice of the decision. Subject to the prohibition in subdivision (g)(1)(B)(ii), and in the event that the commissioner does not issue a timely Step II decision, then an employee may appeal the decision of the appointing authority in writing to the board of appeals no later than fourteen (14) calendar days after the date on which the commissioner's Step II decision was due. Within ten (10) calendar days after the receipt of the appeal, the administrative law judge assigned to assist the board of appeals in the proceedings related to the appeal shall determine whether the appealing party timely satisfied all procedural requirements. If the appealing party did not timely satisfy a procedural requirement, then the appeal must be dismissed. Otherwise, the board of appeals shall conduct proceedings in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, as modified herein;
 2. (ii) The appealing party, whether it be the employee or appointing authority, bears the burden of proof during the Step III proceeding;
2. (2) Each hearing under this chapter must occur before a panel of at least three (3) members of the board of appeals, assisted by one (1) administrative law judge (ALJ). The ALJ shall assist at the hearing by ruling on questions regarding the admissibility of evidence, swearing-in of witnesses, advising members of the board of appeals on the law of the case, and ensuring that the proceedings are carried out in accordance with this chapter and other applicable law. At no time must the ALJ take part in the determination of a question of fact. An ALJ, upon timely motion, may decide a procedural question of law;
3. (3) The board of appeals shall issue a final decision in a proceeding no later than one hundred twenty (120) calendar days after the date of the filing of the appeal with the board of appeals unless an extension has been granted in accordance with subdivision (h)(5).
(h) In order to ensure that the board of appeals issues its final decision no later than one hundred twenty (120) days after the date of the filing of the appeal, the following conditions shall be imposed on hearings before the board of appeals:
1. (1) The parties shall participate in a pre-hearing conference no later than twenty (20) days after the filing of the appeal. At the pre-hearing conference, a date must be set on which the hearing before the board of appeals will be held;
2. (2) All discovery must be completed no later than sixty (60) days after the filing of the appeal;
3. (3) All motions, both dispositive and non-dispositive, must be ruled on no later than thirty (30) days before the date of the hearing;
4. (4) The department shall forward the record of the case, which consists of the Step I appeal, the Step I decision, the Step II appeal and the commissioner's Step II decision, to sitting board members prior to the Step III meeting for preliminary review. Evidentiary attachments to the aforementioned documents shall not be considered part of the record and shall not be submitted to the board members prior to the Step III hearing;
5. (5) An extension to a deadline provided herein must only be granted in extraordinary circumstances and with the agreement of both parties. In any event, an extension for the board of appeals to issue a Step III decision must not extend beyond one hundred forty (140) calendar days;
6. (6) Continuances of the hearing before the board of appeals may be granted only in extraordinary circumstances, as determined by the board of appeals or the ALJ; and
7. (7) Neither party shall be entitled to a petition for reconsideration under § 4-5-317.
(i) Decisions of the board of appeals are subject to judicial review in accordance with the Uniform Administrative Procedures Act and the rules and regulations promulgated thereunder, in each case as amended in this chapter.
(j) The board of appeals may award attorney's fees and costs to a successfully appealing employee. The commissioner shall establish by rule the manner in which those fees shall be determined. The unsuccessful party or other state agency shall pay any fees or costs awarded under this subsection (j).
(k) If the employee is successful in obtaining reinstatement to a position from which the employee has been terminated, the employee shall be reinstated to a position in the county in which the employee was employed at the time of termination. The commissioner may grant exceptions on a case-by-case basis.
(l) In any case in which a successful employee has been awarded reinstatement, back pay or attorney's fees, the agency involved shall have a period of thirty (30) days from the date of the final order within which to provide reinstatement, back pay and/or attorney's fees.
(m) An employee who does not appear, personally, electronically or through the appearance of counsel, for a hearing before the board of appeals waives the employee's hearing at Step III. The board shall enter a default judgment against the employee and the decision of the commissioner at Step II shall become final. In no instance shall the board of appeals proceed with the Step III hearing without the presence of the employee personally, electronically, or through the appearance of counsel.
(n) An order of the board of appeals is considered final upon execution by the presiding board member. Neither settlement agreements issued voluntarily by the parties nor decisions rendered by the board require a signature of the administrative law judge to be considered final. Once executed, the department shall forward a copy to the administrative procedures division for record purposes.
(o) The parties in a Step I appeal may make an audio tape recording of the proceeding.
(p) In a Step I appeal, if more than one (1) representative of the state agency, excluding the hearing officer, is in attendance, then the employee may have a non-lawyer representative participate in the appeal.

§ 8-30-319. Supervisor's responsibilities — Disciplinary actions.

(a) The supervisor is responsible for maintaining the proper job performance level, conduct, and discipline of the employees under the supervisor's supervision. When corrective action is necessary, the supervisor should administer disciplinary action at the step appropriate to the infraction, conduct, or performance, as determined by the supervisor.
(b) Upon written application by the employee, any written warning or written follow-up to an oral warning, which has been issued to an employee, shall be expunged from the employee's personnel file after a period of two (2) years; provided, that the employee has had no further disciplinary actions with respect to the same area of performance, conduct, and discipline.
(c) Any written warning or written follow-up to an oral warning that has been issued to an employee is void and of no effect after a period of two (2) years if the employee has not been the subject of further disciplinary action with respect to the same area of performance, conduct, or discipline within the two-year period.

§ 8-30-320. Calculation of time.

For purposes of this part and unless otherwise specified in this part, time must be calculated in accordance with § 8-30-407.

§ 8-30-321. Requirement of baccalaureate degree.

(a) A state agency shall not require as a condition of eligibility for hire to a position in state employment that an applicant have a baccalaureate degree.
(b) Subsection (a) does not apply if the knowledge, skills, or abilities required for the position for which an applicant is applying can only reasonably be obtained, as determined by the appointing authority, through a course of study in pursuit of, and culminating in the award of, a baccalaureate degree.

Part 4 Administration of Chapter

§ 8-30-401. Services to municipalities and other political subdivisions.

The commissioner may enter into agreements with any municipality or political subdivision of the state to furnish services and facilities of the department to such municipality or political subdivision in the administration of its personnel. Any such agreement shall provide for the reimbursement to the state of the reasonable cost of the services and facilities furnished, as determined by the commissioner. All municipalities and political subdivisions of the state are authorized to enter into such agreements.

§ 8-30-402. Reasonable use of public buildings.

All officers and employees of the state and of municipalities and political subdivisions of the state shall allow the department the reasonable use of public buildings under their control for conducting an assessment, hearing or investigation authorized by this part or part 3 of this chapter. The department shall pay to a municipality or political subdivision the reasonable cost of any such facilities furnished by it.

§ 8-30-403. Corrupt practices.

(a) No person shall make any false statement, certificate, mark, rating or report with regard to any assessment, certification or appointment made under any provision of this chapter, or in any manner commit or attempt to commit any fraud preventing the impartial execution of this chapter.
(b) No person shall, directly or indirectly, give, render, pay, offer, solicit or accept any money, service or other valuable consideration for or on account of any appointment, proposed appointment, promotion or proposed promotion to, or any advantage in, a position in the state service.
(c) No employee of the department, examiner, or other person shall defeat, deceive or obstruct any person in such person's right to an assessment, eligibility, certification or appointment under this chapter, or furnish to any person any special or secret information, for the purpose of affecting the rights or prospects of any person with respect to employment in the preferred service.

§ 8-30-404. Compliance with conditions of grants permitted.

Nothing in this chapter shall be construed to prevent the commissioner, in the commissioner's discretion, from permitting any department in state service from complying with any condition or limitation included in, or affecting any grant from, the federal government or other public or private source.

§ 8-30-405. Outside employment.

Nothing in this chapter shall be construed to prohibit a state employee from engaging in outside employment. Such outside employment shall not adversely affect the employee's performance with the state, create a conflict of interest between such additional employment, or conflict with the regular employment schedule of the employee.

§ 8-30-406. Hours of work, attendance, and leaves of absence.

The rules shall provide for the hours of work, holidays, attendance regulations and leaves of absence in state service. They may contain provisions for annual, sick, and special leaves of absence, with or without pay.

§ 8-30-407. Computation of periods of time.

In computing any period of time prescribed or allowed by this chapter, the date of the act or event after which the designated period of time begins to run is not to be included. The last day of the period so computed shall be included, unless it is a Saturday, a Sunday, or a legal holiday as defined in § 15-1-101, or, when the act to be done is the filing of a paper, a day on which the office where the paper to be filed is closed or on which weather or other conditions have made the office inaccessible, in which event the period runs until the end of the next day which is not one of the aforementioned days. When the period of time prescribed or allowed is less than eleven (11) days, intermediate Saturdays, Sundays, and legal holidays shall be excluded in the computation.

Chapter 31 Tennessee State Employees Uniform Nepotism Policy Act of 1980

§ 8-31-101. Short title.

This chapter shall be known and may be cited as the “Tennessee State Employees Uniform Nepotism Policy Act of 1980.”

§ 8-31-102. Chapter definitions.

As used in this chapter, unless the context otherwise requires:
1. (1)
  1. (A) “Governmental entity” means a state agency, authority, board, commission, department, or office within the executive or judicial branch of state government or any autonomous state agency, authority, board, commission, department, office, or institution of higher education; provided, that “governmental entity” does not include an agency or office of the legislative branch; and
  2. (B) The receipt of funding from various state, federal, or local governmental sources, including county or municipal funding, does not change the status of a state agency as a state governmental entity or office under this chapter or otherwise exclude the state agency from the definition of “governmental entity” under subdivision (1)(A);
2. (2) “Relative” means a parent, foster parent, parent-in-law, child, spouse, brother, foster brother, sister, foster sister, grandparent, grandchild, son-in-law, brother-in-law, daughter-in-law, sister-in-law, or other family member who resides in the same household; and
3. (3) “State employee” means any person who is employed by a governmental entity.

§ 8-31-103. Direct supervision of relatives prohibited.

Within each governmental entity, no state employees who are relatives shall be placed within the same direct line of supervision whereby one (1) relative is responsible for supervising the job performance or work activities of another relative; provided, that to the extent possible, this chapter shall not be construed to prohibit two (2) or more such relatives from working within the same state governmental entity.

§ 8-31-104. Transfer of spouses.

When as a result of a marriage, state employees are in violation of the prohibition established by § 8-31-103, such violation shall be resolved by means of such transfer within the governmental entity, transfer to another governmental entity, or resignation as may be necessary to remove such violation. The appointing authority of such governmental entity shall advise the employees of each of the alternatives available to remove such violation. Such employees shall be given the opportunity to select among such available alternatives. If such employees are unable to agree upon any such alternative within sixty (60) days, then the appointing authority shall take appropriate action to remove such violation.

§ 8-31-105. Prospective application of chapter.

The prohibition established by § 8-31-103 shall not be applied retroactively, but shall be adhered to by each governmental entity in all hiring and employee transactions subsequent to July 1, 1980.

§ 8-31-106. Conflicting nepotism policies prohibited.

This chapter shall be applied uniformly and shall constitute the nepotism policy of each governmental entity. No such governmental entity shall adopt a nepotism policy which conflicts with this chapter.

§ 8-31-107. Special school house parents excepted.

This chapter does not apply to spouses serving together as house parents at any of the state's special schools.

§ 8-31-108. Penalty for knowing or intentional violations — Presumptions.

(a) A state employee who knowingly or intentionally violates § 8-31-103, and thereafter willfully fails or refuses to remove or remedy the violation as provided by § 8-31-104, commits a Class A misdemeanor.
(b) Upon a violation of § 8-31-103 by a state employee, there is created a rebuttable presumption that a willful failure or refusal to remove or remedy the violation as provided by § 8-31-104 constitutes an actionable basis to institute ouster proceedings under chapter 47 of this title; impeachment proceedings under chapter 46 of this title; or quo warranto proceedings under title 29, chapter 35.

§ 8-31-109. Identification of employees.

A person who receives a salary or other compensation from or through a governmental entity is an employee of the governmental entity for purposes of this chapter regardless of whether the governmental entity receives funding for the employee's salary or compensation from a source other than this state.

Chapter 32 [Reserved]

Chapter 33 Employees in Military Service

§ 8-33-101. Chapter definitions.

When used in this chapter:
1. (1)
  1. (A) “Military duty” means:
    1. (i) Training and service performed by an inductee, enlistee, or reservist or any entrant into a temporary component of the armed forces of the United States; and
    2. (ii) Time spent in reporting for and returning from such training and service, or if a rejection occurs, from the place of reporting for such training and service;
  2. (B) “Military duty” also includes active duty training as a reservist in the armed forces of the United States or as a member of the national guard of the United States where the call is for training only;
2. (2) “Position” means employment held by a public employee at the time of entrance into military duty, but does not include temporary or casual employment or an office filled by election;
3. (3) “Public employee” means any person holding a position in public employment who has successfully completed the probationary period required by the agency in which such person is employed;
4. (4) “Public employer” means any government, department, or agency mentioned in subdivision (5) employing a public employee in a position; and
5. (5) “Public employment” means employment by the government of this state, or of any county, municipality or other civil or political subdivision thereof, including any department or agency thereof.

§ 8-33-102. Reemployment after discharge from service.

Any public employee who leaves a position or who left such position not earlier than June 27, 1950, whether voluntarily or involuntarily, in order to perform military duty, or who was performing military duty on June 27, 1950, and who is relieved or discharged from such duty under conditions other than dishonorable, and makes application for reemployment within ninety (90) days after such employee is relieved from military duty or from hospitalization continuing after discharge for a period of not more than one (1) year shall:
1. (1) If still physically qualified to perform the duties of such position, be restored to such position if it exists and is not held by a person with greater seniority, otherwise to a position of like seniority, status and pay; or
2. (2) If not qualified to perform the duties of such position by reason of disability sustained during such service, such public employee shall be placed in such other position, the duties of which such employee is qualified to perform as will provide the employee like seniority, status and pay, or the nearest approximation thereof consistent with the circumstances of the case.

§ 8-33-103. Reemployment in different department.

In the case of any person who is entitled to be restored to a position in accordance with §§ 8-33-101 – 8-33-108, if the commissioner of human resources finds that:
1. (1) The department or agency with which such person was employed immediately prior to such person's entry upon training and service aforementioned is no longer in existence and its functions have not been transferred to any other agency; or
2. (2) For any reason it is not feasible for such person to be restored to such department or agency,
3. the commissioner shall determine whether or not there is a position in any other department or agency of the same public employer for which such person is qualified and which is either vacant or held by a person having a temporary appointment thereto. In any case in which the commissioner determines that there is such a position, such person shall be restored to such position by the department or agency in which such position exists.

§ 8-33-104. Rights after reemployment.

Any person who is restored to a position in accordance with §§ 8-33-101 – 8-33-108 shall not be discharged from such position without cause within one (1) year after such restoration, and shall, without limiting such person's rights conferred by this or other sections, be considered as having been on furlough or leave of absence during the period of military duty. Such person shall be restored without loss of seniority (including, upon promotion or other advancement following completion of any period of employment required therefor, a seniority date in the advanced position which will place such person ahead of all persons previously junior to such person who advanced to the position during the absence in armed forces). The employee shall also be entitled on reinstatement to participate in insurance (including retirement, pension plans, and medical insurance) and other benefits dependent on length of employment, including vacation privilege and severance pay. The employee shall be protected against reduction in seniority, status, or pay during employment, except as such reduction may be made for all employees whose employment situations are similar.

§ 8-33-105. Military leave to report for duty — Reinstatement on rejection.

Any public employee who holds a position in public employment shall be granted a leave of absence for the purpose of being inducted or otherwise entering military duty. If not accepted for such duty, the employee shall be reinstated in such position without loss of seniority or status or reduction in rate of pay. During such period, the employee shall for all purposes be considered to have rendered service and to have been compensated therefor at the employee's regular rate of pay.

§ 8-33-106. Enforcement by commissioner of human resources.

(a) The commissioner of human resources is authorized and directed to issue regulations for the enforcement of §§ 8-33-101 – 8-33-108. The departments and agencies in the state government shall comply with such regulations and orders issued by the commissioner pursuant to such regulations.
(b) The commissioner is authorized and directed whenever the commissioner finds, upon appeal of the person concerned, that any state department or agency has failed or refuses to comply with §§ 8-33-101 – 8-33-108, or of regulations thereunder, to issue an order specifically requiring such department or agency to comply with such provisions and to compensate such person for any loss of salary or wages suffered by reason of failure to comply with such provisions, less any amount received through other employment, unemployment compensation or readjustment allowances; provided, that any such compensation ordered to be paid by the commissioner shall be in addition to and shall not be deemed to diminish any of the benefits of such provisions, and shall be paid by the head of the department or agency concerned out of the appropriations currently available for salaries and expenses of such department or agency, and such appropriations shall be available for such purpose.

§ 8-33-107. Enforcement in chancery.

The chancery courts for the various counties in the state of Tennessee are hereby authorized, and express jurisdiction is hereby conferred upon the chancery courts, to enforce §§ 8-33-101 – 8-33-108 in any case where a political subdivision of the state of Tennessee, county or municipality within the local jurisdiction of the chancery court has failed or refuses to comply with those sections, and to issue an order specifically requiring such political subdivision, county or municipality, to comply with those sections and to compensate such person for any loss of salary or wages suffered by reason of failure to comply with such provisions, less any amount received through other employment, unemployment compensation or readjustment allowances; provided, that any such compensation ordered to be paid by the chancery court shall be in addition to and shall not be deemed to diminish any of the benefits of such provisions and shall be paid from currently available funds of such political subdivision, county or municipality.

§ 8-33-108. Inconsistent laws inapplicable.

Any laws or parts of laws which are inconsistent with §§ 8-33-101 – 8-33-107, or which would serve to defeat the purposes thereof, shall to such extent be deemed inapplicable to public employees and public employers in the exercise of the rights and privileges conferred by those sections.

§ 8-33-109. Reservists' leave of absence.

(a) All officers and employees of this state, or any department or agency thereof, or of any county, municipality, school district, or other political subdivision, and all other public employees of this state who are, or may become, members of any reserve component of the armed forces of the United States, including members of the Tennessee army and air national guard, shall be entitled to leave of absence from their respective duties, without loss of time, pay, regular leave or vacation, impairment of efficiency rating, or any other rights or benefits to which otherwise entitled, for all periods of military service during which they are engaged in the performance of duty or training in the service of this state, or of the United States, under competent orders; provided, that an officer or employee while on such leave shall be paid salary or compensation for a period, or periods, not exceeding twenty (20) working days in any one (1) calendar year, plus such additional days as may result from any call to active state duty pursuant to § 58-1-106. The military leave herein provided shall be unaffected by date of employment or length of service and shall have no effect on other leaves provided by law, regulation, policy or practice. After the twenty (20) working days of full compensation, any public employer may provide partial compensation to its employees while under competent orders. After the twenty (20) working days of full compensation, members of any reserve component of the armed forces of the United States, including members of the Tennessee army and air national guard, may use up to five (5) days of sick leave in lieu of annual leave for the purposes of not having to take leave without pay.
(b) Notwithstanding subsection (a), after the twenty (20) working days of full compensation, any educator who is a member of any reserve component of the armed forces of the United States, including members of the Tennessee army and air national guard, is authorized, but not required, to use any accumulated sick leave in lieu of annual leave for the purposes of not having to take leave without pay when called into active duty. Nothing in this subsection (b) prohibits an educator from using up to five (5) days of an initial allotment of sick leave pursuant to § 49-5-710(a)(3) in accordance with subsection (a). For purposes of this subsection (b), “educator” has the same meaning as defined in § 49-5-204(b).

§ 8-33-110. Unpaid leave for members of Tennessee army and air national guard, Tennessee state guard and civil air patrol — Eligibility for protections — Advance notice — Jurisdiction and authority to enforce.

(a)
1. (1) Subject to the eligibility requirements of subdivision (a)(2) and in addition to the leave of absence provided in § 8-33-109, all officers and employees of this state, or any department or agency thereof, or of any county, municipality, school district, or other political subdivision, all other public employees of this state, and all private sector employees who are members of the Tennessee army and air national guard, the Tennessee state guard, or civil air patrol and are on active state duty pursuant to § 58-1-106, § 58-1-108, § 58-1-113, or § 58-1-205 are entitled to:
  1. (A) An unpaid leave of absence from their respective duties, without loss of time, pay not specifically related to leave of absence time, regular leave or vacation, or impairment of efficiency rating for all periods of service during which they are engaged in the performance of duty or training in the service of this state under competent orders, including the performance of duties in an emergency; and
  2. (B) Equivalent protections regarding the right to reemployment to those protections afforded under the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) (38 U.S.C. § 4301 et seq.) to service members called to federal active service.
2. (2) To be eligible for the protections set forth in subdivision (a)(1), a person must satisfy the following conditions:
  1. (A) A person whose period of service in the uniformed services was thirty (30) days or less must report for work to the person's employer not later than the first full regularly scheduled work period following a period of eight (8) hours after the person has completed the person's period of service and has been safely transported to the person's residence, unless reporting for work within that time period is not reasonably practicable through no fault of the person, in which case the person must report for work as soon as reasonably practicable;
  2. (B) A person whose period of service in the uniformed services was greater than thirty (30) days but not more than one hundred eighty (180) days must submit an application for reemployment with the person's employer within fourteen (14) days after completion of the person's period of service, unless doing so is not reasonably practicable through no fault of the person, in which case the person must submit an application for reemployment as soon as reasonably practicable; or
  3. (C) A person whose period of service in the uniformed services was greater than one hundred eighty (180) days must submit an application for reemployment with the person's employer within ninety (90) days after completion of the period of service.
(b) Persons covered by subsection (a) shall, unless impossible or unreasonable under the circumstances of the person's call to active state duty, provide advance notice to their employer of competent orders calling the person to active state duty.
(c) The chancery court for the jurisdiction in which a person covered by subsection (a) is employed has the jurisdiction and authority to enforce this section, including the authority to order an employer to comply with this section.

Chapter 34 Retirement — Generally

Part 1 General Provisions

§ 8-34-101. Definitions for chapters 34-37.

As used in chapters 34-37 of this title, unless the context otherwise requires:
1. (1) “Accumulated contributions” means the sum of all the amounts deducted from the compensation of a member, together with any amount transferred to the account of the member established pursuant to chapters 34-37 of this title from the respective account of the member under one (1) or more of the superseded systems, with interest thereon, as provided in § 8-37-307;
2. (2) “Actuarial equivalent” means a benefit of equal value when computed at regular interest upon the basis of the mortality tables last adopted for such purpose by the board of trustees;
3. (3) “Attorney general” means the attorney general and reporter and any assistant thereto by whatever name known, any district attorney general and any assistant thereto by whatever name called, and any officer or full-time employee of the general assembly or any committee thereof established by statute, who is duly licensed to practice law in Tennessee, whose duty it is to provide facilities for drafting bills or to assist individual legislators in drafting bills or who renders legal advice and services to the members of the general assembly or committees thereof;
4. (4)
  1. (A) “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;
  2. (B)
    1. (i) The annual earnable compensation received after June 30, 1981, for any member covered by the noncontributory provisions of the retirement system on July 1, 1981, or upon the effective date of the noncontributory provisions for any member covered after July 1, 1981, shall be increased by three and six-tenths percent (3.6%) for the purpose of computing the average final compensation. Such increases in the annual earnable compensation shall be discontinued for earnable compensation received after June 30, 1991. However, such increases in the annual earnable compensation received after June 30, 1991, shall continue for such members until June 30, 1998, unless such members are employees of employers participating in the retirement system pursuant to chapter 35 of this title. The governing body of any such employer may at its discretion authorize and accept the liability for such continued increases by resolution;
    2. (ii) Notwithstanding subdivision (4)(B)(i), effective July 1, 1998, such increases in the annual earnable compensation shall continue indefinitely for any member covered by the noncontributory provisions of the retirement system on July 1, 1981, or upon the effective date of the noncontributory provisions for any member covered after July 1, 1981, unless such members are employees of employers participating in the retirement system pursuant to chapter 35 of this title. The governing body of any such employer may at its discretion authorize and accept the liability for such continued increases by resolution;
    3. (iii) This subdivision (4) does not apply to a noncontributory prior class member of the superseded attorneys general retirement system who is a district attorney general, the executive director of the district attorneys general conference or a full-time assistant district attorney general;
  3. (C) Average final compensation shall not include more than five (5) longevity payments to a member pursuant to § 8-23-206;
5. (5) “Beneficiary” means any person, persons or institution receiving a retirement allowance or other benefit as provided in chapters 34-37 of this title;
6. (6) “Board of trustees” or “board” means the board provided for in part 3 of this chapter;
7. (7) “Commissioner” means any person in office as a member of the public service commission, as prescribed by title 65, chapter 1, prior to June 30, 1996;
8. (8) “County judge” means any person who is, or when such office existed was, a judge of a general sessions court, trial justice court, county chair, county judge, probate judge, or judge of a juvenile and/or domestic relations court, and whose compensation for such judicial service is paid wholly by a county of the state, or any person who is a county attorney who receives regular monthly or quarterly compensation from a county of the state, or any county manager or county administrator who receives regular monthly or quarterly compensation from a county of the state; provided, that no county manager or county administrator shall be eligible for membership if a county judge, chair of the quarterly county court or county mayor from that county is a member;
9. (9)
  1. (A) “County official” means a county clerk, a clerk of a circuit court, a criminal court, or a probate court, a clerk and master of a chancery court, a clerk of a general sessions court where such general sessions court has an independent clerk who serves such court only, a register of deeds, a county trustee, a sheriff, a county road superintendent elected by a county legislative body, by a county road commission or commissioners, or by popular vote, and an assessor of property, any county commissioner elected by popular vote, serving in a county having a county commission form of government. In the event a consolidation or reorganization of any or all of such courts is provided by constitutional amendments or by act of the general assembly or both, “county official” also means a clerk of any such consolidated or reorganized court;
  2. (B) “County official” also includes any person filling the position of county mayor;
10. (10)
  1. (A) “Covered compensation” means, with respect to any calendar year, the amount of a member's earnable compensation subject to contributions under the Federal Insurance Contributions Act (26 U.S.C. §§ 3101-3126);
  2. (B) The amount of nontaxable benefits elected in lieu of cash wages under a cafeteria plan, as permitted by § 125 of the Internal Revenue Code of 1986 (26 U.S.C. § 125), shall be included in computing the member's covered compensation. In no event shall the total amount included in covered compensation exceed the maximum social security wage base;
11. (11) “Creditable service” means prior service plus membership service, as provided in part 6 of this chapter;
12. (12) “Date of establishment” means the date as of which the retirement system is established as provided in § 8-34-201;
13. (13) “Disability” or “disabled” means the inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to last for a continuous period of not less than twelve (12) months. This means that the condition must be both totally and permanently disabling;
14. (14)
  1. (A) “Earnable compensation” means the compensation payable to a member for services rendered to an employer;
  2. (B)
    1. (i) “Earnable compensation” includes, but is not limited to, any bonus or incentive payment; provided, that:
      1. (a) Such payment is authorized by legislation passed by the general assembly and that such legislation provides that the payment shall be included as earnable compensation for retirement purposes and is not made for the purpose of increasing a member's retirement benefit or inducing a member to retire; or
      2. (b) Such payment is authorized by resolution legally adopted and approved by the chief governing body of an employer participating in the retirement system pursuant to chapter 35, part 2 of this title and that the resolution provides that the payment shall be included as earnable compensation for retirement purposes and is not made for the purpose of increasing a member's retirement benefit or inducing a member to retire. All employees generally, or all employees in a broad class or broad group of employees must be given the opportunity to qualify for the bonus or incentive payment under similar terms and conditions. If the bonus or incentive payment plan only applies to a class or group of employees, a distinct and reasonable basis must exist for offering the plan to the particular class or group of employees;
    2. (ii) “Earnable compensation” also includes the total amount for which an employee may choose to receive cash or a combination of cash and benefits under a cafeteria plan as permitted by § 125 of the Internal Revenue Code of 1986. “Earnable compensation” shall also include for any general employee in the executive, legislative, or judicial branch of government any compensation paid under § 3-1-106(f) and any non-cash compensation falling under Internal Revenue Service Regulation Section 1.61-2T(d) as such section exists on July 17, 2002, if such compensation was includable in gross income for federal income tax purposes and was subject to contributions under the Federal Insurance Contributions Act;
  3. (C) In cases where compensation includes maintenance, the board of trustees shall fix the value of that part of the compensation not paid in money;
  4. (D) Notwithstanding this subdivision (14) or another law to the contrary, “earnable compensation” does not include:
    1. (i) Compensation paid to a teacher employed in a state-supported institution of higher education for performing extra services for the institution that exceeds twenty-five percent (25%) of the teacher's base compensation. For purposes of this subdivision (14), “extra services” means any duties other than summer school or regular duties;
    2. (ii) Compensation that exceeds the maximum dollar limitation imposed by § 401(a)(17) of the Internal Revenue Code, as adjusted for cost-of-living increases in accordance with § 401(a)(17)(B) of the Internal Revenue Code (26 U.S.C. § 401(a)(17)(B)). For any person becoming a member of the retirement system before July 1, 1996, the dollar limitation under § 401(a)(17) of the Internal Revenue Code (26 U.S.C. § 401(a)(17)), shall not apply to the extent the amount of compensation which is allowed to be taken into account under the system would be reduced below the amount which was allowed to be taken into account under the system as in effect on July 1, 1993; and
    3. (iii) Compensation paid to a member from a plan for the deferral of compensation under § 457(f) of the Internal Revenue Code (26 U.S.C. § 457(f));
  5. (E) [Deleted by 2024 amendment.]
  6. (F) In all cases of doubt, the retirement system shall determine whether a certain payment is includable as earnable compensation;
15. (15) “Education television association” means a nonprofit educational organization which has a contract with the state department of education through its television division to provide education television service;
16. (16) “Employer” means:
  1. (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;
  2. (B) The state, the county board of education, the city board of education, the state board of education, the board of trustees of the University of Tennessee, the board of trustees of other educational institutions and agencies supported by and under the control of the state, or any other agency of and within the state by which a teacher is paid, with respect to teachers in its employ;
  3. (C) Any political subdivision of the state or educational cooperative participating in the retirement system pursuant to chapter 35, part 2 of this title or the Tennessee County Services Association, with respect to members in its employ;
  4. (D) Any county of the state with respect to members in its employ;
  5. (E) Any other association which was a member of one (1) of the superseded systems;
  6. (F) A contractor that manages and operates a mental health institute under this chapter; or
  7. (G) A contractor that manages and operates a blind workshop pursuant to § 71-4-608;
17. (17) “Firefighter” means a person in the employ of a political subdivision participating under chapter 35, part 2 of this title who is a member of the fire department of such political subdivision, and is trained in firefighting and actively engaged in such work or subject to call for such services, providing such person's primary livelihood is derived from such work;
18. (18) “General employee” means any person who is a state official, including legislative officials elected by the general assembly, or who is employed in the service of, and whose compensation is payable in whole or in part by, the state, including employees under supervision of the state whose compensation is paid, in whole or in part, from federal or other funds, or any person in the employ of a political subdivision participating under chapter 35, part 2 of this title, or of the Tennessee County Services Association, but does not include any teacher, state police officer, wildlife officer, firefighter, police officer, state judge, county judge, attorney general, governor, or county official or public service commissioner, or any person performing services on a contractual or percentage basis;
19. (19) “In-service” means a member who has not retired, has not been refunded and is within one hundred fifty (150) days of such member's last paid day of employment. The last paid day of employment for a teacher shall be the last scheduled working day of the normal school year or the last day of employment if prior to the end of the school year;
20. (20) “Internal Revenue Code” means the Internal Revenue Code of 1986, codified in United States Code, title 26, as amended;
21. (21) “Limitation year” means, for testing purposes under § 415 of the Internal Revenue Code (26 U.S.C. § 415), the calendar year;
22. (22) “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;
23. (23) “Medical advisors” means the physicians, companies, or organizations provided for in part 4 of this chapter;
24. (24) “Member” means any person included in the membership of the retirement system, as provided in chapter 35, part 1 of this title;
25. (25) “Member annuity” means annual payments for life derived from the accumulated contributions of the member;
26. (26) “Membership service” means service rendered while a member of the retirement system;
27. (27) “Minor” has the meaning set forth in § 1-3-105, except when a contrary intention is manifest;
28. (28) “Part-time employee” means any person employed by the state or a political subdivision who renders less than a full day of service per working day or less than a full week of service per working week. Any employee falling into either of the above categories shall be considered part-time unless the law otherwise provides. “Part-time employee” does not include employees who are students, seasonal or temporary employees under twenty-five (25) years of age, temporary employees in institutions of higher education, or substitute teachers, unless such substitutes are under contract and scheduled to work the same time as a regular teacher. “Part-time employee” includes any interim teacher who is employed on a temporary basis to teach for a regular teacher who is on unpaid leave;
29. (29) “Physical or mental impairment” means one which is medically determinable. This means that the condition should be one that can be determined by a physician. The physical or mental impairment must be the primary reason for the individual's inability to engage in substantial gainful activity;
30. (30) “Plan year” means the fiscal year commencing July 1;
31. (31) “Police officer” means a person in the employ of a political subdivision participating under chapter 35, part 2 of this title who is a member of the police department of such political subdivision and is trained in police work and actively engaged in such work;
32. (32) “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;
33. (33) “Prior service” means service rendered prior to the date of membership in the retirement system for which credit was given under the terms of one (1) or more of the superseded systems as provided in part 6 of this chapter;
34. (34) “Public school” means any school conducted within the state under the authority and supervision of a duly elected or appointed city or county school board, and any educational institution supported by and under the control of the state;
35. (35) “Regular interest” means interest at such rate or rates compounded annually as may be set from time to time by the board of trustees in accordance with § 8-34-505;
36. (36) “Retirement” means withdrawal from membership with a retirement allowance granted under chapters 34-37 of this title;
37. (37)
  1. (A) “Retirement allowance” means the sum of the member annuity and the state annuity. All retirement allowances shall be payable in equal monthly installments, which shall cease with the month in which death occurs, unless otherwise specifically provided in this section; provided, that if the retirement allowance is less than ten dollars ($10.00) per month, it shall be paid in a lump sum of equivalent actuarial value. If the entire monthly retirement allowance is ten dollars ($10.00) or more per month but less than seventy-five dollars ($75.00) per month, it shall be paid in a lump sum of equivalent actuarial value unless the recipient thereof files with the retirement division an election to receive the benefit in equal monthly installments pursuant to this subdivision (37). To be effective, the recipient must file the election by no later than sixty (60) calendar days after the recipient's receipt of the lump sum payment and the recipient must return any such payment to the retirement division. Notwithstanding any provision of this subdivision (37) to the contrary, any retirement allowance that equals ten dollars ($10.00) or more per month but less than fifty dollars ($50.00) per month shall be paid in a lump sum of equivalent actuarial value if such allowance is payable on account of a person who became a member of the retirement system on or after July 1, 2001;
  2. (B) Notwithstanding subdivision (37)(A) to the contrary, any retirement allowance that equals ten dollars ($10.00) or more per month but less than seventy-five dollars ($75.00) per month shall be paid in a lump sum of equivalent actuarial value if such allowance is payable on account of a person who became a member of the retirement system on or after July 1, 2013;
38. (38) “Retirement system” means the Tennessee consolidated retirement system as defined in §§ 8-34-201, 8-34-202;
39. (39) “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] §§ 3-401 and 3-406 [repealed]; provided, that such member received compensation for such service;
40. (40) “Service retirement date” means the date on which a member first becomes eligible for a service retirement allowance, or would first become eligible for a service retirement allowance if the member were to remain in service until such date, as provided in §§ 8-36-201 – 8-36-204 or §§ 8-36-301 – 8-36-304;
41. (41) “Social security integration level” means, with respect to the calendar year in which a member retires, the average annual amount of compensation with respect to which old age and survivors benefits would be provided under Title II of the Federal Social Security Act (42 U.S.C. §§ 401-425), for a male employee attaining sixty-five (65) years of age in such calendar year, computed as though for each year prior to such calendar year annual compensation is at least equal to the maximum amount of annual earnings subject to contributions under the Federal Insurance Contributions Act. Such average annual amount of compensation shall be rounded to the nearest multiple of six hundred dollars ($600);
42. (42) “State” means the state of Tennessee;
43. (43) “State annuity” means annual payments for life derived from contributions by an employer;
44. (44) “State judge” means any person in office as a judge of a court of record in this state, whose salary for the judge's judicial position has been paid during the period of the judge's service wholly from the treasury of the state, including the administrative director of the courts;
45. (45) “State police officer” means any commissioned member of the department of safety, and any agent of the Tennessee bureau of investigation;
46. (46) “Student” means any person enrolled in a course of study in a school or in a post-secondary educational institution who as a condition of such enrollment is employed in a full-time position. However, “student” does not include any person who is otherwise eligible for membership in the retirement system in accordance with § 8-35-101(a);
47. (47)
  1. (A) “Substantial gainful activity” means the performance of significant duties over a reasonable period of time of work for remuneration or profit or in work of a type generally performed for remuneration or profit. Work which results in earnings considered by the law or regulations governing the social security administration to be substantial for disability recipients from that system shall be considered to be substantial gainful employment in this system; and
  2. (B) “Significant duties” means that the duties are useful in the accomplishment of a job or the operation of a business but also that they have a degree of economic value;
48. (48) “Superseded system” means, where applicable, the Tennessee state retirement system, the Tennessee teachers' retirement system, the Tennessee judges' retirement system, the retirement system for county paid judges of Tennessee, the attorneys general retirement system of Tennessee, the public service commissioners' retirement system, and the Tennessee retirement system for county officials, any one (1) of them, or any combination thereof;
49. (49) “Teacher”:
  1. (A) Means any person employed in a public school, as a teacher, librarian, principal, superintendent or chief administrative officer of a public school system, administrative officer of a department of education, a supervisor of teachers, a reserve officer training corps (ROTC) instructor, or any other position whereby the state requires the employee to be certificated as a teacher, or licensed as a nurse, physical therapist, or occupational therapist in a public school; provided, that any teacher who has taught in the public schools for a period of at least one (1) year who transfers to a position within the Tennessee public school system that does not require a teacher's certificate shall continue participation in the retirement system as a teacher;
  2. (B) Does not include a physical therapist or an occupational therapist employed with the Metropolitan Nashville Public Schools District; and
  3. (C) Includes any person who is employed in a public school on or after July 1, 1972, as a guidance counselor but who is not retired as of July 1, 2019;
50. (50) “Temporary employment” means any general employee can be considered as a temporary employee for a period not to exceed six (6) months before becoming eligible for membership in the retirement system, except as provided in § 8-35-107(b);
51. (51) “Transferred Class A member” means a member who on the day preceding the date of establishment shall have been a Class A member of the Tennessee teachers' retirement system or the Tennessee state retirement system and who is not a prior class member;
52. (52) “Transferred Class B member” means a member who on the day preceding the date of establishment shall have been a Class B member of the Tennessee teachers' retirement system or the Tennessee state retirement system and who is not a prior class member; and
53. (53) “Wildlife officer” means any commissioned employee of the wildlife resources agency engaged in law enforcement activities on a day-to-day basis.

§ 8-34-102. Masculine pronoun.

The masculine pronoun wherever used includes the feminine.

Part 2 Administration

§ 8-34-201. Establishment of system.

(a) A retirement system is established and placed under the management of the board of trustees, for the purpose of providing retirement allowances and other benefits under chapters 34-37 of this title. The retirement system so created shall be established as of July 1, 1972.
(b) The retirement system is established as a qualified defined benefit plan under chapters 34-37 of this title, as amended, pursuant to §§ 401(a) and 414(d) of the Internal Revenue Code (26 U.S.C. §§ 401(a) and 414(d)), or such other provision of the Internal Revenue Code as applicable, and applicable United States department of the treasury regulations and other guidance.

§ 8-34-202. Name — Powers and duties generally.

It shall have the powers, privileges and immunities of a corporation and shall be known as the “Tennessee Consolidated Retirement System,” and by such name all of its business shall be transacted, all of its funds invested, and all of its cash and securities and other property held in trust for the purpose for which received.

§ 8-34-203. Application of other laws.

No other provision of law in any other statute which provides wholly or partly at the expense of this state or any political subdivision thereof pensions or retirement benefits for members or beneficiaries of the retirement system shall apply to such members or beneficiaries of the retirement system except Title II of the Social Security Act (42 U.S.C. §§ 401-425), and chapter 25, part 3 of this title. Further, no other provision of law in any other statute which bestows membership in the Tennessee consolidated retirement system from or after May 2, 2011, shall apply unless such membership provision is codified in chapter 35 of this title.

§ 8-34-204. Amendment or repeal of laws not to diminish or annul acquired rights.

Every provision of chapters 34-37 of this title shall be subject to amendment or repeal by any session of the general assembly; provided, that no such amendment or repeal shall diminish or annul, in any respect, any right acquired by a member or beneficiary under chapters 34-37 of this title.

§ 8-34-205. Penalty for fraud.

Any person who knowingly makes any false statement, or falsifies or permits to be falsified any record or records of the retirement system, commits a Class C misdemeanor.

§ 8-34-206. State assumption of employee contributions.

(a)
1. (1) For service rendered from and after July 1, 1981, the state shall assume employee contributions of up to five percent (5%) of the employee's earnable compensation on behalf of:
  1. (A) State employees, except those specified in subsection (b);
  2. (B) Teachers employed by the state department of education;
  3. (C) Teachers employed in state-supported institutions of higher education; and
  4. (D) Teachers employed in state-supported institutions of higher education who are members of an optional retirement program established pursuant to chapter 25 of this title.
2. (2) Notwithstanding any other law to the contrary, the state shall also assume employee contributions of up to five percent (5%) of the employee's earnable compensation for those prior class members of the attorneys general retirement system who are presently employed in the executive branch of the state and who are compensated under the compensation plan administered by the department of human resources.
3. (3) Beginning on January 1, 1982, the state shall also assume employee contributions of up to five percent (5%) of the employees' earnable compensation of those employees of the general assembly who are classified under § 8-34-101. The increase in employer cost shall be provided from the appropriation for the office of legal services for the general assembly.
4. (4) Beginning on July 1, 1986, the state shall also assume employee contributions of up to five percent (5%) of the employees' earnable compensation of district attorneys general, the executive director of the district attorneys general conference and those full-time assistant district attorneys general who, on or before July 1, 1985, reached the maximum salary for assistant district attorneys general authorized by chapter 7 of this title.
5. (5) On July 1, 1987, and on each succeeding July 1, the state shall assume employee contributions of up to five percent (5%) of the employees' earnable compensation of those full-time assistant district attorneys general who in the preceding fiscal year reached the maximum salary for assistant district attorneys general authorized by chapter 7 of this title.
6. (6) Beginning on the first day on which the salary levels for general state employees are increased, the state shall assume employee contributions of up to five percent (5%) of the employees' earnable compensation of attorneys general employed in the office of the attorney general and reporter. The contribution assumption provided in this subdivision (a)(6) shall be in lieu of the salary increase to which such attorneys general would have otherwise been entitled.
7. (7) Beginning July 1, 1994, the state shall assume employee contributions up to five percent (5%) of the employees' earnable compensation of criminal investigators for the district attorneys general.
8. (8) Beginning on September 1, 1990, but not before, the state shall assume employee contributions of up to five percent (5%) of the employee's earnable compensation for all state judges who are members of the Tennessee consolidated retirement system.
9. (9) The state shall assume employee contributions of up to five percent (5%) of the employee's earnable compensation for any person entering the service of a district attorney general on or after July 1, 1994, as an assistant district attorney general.
(b)
1. (1) The state shall not assume any employee contributions for:
  1. (A) Judges, except as provided in subsection (a);
  2. (B) Attorneys general, except as provided in subsection (a);
  3. (C) Members who chose to limit their retirement deductions to the first four thousand two hundred dollars ($4,200) of annual salaries as of June 30, 1981;
  4. (D) Kindergarten through twelfth (K-12) grade teachers whose salaries are provided in whole or in part by the Tennessee investment in student achievement formula (TISA) and/or by local boards of education;
  5. (E) Employees of employers participating pursuant to chapter 35, part 2 of this title;
  6. (F) Teachers participating in local retirement funds pursuant to chapter 35 of this title; and
  7. (G) County judges and county officials.
2. (2) All employees who are excluded from the noncontributory provisions of the system by this section shall be required to continue making the appropriate employee contributions to the retirement system.
(c)
1. (1) For the purposes of this section, “noncontributory member” means any person who is or becomes a member of the retirement system on or after July 1, 1981, and on whose behalf the employee contributions to the retirement system up to five percent (5%) of earnable compensation are assumed by the employer in accordance with this section. It is further provided that any member covered by the noncontributory provisions of the system who continues the member's employment from and after July 1, 1981, shall not be entitled to a refund of the member's contributions or those made in the member's behalf by the member's employer until the member meets the conditions of § 8-37-210.
2. (2) The full amount of the required employee contributions up to five percent (5%) of earnable compensation assumed or paid by the employer on behalf of its employees shall be credited to the individual account balances of the employees for their employee annuities and shall be considered employee contributions for all other purposes pursuant to chapters 34-37 of this title, including the lump sum death benefit as provided for in § 8-36-107, for:
  1. (A) Members of the retirement system who are covered by the noncontributory retirement provisions on July 1, 1981, and whose membership date is prior to July 1, 1981;
  2. (B) Those employees of the general assembly who are classified under § 8-34-101, who were employed on or before January 1, 1982;
  3. (C) District attorneys general, the executive director of the district attorneys general conference and those assistant district attorneys general specified in subsection (a) who were employed and were members of the retirement system on or before June 1, 1986;
  4. (D) Attorneys general who were employed in the office of the attorney general and reporter and who were members of the retirement system on or before the date the state assumed employee contributions on behalf of attorneys general employed in the office of the attorney general and reporter; and
  5. (E) Criminal investigators who were employed in the office of a district attorney general and who were members of the retirement system on or before June 1, 1993.
(d) Notwithstanding any other law to the contrary, any employer participating in the retirement system pursuant to chapter 35, part 2 of this title may assume employee contributions to the retirement system of up to five percent (5%) of the employee's earnable compensation on behalf of all its employees upon the adoption of a resolution by the chief governing body authorizing and accepting the liability for the contributions. The employee's contributions so assumed or paid by the employer on behalf of its employee shall be credited to the individual account balances of the employee for the employee's annuities; provided, that the employee was employed on the date of the employer's election to assume employee contributions to the retirement system and shall be considered employee contributions in accordance with subdivision (c)(2). Any local employer who elects to assume the employee contributions to the retirement system, effective July 1, 1981, must notify the retirement system on or prior to that date. A local employer electing to assume contributions to the retirement system in any subsequent year shall set the effective date of its election on the first day of any quarter following a minimum of three (3) months' notice to the retirement system; provided, that the director of retirement may waive the three-month notice requirement. The board of trustees, however, may by rule adopt reasonable standards or restrictions to guide the director in making a decision on whether to waive the deadline. Any employer that adopts the noncontributory provisions of this section on or after July 1, 2010, may reserve the right within its adopting resolution to thereafter discontinue the noncontributory provisions for all its current and future employees. To thereafter discontinue the noncontributory provisions, the chief governing body of that employer must pass a resolution, legally adopted and approved by a two-thirds (⅔) majority of that body, to discontinue the noncontributory provisions for all its current and future employees and to have the contributions made by the employees treated as employer contributions pursuant to § 8-37-216. Any such resolution shall set forth the effective date of the discontinuance; provided, that the date shall be on the first day of any quarter following a minimum of three (3) months' notice to the retirement system. Any resolution to discontinue the noncontributory provisions that is adopted pursuant to this subsection (d) shall be irrevocable and the employer shall not be permitted to elect at a later date to provide the noncontributory provisions of this section.
(e) It is the intent of this section that the laws governing the retirement system in effect on June 30, 1981, shall be fully operative and remain in full force and effect for all members of the retirement system, whether contributing or noncontributing, except as otherwise provided by the provisions of chapters 34-37 of this title applicable only to noncontributory membership.
(f) Notwithstanding § 8-35-109 or any other law to the contrary, membership in the retirement system shall be mandatory for any person employed on or after July 1, 1994, as a criminal investigator in the office of a district attorney general.

§ 8-34-208. [Reserved]

§ 8-34-209. Retirement incentive bonus for public service commission employees.

(a) A retirement incentive bonus plan shall operate to benefit employees of the public service commission. Employees of the commission eligible to participate in the plan shall be current employees of the commission who are eligible to draw service or early service retirement benefits from the Tennessee consolidated retirement system on or before July 1, 1996. This section does not apply to any member within the definition of § 8-34-101.
(b) To be eligible to receive the bonus, the employee must terminate active state employment on or before July 1, 1996, and file an application for retirement on or before July 1, 1996. In addition, the employee may not later be reemployed by the state except under § 8-36-805.
(c) The bonus shall be equal to five thousand dollars ($5,000), plus the longevity pay the employee would have received during the 1996-1997 fiscal year if the employee had continued to work for the public service commission. Payment to the employee shall be made after July 1, 1996. The bonus shall not be included in determining the employee's average final compensation for retirement purposes, nor shall it be subject to retirement contributions.

§ 8-34-210. Production of records described in subpoena.

(a) Except as hereinafter provided, when a subpoena duces tecum is served upon any employee of the retirement system in an action or proceeding in which the retirement system is not a party, and such subpoena requires the production of all or any part of the records of the retirement system relating to any member, prior member or retiree of the retirement system, it shall be sufficient compliance therewith if the employee within fourteen (14) days after being served with a subpoena duces tecum, shall, either by personal delivery or certified or registered mail, file with the court clerk or the issuer, a true and correct copy (which may be a copy reproduced on film or other reproducing material by microfilming, photographing, photostating or other approximate process, or a facsimile, exemplification or copy of such reproduction or copy) of all records specifically described in such subpoena.
(b) The records shall be accompanied by an affidavit of a custodian, stating in substance that:
1. (1) The affiant is the duly authorized custodian of the records and has authority to certify the records; and
2. (2) The copy is a true copy of all the records described in the subpoena.
(c) If the retirement system has none of the records described, or only part thereof, the custodian shall so state in the affidavit and file the affidavit and such records as are available in the manner prescribed in this section.
(d)
1. (1) The copy of the record shall be admissible in evidence to the same extent as though the original thereof were offered and the custodian had been present and testified to the matters stated in the affidavit.
2. (2) The affidavit shall be admissible in evidence and the matters stated therein shall be presumed true in the absence of a preponderance of evidence to the contrary.
3. (3) When more than one (1) person has knowledge of the facts, more than one (1) affidavit may be made.
(e) The personal attendance of the custodian may be commanded only if personal attendance is necessary to resolve a good faith dispute concerning the accuracy of information furnished by the retirement system. Where personal attendance of the custodian is required, the subpoena duces tecum shall contain a clause which reads:
1. “The procedure authorized pursuant to § 8-34-210 will not be deemed sufficient compliance with this subpoena.”

Part 3 Board of Trustees

§ 8-34-301. General powers and duties.

(a) The general administration and responsibility for the proper operation of the retirement system and for making effective chapters 34-37 of this title are hereby vested in a board of trustees.
(b) The board of trustees may delegate to the state treasurer the duty to carry out the day-to-day operations and responsibilities for the administration of the retirement system, including, but not limited to, complying with all applicable state and federal laws and rules.

§ 8-34-302. Membership.

(a) The board shall consist of twenty (20) members as follows:
1. (1) The state treasurer, ex officio;
2. (2) The director of the division of retirement, ex officio;
3. (3) The commissioner of finance and administration, ex officio;
4. (4) The comptroller of the treasury, ex officio;
5. (5) The administrative director of the courts, ex officio;
6. (6) The commissioner of human resources, ex officio;
7. (7) The secretary of state, ex officio;
8. (8) The chair and vice chair of the council on pensions, ex officio; but whose membership is qualified as follows:
  1. (A) Such members shall not be voting members of the board of trustees; and
  2. (B) Such members shall be entitled to receive expenses and mileage allowance at the same rate as provided by § 3-1-106 for each meeting of the board of trustees;
9. (9) Three (3) members of the retirement system who are teachers:
  1. (A) Two (2) teacher trustees shall be appointed by the speaker of the senate and one (1) teacher trustee shall be appointed by the speaker of the house of representatives. No two (2) of the teacher trustees shall be from the same grand division of the state. The speaker of the senate shall appoint the teacher trustees serving from the eastern and western grand divisions. The speaker of the house of representatives shall appoint the teacher trustee serving from the middle grand division. Professional education employees' organizations may recommend to the speaker of the senate and the speaker of the house of representatives persons for appointment to teacher trustee positions; however, the speaker of the senate and the speaker of the house of representatives need not appoint any person so recommended.
  2. (B) Each teacher member shall serve a three-year term;
10. (10) Two (2) members of the retirement system who are state employees, not from the same department, commission, board, agency or institution, or any department represented by an ex officio member, at least one (1) of whom shall be a general employee, who shall serve for a term of three (3) years. The two (2) state employee trustees shall be elected by state employee members of the retirement system in accordance with rules and procedures as the board of trustees shall prescribe;
11. (11) One (1) vested member of the retirement system who shall be appointed by the board of directors of the Tennessee County Services Association to serve for a period of two (2) years;
12. (12) One (1) vested member of the retirement system who shall be appointed by the board of directors of the Tennessee Municipal League to serve for a period of two (2) years;
13. (13) One (1) vested member of the retirement system who shall be appointed by the board of directors of the County Officials Association of Tennessee to serve for a period of two (2) years;
14. (14) One (1) retired state or higher education employee member of the retirement system who shall be appointed by the governor to serve for a period of two (2) years;
15. (15) One (1) retired teacher, who is a vested member of the Tennessee consolidated retirement system, to be appointed by the speaker of the house of representatives. The term of the retired teacher trustee shall be for three (3) years. Professional education employees' organizations may recommend to the speaker of the house of representatives persons for appointment to the retired teacher trustee position; however, the speaker need not appoint any person so recommended; and
16. (16) One (1) police officer who shall serve a term of three (3) years commencing on July 1, 2007, and who, upon completion of that member's term, shall be replaced by a firefighter. Thereafter, the appointment of the board member shall alternate between a firefighter and a police officer for each successive three-year term. The board member shall be appointed as follows:
  1. (A) The police officer representative shall be appointed by the governor from lists of qualified persons submitted by interested law enforcement groups including, but not limited to, the professional organizations that represent police officers in this state; and
  2. (B) The firefighter representative shall be appointed by the governor from lists of qualified persons submitted by interested firefighter groups including, but not limited to, professional firefighter associations.
(b)
1. (1) Board members appointed pursuant to subdivisions (a)(9)-(16) shall attend at least fifty percent (50%) of the required quarterly meetings.
2. (2) Any board member who fails to attend meetings as required in subdivision (b)(1) shall be removed as a member by the appointing authority.
(c) Except for ex officio members, all persons shall be fully vested members of the retirement system in order to qualify to serve on the board of trustees.

§ 8-34-303. Vacancies on the board.

In the event of death, disability, resignation, or ineligibility of a board member who is a state employee, the board of trustees is authorized to appoint a member from the group represented by the deceased or resigned member to fill the member's unexpired term. In the event of the death, disability, resignation, or ineligibility of a board member who was appointed as teacher trustee or the retired teacher trustee, the speaker of the senate or the speaker of the house of representatives who appointed the member shall appoint a trustee to fill the member's unexpired term.

§ 8-34-304. Compensation of members.

The trustees shall serve without compensation as such, but shall be reimbursed for all necessary expenses that they may incur through service to the board. All reimbursement for travel expenses shall be in accordance with the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general and reporter.

§ 8-34-305. Oath of members.

Each trustee, other than the ex officio members of the board, shall take an oath of office, that, so far as it devolves upon such trustee, the trustee will diligently and honestly administer the affairs of the board, and will not knowingly violate or willingly permit to be violated any law applicable to the retirement system. Such oath shall be subscribed by the trustee taking it, and certified by the officer before whom it is taken, and immediately filed in the office of the secretary of state.

§ 8-34-306. Chair of the board.

The state treasurer shall be ex officio chair of the board of trustees.

§ 8-34-307. Secretary to the board.

The director of the division of retirement shall be the secretary to the board.

§ 8-34-308. Legal counsel.

(a) The attorney general and reporter or an assistant designated by the attorney general and reporter shall be the legal advisor of the board of trustees.
(b) Notwithstanding any other law, in cases where the interest of the consolidated retirement system requires additional counsel to the attorney general and reporter, the chair of the board of trustees, with the approval of the attorney general and reporter, is authorized to employ such additional counsel.

§ 8-34-309. Meetings of the board.

The board of trustees shall meet quarterly at a time established by the chair of the board of trustees. Special meetings of the board for transaction of business may be called by the secretary of the board by giving written notice to all members.

§ 8-34-310. Quorum.

Nine (9) voting members of the board shall constitute a quorum.

§ 8-34-311. Voting.

(a) Each trustee, excluding legislative members, shall be entitled to one (1) vote on the board.
(b) Nine (9) affirmative votes shall be necessary for a decision by the trustees at any meeting of the board of trustees.

§ 8-34-312. Operating expenses of the board.

The compensation of all persons engaged by the board of trustees, and all other expenses of the board necessary for the operation of the retirement system, shall be paid at such rates and in such amounts as the board of trustees shall approve.

§ 8-34-313. Rules and regulations.

Subject to the limitations of chapters 34-37 of this title, the board of trustees shall, from time to time, adopt and publish rules and regulations for the administration of the funds created by chapters 34-37 of this title and for the transaction of its business.

§ 8-34-314. Engaging actuarial and other services.

The board of trustees shall engage such actuarial and other services as shall be required to transact the business of the retirement system.

§ 8-34-315. Records of board open to public.

The board of trustees shall keep a record of all of its proceedings which shall be open to public inspection.

§ 8-34-316. Annual report.

The board of trustees shall publish annually a report showing the fiscal transactions of the retirement system, including assets, liabilities, receipts and expenditures, for the preceding year, the amount of the accumulated cash and securities of the retirement system, and the latest balance sheet showing the financial condition of the retirement system by means of an actuarial valuation of the assets and liabilities of the retirement system. The board of trustees, at its discretion, may distribute such report to each member. Such report shall at all times, during business hours, be open for personal inspection by any member, and a copy thereof shall be furnished to any member upon such member's request.

§ 8-34-317. Quadrennial audit.

The board of trustees may provide for an audit to be made once in every four (4) years by a reliable independent auditor. This shall be in addition to the annual audit conducted by the office of the comptroller of the treasury.

§ 8-34-318. Audit of employee records of other employers.

The records of employment and compensation of employees of any political subdivision and other employers participating in the retirement system shall be subject to audit and certification by the board of trustees in accordance with rules and regulations adopted by the board for such purpose. The board may by agreement with the comptroller of the treasury establish a procedure using the personnel of the office of the comptroller of the treasury to audit and certify such records.

§ 8-34-319. Proration of costs among employers.

The board of trustees, with the approval of the commissioner of finance and administration, may, at its discretion, direct that the cost of administering the retirement system be prorated among all employers and deducted from each employer's account in the state accumulation fund.

§ 8-34-320. Appointment of hearing officer or administrative judge — Appeal proceeding.

(a) The board of trustees is authorized to appoint a hearing officer, who shall be an impartial employee of the Tennessee treasury department, to conduct contested case proceedings pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, or to request the appointment of an administrative judge from the office of the secretary of state to conduct the proceedings.
(b) If the initial order of the administrative judge is appealed to the board of trustees, the executive committee established in § 8-34-322 shall hear the appeal.

§ 8-34-321. Replacement of pension administration system.

Subject to appropriation made in the general appropriations act, the retirement system may procure goods and services for a pension administration system that may replace the system currently in existence as of April 8, 2022. The retirement system may pay from the earnings of the Tennessee retiree group trust and may charge some or all of the group trust participants, the cost for the development and implementation of the replacement system, as well as other technology improvements; provided, however, that any costs associated with the on-going maintenance of the replacement system or such improvements, or the state personnel necessary for maintaining the replacement system or such improvements, must not be funded pursuant to this section.

§ 8-34-322. Executive committee of the board.

(a) There is established an executive committee of the board, which shall be composed of the state treasurer, the comptroller of the treasury, the secretary of state, one (1) board of trustees member appointed by the governor from among the board members who serve on the governor's cabinet, and three (3) additional board of trustees members selected by the entire board from among the employee or retiree board of trustees member representatives. The state treasurer shall also serve as chair of the executive committee, and the director of the division of retirement shall be the secretary to the committee.
(b)
1. (1) Notwithstanding this title to the contrary, the executive committee shall have the power to disapprove, modify or otherwise change any of the following actions taken by the full board when, in the committee's sole judgment, the disapproval, modification or change is in the best interest of the retirement system:
  1. (A) Establishing the terms of the investment policy for the assets of the retirement system;
  2. (B) Adopting mortality, service and other such tables for the retirement system;
  3. (C) Determining the rate or rates of regular interest for use in calculations relative to the retirement system; and
  4. (D) Determining the employer contribution rate for state employees and teachers.
2. (2) If the executive committee does not disapprove, modify or otherwise change any such action taken by the full board within thirty (30) calendar days after the action is taken, then the action of the full board shall become effective as of the expiration of the thirty-day period. Notwithstanding this subdivision (b)(2), if the executive committee affirms the action of the full board prior to the expiration of the thirty-day period, then the action shall become effective upon the executive committee's affirmation.
(c) The executive committee shall meet at such times as deemed necessary by the chair in order to perform its responsibilities under this section, and shall keep a record of all its proceedings, which shall be open to public inspection. A report of any actions taken by the executive committee shall be presented to the full board at the board's next regular meeting following the action taken by the committee.
(d) No action of the executive committee shall be binding unless taken at a meeting at which at least four (4) members of the committee are present and vote in favor of the action.
(e) Notwithstanding this title to the contrary, the executive committee shall have the power to commence litigation or any legal action on behalf of the retirement system. The executive committee shall also have the power to delegate to the state treasurer the authority to respond to, defend, direct the course of, and settle any litigation, legal action, or regulatory proceeding on behalf of the retirement system. The authority may include, but not be limited to, litigation holds, amending pleadings, engaging expert witnesses, discovery, motions, tolling agreements, settlement agreements, waivers, attachments, releases, and stipulations.

§ 8-34-323. Establishment of administrative committee and investment committee of the board — Purposes — Chair — Meetings.

(a) There is established an administrative committee and an investment committee of the board whose membership shall be comprised of members of the board as appointed by the state treasurer. The primary purpose of the administrative committee shall be to assist the board in fulfilling its responsibilities with respect to political subdivisions petitioning for participation in the retirement system, the review and consideration of the actuarial and experience study results, and such other duties as may be prescribed by the chair of the board. The primary purpose of the investment committee shall be to assist the board in fulfilling its responsibilities with respect to the investments of retirement system assets. The state treasurer may also establish and appoint such other committees of the board as the chair of the board deems necessary to assist the board in the performance of its duties.
(b) The state treasurer shall serve as chair of the investment committee, and the director of the division of retirement shall serve as chair of the administrative committee. The chair of any other committees created pursuant to this section shall be determined by the chair of the board.
(c) Each committee shall meet at such times as deemed necessary by the chair of the respective committee in order to perform its responsibilities under this section, and shall keep a record of all its proceedings, which shall be open to public inspection. A report of any recommended action taken by a committee shall be presented to the full board at the board's next regular meeting following the recommended action taken by the committee.

Part 4 Medical Advisors

§ 8-34-401. Contracting for medical advisors.

The board of trustees shall contract with at least one (1) but no more than three (3) physicians who are not eligible to participate in the retirement system to serve as medical advisors. Notwithstanding this section or any other law to the contrary, the board of trustees is authorized to contract with one (1) or more companies or organizations for all or any part of the services necessary or desirable for the management and operation of the disability retirement program authorized in chapter 36, part 5 of this title, including medical advisory services. Any company or organization engaged to provide the medical advisory services shall be deemed a medical advisor for purposes of this part and for purposes of chapter 36, part 5 of this title.

§ 8-34-402. Powers and duties.

The medical advisors shall arrange for and pass upon all medical examinations required under chapters 34-37 of this title, and shall investigate all essential statements and certificates by or on behalf of a member in connection with an application for disability retirement, and shall report in writing to the board of trustees their conclusions and recommendations upon all the matters referred to them.

§ 8-34-403. Compensation and expenses.

Compensation for services of the medical advisors shall be determined by the board of trustees; provided, that all reimbursement for travel expense shall be in accordance with the comprehensive travel regulations promulgated by the department of finance and administration and approved by the attorney general and reporter.

§ 8-34-404. Physicians employed for special cases.

If required, other physicians may be employed to report on special cases.

Part 5 Actuarial Services

§ 8-34-501. Designation of actuary.

The board of trustees shall designate an actuary who shall be an adviser to the board of trustees on such matters as the board shall determine.

§ 8-34-502. Qualifications of actuary.

As used in chapters 34-37 of this title, “actuary” means:
1. (1) A member of the American Academy of Actuaries;
2. (2) An individual who has demonstrated to the satisfaction of the commissioner of commerce and insurance that such person has the educational background necessary for the practice of actuarial science and has had at least seven (7) years of actuarial experience; or
3. (3) A firm, partnership or corporation, of which one (1) or more members or employees meets the requirements of subdivision (1) or (2).

§ 8-34-503. Mortality and service tables — Sexennial actuarial investigation.

(a) Immediately after the establishment of the retirement system, the actuary shall recommend to the board of trustees, and the board shall adopt, mortality and service tables for use in all calculations in connection with the retirement system.
(b) At least once in each six-year period, the actuary shall make an actuarial investigation into the mortality, service, and compensation experience of the members and beneficiaries of the retirement system, and taking into account the results of such investigation, the board of trustees shall adopt for the retirement system such mortality, service, and other tables as are deemed necessary. The board of trustees shall begin using the tables on July 1 of the year following the action of the board of trustees.

§ 8-34-504. Records necessary for actuarial evaluation.

The board of trustees shall keep in convenient form such data as shall be necessary for actuarial valuation of the retirement system and for checking the experience of the system.

§ 8-34-505. Rate of interest.

The board of trustees shall also determine from time to time the rate or rates of regular interest for use in all calculations, except as otherwise provided, which rate shall be subject to the approval of the council on pensions.

§ 8-34-506. Biennial evaluation of assets and liabilities of funds.

On the basis of regular interest and such tables as the board of trustees shall adopt, the actuary shall make a valuation, at least once in each two-year period, of the assets and liabilities of the funds of the retirement system.

Part 6 Creditable Service

§ 8-34-601. Credit for service in system — Establishment of previously denied credit for service beyond certain ages.

(a) Each member shall receive membership service credit for all service rendered since becoming a member of the retirement system, or since such member last became a member in the event of a break in such member's membership, on account of which contributions are made by the member or the member's employer pursuant to § 8-34-206.
(b)
1. (1) Any member who remains in service upon attaining seventy (70) years of age shall continue to participate in the retirement system and to accrue creditable service. The state's share of any additional costs of this subdivision (b)(1) shall be funded in accordance with [former] § 9-6-303, from the increase in state-imposed taxes which are earmarked to counties and which are not designated by such counties for a particular purpose.
2. (2) Any general employee of the state or any teacher who was previously denied membership in the system due to advanced age, and who is now permitted to participate, may establish the service credit that was previously denied by paying the contributions such person would have paid if such person had been a member, plus interest at the rate provided for in § 8-37-214.
(c)
1. (1) Any Group 1, Group 3 or Group 4 state judge who remains in service upon attaining seventy (70) years of age may continue to participate in the retirement system and to accrue creditable service.
2. (2) Any Group 1, Group 3 or Group 4 state judge who is presently serving and who has previously been denied retirement credit for service beyond seventy (70) years of age shall be entitled to establish retirement credit for service beyond seventy (70) years of age by making a lump sum payment of contributions such judge would have made, plus interest at the rate provided in § 8-37-214.

§ 8-34-602. Credit for service in superseded systems.

(a) In addition, each member who on June 30, 1972, shall have been a member of a superseded system shall receive prior service credit for all service with which such member shall have been credited as of June 30, 1972, under any superseded system. Any such member shall be entitled to receive credit for any service prior to the effective date of such superseded system for which such member would have been entitled to claim credit under such superseded system; provided, that such member makes application therefor to the retirement system in the manner prescribed by the retirement system.
(b)
1. (1) Any member who served in a position covered by the superseded state retirement system who elected not to join such system and who subsequently becomes a member of the state retirement system or the Tennessee consolidated retirement system, and who has been employed for twenty (20) years of total service with the state or participating political subdivisions, shall now be able to claim all prior state service in Group 1 upon proper documentation as required by the board of trustees of the Tennessee consolidated retirement system; provided, that such member does not have credit for such service in any other public employee retirement system.
2. (2) Such member shall pay in a lump sum an amount equal to the amount such member would have contributed had such member been a member of the superseded state retirement system and/or the Tennessee consolidated retirement system, plus interest at the rate designated in § 8-37-214.
(c) Any teacher who is a member may claim any service rendered in the employment of the state prior to July 1, 1972; provided, that such member makes a back contribution or redeposit as provided in § 8-37-214.
(d)
1. (1) Any member in Group 1 may establish retirement credit for previous service rendered as an agriculture county agent or home demonstration agent or assistant thereto under the following conditions:
  1. (A) The member is not and never has been vested in any other retirement system, including the United States Civil Service Retirement Act (5 U.S.C. § 8331 et seq.), as amended October 20, 1969, based in whole or in part on such previous service;
  2. (B) The previous service must be certified on proper documents as required by the retirement division; and
  3. (C) The member shall make a lump sum payment equal to ten percent (10%) of the member's earnable compensation during such period of service, plus interest at the rate provided by § 8-37-214.
2. (2) Any such services in these capacities rendered prior to 1945 shall be credited to the member without cost.
(e) Any superintendent of schools who withdrew such superintendent's total contributions and time credits from the superseded Tennessee teachers' retirement system and transferred that portion of time served as superintendent of schools into the Tennessee county officials' retirement system may, upon request to the board of trustees of the Tennessee consolidated retirement system, reestablish that portion of time credit withdrawn from the superseded Tennessee teachers' retirement system and not eligible for time credits in the superseded county officials' retirement system may claim this service in Group 1 by proper documentation to the board and paying in a lump sum an amount equal to the amount contributed as a teacher, plus interest at the rate designated in § 8-37-214, based on the time the contributions were withdrawn to the time the payment was made. Upon retirement, benefits shall be computed based on creditable service established under Groups 1 and 3 and added to the benefits computed under the superseded county officials' retirement system.
(f) Any member participating in the retirement system pursuant to § 8-35-121 who served in a full-time position covered by the superseded state retirement system or the Tennessee consolidated retirement system and who has never received retirement credit for such service may claim such service upon payment in a lump sum of the contributions which would have been made during such employment. Any member who has been refunded contributions for such service shall not be eligible to reestablish service under this subsection (f). In no event shall this section be construed to extend retirement credit to state employees unrelated to the programs for the blind.
(g)
1. (1) Any prior class county official who was employed by a county official prior to becoming covered by the superseded retirement system for county officials shall be eligible for prior service credit in the superseded retirement system for county officials for the time served as an employee of a county official.
2. (2) Any additional service credit established under this subsection (g) shall be funded by payment of a lump sum amount equal to the amount such official would have contributed had the official been a member of the superseded retirement system for county officials, plus interest at the rate designated in § 8-37-214, and any additional amount as determined by the board of trustees of the Tennessee consolidated retirement system required to fund the liability created by this subsection (g). The payment for this service may be made by the member or by appropriation of funds for this purpose by the member's county legislative body. No benefits shall be paid as a result of service credit established under this subsection (g), until the same is fully funded according to this subsection (g).

§ 8-34-603. Computation of creditable service — Credit for purchased service.

(a)
1. (1) Creditable service at retirement on which the retirement allowance of a member shall be based shall consist of such member's membership service, plus any prior service creditable to such member pursuant to §§ 8-34-602 and 8-36-103. The board shall fix and determine by appropriate rules and regulations how much service in any year is equivalent to a year of service, but in no case shall more than one (1) year of service be creditable for all service in one (1) calendar year, nor shall the board allow credit as service for any period of more than one (1) month's duration during which the member was absent without pay, except as hereinafter provided.
2. (2) Service credit for part-time employment shall be determined on a monthly basis in direct proportion to the full-time schedule of a regular employee as certified by the employer. In cases of doubt as to the computation of creditable service, the board of trustees shall determine the appropriate amount of service credit.
3. (3)
  1. (A) Service as purchased in accordance with § 8-37-214 shall be credited as follows:
    1. (i) Any member in Group 1 establishing any service in the retirement system on or after July 1, 1976, shall receive credit for this service in Group 1 only;
    2. (ii) Any member in Group 2 establishing service on or after July 1, 1976, which was rendered in a capacity covered by Group 2 shall receive credit in Group 2;
    3. (iii) Any member in Group 3 establishing service on or after July 1, 1976, which was rendered in a capacity covered by Group 3 shall receive credit in Group 3;
    4. (iv) Any member of a superseded system establishing service which was rendered in a capacity covered by the applicable system shall receive credit in accordance with the superseded system;
    5. (v) Any state judge establishing service in Group 4 on or after September 1, 1990, that was rendered in a capacity covered by Group 4, shall receive credit in Group 4; and
    6. (vi) Any attorney general and reporter establishing service in Group 4 on or after July 1, 2005, that was rendered in a capacity covered by Group 4, shall receive credit in Group 4.
  2. (B) Except as provided in subdivisions (a)(3)(A)(ii)-(vi), any other service shall be credited in Group 1 only.
4. (4)
  1. (A) In arriving at the cost to purchase previous service, the required payment shall be the lesser of:
    1. (i) The amount calculated as a redeposit; or
    2. (ii) The amount calculated as a back payment.
  2. (B) In calculating the back payment, the member shall only be required to make the applicable contribution rate in relationship to the benefit such member will receive for the purchased service, plus interest at the rate provided for in § 8-37-214.
  3. (C) Any state or teaching service rendered prior to July 1, 1945, shall be credited without charge to the member.
5. (5) Notwithstanding any other provisions to the contrary in chapters 34-37 of this title, when computing benefits, creditable service shall be the sum total of all full years and all fractional parts of years of service rounded off to the nearest full month of creditable service. In no event shall any rounding result in any member gaining or losing more than one-half (½) month of creditable service.
(b) Teachers and Employees Paid on Less than Twelve-Month Basis.
1. (1) Any member who is a teacher who renders a year of service but who is paid other than on a twelve-month basis is nevertheless to receive credit equivalent to a full year of service.
2. (2) Any member who is employed by the county board of education, the city board of education, the state board of education or the board of other educational institutions and agencies supported by and under the control of the state, and who renders a school year of service but who is paid other than on a twelve-month basis is nevertheless to receive credit equivalent to a full year of service.
3. (3) Any membership service and prior service for such member shall be adjusted to provide creditable service equivalent to a full year of service for each year in which the member rendered such service.
4. (4) Any funds needed to meet the costs of the benefits provided herein shall be paid by the employer.

§ 8-34-604. Sick leave as creditable service.

(a) Upon retirement, any employee of the state who has accumulated sick leave under chapter 50, part 8 of this title, or any teacher who has accumulated sick leave under § 49-5-710, or any state university and community college system or University of Tennessee employee member who has accumulated sick leave to an extent not exceeding that sick leave provided under chapter 50, part 8 of this title, shall be credited with such accumulated sick leave as creditable service at the rate specified in subsection (b); provided, that:
1. (1) The last employing department or agency employer shall certify in the manner prescribed by the retirement system the number of unused accumulated sick leave days to the credit of such member at the time of retirement;
2. (2) The employer shall certify that the accrued sick leave claimed is substantiated by records of the employer's agency compiled during the course of employment for which the leave was earned and not from records compiled solely for purposes of establishing retirement credit; and
3. (3) Employee members of the state university and community college system and the University of Tennessee shall receive no more retirement credit for such accumulated sick leave than any other state employee, and shall not be credited with such leave as creditable service at a rate exceeding twelve (12) days per year of service.
(b) Each twenty (20) days of accumulated sick leave shall equal a month of retirement credit, or any time less than twenty (20) days, a fractional part thereof. Any teacher or education agency employee who renders a school year of service that is less than twelve (12) full months is nevertheless entitled to receive credit for unused accumulated sick leave at retirement. The amount of such credit shall be proportionate to twelve (12) months divided by the number of months in the school year for that position. The number of months scheduled to work per year during the majority of the member's last three (3) years of service shall be used to establish whether the retiring member is a nine-month, ten-month, eleven-month or twelve-month employee for purposes of this section.
(c) The governing body of any employer participating in the retirement system pursuant to chapter 35, part 2 of this title may authorize its employees who have unused accumulated sick leave at retirement to be credited with such accrued leave pursuant to this section. Before any such credit is granted, the governing body must pass a resolution authorizing the credit and accepting the liability therefor.
(d) Any retiree who returns to service and again becomes a member pursuant to § 8-36-802, and whose accumulated sick leave is restored to such retiree's sick leave account, shall only be entitled to retirement credit for unused sick leave based on the certification of such retiree's last employer. Any previously granted sick leave shall be deducted from the original benefit should it be reinstated in accordance with § 8-36-802(b).
(e) Notwithstanding the foregoing, sick leave conversions shall be permitted only if:
1. (1) The leave is for unused accrued paid time off for sick leave or for comparable paid time off under an established leave policy without regard to whether the leave is due to illness or incapacity;
2. (2) The leave policy qualifies as a bona fide sick leave plan for purposes of § 409A of the Internal Revenue Code (26 U.S.C. § 409A), and Treasury Regulation § 1.409A-1(a)(5);
3. (3) The sick leave plan provides for service credit for a member's unused paid time off; provided, that the eligibility requirements for participation in the plan do not permit an employee to become a member only in the plan year in which the member terminates employment;
4. (4) The conversion is automatic and the member has no right to request a cash payment;
5. (5) The unused paid time off is converted to service credit under a specified formula which satisfies the definitely determinable standard of Treasury Regulation § 1.401-1(b)(1)(i);
6. (6) The plan otherwise provides for service credit unrelated to the conversion of any member's unused paid time off; and
7. (7) The member's annual benefit, as adjusted by the leave conversion, does not exceed the limit under § 415(b) of the Internal Revenue Code (26 U.S.C. § 415(b)).

§ 8-34-605. Military service as creditable service.

(a) Any member who left the employ of an employer participating in the Tennessee consolidated retirement system in order to perform military service in the armed forces of the United States, and who is reemployed by such employer within six (6) months of honorable discharge from such service, shall have the option of establishing retirement credit for the military service under the following conditions:
1. (1) The member must be entitled to reemployment with the employer pursuant to the Uniformed Services Employment and Reemployment Rights Act (38 U.S.C. §§ 4301-4334);
2. (2) The member must not be able to establish the military service in any other retirement system; provided, that this subdivision (a)(2) shall not apply to the extent it is preempted by federal law;
3. (3) The member must redeposit any amount the member withdrew from the retirement system upon leaving the employ of such employer, plus interest at the rate provided in § 8-37-214(a); and
4. (4) The member must make a back payment equal to the amount of employee contributions the member would have made had the member remained continuously employed with the employer during the period of military service claimed. Such contributions shall be based upon the earnable compensation the member was earning at the time the member left employment to enter the military. Notwithstanding anything in this subdivision (a)(4) to the contrary, if the military service was during the Persian Gulf War, the service shall be credited without charge to the member, unless the member is an employee of a political subdivision. If the member is an employee of a political subdivision, the service shall be credited without charge to the member; provided, that the political subdivision accepts the liability therefor. “Persian Gulf War” means the period from and including August 2, 1990, to the date thereafter prescribed by presidential proclamation or by federal law.
(b)
1. (1) Any member or retired member who served in the armed forces of the United States during any period of armed conflict, as defined in subdivision (b)(2), shall be entitled to establish retirement credit for such military service without charge under the following conditions:
  1. (A) The member was honorably discharged from such military service;
  2. (B) The member cannot establish the military service in any other retirement system; provided, that this subdivision (b)(1)(B) shall not apply to the extent it is preempted by federal law; and
  3. (C) The military service credit cannot be used in determining any rights under the retirement system prior to the member becoming vested.
2. (2) “Period of armed conflict” means:
  1. WW I 4/7/17 — 11/11/18
  2. WW II 12/7/41 — 12/31/46
  3. Korean War 6/27/50 — 1/31/55
  4. Vietnam Era 2/28/61 — 5/7/75
(c) Any member or retired member who performed peacetime military service in the armed forces of the United States at any time from October 15, 1940, through May 7, 1975, shall be entitled to establish retirement credit for that military service under the following conditions:
1. (1) For the member's first year of peacetime military service, the credit shall be on the basis of one (1) day of creditable service for each day of military service rendered. To establish the first year of such military service, the member must pay employee contributions for the service claimed based on a contribution rate of ten and one-half percent (10½%). The rate shall be applied to the member's earnable compensation at the time of the claim or, if not in service at the time of the claim, the member's earnable compensation at termination of employment;
2. (2) After the first year of peacetime military service, the credit shall be on the basis of one (1) day of creditable service for each two (2) days of military service rendered. To establish such military service, the member must pay employee contributions for the service claimed based on a contribution rate of nine percent (9%). The rate shall be applied to the member's earnable compensation at the time of the claim or, if not in service at the time of the claim, the member's earnable compensation at termination of employment; and
3. (3) The member shall be subject to the conditions set forth in subdivisions (b)(1)(A)-(C).
(d)
1. (1) Any member who has performed active duty military service in the armed forces of the United States during any period of armed conflict, as defined in subdivision (d)(2), may establish retirement credit for that military service under the following conditions:
  1. (A) Creditable service must be calculated on the basis of one (1) day of creditable service for each day of military service rendered. To establish such military service, the member must pay employee contributions for the service claimed based on a contribution rate of nine percent (9%). The rate is applied to the member's earnable compensation at the time of the claim;
  2. (B) The establishment of creditable service for military service in accordance with this subsection (d) is a benefit improvement. Payment of the liability to establish this creditable service is paid in accordance with § 8-35-206(i); and
  3. (C) The member is subject to the conditions set forth in subdivisions (b)(1)(A)-(C).
2. (2) As used in this subsection (d), “period of armed conflict” means:
  1. Multinational Force in Lebanon 8/21/82 — 2/26/84
  2. Invasion of Grenada/Operation Urgent Fury 10/25/83 — 12/15/83
  3. Invasion of Panama/Operation Just Cause 12/20/89 — 1/31/90
  4. Persian Gulf War 8/2/90 — 4/6/91
  5. Operation Enduring Freedom 10/7/01 — 2/28/14
  6. Operation Iraqi Freedom 3/19/03 — 8/31/10
(e) Any member who was honorably discharged as a result of one hundred percent (100%) permanent total disability from any service-connected, combat-related cause as determined by the United States veterans administration whose permanent total disability existed on the date of discharge shall not be deemed to have military credit in any other retirement system, unless the member retired from the military with twenty (20) or more years of service.
(f) Subsections (b)-(e) are optional to political subdivisions in accordance with § 8-35-217.
(g) For part-time members, earnable compensation shall be increased to the corresponding full-time earnable compensation.
(h) In no case shall the total amount of retirement credit granted for military service under subsections (b)-(e) exceed four (4) years.
(i) Effective December 12, 1994, notwithstanding any other law to the contrary, contributions, benefits, and service credit with respect to qualified military service are governed by § 414(u) of the Internal Revenue Code (26 U.S.C. § 414(u)), and the Uniformed Services Employment and Reemployment Rights Act of 1994 (38 U.S.C. §§ 4301 et seq.).
(j) Effective with respect to deaths occurring on or after January 1, 2007, while a member is performing qualified military service, as defined in the Uniformed Services Employment and Reemployment Rights Act of 1994 (38 U.S.C. §§ 4301 et seq.), to the extent required by § 401(a)(37) of the Internal Revenue Code (26 U.S.C. § 401(a)(37)), survivors of a member in a state or local retirement or pension system, are entitled to any additional benefits that the system would provide if the member had resumed employment and then died, such as accelerated vesting or survivor benefits that are contingent on the member's death while employed. In any event, a deceased member's period of qualified military service must be counted for vesting purposes.
(k) Beginning January 1, 2009, to the extent required by § 414(u)(12) of the Internal Revenue Code (26 U.S.C. § 414(u)(12)), an individual receiving differential wage payments, as defined under 26 U.S.C. § 3401(h)(2), from an employer shall be treated as compensation for purposes of applying the limits on annual additions under § 415(c) of the Internal Revenue Code (26 U.S.C. § 415(c)). This subsection (j) shall be applied to all similarly situated individuals in a reasonably equivalent manner.
(l) Subject to a state appropriation, there is established a reserve account in the retirement system for the payment of state liabilities, and the interest that would have been earned thereon, resulting from military service credit established pursuant to this section on or after May 23, 2022. Deposits into the reserve account must come from state appropriations. The interest and dividends earned on the funds in the reserve account must be credited to the account and not revert to the general fund. The state treasurer may assess a charge to the reserve account, in an amount determined by the treasurer, to meet the expenses of the treasury department in administering and investing the reserve account assets.

§ 8-34-606. Educational leave as creditable service.

(a) Subject to the approval of the board of trustees, any member who is a full-time employee and who is on educational leave of absence from service for the purpose of attending school or engaging in academic research related to such employment may establish retirement credit for such leave period under the following conditions:
1. (1) The leave is intended to increase such member's efficiency to the member's employer;
2. (2) The member must be reemployed by such employer within one (1) year following the leave period and remain so employed for at least one (1) year thereafter. For purposes of this subdivision (a)(2), any member who is on educational leave of absence from an educational institution supported in whole or in part by the state shall be deemed to have met this subdivision (a)(2) if the member returns to service with an educational institution supported in whole or in part by the state within one (1) year following the leave period and remains so employed for at least one (1) year thereafter;
3. (3) The member makes monthly contributions to the retirement system during the period on the basis of the member's earnable compensation in effect immediately prior to the commencement of such leave;
4. (4) If the monthly contributions are not timely made, the member pays interest on such contributions at the rate provided in § 8-37-214; and
5. (5) The total amount of retirement credit the member may establish for educational leave of absence shall not exceed an aggregate of two (2) years during the member's working career. Notwithstanding this subdivision (a)(5), the total amount of retirement credit the member may establish for an educational leave of absence shall not exceed an aggregate of four (4) years during the member's working career if the member receives a competitive award from the national aeronautics and space administration, the national institutes of health, the national science foundation, the national endowment for the humanities, the national endowment for the arts or the Fulbright Program.
(b) Subject to the approval of the board of trustees, any member on educational leave of absence, within the meaning of subsection (a) who is covered by the noncontributory provisions of the system pursuant to § 8-34-206 shall be entitled to retirement credit while on leave of absence upon application therefor and proper certification by the employer of the amount of leave taken and the member's salary immediately prior to the commencement of such leave of absence. Notwithstanding any other law to the contrary, the employee shall be credited with the service credit for educational leave of absence as provided for in this section; however, contributions made on behalf of the employee by the employer shall not be credited to the employee's account.

§ 8-34-607. Creditable service for prior service while participating member of city, metropolitan government, county, utility district, or other political subdivision retirement system.

(a)
1. (1) A member of the Tennessee consolidated retirement system may purchase retirement credit for all of the member's previous service rendered while a full-time employee and participating member of a political subdivision's defined benefit retirement plan.
2. (2) A member may purchase service under this section using funds from any source including, but not limited to, cash; a member's deferred compensation account or defined contribution employee account; or employee contributions to a defined benefit plan; provided, however, that the member is otherwise eligible to access the funds through withdrawal, transfer, or rollover.
3. (3) This section does not require a retirement plan to disburse plan assets that are not otherwise eligible for disbursement in accordance with the terms of the plan; provided, however, that in accordance with federal law, employee contributions to a defined benefit plan are refundable upon termination of employment.
4. (4) Upon the purchase of this retirement credit, the member forfeits all of the member's service in the political subdivision's plan, and must not receive a benefit from the political subdivision's retirement plan.
(b) To purchase service under this section, a member shall make a lump sum payment equal to the actuarial cost as determined by the retirement system without creating unfunded accrued liability at the date the service is established. Service established under this section must be under the terms of the retirement system plan as they exist at the time the service is established. Upon the member making the required payment and providing any forms or other documentation required by the retirement system, the member must be credited with the years of service from the other plan.
(c) This section does not permit the establishment of service that would have been considered prior service pursuant to § 8-35-203 or service rendered to a withdrawn employer pursuant to § 8-35-218.
(d) Salaries earned for service established pursuant to this section must not be used in determining a member's average final compensation.
(e) This section applies on such date as the retirement system's operating systems are able to accommodate the payment for service as provided in this section. The state treasurer shall make such determination.
(f) For purposes of this section, the term “political subdivision” includes, but is not limited to, a city, metropolitan government, county, utility district or agency or instrumentality of the political subdivision, in this state.

§ 8-34-608. Delegates to state constitutional convention.

Any member who has served as a delegate to a state constitutional convention may claim such service in this system or any superseded system in which such person is a member; provided, that a back payment is made in accordance with § 8-37-214. Each year of service as a delegate shall be equal to one (1) year of creditable service.

§ 8-34-609. [Reserved]

§ 8-34-610, 8-34-611. [Reserved]

§ 8-34-612. Certain six-month waiting periods.

(a) Any current member of the Tennessee consolidated retirement system who was employed by the state in a full-time position during the period of July 1, 1972, through June 30, 1973, and who was required by executive order or policy to wait six (6) months to participate in the state retirement system shall be given credit for such period of service; provided, that the member makes a lump sum payment of the contributions such member would have made had such member been a member of the retirement system.
(b) Any current member of the retirement system who is employed in a full-time position by a political subdivision, participating in the retirement system pursuant to chapter 35, part 2 of this title, and who was required by policy to wait for a period not exceeding six (6) months prior to participating in the retirement system shall be entitled to retirement credit for such period of full-time service; provided, that:
1. (1) The governing body at its option shall authorize by resolution and accept the liabilities for its employees to receive retirement credit for such service; and
2. (2) The member makes a lump sum payment of the contributions such member would have made had such member been a member of the retirement system.

§ 8-34-613. [Reserved]

§ 8-34-614. Teacher previously ineligible to earn service credit after reemployment now eligible under certain conditions.

(a) Any teacher who had retired prior to July 1, 1972, and returned to teaching service, and was ineligible to make further contributions to the Tennessee teachers' retirement system, shall now be eligible to claim such years for retirement credit; provided, that such teacher has not reached sixty-five (65) years of age; and provided further, that a lump sum deposit be made which would equal the amount that such teacher would have contributed had such teacher been a member of the system, plus interest at the rate designated in § 8-37-214.
(b) Such amounts so deposited shall become a part of the teacher's accumulated contributions in the same manner as if the contributions had been timely paid.
(c) Any creditable service established under these provisions shall be added to such member's previously established creditable service, and upon subsequent retirement, the teacher's retirement allowance shall be based on such member's compensation and creditable service before and after the period of prior retirement.

§ 8-34-615. [Reserved]

§ 8-34-616. Certain former members of the general assembly.

(a) Notwithstanding any other provisions to the contrary, any former member of the general assembly who elected not to be a member of the retirement system at the time of coming into the general assembly, or who became a member of the general assembly prior to the establishment of the superseded Tennessee state retirement system or this system may, upon proper documentation as requested by the board of trustees, claim this service as a member of the general assembly or any other service rendered as an employee of the state that has not been previously claimed or withdrawn by paying in a lump sum an amount equal to the amount such former member would have contributed had such former member been a member during the period or periods for which service is claimed, plus interest at the rate designated in § 8-37-214.
(b) Any retired member of any superseded retirement system or this system is hereby prohibited from claiming any additional service under this section for retirement credits.

§ 8-34-617. Reenrolled former CETA employees where prior contributions have been returned.

In cases where the employer contributions have been refunded, former CETA employees who reenroll as members of the retirement system shall not be entitled to reestablish the period of withdrawn CETA service as creditable service in the retirement system.

§ 8-34-618. Public defender service as creditable service.

(a) Any member of the retirement system or of a superseded system shall be entitled to establish retirement credit for previous service rendered as a public defender upon the making of a lump sum payment of the contributions such member would have made had such member been a member of the state retirement system, plus interest at the rate provided for in § 8-37-214:
1. (1) Service established in accordance with this provision shall be credited in Group 1 only of the retirement system;
2. (2) Notwithstanding §§ 40-14-201 and 40-14-202, a public defender, for the purpose of establishing retirement credit in accordance with this provision, means any attorney appointed or elected under local governmental provisions and who is employed by a local government on a full-time basis to represent persons accused of crimes who are unable to pay for such representation.
(b) Retirement credit for public defender service as provided for herein shall not be granted unless authorized under the following terms and conditions:
1. (1) In the case of a member whose public defender's service was rendered to a local government unit which is not a participating employer, the governing body may at its discretion authorize by resolution and accept the liability of the employer cost to establish this service; or
2. (2) In the case of a member whose service was rendered to a local government unit participating pursuant to chapter 35, part 2 of this title, the governing body may at its discretion authorize by resolution and accept the liability for all current and former employees to receive retirement credit for public defender service.
(c) The retirement system shall not be liable for the payment of retirement allowances or other payments on account of this section for which reserves have not been previously created from funds contributed by the respective local government or the affected members. All costs associated with this section shall be the responsibility of the respective local government for which the public defender service was rendered. Should any required employer costs become delinquent, the commissioner of finance and administration, at the direction of the board of trustees of the retirement system, is authorized to withhold the amount or part of the amount from any state-shared taxes that are otherwise apportioned to the local government.

§ 8-34-619. [Reserved]

§ 8-34-620. Out-of-state service.

(a) For the purpose of determining eligibility for service retirement benefits, any teacher or state employee may establish retirement credit for previous service rendered as a public school teacher or full-time state employee in a state other than Tennessee or as a teacher in an overseas facility owned or operated by the United States department of defense under the following conditions:
1. (1) The previous service shall not be used in determining any rights under this chapter prior to the member being vested;
2. (2) The member is not receiving, and is not and will not be entitled to receive, retirement credit in any other retirement system for such previous service;
3. (3) The previous service does not exceed the number of years of creditable service in Tennessee;
4. (4) The previous service must be certified on proper documents as required by the board of trustees;
5. (5) The service shall only be credited for the purpose of establishing eligibility for retirement. No benefit shall be paid on such service; and
6. (6) The member shall make a lump sum payment equal to:
  1. (A) If the previous service was rendered on or before June 30, 2000,
    1. (i) The sum the member would have contributed had the member been a member during such period of out-of-state service;
    2. (ii) Plus the employer contributions which would have been made in accordance with the contribution rates in effect during the period in which the service was rendered;
    3. (iii) Plus interest on both at the rate provided by § 8-37-214; and
  2. (B) If the previous service was rendered after June 30, 2000,
    1. (i) A sum equal to ten percent (10%) of the member's earnable compensation during such period of out-of-state service;
    2. (ii) Plus interest at the rate provided by § 8-37-214.
(b) Notwithstanding subdivision (a)(2), if a member was in a defined contribution plan maintained on behalf of the member by an out-of-state public employer, the member shall be permitted to use other funds not in that plan to establish credit pursuant to this section.

§ 8-34-621. Part-time, seasonal, retired or temporary employee service credit.

(a) Any member or retired member may establish retirement credit for service rendered as a part-time employee upon making application therefor to the board of trustees. If such service is claimed within one (1) year of the member's date of membership or July 1, 1984, whichever is later, the member may establish retirement credit for service rendered as a part-time employee which has not been previously refunded, upon a payment of back contributions.
(b) Any state employee who is a member of the retirement system may establish retirement credit for service rendered as a seasonal or temporary employee upon making application therefor to the board of trustees. If such service is claimed within one (1) year of the member's date of membership or July 1, 1985, whichever is later, the member may establish retirement credit for such service which has not been previously refunded upon a payment of back contributions.
(c) If service is not established within the time specified in subsection (a) or (b) or if a member or retired member has been refunded for such service, then it may be established upon a payment of back contributions plus interest.
(d) A member or retired member establishing retirement credit under this section must establish credit for all service which is creditable under this system.

§ 8-34-622. Scope of Group 4 creditable service.

Any member in Group 4 may establish creditable service only for service rendered and contributions made as a state judge, an attorney general and reporter who meets the requirements of § 8-34-623(b), constitutional convention member, as provided by § 8-34-608, and for military service, as provided by § 8-34-605.

§ 8-34-623. Transfer of service from Group 1 or 3 to Group 4.

(a) Notwithstanding any law to the contrary, any Group 1 or 3 state judge defined herein shall be eligible to elect to transfer any service previously established as a state judge, member of a constitutional convention as provided by § 8-34-608, and military service as provided by § 8-34-605, from Group 1 or 3 to Group 4 of the retirement system. It is further provided that such transfer of service shall occur upon the election by the member and the lump sum payment, if applicable, of the difference between what the member would have contributed as a member of Group 4 and the amount of employee contributions to the member's credit on the effective date of transfer. If such election and transfer of service and applicable payment occurs within one hundred eighty (180) days of September 1, 1990, it shall be without interest. An election, transfer of service and payment occurring after one hundred eighty (180) days of September 1, 1990, shall include interest pursuant to § 8-37-214.
(b) Notwithstanding any law to the contrary, any Group 1 attorney general and reporter, who served as a Group 4 state judge immediately prior to being appointed as the attorney general and reporter, shall be eligible to elect to transfer any service previously established as the attorney general and reporter, member of a constitutional convention, as provided by § 8-34-608, and military service, as provided by § 8-34-605, from Group 1 to Group 4 of the retirement system. Such transfer of service shall occur upon the election by the member and the lump sum payment, if applicable, of the difference between what the member would have contributed as a member of Group 4, and the amount of employee contributions to the member's credit on the effective date of transfer, plus interest at the rate provided in § 8-37-214.

§ 8-34-624. Service in county law enforcement administration career criminal grant position.

Any attorney general who was transferred from the state payroll to a full-time county law enforcement administration career criminal grant position and subsequently transferred directly back to the state payroll, may establish retirement credit for the period of service in the grant position; provided, that the member has remained in service as an attorney general with no break in continuous service longer than one (1) year. Such attorney general may establish retirement credit for such service rendered, upon a payment of the necessary back contributions and interest based on the salary such attorney general would have received had such attorney general remained on the state payroll as a full-time assistant district attorney general.

§ 8-34-625. Period of disability as creditable service.

(a) Subject to the approval of the board of trustees, any member, other than an employee of a political subdivision, who receives temporary disability benefits under a workers' compensation program administered by or on behalf of an employer as defined in § 8-34-101 shall be entitled to establish retirement credit at any time during or after the period of disability.
(b) The member's employing department or agency shall provide certification, in a manner prescribed by the state treasurer, of the period of disability and salary in effect immediately prior to the disability. Contributions by, or on behalf of, the member on the basis of the member's salary in effect immediately prior to the period of disability, plus interest at the rate provided in § 8-37-214, if applicable, shall be remitted to the retirement system in a manner prescribed by the state treasurer.
(c) No member shall be credited with the temporary disability as creditable service at a rate exceeding one (1) year per occurrence of temporary disability.
(d) Participating political subdivisions may adopt this section; provided, that the chief governing body of the political subdivision passes a resolution authorizing this subsection (d) for the employees and accepting the liability therefor.

§ 8-34-626. Credit for national guard service.

Any vested Group I general employee of the state who was a full-time civilian employee of the Tennessee national guard prior to January 1, 1969, and who has never been allowed credit for such service in any other retirement system, may establish such service upon proper documentation and by paying the contributions such employee would have paid had such employee been a member of the system during the period claimed.

§ 8-34-627. Attorneys general.

(a) Notwithstanding any other provision to the contrary, any member may establish retirement credit for previous service rendered as an attorney general upon making a lump sum payment equal to the employee contributions the member would have made had the member been a member for the period claimed, plus interest at the rate provided in § 8-37-214. For purposes of this subsection (a), “attorney general” means any attorney general as defined in § 8-34-101.
(b) Notwithstanding § 8-35-109 or any other law to the contrary, membership in the retirement system shall be mandatory for any person employed on or after July 1, 1993, as an attorney general in the office of the attorney general and reporter.

Part 7 Superseded Systems

§ 8-34-701. Repeal of laws establishing superseded systems.

The following sections and chapters of the Code are hereby repealed as of July 1, 1972:
1. (1) Section 8-107 (former governors and spouses);
2. (2) Sections 8-618 — 8-622 (Attorneys General retirement system);
3. (3) Chapters 34, 35, 36, 37 and 40 of this title (Tennessee state retirement system);
4. (4) Title 17, chapter 3 (Judges' retirement system);
5. (5) Title 17, chapter 5 (Retirement system for county paid judges);
6. (6) Title 49, chapter 15 (State teachers' retirement system); and
7. (7) Sections 65-151 — 65-168 (Public service commissioners' retirement fund).

§ 8-34-702. Rights, benefits and privileges of members and beneficiaries of superseded systems.

Each and all of the sections and chapters repealed by § 8-34-701 will remain in full effect for the purpose of defining rights, benefits and privileges preserved under § 8-34-703.

§ 8-34-703. Rights of prior class members preserved.

Any prior class member shall be entitled to benefits under the retirement system determined in accordance with the superseded system of which such member shall have been a member, as in effect on July 1, 1972, with the following modifications:
1. (1) The rate of benefits applicable to the “average final compensation” of Class B members of the Tennessee teachers' retirement system and to the “average compensation” of Class B members of the Tennessee state retirement system shall be increased from one and three-fourths percent (1¾%) to one and seven-eighths percent (1⅞%);
2. (2) Sections 8-34-602(e), 8-34-712 and this section shall apply to present members of Group 3 as well as members coming into Group 3 prior to September 1, 1974.

§ 8-34-704. Classification and membership in judges' retirement systems preserved.

Nothing in this section or § 8-34-703 or §§ 8-34-706 – 8-34-713 shall be construed to change the retirement classification or remove from the system of which such judge is a member any state judge who continues in a state judicial office.

§ 8-34-705. Rights, benefits, and privileges of members of superseded University of Tennessee system preserved.

The former § 49-3333, which was repealed with the specific intent that employees of the University of Tennessee will be covered solely by chapters 34-37 of this title, will remain in full effect for the purpose of defining the rights, benefits and privileges of employees covered by its provisions prior to July 1, 1978.

§ 8-34-706. Retirement under consolidated system upon failure to qualify under superseded systems.

Any member of any superseded retirement system who upon termination, or retirement, fails to meet the qualification of the benefit provision of that system, shall have the privilege of electing to retire under this system.

§ 8-34-707. Disability retirement under superseded systems.

Notwithstanding any other law to the contrary, any prior class member of a superseded system who meets the applicable service requirements for an ordinary or an accidental disability retirement in such member's superseded retirement system shall not be retired on disability, unless the member is disabled from gainful employment in accordance with chapter 36, part 5 of this title. These members shall continue to be covered by the applicable benefit provisions of their superseded systems.

§ 8-34-708. Benefit base for judges and attorneys general systems.

(a) The “benefit base” under the Tennessee judges' retirement system, the retirement system for county paid judges of Tennessee and the attorneys general retirement system of Tennessee shall be the annual rate of compensation in effect for the office from which the prior class member retired on the date of retirement or on May 1, 1975, if greater. However, this section shall not apply to those members who were vested under the superseded system on June 30, 1975, or who were vested at the end of their term of office in effect on June 30, 1975, whichever is applicable.
(b) If any retired member under such superseded system held an office for which a salary was not fixed by statute on May 1, 1975, the benefit base of such member shall not be reduced below the benefit base established for such member as of May 1, 1975.

§ 8-34-709. Rights of certain commissioned members of department of safety who were over 35 when hired.

(a) Notwithstanding any other law to the contrary, any prior Class C member that is a presently employed commissioned member of the department of safety, and who was employed subsequent to such member's thirty-fifth birthday, shall be allowed to remain in the service of the department and to participate in the retirement system until such member obtains twenty-five (25) years of creditable service or reaches sixty (60) years of age.
(b) Any person covered under this provision shall make contributions at the rate applicable to prior Class C members and shall be entitled, upon retirement, to receive a retirement allowance at the rate specified for prior Class C members based upon the total years of creditable service.
(c) This section shall have application to all persons retiring after January 1, 1979.

§ 8-34-710. Transfer of assets from superseded systems.

(a) As of July 1, 1972, all of the assets of each superseded system shall be transferred to the credit of the retirement system established by chapters 34-37 of this title.
(b) Thereafter, the managing boards of the superseded systems shall have no further power to hold or invest such assets, and the board of trustees of the retirement system shall be the trustees of such assets, with all of the powers provided by chapter 37, part 1 of this title.
(c) The contributions made by each member of a superseded system to that system, together with the interest credited thereon in accordance with the superseded system, shall be credited to the member's individual account in the members' fund.
(d) The remaining assets of the superseded systems shall be credited to the state accumulation fund.

§ 8-34-711. Transfer of members and beneficiaries from superseded systems.

(a) As of July 1, 1972, the members and beneficiaries of the superseded systems shall cease to have any rights to benefits thereunder and shall be entitled only to the benefits provided by this chapter and chapters 35-37 of this title. Thereafter, no contributions shall be made to the superseded systems by either the members or the employers.
(b) The members of the superseded systems shall become members of the retirement system in accordance with § 8-35-101(b).
(c) Each beneficiary of a superseded system shall become a beneficiary of the retirement system established by this chapter and chapters 35-37 of this title, and such beneficiary's retirement allowance shall thereafter be paid from the retirement system under the conditions which were applicable to such beneficiary under the superseded system, except as hereinafter provided.
(d) Any former member of a superseded system who, upon termination of membership, was eligible for a deferred retirement allowance under the superseded system, the payment of which has not commenced as of July 1, 1972, shall continue to be so eligible, and such retirement allowance shall be paid from the retirement system, subject to the conditions which were applicable to such former member under the superseded system, except as hereinafter provided.
(e) Any former teacher:
1. (1) Who rendered service as a member of a local retirement fund;
2. (2) Who on June 30, 1972, was not a member of a superseded system; and
3. (3) Who upon termination of service as a teacher was eligible for a deferred retirement allowance payable to such former teacher or to the local retirement fund from the Tennessee teachers' retirement system, the payment of which has not commenced as of July 1, 1972; shall continue to be entitled to have such retirement allowance paid to such former teacher or on such former teacher's account and such retirement allowance shall be paid from the retirement system, subject to the conditions which were applicable under the Tennessee teachers' retirement system.

§ 8-34-712. Transfer of certain county officials from superseded system.

(a) Anything to the contrary notwithstanding, any county official and any county commissioner elected by popular vote, serving in a county having a county commission form of government, taking office on or before July 1, 1974, shall become a member and have the privilege of claiming any prior service such member was entitled to claim under the applicable provision of the superseded Tennessee county officials' retirement system, by completing a form prescribed by the board of trustees, and paying a lump sum in an amount equal to the amount the official would have paid had such official been a member of the Tennessee county officials' retirement system, plus interest at the rate designated in § 8-37-214.
(b) Any county official, as defined in § 8-34-101, may transfer that part of the official's membership so defined and contributions from the Tennessee consolidated retirement system, by completing the necessary forms as prescribed by the board of trustees, and paying in a lump sum the difference between what the official would have contributed had the official been a member of the Tennessee county officials' retirement system and the amount so transferred.
(c)
1. (1) Any member so transferring shall be eligible to use the aggregate number of years of credit in both systems to qualify for the condition of retirement.
2. (2) Such member's benefits for creditable service years in this system shall be computed under this system and added to the amount of benefits payable under the superseded Tennessee county officials' retirement system.

§ 8-34-713. Effect of change in compensation for the position from which a beneficiary has retired.

Notwithstanding any law to the contrary, the retirement allowance of any member who retires under a superseded system shall not be increased by any future increase in salary, base compensation, or other increases in compensation as allowed for the position from which the member retires. This section shall not be construed to prevent any increase in such retirement allowance when such increase is in accordance with § 8-36-701.

§ 8-34-714. Eligibility of prior Class C members.

Notwithstanding any provision to the contrary, all prior Class C members shall be eligible for service retirement benefits after completion of twenty-five (25) years of creditable service regardless of age.

§ 8-34-715. Retirement credit for state judges.

Notwithstanding any other law to the contrary, a state judge shall receive full retirement credit for service rendered after such judge's seventieth birthday.

§ 8-34-716. State judge membership transfer into Group 4.

(a) Notwithstanding any law to the contrary, any state judge, as defined in § 8-34-101, who, prior to September 1, 1990, participated in Group 1 or 3 classifications of the retirement system, may elect, in the manner prescribed by the retirement system, to transfer membership to Group 4 of the retirement system from and after September 1, 1990. The election to transfer membership shall become effective on the date of election.
(b) Notwithstanding any law to the contrary, any attorney general and reporter who meets the requirements of § 8-34-623(b) may elect in the manner prescribed by the retirement system, to transfer membership to Group 4 of the retirement system, from and after July 1, 2005. The election to transfer membership shall become effective on the date of election.

§ 8-34-717. Return to service — Judges retired under superseded county paid system.

Any judge retired from the superseded county paid judges retirement system may return to service in a position not covered by the Tennessee consolidated retirement system and continue to draw such judge's retirement allowance.

Chapter 35 Retirement — Membership

Part 1 General Provisions

§ 8-35-101. Eligibility.

(a)
1. (1) Any person who becomes a teacher, a general employee, a state police officer, a wildlife officer, a firefighter or a police officer on or after July 1, 1972, shall become a member of the retirement system as a condition of employment.
2. (2) Notwithstanding this section or any other law to the contrary, no state department, commission, institution, board, agency, instrumentality or entity of or affiliated with state government shall be authorized to cover its otherwise eligible employees in the retirement system unless the general assembly approves the annual operating budget for the entity, or unless the entity has specific Tennessee state statutory authority to cover its otherwise eligible employees in the retirement system and the entity obtains written advice from nationally recognized counsel employed by the retirement system in the area of government employee benefit plans that the entity is eligible to participate in a governmental plan as defined by Internal Revenue Code § 414(d) (26 U.S.C. § 414(d)), as amended. The foregoing also applies to any person seeking admission to the retirement system whose compensation is paid, in whole or in part, from funds not appropriated by the general assembly. Notwithstanding this section or any other law to the contrary, the funds necessary to fund any prior service of such persons must be appropriated by the general assembly or paid by another governmental entity.
(b) Any person who on June 30, 1972, is a member of a superseded system shall become a member of the retirement system as of July 1, 1972.
(c) Any person who on June 30, 1972, is not a member of a superseded system and who is employed as a general employee, a state police officer, a wildlife officer, a state judge, a county judge, an attorney general, a commissioner, a person in the employ of a political subdivision of the state participating in the retirement system pursuant to part 2 of this chapter or a teacher other than a teacher eligible for membership in a local retirement system, may elect to become a member of the retirement system as of July 1, 1972; provided, that within ninety (90) days following July 1, 1972, such person files with the board of trustees on a form prescribed by the board a notice of such person's election to become a member. Any employee may elect to become a member; provided, that such person files with the board of trustees a notice of election to become a member.

§ 8-35-102. Informing new employees of duties and obligations as a condition of employment.

Each employee, upon employment, shall be informed by the appointing authority of such employee's duties and obligations in connection with the retirement system as a condition of employment.

§ 8-35-103. Part-time employment.

(a) Any person who becomes a part-time employee or who is currently serving as a part-time employee on July 1, 1984, may elect to join the Tennessee consolidated retirement system. The election shall be made in the manner prescribed by the retirement system and shall be filed with the retirement system; provided, that the following employees shall not be eligible for membership:
1. (1) Students;
2. (2) Seasonal or temporary employees under twenty-five (25) years of age;
3. (3) Temporary employees in institutions of higher education; or
4. (4) Substitute teachers, unless such substitutes are under contract and scheduled to work the same time as a regular teacher.
(b) The employee's date of membership shall be the date the election is filed with the retirement system and shall be used to determine all rights and benefits under chapters 34-37 of this title.
(c) Part-time employees working in institutions of higher education shall be eligible for membership in the optional retirement plan found in chapter 25, part 2 of this title if it is certified by the institution that the employee is a teacher.
(d) In cases of doubt as to the classification of an employee, the board of trustees shall determine from objective criteria whether an employee is properly classified.
(e) Any retiree-beneficiary who accepts part-time employment with an employer participating in this system will be considered as restored to employment within the meaning of chapter 36, part 8 of this title, regardless of whether such retiree-beneficiary is eligible for membership.

§ 8-35-104. Termination of membership by absence from service — Members serving in armed forces.

(a) A member shall cease to be a member if such member:
1. (1) Is absent from service more than seven (7) consecutive years after last becoming a member and is not eligible for a deferred retirement allowance as provided in § 8-36-204;
2. (2) Withdraws such member's accumulated contributions;
3. (3) Becomes a beneficiary; or
4. (4) Dies.
(b) Notwithstanding the foregoing, the board of trustees shall continue the membership of a member during such member's period of active service in the armed forces of the United States; provided, that such member does not withdraw such member's accumulated contributions.
(c) It is further provided that any member who has established both contributory and noncontributory service shall lose membership upon withdrawal of such member's accumulated contributions or as provided by subsection (a).

§ 8-35-105. Classification of employees.

(a) The board of trustees shall require from any employer of members of the retirement system such information as the board may deem necessary including, but not limited to, name, address, title, social security number, compensation, duties, date of birth and length of service of each member in its employ. On the basis of such information, the board shall classify each person who becomes a member in accordance with § 8-35-101 or this section in one (1) of the following groups:
1. (1) Group 1. Teachers and general employees;
2. (2) Group 2. State police officers, wildlife officers, game and fish officers so classified prior to April 1, 1974, firefighters and police officers;
3. (3) Group 3. State judges, county judges, county officials, attorneys general, and commissioners; or
4. (4) Group 4. State judges entering service on or after September 1, 1990, state judges transferring membership under chapter 34, part 7, any attorney general and reporter who meets the requirements of § 8-34-623(b) and enters service on or after July 1, 2005, and any attorney general and reporter who meets the requirements of § 8-34-623(b) and transfers membership under chapter 34, part 7.
(b) The board shall certify to each member the group in which the member is placed and the date of the member's admission to membership therein. When the duties of a member so require, the board may classify the member in another group and shall certify to the member the group to which the member has been reclassified.
(c) Notwithstanding any law to the contrary, any person becoming a member of the retirement system after June 30, 1976, shall be classified as a Group 1 member, except a state judge, and an attorney general and reporter who meets the requirements of § 8-34-623(b). A state judge becoming a member of the retirement system on or after September 1, 1990, shall be classified as a Group 4 member. An attorney general and reporter who meets the requirements of § 8-34-623(b) and becomes a member of the retirement system on or after July 1, 2005, shall also be classified as a Group 4 member.
(d) The classification and membership rights of any county judge or county official who is currently a member or a prior class member of the retirement system shall continue in force without interruption and remain applicable when such member remains in the county office for which such classification eligibility originated, notwithstanding any change in the title of such office as a result of any act to implement the amendments of the Constitution of Tennessee, Article VII, § 1, ratified on March 7, 1978.
(e) In all cases of doubt, the board of trustees shall determine whether a person is in a specific employment category.
(f) The board of trustees is authorized to promulgate substantive and procedural rules and regulations requiring that the information described in subsection (a) be transmitted by the employer through an electronic medium.

§ 8-35-106. Certain prior class members.

(a) Any person who becomes a member in accordance with § 8-35-101(b), who immediately prior to becoming a member has been a Class A member of the Tennessee teachers' retirement system or the Tennessee state retirement system shall be classified in Group 1, unless such person shall elect, within ninety (90) days after July 1, 1972, or if such person is on leave of absence or otherwise not in service on July 1, 1972, within ninety (90) days after returning to service, on a form prescribed by the board of trustees, to remain covered by the benefit and contribution provisions of the superseded system of which such person is a member.
(b) A member making this election shall be classified as a prior class member and shall be subject to §§ 8-34-602(e), 8-34-703, 8-34-706 and 8-34-712.
(c) Any other person who becomes a member in accordance with § 8-35-101(b) shall be classified as a prior class member and shall be subject to §§ 8-34-602(e), 8-34-703, 8-34-706 and 8-34-712, unless such person shall elect, within ninety (90) days after July 1, 1972, or if such person is on leave of absence or otherwise not in service on July 1, 1972, within ninety (90) days after returning to service, on a form prescribed by the board of trustees, to become covered by the benefit and contribution provisions of this retirement system applicable to new employees.
(d) Any member making this election shall be classified in Group 1, 2 or 3 on the basis of such member's employment category in the same manner as provided in § 8-35-105.
(e) Notwithstanding the foregoing, any state judge, county judge or attorney general who becomes a member in accordance with § 8-35-101(b) may make the election herein provided at any time after July 1, 1972, but any such member making such election shall be required to contribute to the retirement system an amount equal to the excess of the contributions which such member would have made during the period since July 1, 1972, had such member made such election on such date over the actual contributions made during such period, together with interest on such amount at the rate or rates credited to members' accumulated contributions during such period.

§ 8-35-107. Temporary employment period.

(a) Any state agency, department, board, commission, institution, or political subdivision, covered on July 1, 1972, by chapters 34-37 of this title, or who may thereafter elect to bring its employees into the retirement system as general employees, shall have the option of establishing a period of temporary employment not to exceed six (6) months.
(b)
1. (1) At the request of a political subdivision employer and upon approval by the board of trustees, the six-month temporary employment period may be extended for specific groups of employees. These employees are ones employed for specific construction projects expected to be completed within four (4) years. Such projects must be outside the usual duties and/or customary responsibilities of the employer.
2. (2) Requests from political subdivisions for board approval for an extended temporary employment period shall contain all information considered necessary by the board including, but not limited to, the nature of the construction project, expected duration and the number of employees to be temporarily employed.
3. (3) No service credit may be established for extended temporary employment as provided by this subsection (b).
(c) Notwithstanding any provision of this section or any other law to the contrary, any employer participating in the retirement system on July 1, 1995, who has not established a temporary employment period on such date, and any employer who thereafter becomes a participating employer, shall be prohibited from establishing a temporary employment period pursuant to this section.
(d) In the event an employee completes a period of temporary employment with an employer pursuant to this section and subsequently terminates employment for any reason, such employer shall not require the employee to complete an additional period of temporary employment in the event the employee is ever rehired by the same employer.

§ 8-35-108. Teachers in local retirement systems.

A teacher participating in a local retirement fund shall not be eligible for membership in the retirement system.

§ 8-35-109. Membership in retirement system dependent on election by certain officials.

Any person who becomes a state judge, a county judge, a county official, a commissioner, a county chair, an elected or appointed official of the general assembly, or any district attorney general and any assistant thereto by whatever name called, on or after July 1, 1983, shall not become a member of the retirement system, unless such person elects to become a member of the system and is otherwise eligible for membership. The election shall be made in the manner prescribed by the retirement system and shall be filed with the retirement system.

§ 8-35-110. Service in the general assembly.

Any member of the Tennessee consolidated retirement system, or prior class member who is now, or becomes a member of the general assembly, shall have the option of participating in the retirement system as a member of the general assembly or continuing membership in the system of which such person is currently a member.

§ 8-35-111. Multiple membership in public retirement systems.

(a) The general assembly finds and declares that the public policy of this state is that no public official or employee shall have multiple memberships in any retirement program or programs financed from public funds, whereby such official or employee obtains or accrues pensions or retirement benefits based upon the same period of service to the state, or any branch, department, agency or institution thereof, or to any of its political subdivisions. This section shall be construed to implement this policy.
(b) “Public employee retirement system,” as used in this section, includes any political subdivision retirement system, but does not include the following:
1. (1) The Social Security Act (42 U.S.C. §§ 301-1397f) or any other federal retirement program;
2. (2) A local retirement system as provided for in part 3 of this chapter;
3. (3)
  1. (A) Any tax deferred retirement plan wherein total combined employer contributions to such plans, other than those made pursuant to a salary reduction agreement, do not exceed three percent (3%) of the employee's salary. Notwithstanding any other law to the contrary, an employer maintaining a tax deferred retirement plan shall not permit contributions to that plan which would exceed the limitations of the Internal Revenue Code (26 U.S.C.);
  2. (B) All tax deferred retirement plans established by public employers participating in the state retirement system, wherein employer contributions are made, must be approved by the director of the state retirement system;
4. (4) A defined benefit pension plan established and maintained by a local government employer that is supplemental to the employer's participation in the Tennessee consolidated retirement system, and was established prior to May 17, 2023, where the total combined employer and employee contributions do not exceed seven percent (7%) of the employee's salary, and the supplemental benefits are subject to the limitations set forth in § 8-36-102. At the request of the Tennessee consolidated retirement system, the local government shall conduct a periodic audit using an auditing or accounting firm to demonstrate compliance with the limitations set forth in § 8-36-102 and any applicable limitation pursuant to federal law, regulation, or ruling, with the cost of the audit to be paid by the local government; or
5. (5) A tax deferred retirement plan under § 457(f) of the Internal Revenue Code (26 U.S.C. § 457(f)).
(c) Except as provided in part 3 of this chapter, no person shall be eligible for membership in the consolidated retirement system if such person holds membership in any other public employee retirement system into which such person is making a contribution or accumulating creditable service based upon the same service that would entitle such person to membership in the consolidated retirement system; provided, that if such person receives compensation from two (2) or more governmental entities because of the statutory provisions of such person's office, such person is eligible for membership in this system, with benefits based upon the proportion of such person's compensation upon which contributions are not made to the other retirement system.
(d) If any person is eligible for membership in more than one (1) state, county or municipal retirement program for the same service, such person shall, within sixty (60) days from June 30, 1975, select the retirement program in which the person will participate or be excluded from the state retirement system. When such person has made contributions into an additional retirement system from which the person elects to withdraw the person's membership under this section, such person may, upon request, be reimbursed any contributions made by such person into the additional system, plus interest compounded annually in an amount to be determined by the board of trustees; provided, that if such person has received benefit payments in excess of such contributions, no reimbursement shall be made.
(e)
1. (1) Any member of more than one (1) superseded system shall be eligible for benefits in each such system, so long as such member's benefits in each system are based upon the proportionate part of such member's compensation received from the sources which qualified such member for such membership because of the statutory provisions of such member's office, even though the services may have been simultaneous.
2. (2) Such person shall be entitled to any unimpaired vested rights and benefits existing under such other system, but no period of time of such vested rights under another public employee retirement system shall be considered creditable service in the consolidated retirement system or any superseded system, except as provided in this section.
(f) The total retirement allowances received by any person from multiple public employee retirement systems shall not exceed one hundred percent (100%) of the person's average final compensation. This section shall not be construed to prevent any increase in such retirement allowance when such increase is in accordance with § 8-36-701.
(g) The total retirement allowances of any teacher under part 3 of this chapter received from the local teachers' retirement system and the state annuity received from the Tennessee consolidated retirement system shall not exceed one hundred percent (100%) of the teacher's final average compensation. This section shall not be construed to prevent any increase in such retirement allowance when such increase is in accordance with § 8-36-701.

§ 8-35-112. Membership in retirement system as condition of employment.

(a) Notwithstanding any other law to the contrary and except as provided in subsection (b), any current or former member of the retirement system or of a superseded system who accepts, or is elected to, a position on or after July 1, 2018, for which membership in the retirement system is otherwise optional shall become a member of the retirement system as a condition of employment.
(b) Subsection (a) shall not apply to an employee having optional membership who was employed by a political subdivision on the date the political subdivision elected to extend retirement coverage to the employee, unless the employee was a member or former member of a preexisting defined benefit plan maintained by that political subdivision. For purposes of this section, “political subdivision” means any entity authorized to participate in the retirement system pursuant to part 2 of this chapter.
(c) This section does not apply to retired members of the retirement system or of a superseded system who return to service in a position covered by the retirement system, as provided in chapter 36, part 8 of this title that does not allow the retired member to accrue additional retirement benefits.

§ 8-35-113. Intermittent or periodic service for boards, commissions, committees, councils, etc.

(a) From and after March 28, 1976, members and employees of boards, commissions, committees, councils, and the like, by whatever name known, whose duties are performed intermittently or periodically for the purpose of fixing rates, issuance of permits or licenses, regulating trades or professions, or serve in an advisory, study, or planning capacity, and the like, shall not be eligible for membership in the Tennessee consolidated retirement system based on such service, where such service does not provide the person's primary livelihood or such position qualify under the Constitution of Tennessee as a lucrative office; provided, that:
1. (1) In instances where persons who fall into the above classifications have heretofore been granted membership in the Tennessee consolidated retirement system, such persons who, together with their employer, shall make petition, may withdraw from membership and shall be entitled to a refund of any contributions heretofor made; and
2. (2) If the assets are insufficient to provide a full refund of the member's accumulated contributions, or the reserve credited from employee contributions are insufficient to provide the retirement allowance for retired members, the employer shall be assessed in a lump sum the amount necessary to refund the employee's accumulated contributions, and assessed a periodic amount to provide the retirement allowances to retired members each as determined by the board of trustees.
(b) In all cases of doubt as to whether the employee falls in the above classification, the board of trustees shall determine from objective test whether a person is within the specified category by considering, among other things, the amount of compensation earned as compared to compensation from other employment or sources, the nature of service performed, and the time required in performing such services.
(c)
1. (1) Members or former members of the state election commission with a minimum of five (5) years of service on such commission shall be eligible for membership in the Tennessee consolidated retirement system; except that the retirement benefits of such members shall be based on the Group 1 benefit formula as defined by § 8-36-206(1)(A) and not on the minimum retirement allowance provided for in § 8-36-209. This service shall be independent of all other creditable service for the purpose of calculation of the average final compensation. It is further provided that such benefits are subject to the limitations of § 8-36-102.
2. (2) Notwithstanding this subsection (c) to the contrary, any member of the state election commission with a minimum of five (5) years of service on such commission and who is also a member of the Tennessee consolidated retirement system as a teacher in a public school system shall be eligible to have the compensation for service on the election commission included in the computation of average final compensation, if applicable; provided, that such creditable service as a member of the election commission is concurrent with a portion of the creditable service as a teacher.
3. (3) Any current member or former member of the election commission may claim prior service with such commission pursuant to this subsection (c) as prior service for retirement credit upon proper documentation; provided, that the member makes a lump sum payment equal to the sum such person would have paid had such person been a member of the system during the period claimed, together with interest as provided by § 8-37-214.

§ 8-35-114. Classification and membership rights to continue as long as member remains in position for which rights originated.

The classification and membership rights of any member or prior class member of the retirement system shall continue in force without interruption and remain applicable as long as such member remains in a position for which such classification originated.

§ 8-35-115. Employees of boards, commissions and agencies — Credit for years of service — Terms and conditions.

(a) Effective July 1, 2002, all present and future employees of any self-sustaining board, commission or agency created by the supreme court of Tennessee shall participate in the Tennessee consolidated retirement system as a condition of employment and any preexisting employee pension or retirement program maintained by any such board, commission or agency shall be closed. Except as otherwise provided in this section, the membership of such employees in the retirement system shall be governed by the same terms and conditions applicable to state general employees as such term is defined in § 8-34-101.
(b) Notwithstanding any other law to the contrary, all years of service rendered by a member prior to July 1, 2002, as an employee of any board, commission or agency described in subsection (a) shall be used in determining eligibility for a service retirement allowance pursuant to § 8-36-201, an early service retirement allowance pursuant to § 8-36-301 and for calculating the years of creditable service projection under § 8-36-501(c)(2) and (c)(3), regardless of whether the member established such service in retirement system pursuant to subsection (c). Unless established pursuant to subsection (c), the service shall only be credited for the purpose of establishing eligibility for a service or early service retirement allowance or for calculating the years of creditable service projection under § 8-36-501(c)(2) and (c)(3), and shall not be used for any other purpose including, but not limited to, § 8-34-605. No benefit shall be paid on such service unless established pursuant to subsection (c).
(c) Any member or retired member of the retirement system shall be entitled to establish retirement credit for previous service rendered to any board, commission or agency described in subsection (a). Notwithstanding any other law to the contrary, the establishment of such prior service shall be subject to the following terms and conditions:
1. (1) For service rendered prior to the effective date of the member's participation in any preexisting employee pension or retirement program maintained by any such board, commission or agency, the member or retired member must make a back payment to the retirement system equal to:
  1. (A) The amount of employee contributions such member would have made had the member been a member of the retirement system during that time; and
  2. (B) Interest on said amount at the rate provided in § 8-37-214;
2. (2) For service rendered on or after the effective date of the member's participation in any preexisting employee pension or retirement program maintained by any such board, commission or agency, the member or retired member must make a back payment to the retirement system equal to:
  1. (A) The amount of employer contributions which would have been made had the member been a member of the retirement system during that time; and
  2. (B) Interest on said amount at the rate provided in § 8-37-214;
3. (3) A member or retired member applying for prior service credit under this subsection (c) for service rendered during any period from July 1, 1981 through the effective date of the member's participation in any preexisting employee pension or retirement program maintained by any board, commission or agency described in subsection (a) must establish all prior service creditable under this section before being eligible to establish such service. Until all such service is established, no prior service credit purchased under this section shall be used in determining any rights or benefits under the retirement system until all service creditable under this subsection (c) has been established;
4. (4) For service rendered prior to July 1, 1981, and for service rendered on or after the effective date of the member's participation in any preexisting employee pension or retirement program maintained by any such board, commission or agency described in subsection (a), the member may establish all or a portion of such service provided that the service being established must be for service rendered most recent in time;
5. (5) The one (1) year membership service requirement of § 8-37-214 shall not apply to service established under this subsection (c);
6. (6) The payment required to establish the prior service credit may be made in a lump sum or through monthly installments pursuant to § 8-37-220. Any lump sum payment to establish the service may be made through amounts transferred from any pension plan maintained on behalf of the member by any such board, commission or agency. If the member elects to establish the credit through monthly installments, no amount may be transferred from such other pension plan unless the transfer is being made to pay-off the remaining balance owed under the installment arrangement. Notwithstanding § 8-35-111 or any other law to the contrary, if the cost to establish the credit is not funded in whole or in part from amounts transferred by the member from such other pension plan, the member shall be permitted to retain ownership of such amounts without violating § 8-35-111; and
7. (7) Retirement credit being established through monthly installments cannot be used in determining any rights or benefits under the retirement system until all payments for the same have been received by the retirement system.
(d) Service established in accordance with this section shall be credited in Group 1 only.

§ 8-35-116. County judges and county officials.

(a)
1. (1) Notwithstanding any other law to the contrary, and except as provided in subdivision (a)(2), all county officials or county judges taking office after July 1, 1977, may become members of the Tennessee consolidated retirement system only in accordance with part 2 of this chapter, and shall be allowed to participate in the Tennessee consolidated retirement system if the county in which they are employed is participating in accordance with part 2 of this chapter.
2. (2) Any such county official or county judge who takes office on or after July 1, 2018, shall become a member of the Tennessee consolidated retirement system as a condition of taking office if the county official or county judge is a current or former member of the retirement system. This subdivision (a)(2) shall not apply if the county official or county judge was in office as a county official or county judge with the county on the date the county elected to participate in the retirement system, unless the county official or county judge was a member or former member of a closed preexisting defined benefit plan maintained by that county.
3. (3) The county shall be responsible for all employer costs on behalf of its county officials and county judges as provided in part 2 of this chapter.
(b)
1. (1) Notwithstanding subsection (a) or any other law to the contrary, full-time employees in the positions of county judges and county officials, as these terms are defined in chapter 34 of this title, in office or taking office after June 30, 1981, may participate in the retirement system as Group 1 members in accordance with chapters 34-37 of this title and this subsection (b) under the following terms and conditions:
  1. (A) Except as provided in subdivision (b)(1)(C), any such county official or county judge taking office on or after July 1, 2018, shall participate in the Tennessee consolidated retirement system as a condition of taking office if the county official or county judge is a current or former member of the retirement system;
  2. (B) The employer cost of such participation shall be paid from funds appropriated by the county legislative body for the office of the participating judge or official or from the excess fees of the participating official's office, where such excess fees are available;
  3. (C) Participation in the Tennessee consolidated retirement system shall not be available to county judges or county officials in counties that provide a county retirement system in which such judges or officials may participate unless:
    1. (i) The county legislative body passes a resolution allowing such election; provided, that the passage of the resolution shall not be required for any person who has obtained vesting in the Tennessee consolidated retirement system and who is elected or appointed as a county judge or county official;
    2. (ii) The participation is approved by the state retirement division; and
    3. (iii) The county official or county judge is not a current or former member of the county retirement system;
  4. (D) The state's share of any additional costs of this section shall be funded from the increase in state-imposed taxes that are earmarked to counties and that are not designated to be used by such counties for a particular purpose;
  5. (E) All employer and employee contributions, together with investment earnings made on behalf of persons covered under this subsection (b), must be equal to or exceed benefits that will be paid out. Employees participating pursuant to this subsection (b) shall contribute to the retirement system at a rate of five percent (5%) of earnable compensation or, in lieu of employee contributions, the employer may pay or cause to be paid all or part of such contributions on behalf of the employees. Employer contributions shall be determined by the state retirement division based on an actuarial valuation for each county with county officials electing to participate under this subsection (b);
  6. (F) Any liabilities resulting from the participation of a county under this subsection (b) shall be a liability of the county and not the state. If any required employer costs become delinquent, the commissioner of finance and administration, at the direction of the board of trustees of the retirement system, is authorized to withhold such amount or part of such amount from any state-shared taxes that are otherwise apportioned to the county; and
  7. (G) In the event of withdrawal of a county participating under this subsection (b), the assets of the county shall be distributed in accordance with § 8-35-211.
2. (2) The governing body of a county may pass a resolution to permit its county judges and county officials who participate in the retirement system pursuant to this subsection (b) to claim prior service credit for service rendered as full-time county general employees, county judges, or county officials, if the county authorizes the credit and assumes the liability for such prior service. Upon the authorization and assumption of the liability for prior service credit by the county, the county official or county judge shall be entitled to receive credit for such prior service only by the making of a lump sum payment of the contributions the official or judge would have made had the official or judge been a member, plus interest at the rate provided for in § 8-37-214. Except as otherwise provided in chapter 36, part 8 of this title, no person who has service credit in the retirement system under this subsection (b) shall be permitted to draw a retirement allowance from the system if the person continues or returns to service with the county in an employment classification for which the person received service credit under this subsection (b). For purposes of this subdivision (b)(2), “employment classification” means county general employee, county judge, or county official as those terms are defined in § 8-34-101. Notwithstanding any other law to the contrary, on or after January 1, 2009, county officials and county judges may claim prior service credit in the retirement system for service rendered as county general employees only if the county for which they are employed is participating in accordance with part 2 of this chapter, and only for periods of previous service that are authorized for other employees of the county.
3. (3) Any person entitled to participate in the retirement system under this subsection (b) shall be entitled to all rights, benefits, and privileges accruing under chapters 34-37 of this title, except as otherwise provided in this subsection (b), and such person shall be prohibited from participating in any other retirement system while at the same time participating in the Tennessee consolidated retirement system.
4. (4) A county judge or county official must choose to participate in either the consolidated retirement system in accordance with this subsection (b) or a county retirement system. A county judge or county official who is covered by a county system shall not be eligible to participate in the consolidated system.

§ 8-35-117. Employees of the University of Tennessee.

Effective July 1, 1978, all former, present and future employees of the University of Tennessee shall be considered to be general employees of the state or teachers employed in state-supported institutions of higher education depending on their position with the university. Their membership in the retirement system shall be governed in accordance with the provisions affecting either general employees, teachers, or both.

§ 8-35-118. Benefit improvement for higher education employees — Excluded benefits.

(a) The state shall pay the estimated increased pension liability resulting from a benefit improvement affecting general employees or employees at institutions of higher education participating in the retirement system by amortizing the unfunded accrued liability over a period of time not to exceed ten (10) years from the date that the benefit improvement is established.
(b) For the purposes of this section, “benefit improvement” does not include the supplemental bridge benefit established pursuant to § 8-36-211 for members who are subject to mandatory retirement pursuant to § 8-36-205.

§ 8-35-119. Employees of educational television stations.

(a)
1. (1) Any person who on June 30, 1983, is a state employee engaged in the administration or operation of a state-owned educational television station and who on or before July 1, 1986, without interruption of such state service becomes an employee of an educational television station transferred to the control of a local community agency, pursuant to [former] title 49, ch. 50, part 9 [repealed], may elect to remain a member of the state retirement system; provided, that:
  1. (A) Within ninety (90) days following the time at which employment of such person is transferred to the local community agency, such employee files with the board of trustees a notice of election to remain a member of the retirement system;
  2. (B) Such person continues to make the necessary employee contributions and does not subsequently become a member of a county or municipal employees' retirement system; and
  3. (C) The local community agency shall be responsible for all employer costs incurred as a result of the employee electing to remain a member of the retirement system.
2. (2) Contributions shall be made at the same rate as employer contributions for state employees.
(b) Any person who does not elect to remain a member of the retirement system within the time provided herein shall not thereafter be entitled to membership in the retirement system based upon such person's employment with the educational television network. Any person retiring from employment with a station covered by this section may not draw benefits and continue employment at a station covered by this section. It is further provided, that any person who does elect to remain a member within the required time, but who subsequently decides to withdraw from the retirement system, shall not be entitled to reenroll in the retirement system as long as such person continues in the employ of the educational television network.
(c) The local community agency as the employer of any person electing to remain a member of the retirement system in accordance with [former] title 49, chapter 50, part 9 [repealed] is authorized to pay the employer contributions for any state funds received to implement [former] title 49, chapter 50, part 9 [repealed]. However, no additional funds shall be appropriated solely for the purpose of paying employer retirement costs. For the purposes of this section, the local agency shall be regarded as the employing agency of those persons electing to remain members of the retirement system and shall be responsible for the filing of any required reports.

§ 8-35-120. Students.

Any person who is defined as a student in accordance with chapter 34, part 1 of this title and any person engaged in advanced training in medicine or dentistry as an intern or resident shall not be eligible for membership in the retirement system. In any case of doubt, the board of trustees shall determine whether an employee is a student.

§ 8-35-121. Blind employees.

(a) Blind employees of workshops who are unclassified members of state service immediately preceding the implementation date of a contract under § 71-4-608 are eligible for membership in the Tennessee consolidated retirement system under the same conditions that apply to state employees. Such employees shall make the same contributions and shall be eligible for the same benefits as state employee members. Any other person, including persons employed or reemployed after the date a contractor assumes the management and operation of a workshop, who is not already a member of the retirement system shall not become a member of the retirement system.
(b) Any employee eligible under subsection (a) may continue membership in the retirement system when the contractor assumes the management and operation of a workshop; otherwise, the employee may elect to withdraw from the retirement system and receive a refund of contributions. Such withdrawal constitutes a waiver of any right to reestablish such service at a future date based upon employment at a workshop.
(c) If the contractor has a retirement plan for its employees, an employee who elects to participate in such plan may not participate in the Tennessee consolidated retirement system.
(d) The contractor shall make normal contributions, special accrued liability contributions, and cost of living contributions, as determined by an actuarial valuation, in the same way as for state employee members, for each employee who elects to continue membership in the retirement system.
(e) The contractor shall pay such contributions to the board of trustees of the retirement system according to a schedule set by the board and all benefits payable to employees of any such contractor shall be contingent upon the payment of the necessary contributions by the contractor and its employees.
(f) The department of human services serves as administrative agent between the contractor and the Tennessee consolidated retirement system.

§ 8-35-122. [Reserved]

§ 8-35-123. Election by optional members to participate becomes irrevocable.

For any person participating in the Tennessee consolidated retirement system pursuant to §§ 8-35-101, 8-35-103, [former] 8-35-115 [repealed], 8-35-116, [former] 8-35-122 [repealed], and 8-35-226, or as a state judge, county judge, county official, commissioner, county chair or attorney general whose membership in the retirement system is optional, and who thereafter elects to become a member, such election is irrevocable. Such member shall thereafter be subject to the same terms and conditions applicable to members whose participation is mandatory under this title as may be amended.

§ 8-35-124. Felony convictions constituting malfeasance in office — Effect on benefits.

(a)
1. (1) No employee or elected or appointed official of the state or any political subdivision thereof shall be entitled to receive retirement benefits from the Tennessee consolidated retirement system, any superseded retirement system or any other public pension system, if such employee or official is convicted in any court of this state of a felony arising out of the employee's or official's employment or official capacity, constituting malfeasance in office.
2. (2) Notwithstanding any other law to the contrary, no employee or elected or appointed official of this state or any political subdivision thereof shall be entitled to receive retirement benefits from the Tennessee consolidated retirement system, any superseded retirement system or any other public pension system, if such employee or official is convicted in any state or federal court of a felony arising out of that person's employment or official capacity, constituting malfeasance in office.
3. (3) Notwithstanding any other law to the contrary, each time a person is elected to a public office of this state or any political subdivision of this state, such person shall, as a condition of such election, be deemed to consent and agree to the forfeiture of such person's retirement benefits from the Tennessee consolidated retirement system, any superseded retirement system or any other public pension system, if such person is convicted in any state or federal court of a felony arising out of that person's official capacity, constituting malfeasance in office. Notwithstanding subsection (e) or any other law to the contrary, this subdivision (a)(3) shall apply regardless of the date the person became a member of the public pension system, such person having consented to this subdivision (a)(3) as a condition of such election.
(b) Upon initial conviction, or upon a plea of guilty or nolo contendere, any person subject to this section shall:
1. (1) Have the employee's or official's benefit stopped immediately, if the employee or official is receiving a benefit; and
2. (2) Receive a refund of the accumulated contributions credited to the employee's or official's account, if any, less any benefits received unless the person elected to have a monthly retirement allowance paid upon such person's death in accordance with subsection (f).
(c) The employing agency is responsible for immediately notifying the administrator of the retirement system of the conviction of any person subject to this section.
(d) In the event the conviction of such person is later overturned in any court and such person is acquitted, or is granted a full pardon, the person shall be restored to all rights, privileges and benefits as if the conviction had never occurred.
(e) Subdivision (a)(1) applies only to persons who become members of public pension plans after July 1, 1982. Subdivision (a)(2) applies only to persons who become members of public pension plans on or after May 31, 1993.
(f) Any person convicted of a felony as provided in this section may elect, within six (6) months of the person's conviction, to have a monthly retirement allowance paid to whomever that person had designated as beneficiary on file with the retirement system at the time of that person's conviction; provided, that, such beneficiary must have been that person's spouse or child at the time of that person's conviction. The benefits shall be paid to such beneficiary following the person's death and upon meeting all other eligibility requirements applicable to a beneficiary. The amount of any allowance payable hereunder shall be equal to the retirement allowance which would have been payable had the person retired under the survivorship option elected.

§ 8-35-125. Forfeiture of service.

(a)
1. (1) Any member who is separated from service for reasons other than retirement or death may elect to forfeit all contributory and noncontributory service established by such member under chapters 34-37 of this title for the purpose of establishing such service in another state, federal, county or municipal retirement program.
2. (2) To be effective, the following conditions must be met:
  1. (A) The member must not have received any retirement benefits based upon such service;
  2. (B) The service must be creditable in the other retirement program;
  3. (C) If any of the service is contributory service, the member must have taken a refund of the member's accumulated contributions pursuant to § 8-37-210;
  4. (D) The member must forfeit all service established under chapters 34-37 of this title; and
  5. (E) The member must acknowledge in the manner prescribed by the retirement system that by forfeiting the service, the member shall not be entitled to reestablish the service in the retirement system so long as the member is entitled to retirement credit for such service in the other retirement program.
3. (3) A forfeiture of service made pursuant to this subsection (a) shall terminate membership in the retirement system in accordance with § 8-35-104 and shall constitute a waiver of all rights in the retirement system on account of the service forfeited.
(b)
1. (1)
  1. (A) Any member who has not separated from service may elect to forfeit all service established by such member as a result of employment rendered by the member in a particular employment category provided the forfeiture is for the purpose of establishing such service in another retirement plan operated by:
    1. (i) The federal government;
    2. (ii) Another state;
    3. (iii) A political subdivision of another state; or
    4. (iv) A Tennessee county or municipality that is not a participating employer under chapters 34-37 of this title.
  2. (B) For purposes of this subsection (b), an “employment category” means employment as a general employee, state police officer, police officer, state judge, county judge, county official or attorney general as such terms are defined in § 8-34-101.
2. (2) To be effective, the following conditions must be met:
  1. (A) The member must not have received any retirement benefits based upon such service;
  2. (B) The service must be creditable in the other retirement program;
  3. (C) If any of the service is contributory service, the member must take a refund of the member's accumulated contributions attributable to such service pursuant to § 8-37-210;
  4. (D) The member must forfeit all service established by the member as a result of the member's employment in the particular employment category; and
  5. (E) The member must acknowledge in the manner prescribed by the retirement system that by forfeiting the service, the member shall not be entitled to reestablish the service in the retirement system so long as the member is entitled to retirement credit for such service in the other retirement program.
3. (3) A forfeiture of service made pursuant to this subsection (b) shall constitute a waiver of all rights in the retirement system on account of the service forfeited.

Part 2 Local Governmental Units

§ 8-35-201. Political subdivisions of state.

(a) The chief legislative body of any political subdivision of the state, not participating under §§ 8-35-212 – 8-35-214, may, by resolution legally adopted and approved by the chief legislative body, authorize all its employees in all of its departments or instrumentalities to become eligible to participate in the retirement system under the same terms and conditions, except as provided in subsection (e); provided, that:
1. (1) Such participation shall be subject to the approval of the board of trustees and in conformity with such rules and regulations as may be prescribed by the board;
2. (2) Any political subdivision maintaining a preexisting public employee retirement system shall transfer to the retirement system any excess employer assets remaining in such preexisting system after allocating the funds necessary to provide any unimpaired rights and benefits existing under such preexisting system;
3. (3) The entire employer contribution for such public employees shall be provided and paid by the political subdivision and not by the state;
4. (4) Such employees will not have a voice in the election of the board of trustees except as provided for in § 8-34-302; and
5. (5) After such election and approval to become members of the retirement system, such body shall thereafter, for the purposes of chapters 34-37 of this title, be an employer.
(b) Acceptance of the employees of such political subdivision for membership in the retirement system shall be optional with the board of trustees, and if it shall approve their participation, then such employees may become members of the retirement system and participate therein as provided in chapters 34-37 of this title.
(c) Except as provided in subsection (e), the chief legislative body of any political subdivision in which one (1) or more of its departments or instrumentalities is participating in the retirement system shall be required to extend retirement coverage to all nonparticipating departments, if additional retirement coverage is sought and the remaining uncovered departments shall participate under the same terms and conditions.
(d) Notwithstanding anything to the contrary in this part, any governing body of any joint venture between one (1) or more political subdivisions of the state may by resolution authorize the employees of such joint venture to become members of the Tennessee consolidated retirement system under all the applicable provisions of this part; provided, that each political subdivision of the state which is represented in the joint venture shall by resolution prescribed by the board of trustees guarantee the payment of its prorated share of any outstanding liability so incurred by this action.
(e) Notwithstanding any other law to the contrary, a political subdivision may participate in the retirement system without extending retirement coverage to its hospitals, nursing homes, transit authorities, utilities, or other instrumentalities which operate under the direction of their own governing board and which are not subject to the general control and administration of the chief legislative body of the political subdivision. If retirement coverage is extended to such instrumentalities, the instrumentalities shall participate under the same terms and conditions as other departments and instrumentalities of the political subdivision.
(f) A local board of education may elect to participate in the retirement system separately from the political subdivision with which it is associated. If a local board of education elects to participate in the retirement system separately, the local board of education shall designate, by resolution, which city or the county shall accept financial responsibility for the liabilities associated with participation. The city or county that accepts the financial responsibility for the local board of education's participation in the retirement system, through its chief legislative body, governing body or authorizing body shall, by resolution, authorize and approve the local board of education's participation and shall demonstrate the city or county's acceptance of the liability associated with that participation. A political subdivision may elect to participate in the retirement system without extending coverage to the employees of the local board of education that is associated with the participating political subdivision. In the event that a political subdivision withdraws its participation from the retirement system, the political subdivision may allow the local board of education, which is a part of the political subdivision, to continue its participation in the retirement system separately.
(g) All political subdivisions that participate in or desire to participate in the retirement system shall have a governing body and shall meet all applicable state and federal law requirements that are necessary for the retirement system to maintain its status as a qualified plan under the Internal Revenue Code (26 U.S.C).

§ 8-35-202. Retirement laws which increase liabilities of participating political subdivisions.

(a) Whenever any retirement law is passed by the general assembly which does not affirmatively state that it has application to participating political subdivisions, and it is subsequently determined by the retirement division that such act or provisions thereof mandate increased liabilities to participating political subdivisions within the meaning of Constitution of Tennessee, Article II, § 24, compliance with such act or acts shall be optional to the political subdivisions.
(b) Upon discovery by the retirement division that an enactment increases the liabilities of participating political subdivisions, notice of the effect of such enactment shall be given to the governing bodies of the political subdivisions by the retirement division as soon as practical.
(c) The governing body of each political subdivision shall, upon notification of the effect of the law, advise the retirement division of its desire to be covered by the act.
(d) All participating political subdivisions which do not elect to be covered by the enactment shall be excluded from the provisions thereof.
(e) Notwithstanding this section or any other law to the contrary, whenever any retirement law is passed by the general assembly in chapters 34-37 of this title that does not increase the aggregate pension liability of all participating political subdivisions combined by more than one percent (1%), then each participating political subdivision shall be automatically covered by the law effective the January 1 next following the effective date of the applicable law, unless the governing body of the political subdivision files with the Tennessee consolidated retirement system a notice of that political subdivision's election not to be covered. The notice must be filed by no later than the November 1 next following the effective date of the applicable law. For purposes of this subsection (e), “political subdivision” means any employer participating in the Tennessee consolidated retirement system pursuant to § 8-35-116(b) or this part.

§ 8-35-203. Membership of employees — Credit for prior service.

(a)
1. (1)
  1. (A) Membership in the retirement system for employees of employers that are admitted as provided in this part shall be:
    1. (i) Optional for all employees in the service of the employer on the date the approval is given except as provided in subdivision (a)(1)(B); and
    2. (ii) Mandatory for all eligible employees entering the service of the employer thereafter.
  2. (B)
    1. (i) If the employer continues to maintain a preexisting pension plan that is closed to new membership on the date of the employer's participation date in the retirement system, the employer may, by resolution duly adopted by its chief legislative body, authorize its current employees who participate in the preexisting plan the choice of maintaining membership in the preexisting plan or joining the retirement system; provided, that allowing such choice meets all applicable state and federal requirements, including § 414(h) of the Internal Revenue Code (26 U.S.C. § 414(h)), that are necessary for the retirement system to maintain its status as a qualified plan under the Internal Revenue Code.
    2. (ii) The election to join the retirement system shall be in the manner prescribed by the retirement system and shall be filed with the retirement system. Any such election shall be irrevocable.
    3. (iii) Notwithstanding § 8-37-202 or any other law to the contrary, any employer described in subdivision (a)(1)(B)(i) shall set the employee contribution rate for its employees at the same rate as required under the employer's preexisting plan. The employer shall submit to the retirement system a duly executed adoption resolution as provided in § 8-35-201 prior to the employer's effective date of participation, which must be approved by the board of trustees.
2. (2) Credit for such periods of previous service as shall be certified as creditable service by the employer for service rendered to the employer or its predecessor, or in any other capacity approved by the employer and the board, for which the employer is willing to make accrued liability contributions shall be credited to employees who meet all of the following conditions:
  1. (A) The employee must have been employed by the employer on the date the approval is given and continuously for the thirty (30) days immediately preceding that date; provided, that in the event the employee was not continuously employed by the employer from the period of previous service claimed through and including the date the approval is given, the employee must have been employed by the employer on the date the approval is given and continuously for the six (6) months immediately preceding or after that date;
  2. (B) The employee must have become a member of the retirement system within thirty (30) days after the approval is given;
  3. (C) The employee must pay whatever back contributions and interest is due to establish service authorized by the employer. Subject to subdivision (a)(2)(D), such payment may be funded in whole or in part from amounts transferred from any preexisting pension plan maintained on behalf of the employee by the employer, from other eligible retirement accounts as defined in § 8-37-220, or from other funds available to the employee; and
  4. (D)
    1. (i) If the employer maintained a preexisting public employee retirement system as defined in § 8-35-111 on behalf of the employee during any period of the previous service authorized by the employer under this subdivision (a)(2), then the employee shall have six (6) months from the employer's participation date in the retirement system to elect to establish the previous service rendered while a participant in the preexisting plan by making the required payment and by forfeiting the employee's right to any employer contributions and interest thereon, and to any service credit in the preexisting plan if any part of the service credit was funded through contributions made by the employer;
    2. (ii) Any employee who fails to make the election provided for in subdivision (a)(2)(D)(i) shall not later be eligible to establish the previous service rendered while a participant in the preexisting plan.
3. (3) After becoming a member, service by such employee for which contributions are made shall be considered creditable service.
(b)
1. (1) A participating political subdivision may allow any employee previously denied service credit due to advanced age to establish such service. The chief governing body may authorize this credit by passing a resolution and accepting the liability.
2. (2) The employee may then establish such credit by making a lump sum payment of the contributions the employee would have made had the employee been a member of the system during the period claimed, plus interest at the rate provided for in § 8-37-214.
(c) An employee or elected or appointed official of this state or any political subdivision thereof who is convicted in any state or federal court of a felony arising out of the employee's or official's employment or official capacity constituting malfeasance in office shall forfeit that employee's or official's retirement benefits in accordance with § 8-35-124.
(d)
1. (1) Notwithstanding any provision to the contrary, any current member of the consolidated retirement system who would have been eligible for service credit in the retirement system pursuant to § 8-35-226, but was not in service with the local government on the date § 8-35-226 was adopted by the local government, may be eligible for retirement credit for such prior service at the option of the political subdivision for whom such prior service was rendered upon satisfying the following conditions:
  1. (A) The chief legislative body of such political subdivision authorizes and pays for the cost of an actuarial study to determine the liability associated with the granting of such service credit; and
  2. (B) Following review of the cost of granting such service credit, the chief governing body of such political subdivision passes a resolution authorizing such service credit and accepting the liability for such credit.
2. (2) Any service established shall be subject to the same limitations as contained in § 8-35-226.

§ 8-35-204. Membership by certain employees previously exercising option not to join.

(a) Notwithstanding anything to the contrary, any present employee or former employee, employed at any time within three (3) years prior to the participation date of the employer, by an employer admitted as provided in §§ 8-35-201, 8-35-202, 8-35-215 and 8-35-216 shall be eligible for membership in the Tennessee consolidated retirement system.
(b)
1. (1) Before such service can be established, the actuary of the Tennessee consolidated retirement system shall determine the amount of unfunded accrued liability for the political subdivision.
2. (2) Such member shall be entitled to credit for such periods of previous service actually rendered to such employer or its predecessor which are approved by a resolution legally adopted by a two-thirds (⅔) vote of the chief legislative body and for which the employer is willing to make accrued liability contributions based on information prepared in the actuarial study for such political subdivision.
3. (3) Such employee shall make contributions for any such period of prior service in an amount equal to the amount such employee would have contributed had such employee been a member during such time, plus interest at the rate provided for in § 8-37-214.
4. (4) Thereafter, such service for an employee on account of which contributions have been made shall be considered as creditable service.

§ 8-35-205. Information to be furnished concerning employees.

The chief fiscal officer of the employer and the heads of its departments shall submit to the board such information and shall cause to be performed in respect to the employees of the employer such duties as shall be prescribed by the board in order to carry out chapters 34-37 of this title.

§ 8-35-206. Contributions.

(a)
1. (1) The actuary of the retirement system shall compute the rates of contribution payable by employers on behalf of their employees who become members under this part by an actuarial valuation in a manner similar to that provided by chapter 37, part 3 of this title; provided, that the contribution rate as determined by the actuary for any employer who begins participating on or after July 1, 1983, shall be determined in a manner so as to amortize the accrued liabilities created on account of such participation over a period of time as established by the board of trustees, such period not to exceed thirty (30) years from the date of participation.
2. (2) Effective July 1, 1979, the liability for cost-of-living benefits is to be included in the computation of normal and accrued liability contribution rates payable by the employers.
(b) Each such employer shall make a special accrued liability contribution on account of the participation of its employees in the retirement system which shall be determined by an actuarial valuation of the employer's share of the accrued liability on account of the employees of such employer who elected to become members.
(c) In determining the accrued liability on account of the employees of any such employer, the actuary shall exclude the value of benefits which may become payable with respect to any period of service as a state employer prior to the employer's participation in the retirement system.
(d)
1. (1) The special accrued liability contribution shall be subject to such adjustments as may be necessary on account of any additional prior service credits awarded to employees of such employer or changes in provisions relating to such employees.
2. (2) The expense of making such initial valuation shall be assessed against and paid by the employer on whose account it is necessary.
3. (3) The board of trustees may require that a new study be performed if the political subdivision does not begin participation within six (6) months after the effective date of the initial actuarial study. Such employer shall be responsible for the cost of any additional studies.
(e) In addition, the employer shall pay a pro rata share of the cost-of-living contribution allocated on the basis of the amount of retirement allowances payable on account of retired employees of the employer or determined on such other equitable basis as the board of trustees may prescribe.
(f) The contributions so computed, together with a pro rata share of the cost of the administration of the retirement system, based upon the payroll of the employees, shall be certified by the board to the chief fiscal officer of the employer. The amount so certified shall be a charge against the employer.
(g) The chief fiscal officer of such employer shall pay to the state treasurer the amount certified by the board as payable under this section, and the state treasurer shall credit such amounts, when paid, to the appropriate funds of the retirement system.
(h) Notwithstanding any other law to the contrary, any employer that desires to participate in the retirement system on or after July 1, 2016, shall, as a condition of participating, pay its accrued unfunded liability, if any, in a lump sum or through an increase in the employer's contribution rate for the next fiscal year (July 1 – June 30) following the adoption of the participation resolution by the employer. At the request of the employer, the state treasurer may, in the treasurer's sole discretion, allow the employer to amortize the accrued unfunded liability over a period of time not to exceed twenty (20) years from the date of participation.
(i)
1. (1) A local government employer participating under this part that desires to establish a benefit improvement authorized under chapters 34-37 of this title shall pay the estimated increased pension liability created by the improvement; provided, however, that, in accordance with § 8-37-505, the failure to pay the liability may result in the withholding of the liability amount, in whole or in part, from any state-shared taxes that are otherwise apportioned to the local government. The retirement system or the retirement system's actuary shall determine the estimated increase to the pension liability and to the associated contribution rate for the employer. The employer shall not establish a benefit improvement unless the employer's funded status in the retirement system will be seventy percent (70%) or more after implementation of the benefit improvement. For the purposes of this subdivision (i)(1), the employer's funded status is measured by the percentage funding of the employer's market value of assets divided by the actuarially accrued liability in accordance with rules, standards, guidelines, and interpretations established by the governmental accounting standards board. After the participating employer's approval of the benefit improvement by adoption of a resolution, the employer shall pay the estimated increased pension liability through one (1) of the following methods:
  1. (A) A lump sum;
  2. (B) An increase in the employer's contribution rate over the course of the fiscal year (July 1 – June 30) following the adoption of the resolution by the employer; or
  3. (C) Amortizing the unfunded accrued liability over a period of time not to exceed ten (10) years from the date of the adoption of the resolution by the employer.
2. (2) For benefit improvements funded pursuant to subdivisions (i)(1)(A) and (i)(1)(B), a former or current employee of the employer is not entitled to the benefit improvement until the estimated increased pension liability has been totally funded by the employer.
3. (3) In the event the liability is amortized in accordance with subdivision (i)(1)(C), the benefit improvement must be available at the commencement of the amortization period.
4. (4) For the purposes of this section, “benefit improvement” does not include the supplemental bridge benefit established pursuant to § 8-36-211 for members who are subject to mandatory retirement pursuant to § 8-36-205.

§ 8-35-207. Option to exclude or include cost-of-living benefits in retirement plan.

(a) Any political subdivision which elects to authorize all its employees to become members of the retirement system after June 30, 1978, shall have the option to exclude from their retirement benefit plan cost-of-living benefits as provided by § 8-36-701 on account of retired employees of the employer.
(b) It is further provided that the chief legislative body of any political subdivision employer may elect at a later date to provide cost-of-living benefits in accordance with § 8-36-701 by legally adopting a resolution for an actuarial study and thereafter by legally adopting a resolution approved by a two-thirds (⅔) majority of the governing body to accept the associated liability and costs to provide such benefits. This increase in benefits will become effective the following July 1 after the adoption of the resolution. No retroactive benefits are to be paid under this subsection (b).

§ 8-35-208. Discontinuance and reinstatement of cost-of-living benefits.

(a) The chief legislative body of any political subdivision employer participating in the retirement system may by resolution legally adopted and approved by two-thirds (⅔) majority of that body elect to discontinue the cost-of-living benefit provisions for all employees employed after the effective date of the resolution. Employees who were employed prior to this date will continue to be eligible for cost-of-living benefits being funded as described in § 8-35-206. This option shall be exercised prior to April 1 of any given year.
(b) It is further provided that the chief legislative body of any political subdivision employer may elect at a later date to provide cost-of-living benefits in accordance with § 8-36-701 by legally adopting a resolution for an actuarial study and thereafter by legally adopting a resolution approved by a two-thirds (⅔) majority of the governing body to accept the associated liability and costs to provide such benefits. This increase in benefits will become effective the following July 1 after the adoption of the resolution. No retroactive benefits are to be paid under this subsection (b).

§ 8-35-209. Participating employers in retirement system — Administrative employees — Contributions — Credit for prior service — Withdrawal.

(a) The Tennessee Education Association, the Tennessee School Boards Association and the Tennessee Secondary Schools Athletic Association shall be participating employers in the Tennessee consolidated retirement system, and shall be liable for the costs incurred as a result of the participation by its administrative employees.
(b) The administrative employees of the associations referenced in subsection (a) shall make the same contributions, participate in the same manner, and shall be eligible for the same benefits as employees of local governments participating in the retirement system under this part.
(c) The employees shall be entitled to credit for prior service as approved by the board of directors of the respective association under the same provisions that apply to employees of local governments; provided, however, that they shall be allowed prior service credit for the service with which they were credited under the Tennessee teacher's retirement system as of the day preceding July 1, 1972.
(d) Withdrawal of an association from participation in the retirement system shall be governed by the provisions in this part that apply to local governments.
(e) The retirement system shall not be liable for the payment of retirement allowances or other payments on account of employees of the associations or their beneficiaries for which reserves have not been previously created from funds contributed by the respective association and/or its employees.
(f) It is the legislative intent that the state shall realize no increased cost as a result of this section. All costs associated with retirement coverage, including administrative costs, shall be the responsibility of the respective association.
(g) The board of directors of any participating association referenced in subsection (a) may pass a resolution to extend retirement coverage to all non-administrative employees of the respective association. If such additional coverage is sought, the coverage shall apply to all such employees and the employees shall participate in the same manner and shall be eligible for the same benefits as the administrative employees of the association. Such employees shall further be entitled to credit for such prior service as approved by the board of directors of the respective association.

§ 8-35-210. Reserves required as prerequisite to payment of benefits.

(a) Notwithstanding anything in this part to the contrary, the retirement system shall not be liable for the payment of any retirement allowances or other benefits on account of the employees or beneficiaries of any employer participating under this part for which reserves have not been previously created from funds contributed by such employer or its employees for such benefits.
(b) Benefits payable on behalf of political subdivisions participating under this part shall not be paid if assets credited to that political subdivision are not equal to or greater than their benefit obligation for that month. Retroactive benefits shall be paid upon accumulation of sufficient assets.

§ 8-35-211. Withdrawal of participating employer from retirement system.

(a) Except for the provisions of this section and the provisions for voluntary withdrawal contained in § 8-35-218, the agreement of any employer participating under this chapter to contribute on account of its employees shall be irrevocable, but should an employer for any reason become financially unable to make the contributions payable on account of its employees, then such employer shall be deemed to be in default and may file with the board a resolution legally adopted by its legislative body requesting withdrawal from the retirement system. Any withdrawal resolution adopted by a political subdivision hereunder shall be deemed to include all departments; employees of such employers will no longer be deemed to be members of the retirement system and their rights shall be limited as hereinafter provided.
(b) Upon the adoption by any employer of a withdrawal resolution, such employer shall at once notify all employees thereof who are members and all former employees who were members, or their beneficiaries, of such adoption.
(c) In the event of a withdrawal from the retirement system:
1. (1) If the employer withdrawing from the retirement system is either the Tennessee County Services Association or a development district, such employer shall be liable for the payment of retirement benefits to all vested members and beneficiaries thereof. The counties comprising the Tennessee County Services Association and the counties, cities or towns comprising a development district shall assume a pro rata share of this liability, if the assets of the employer are insufficient to satisfy this liability. In the event any county, city or town comprising the Tennessee County Services Association or a development district which is participating in the retirement system refuses to assume a pro rata share of such liability, such amounts may be withheld from state-shared taxes otherwise accruing to such county, city or town. Any amounts satisfied out of state-shared taxes shall be satisfied last from the two-cent gasoline tax; and
2. (2) The liability of any other employer participating under this chapter shall be limited to the present value of assets on hand at the time of withdrawal, unless such amount is insufficient to guarantee a return of contributions as hereinafter provided, for which the employer shall be fully liable. In the event any employer refuses to satisfy this liability, such amounts shall become a lien on the property of the employer and may be withheld from state-shared taxes otherwise accruing as provided in subdivision (c)(1), or otherwise collected. The Tennessee County Services Association, the Tennessee County Highway Officials Association, the Tennessee County Commissioners' Association, the Tennessee Association of County Executives and the County Officials Association of Tennessee, or any or all of them, may, by resolution of their governing boards, enter into a mutual agreement whereby such entities may share accumulated assets proportionately to fund this liability on behalf of one another should the assets of any party to the agreement be insufficient to satisfy such liability. In the event of such an agreement, any optional provisions of the retirement plan desired by the contracting entities on and after the effective date of the agreement may only be authorized by the Board of Directors of the Tennessee County Services Association. It is the legislative intent that the state shall realize no increased cost as a result of such entities' participation in the retirement system. All costs associated with retirement coverage, including administrative costs, shall be the responsibility of such entities.
(d) The actuary of the retirement system shall determine by actuarial valuation the share of the assets of the retirement system attributable to contributions of the employer and its employees which is allocable to each beneficiary and each member.
(e)
1. (1) The allocation of such assets shall be in the following order:
  1. (A) First, each member and beneficiary shall be entitled to a share equal to the excess of such member's accumulated contributions less any benefits received; and
  2. (B) Second, each beneficiary and each member who is vested shall be entitled to a share equal to the reserve computed to be required for such person's benefit credits accrued to the date of adoption of the withdrawal resolution, reduced by such person's share under subdivision (e)(1)(A).
2. (2) If the assets of any employer under subdivision (c)(2) are insufficient to provide in full for the shares under subdivision (e)(1)(B) after provision for all shares under subdivision (e)(1)(A), each share under subdivision (e)(1)(B) shall be reduced pro rata.
3. (3) The amount of assets so allocated to each such member may be used to provide for the member a paid up annuity beginning at the member's service retirement date, or beginning immediately in the case of a member who has attained such service retirement date, and the amount of assets so allocated to each beneficiary shall be used in providing such part of the member's existing retirement allowance as the amount so allocated will provide. When the payments under this subsection (e) have equaled the amount so established as a paid up annuity, such payments shall cease.
4. (4) The rights and privileges of both members, former members, and beneficiaries of such employers shall thereupon terminate, except as to the payment of the annuities so provided and the retirement allowances, or parts thereof, provided for the beneficiaries. Any contributions returned or service credit lost due to withdrawal by an employer may not be reestablished with the Tennessee consolidated retirement system pursuant to § 8-37-214 upon subsequent employment.
5. (5) If any assets remain after providing in full for the shares under subdivision (e)(1), the excess assets shall be returned to the employer.
6. (6) It is further provided that the retirement system shall not be liable for the payment of any retirement allowances or other benefits, accruing under chapters 34-37, on account of employees or beneficiaries of the employers covered hereunder for which reserves have not been previously created from funds contributed by the employer or its employees for such benefits.
(f) Should any employer participating under this chapter cease to exist as a separate legal entity, the benefits payable on account of service rendered as an employee of the entity shall be determined in accordance with this section.

§ 8-35-212. Political subdivisions which participated in superseded state retirement system.

Any political subdivision on June 30, 1972, which shall have been participating in the Tennessee state retirement system under former chapter 36 of this title, with respect to its employees, shall participate in this retirement system as of July 1, 1972, and shall be subject to the provisions of this part applicable to employers electing to participate subsequent to July 1, 1972.

§ 8-35-213. Tennessee County Services Association — Tennessee County Highway Officials Association.

(a) The Tennessee County Services Association shall be a participating employer as of July 1, 1972, with respect to its employees and shall likewise be subject to all of the provisions of this part applicable to employers electing to participate subsequent to July 1, 1972.
(b)
1. (1) The Tennessee County Highway Officials Association shall be eligible to be a participating employer in the Tennessee consolidated retirement system upon passage of a resolution by the association's board of directors authorizing and funding an actuarial study and passage by the association's board of directors of a resolution authorizing participation and accepting liability incurred as a result of such participation.
2. (2) The employees of the association shall make the same contributions, participate in the same manner, and shall be eligible for the same benefits as employees of the Tennessee County Services Association. Such employees shall be entitled to credit for such prior service as the board of directors of the association may authorize and accept the liability therefor.
3. (3) In case of the withdrawal of the Tennessee County Highway Officials Association as a participating employer, the benefits of the association shall be determined in accordance with § 8-35-211.
4. (4) The retirement system shall not be liable for the payment of retirement allowances or other benefits on account of employees or beneficiaries of such association for which reserves have not been previously created from funds contributed by the association and/or its employees.
5. (5) It is the legislative intent that the state shall realize no increased cost as a result of this subsection (b). All costs associated with retirement coverage, including administrative costs, shall be the responsibility of the association.

§ 8-35-214. Creditable service of certain participants in superseded state retirement system.

The employees of any employer participating in the retirement system pursuant to §§ 8-35-212 and 8-35-213 shall be credited as of July 1, 1972, with all service which shall have been creditable to them as of June 30, 1972, under the Tennessee state retirement system.

§ 8-35-215. Regional libraries.

As of July 1, 1999, all assets credited to the state accumulation fund on account of a regional library board's participation in the retirement system shall be transferred to the state. Upon such transfer, the state shall be liable for the payment of any retirement allowances or other benefits on account of those individuals who were employed by a regional library board prior to July 1, 1999.

§ 8-35-216. Educational cooperatives.

(a) Any educational cooperative established as a separate legal entity under § 49-2-1304 may, by resolution duly adopted by its governing body, elect to authorize its employees to participate in the retirement system, subject to rules and regulations prescribed by the board of trustees.
(b) The employer contribution for employees who are teachers, as defined in chapter 34, part 1 of this title, shall be paid by the state as in the case of teachers employed in local school systems.
(c) If the governing body elects to authorize its employees who are not teachers, as defined in chapter 34, part 1 of this title, to participate, then the employer contribution for such employees shall be paid by the educational cooperative out of whatever funds are available to it for such purpose.
(d) The member employees who are not teachers shall have no voice in the election of the board of trustees.
(e) Teachers may establish prior service in the retirement system for the time they have been employed by the cooperative, upon paying into the system the contributions which they would have made had they been members, plus interest as determined by the board of trustees.

§ 8-35-217. Participation by political subdivisions.

(a)
1. (1) Any political subdivision electing to participate in the retirement system on or after July 1, 1983, in accordance with this part, shall participate in the provisions of the plan as they exist for state employees on the date of participation; except that prior service credit authorized in § 8-35-203(a)(2) shall remain optional.
2. (2) An irrevocable election of this option must be made on the date of participation.
(b) If an employer does not extend social security coverage to its employees, the employer is authorized, subject to the approval of the board, to establish a different benefit accrual rate, adopt different retirement eligibility service and age requirements, or to otherwise alter the pension plan benefit structure for all or for certain classes of its employees. Based on the advice of nationally recognized counsel employed by the Tennessee consolidated retirement system, any such alternative plan shall comply with all requirements of federal laws, rules, and regulations and also qualify as a social security replacement plan.

§ 8-35-218. Withdrawal by political subdivision.

(a) Upon giving at least one (1) year's advance notice in writing to the board of trustees, a political subdivision may terminate, effective July 1 following the end of the notice period, its participation in the retirement system, under the following terms and conditions:
1. (1) The political subdivision shall submit a resolution to withdraw from the retirement system, legally adopted by two-thirds (⅔) of the membership of the chief legislative body of the political subdivision;
2. (2) The withdrawal shall apply to all departments of the political subdivision;
3. (3) Such resolution to withdraw may be rescinded and withdrawn by a resolution legally adopted and approved by the chief legislative body of the political subdivision at any time prior to the expiration of the one-year notice period;
4. (4) Employees who are members of the retirement system on the date such withdrawal resolution becomes effective shall continue membership in the retirement system until termination of employment, with the employer being liable for contributions and benefits as contained herein;
5. (5) An employee who is not yet a member but is serving a probationary period pursuant to § 8-35-107 on the date the withdrawal becomes effective shall have such probationary period waived and shall have thirty (30) days to elect to participate in the retirement system with the employer being liable for contributions as herein provided;
6. (6) Employees who are hired after the effective date of the resolution shall not be permitted to participate in the retirement system;
7. (7) Any employee who continues participation in the Tennessee consolidated retirement system shall not be eligible to participate in any other retirement system provided by the employer;
8. (8) Any employee who, upon termination of employment with such employer, withdraws service rendered to that employer shall not later be permitted to establish that service with the retirement system, unless the employer rejoins the retirement system pursuant to subdivision (a)(14). The establishment of such service shall be subject to § 8-37-214;
9. (9) An employee of the withdrawing political subdivision shall not be permitted to retire, begin receiving a benefit, and continue working with the same employer;
10. (10) All members participating under this section, including retired former employees, shall be entitled to benefits according to the plan as it exists for such employer on the date of withdrawal;
11. (11) An actuarial valuation shall be completed by the system's actuary when an employer voluntarily withdraws from the retirement system pursuant to this section. The actuarial valuation shall determine the appropriate employer contributions to be made to the plan based on a level dollar contribution so as to amortize the unfunded accrued liability over a period of time established by the board of trustees, such period not to exceed a thirty-year period. The board of trustees may, at its discretion, reestablish the amortization period at any time provided such reestablished period does not exceed thirty (30) years. The level dollar contribution amount shall be remitted monthly to the retirement system. Pursuant to § 8-34-506, the biennial valuation shall continue to be performed;
12. (12) Employer contributions may be adjusted as frequently as monthly should such additional contributions be needed to fund the benefits of members and beneficiaries covered under this section;
13. (13) Any liabilities resulting from this section shall be a liability of the employer and not the state. Should any required employer costs become delinquent, the commissioner of finance and administration, at the direction of the board of trustees of the retirement system, is authorized to withhold such amount or part of such amount from any state-shared taxes which are otherwise apportioned to such employer, and any amounts so withheld shall come last from the state shared gasoline tax designated in title 54, chapter 4;
14. (14) An employer may elect at a later date to rejoin the retirement system in accordance with § 8-35-201; provided, that any such resolution to rejoin shall be irrevocable and the employer shall not later be permitted to withdraw under this section. The governing body of any such employer that rejoins the retirement system may pass a resolution to permit its employees to claim service credit for service rendered during the period from the date the employer withdrew from the retirement system through the date the employer rejoined the retirement system, if the employer authorizes the credit and assumes the employer liability for such prior service. Upon the authorization and assumption of the employer liability, any employee who meets the requirements of § 8-35-203(a)(2)(A) and (B) shall be entitled to receive credit for such service by making a lump sum payment of the contributions such employee would have made had such employee been a contributory member during the period claimed, plus interest at the rate provided for in § 8-37-214. The employer shall not have the option of paying the employee contributions required under this subdivision (a)(14); and
15. (15) A political subdivision that withdraws its participation from the retirement system and elects to participate in the state's deferred compensation plan pursuant to § 8-25-111, shall not be subject to the one-year advance notice requirement in this section; instead, the political subdivision shall give the board of trustees at least six (6) months advance written notice of the effective date of the withdrawal. The political subdivision shall submit a withdrawal resolution, legally adopted by two-thirds (⅔) of the membership of the chief legislative body of the political subdivision, at least six (6) months in advance of the political subdivision's effective date of the withdrawal, which shall be submitted on the first day of any quarter following the six-month minimum notice requirement. Such resolution to withdraw may be rescinded and withdrawn by a resolution legally adopted and approved by the chief legislative body of the political subdivision at any time prior to the expiration of the six-month notice period.
(b) Upon giving at least one (1) year's advance notice in writing to the board of trustees, a hospital, nursing home, transit authority, utility, or other instrumentality that operates under the direction of its own governing board and that is not subject to the general control and administration of the chief legislative body of the political subdivision may terminate, effective July 1 following the end of the notice period, its participation in the retirement system. To terminate such participation, the following terms and conditions must be met:
1. (1) The governing body of the instrumentality and the chief legislative body of the political subdivision shall each submit a resolution approving the withdrawal of the instrumentality from the retirement system. Both resolutions must be adopted by two-thirds (⅔) of the membership of the chief legislative body of the political subdivision and of the governing body of the instrumentality;
2. (2) Either the instrumentality or the political subdivision may, by resolution legally adopted and approved by the respective governing body, rescind the resolution approving the withdrawal at any time prior to the expiration of the one-year notice period;
3. (3) Upon the effective date of any such withdrawal resolution, the current and future employees of the instrumentality shall be subject to subdivisions (a)(4)-(9);
4. (4) All employees of the instrumentality that continue membership in the retirement system pursuant to subdivision (a)(4) or (a)(5), including retired former employees, shall be entitled to benefits according to the plan as it exists for such instrumentality on the date of withdrawal, with the political subdivision being liable for contributions and benefits as provided in subdivisions (a)(11)-(13); and
5. (5) The political subdivision may elect at a later date to have the instrumentality rejoin the retirement system in accordance with § 8-35-201; provided, that any such resolution to rejoin shall be irrevocable and the instrumentality shall not later be permitted to withdraw under this subsection (b). The employees of any such instrumentality that rejoins the retirement system may, pursuant to the terms and conditions described in subdivision (a)(14), establish service credit for service rendered during the period from the date the instrumentality withdrew from the retirement system through the date the instrumentality rejoined the retirement system.

§ 8-35-219. Application of part-time employee provisions.

(a) Notwithstanding §§ 8-35-103 and 8-35-217 to the contrary, any current or future employer which participates in the retirement system pursuant to this part shall have the option to exclude its part-time employees from membership in the retirement system by passage of a resolution of its chief governing body; provided, that any employee of such employer participating in the retirement system by virtue of part-time service shall continue to be eligible for membership in the retirement system.
(b) The chief legislative body of any employer participating in the retirement system pursuant to this part may elect at a later date to extend retirement coverage to its part-time employees by passage of a resolution authorizing such coverage and accepting the liability therefor; provided, that any such resolution shall be irrevocable and the employer shall not later be permitted to exclude part-time employees under this section.

§ 8-35-220. Tennessee Historical Society.

(a) The Tennessee Historical Society shall be a participating employer in the Tennessee consolidated retirement system, upon passage of a resolution by the society's board of directors authorizing such participation and accepting the liability incurred as a result of the participation by its employees.
(b) The employees of the society shall make the same contributions, participate in the same manner, and shall be eligible for the same benefits as employees of local governments participating in the retirement system under this part.
(c) The employees shall be entitled to credit for prior service as approved by the board of directors of the society under the same provisions which apply to employees of local governments.
(d) Withdrawal of the society from participation in the retirement system shall be governed by the provisions in this part which apply to local governments.
(e) The retirement system shall not be liable for the payment of retirement allowances or other payments on account of employees of the society or their beneficiaries for which reserves have not been previously created from funds contributed by the society and/or its employees.
(f) It is the legislative intent that the state shall realize no increased cost as a result of this section. All costs associated with retirement coverage, including administrative costs, shall be the responsibility of the society.

§ 8-35-221. Workforce investment.

(a) Any entity engaged in the administration of the programs authorized under the federal Workforce Innovation and Opportunity Act (29 U.S.C. § 3101 et seq.), on behalf of a local workforce investment area designated under [former] 29 U.S.C. § 2831 [repealed] shall be eligible to be a participating employer in the Tennessee consolidated retirement system upon satisfying the following conditions:
1. (1) The local workforce investment area includes more than one (1) political subdivision of this state;
2. (2) The administrative entity for the local workforce investment area is currently or was previously an institution of the University of Tennessee or the Tennessee board of regents;
3. (3) The elected chief executive officers of the political subdivisions that comprise the local workforce investment area pass a resolution authorizing an actuarial study to determine the liability associated with such participation, and accepting responsibility for the costs of such study; and
4. (4) Following receipt of the actuarial study, such elected chief executive officers pass a resolution authorizing such participation and agreeing that the liability therefor shall be paid from funds allocated to the local workforce investment area by grant, contract, or otherwise from state, local, or federal sources.
(b) The employees of the entity shall make the same contributions, participate in the same manner, and shall be eligible for the same benefits as employees of local governments participating in the retirement system under this part.
(c) Such employees shall be entitled to credit for such prior service as approved by the elected chief executive officers as provided in subsection (a) under the same provisions that apply to employees of local governments.
(d) In case of the withdrawal of the entity as a participating employer, the benefits of members and beneficiaries shall be determined in accordance with § 8-35-211.
(e) The retirement system shall not be liable for the payment of retirement allowances or other benefits on account of employees of the entity or their beneficiaries for which reserves have not been previously created from funds contributed by the entity or its employees, or both.
(f) It is the legislative intent that the state shall realize no increased cost as a result of this section. All costs associated with retirement coverage, including administrative costs, shall be the responsibility of the entity.

§ 8-35-222. Establishment of retirement credit for time during which member was employed by joint venture.

(a) Any member who is employed by a political subdivision that is a participating employer in the retirement system shall be eligible to establish retirement credit for time during which the member was employed by a joint venture between that political subdivision and one (1) or more other political subdivisions if the following conditions are met:
1. (1) The joint venture was a governmental entity for purposes of § 414(d) of the Internal Revenue Code (26 U.S.C. § 414(d)), as amended, and any other federal laws and regulations applicable to qualified governmental pension plans during the time the member was employed by the joint venture;
2. (2) The joint venture was dissolved and its operations were transferred to and made a department of the participating political subdivision;
3. (3) The member has not established the credit in any other retirement program as provided in § 8-35-111;
4. (4) The participating political subdivision authorizes and pays for the cost of an actuarial study to determine the liability associated with the granting of the service credit and, following review of the cost of granting the service credit, the chief governing body of the political subdivision shall pass a resolution authorizing such service credit and accepting the liability therefor; and
5. (5) Members establishing the prior service must make a lump sum payment equal to the employee contributions the members would have made had the members been members of the retirement system during the period claimed, plus interest at the rate provided in § 8-37-214. The political subdivision may, at its option, pay all or part of the employee contributions and interest on behalf of the members.
(b) The retirement system shall not be liable for the payment of retirement allowances or other payments on account of such members or their beneficiaries for which reserves have not been previously created from funds contributed by the political subdivision, its employees, or both.
(c) It is the legislative intent that the state shall realize no increased cost as a result of this section. All costs associated with retirement coverage, including administrative costs, shall be the responsibility of the political subdivision.

§ 8-35-223. Douglas-Cherokee economic authority.

(a) The Douglas-Cherokee economic authority shall be eligible to be a participating employer in the Tennessee consolidated retirement system upon:
1. (1) Passage of a resolution by the authority's board of directors authorizing an actuarial study; and
2. (2) Passage of a resolution by the authority's board of directors authorizing such participation and accepting the liability as a result of the participation by its full-time employees.
(b) The employees of the authority shall make the same contributions, participate in the same manner, and shall be eligible for the same benefits as employees of local governments participating in the retirement system under this part.
(c) The employees shall be entitled to credit for prior service as approved by the board of directors of the authority under the same provisions which apply to employees of local governments.
(d) The retirement system shall not be liable for the payment of retirement allowances or other payments on account of employees of the authority or their beneficiaries, for which reserves have not been previously created from funds contributed by the authority and/or its employees.
(e) It is the legislative intent that the state shall realize no increased cost as a result of this section. All costs associated with retirement coverage, including administrative costs, shall be the responsibility of the authority.

§ 8-35-224. Upper east Tennessee human development agency.

(a) The upper east Tennessee human development agency shall be eligible to be a participating employer in the Tennessee consolidated retirement system upon:
1. (1) Passage of a resolution by the agency's board of directors authorizing an actuarial study; and
2. (2) Passage of a resolution by the agency's board of directors authorizing such participation and accepting the liability as a result of the participation by its full-time employees.
(b) The employees of the agency shall make the same contributions, participate in the same manner, and shall be eligible for the same benefits as employees of local governments participating in the retirement system under this part.
(c) The employees shall be entitled to credit for prior service as approved by the board of directors of the agency under the same provisions which apply to employees of local governments.
(d) The retirement system shall not be liable for the payment of retirement allowances or other payments on account of employees of the agency or their beneficiaries for which reserves have not been previously created from funds contributed by the agency and/or its employees.
(e) It is the legislative intent that the state shall realize no increased cost as a result of this section. All costs associated with retirement coverage, including administrative costs, shall be the responsibility of the agency.

§ 8-35-225. [Reserved]

§ 8-35-226. Elected city, special school district, or county governmental personnel.

(a) Appointed or elected school board members of special school districts, and of city or county boards, commissions, committees, councils and the like, by whatever name known, who are elected by popular vote and whose duties are performed intermittently or periodically for the purposes of fixing rates, issuing permits or licenses, regulating trades or professions, or who serve in an advisory, study or planning capacity and the like, shall be eligible for membership in the Tennessee consolidated retirement system at the option of the chief legislative body of the city, special school district or county, upon satisfying the following subdivisions:
1. (1) The chief legislative body of the city, special school district or county passes a resolution approved by a two-thirds (⅔) majority authorizing membership for such employees and accepting the liability therefor;
2. (2) Upon such authorization and assumption of the employer liability, any such employee who meets the requirements of § 8-35-203(a)(2)(A) and (B) shall be eligible to establish retirement credit for such periods of previous service as authorized for other employees of the city, special school district or county;
3. (3) An employee establishing such prior service must make a lump sum payment equal to the employee contributions such employee would have made had such employee been a member of the system during the period claimed, plus interest at the rate provided in § 8-37-214; and
4. (4) Membership in the retirement system pursuant to this section shall be permitted only if the chief legislative body that has authorized retirement participation for its departments or instrumentalities extends such coverage to all nonparticipating departments and instrumentalities. If such option is elected, the remaining departments and instrumentalities shall participate under the conditions of § 8-35-201.
(b)
1. (1) Upon becoming a vested member of the Tennessee consolidated retirement system, any employee of a city who was formerly an elected official of the city where such employee is so employed shall be eligible to establish retirement credit for such time such employee served as an elected official of the city if the following conditions are met:
  1. (A) The city has by a two-thirds (⅔) majority of its legislative body approved a resolution as provided in subsection (a);
  2. (B) Such person was an employee of the city on the date such resolution was enacted;
  3. (C) The city at its option approves by a two-thirds (⅔) majority of its legislative body a resolution authorizing an actuarial study to determine the liability associated with such prior service, and in such resolution the city accepts responsibility for the costs of such study; and
  4. (D) Following receipt of the actuarial study, the city adopts a resolution approved by a two-thirds (⅔) majority of the legislative body authorizing prior service for such employee and accepts the liability for such service.
2. (2) Any employee establishing such prior service must make a lump sum payment equal to the employee contributions such employee would have made had such employee been a member of the retirement system during the period claimed, plus interest at the rate provided in § 8-37-214.
3. (3) The retirement system shall not be liable for the payment of retirement allowances or other benefits on account of such employee or such employee's beneficiaries for which reserves have not been previously created from funds contributed by the city and/or by or on behalf of such employee.
4. (4) It is the legislative intent that the state shall realize no increased cost as a result of this section. All costs associated with retirement coverage, including administrative costs, shall be the responsibility of the city legislative body.
(c) Retirement benefits payable on service established pursuant to this section shall be computed in accordance with chapter 36 of this title. In no event shall the benefit payable on such service be less than that provided under § 8-36-209(a)(1)(A), (a)(1)(B), (a)(2)(A)(i) or (a)(2)(A)(ii), depending upon which option is exercised by the chief legislative body. Such benefit is subject to the limitations of § 8-36-102.
(d) Service pursuant to this section shall be independent of all other creditable service for the purpose of calculating the member's average final compensation.
(e) For the purposes of determining the limitations on the amount of the retirement allowance as provided in § 8-36-102, the average final compensation for service granted pursuant to this section shall be independent of the average final compensation calculation on any other creditable service in the retirement system.
(f) Notwithstanding another law to the contrary, a member who has been elected or appointed to or has assumed a position covered under this section on or after January 1, 2012, and simultaneously holds that position and another position with a different employer as a retirement system member, may continue service in the elected or appointed board member position while receiving a retirement allowance, if otherwise eligible therefore, based on the member's salary and service credit in a position other than a position covered under this section; provided, that the following conditions are met:
1. (1) The member's retirement benefits are based on service and salary rendered in a position other than a position covered by this section;
2. (2) The member is not drawing disability retirement benefits under chapter 36, part 5 of this title;
3. (3) The member will continue to accrue salary and service credit while serving in a position covered under this section until the member's retirement from that position. Upon the retirement system's receipt of a request from the member, the member will receive a second retirement allowance based on the member's salary and service credit accrued in a position covered under this section; provided, that the member has separated from the position and is otherwise eligible for the retirement allowance. The retirement payment plan and beneficiary selected by the member on the retirement application from the other employment position must be the same for the second retirement allowance and must not be changed or revoked, except as provided in chapter 36, part 6 of this title;
4. (4) The member must not return to work temporarily in a position covered by the retirement system pursuant to chapter 36, part 8 of this title until the member retires from all positions covered by the retirement system; and
5. (5) Consistent with §§ 8-36-203 and 8-36-303, benefits paid under this subsection (f) that are based on service in a position other than a position covered under this section must be paid from the member's effective date of retirement, which may include retroactive payments.

§ 8-35-227. [Reserved]

§ 8-35-228. Participating political subdivision employees — Credit for employees participating on July 1, or August 1, 1973.

(a) Any present employee of a political subdivision participating in the retirement system effective August 1, 1973, under this part shall be eligible for retirement credit for service rendered to such employer under the following conditions:
1. (1) Such employee was employed by the political subdivision within one (1) year of August 1, 1973;
2. (2) Such employee joined the retirement system within two (2) years of August 1, 1973;
3. (3) Such credit shall be granted under the same terms and conditions which apply to other employees employed by the political subdivision on August 1, 1973;
4. (4) The participating political subdivision authorizes and pays for the cost of an actuarial study to determine the liability associated with the granting of such service credit and, following review of the cost of granting such service credit, the chief governing body of the political subdivision shall pass a resolution authorizing such service credit and accepting the liability therefor; and
5. (5) The service credit authorized by this subsection (a) must be established by the member prior to January 1, 1988.
(b) Any present employee of a political subdivision participating in the retirement system effective July 1, 1973, under this part shall be eligible for retirement credit for service rendered to such employer if all following conditions are met:
1. (1) Such employee was in service on the political subdivision's date of participation;
2. (2) Service rendered prior to the political subdivision's date of participation shall be granted under the same terms and conditions which apply to other employees employed by the political subdivision on July 1, 1973;
3. (3) For service rendered after the date of participation, the member must pay in a lump sum the amount such member would have paid had such member been a member for the period claimed, plus interest as provided by § 8-37-214;
4. (4) The participating political subdivision authorizes and pays for the cost of an actuarial study to determine the liability associated with the granting of such service credit and, following review of the cost of granting such service credit, the chief governing body of the political subdivision passes a resolution authorizing such service credit and accepting the liability therefor; and
5. (5) The service credit authorized by this subsection (b) must be established by the member prior to January 1, 1989.

§ 8-35-229. [Reserved]

§ 8-35-230. Tennessee State Employees' Association.

(a) The Tennessee State Employees' Association shall be eligible to be a participating employer in the Tennessee consolidated retirement system upon:
1. (1) Passage of a resolution by the association's board of directors authorizing an actuarial study; and
2. (2) Passage of a resolution by the association's board of directors authorizing such participation and accepting the liability as a result of the participation by its full-time employees.
(b) The employees of the association shall make the same contributions, participate in the same manner, and shall be eligible for the same benefits as employees of local governments participating in the retirement system under this part.
(c) The employees shall be entitled to credit for prior service as approved by the board of directors of the association under the same provisions which apply to employees of local governments.
(d) The retirement system shall not be liable for the payment of retirement allowances or other payments on account of employees of the association or their beneficiaries for which reserves have not been previously created from funds contributed by the association and/or its employees.
(e) In case of the withdrawal of the association as a participating employer, the benefits of the members and beneficiaries shall be determined in accordance with § 8-35-211.
(f) It is the legislative intent that the state shall realize no increased cost as a result of this section. All costs associated with retirement coverage, including administrative costs, shall be the responsibility of the association.

§ 8-35-231. Tennessee County Commissioners' Association.

(a) The Tennessee County Commissioners' Association shall be eligible to be a participating employer in the Tennessee consolidated retirement system upon:
1. (1) Passage of a resolution by the association's board of directors authorizing and funding an actuarial study; and
2. (2) Passage by the association's board of directors of a resolution authorizing participation and accepting liability incurred as a result of such participation.
(b) The employees of the association shall make the same contributions, participate in the same manner, and shall be eligible for the same benefits as employees of the Tennessee County Services Association. Such employees shall be entitled to credit for such prior service as the board of directors of the association may authorize and accept the liability therefor.
(c) In case of the withdrawal of the association as a participating employer, the benefits of the association shall be determined in accordance with § 8-35-211.
(d) The retirement system shall not be liable for the payment of retirement allowances or other benefits on account of employees or beneficiaries of the association for which reserves have not been previously created from funds contributed by the association and/or its employees.
(e) It is the legislative intent that the state shall realize no increased cost as a result of this section. All costs associated with retirement coverage, including administrative costs, shall be the responsibility of the association.

§ 8-35-232. Entity ineligible to participate in retirement system if participation would adversely affect system's status as a qualified plan.

Notwithstanding any provision of this chapter to the contrary, no entity shall be eligible to participate in the retirement system if the chair of the Tennessee consolidated retirement system determines, in the chair's sole discretion, that the entity's participation could have a potentially adverse effect on the retirement system's status as a qualified plan under the Internal Revenue Code (26 U.S.C.) and regulations. In making such determination, the chair may rely on the advice of a nationally recognized counsel in the area of government employee benefit plans.

§ 8-35-233. [Reserved]

§ 8-35-234. Employee serving as city judge or city attorney.

Notwithstanding any law to the contrary, any present employee serving as a city judge or city attorney for a municipality shall be eligible for membership in the Tennessee consolidated retirement system upon:
1. (1) Passage of a resolution by the municipality's governing body authorizing an actuarial study;
2. (2) Passage of a resolution by the municipality's governing body authorizing such participation and accepting the liability as a result of the participation by the employee;
3. (3) The employee shall make the same contributions, participate in the same manner, and shall be eligible for the same benefits as employees of local governments participating in the retirement system under this part;
4. (4) The employee shall be entitled to credit for prior service as approved by the governing body of the municipality under the same provisions which apply to employees of local governments;
5. (5) The retirement system shall not be liable for the payment of retirement allowances or other payments on account of an employee of the municipality or the employee's beneficiaries, for which reserves have not been previously created from funds contributed by the municipality and/or its employees;
6. (6) It is the legislative intent that the state shall realize no increased cost as a result of this section. All costs associated with retirement coverage, including administrative costs, shall be the responsibility of the municipality;
7. (7) This section shall not be construed to require the municipality to extend coverage to any other employees of the municipality; and
8. (8) Service pursuant to this section shall be independent of all other creditable service for the purpose of calculating the member's average final compensation.

§ 8-35-235. [Reserved]

§ 8-35-236. Credit for former political subdivision service by state employee.

(a) Any retired member or any member who completes one (1) year or more of current membership service in the Tennessee consolidated retirement system shall be entitled to establish retirement credit for time during which such member was employed by a political subdivision if the following conditions are met:
1. (1) The political subdivision is a participating employer in the Tennessee consolidated retirement system;
2. (2) The political subdivision's legislative body passes a resolution authorizing an actuarial study to determine the liability associated with such prior service, and accepting responsibility for the costs of such study;
3. (3) The member or retired member files with the political subdivision, within sixty (60) days of the passage of the resolution authorizing the study, a notice of the member's intention to establish such prior service. Any member or retired member who fails to file the notice of election within the sixty-day period shall not later be eligible to establish such prior service;
4. (4) Following receipt of the actuarial study, the political subdivision's legislative body by a two-thirds (⅔) vote adopts a resolution authorizing prior service for such members and accepting the liability therefor; provided, that the political subdivision may only authorize credit for such periods of previous service as authorized for other employees of the political subdivision; and
5. (5) Any person establishing such prior service must make a lump sum payment equal to the member contributions the member or retired member would have made had such person been a member of the retirement system during the period claimed, plus interest at the rate provided in § 8-37-214.
(b) The retirement system shall not be liable for the payment of retirement allowances or other benefits on account of such member or the member's beneficiaries for which reserves have not been previously created from funds contributed by the political subdivision and/or by or on behalf of such member.
(c) It is the legislative intent that the state shall realize no increased cost as a result of this section. All costs associated with retirement coverage, including administrative costs, shall be the responsibility of the political subdivision's legislative body.

§ 8-35-237. Elected purchasing agent and appointed administrator of elections.

(a) Notwithstanding any law to the contrary, any county served by a purchasing agent elected by popular vote or an appointed administrator of elections may authorize membership in the Tennessee consolidated retirement system for such officials if all of the following conditions are met:
1. (1) The chief governing body of the local government passes a resolution authorizing an actuarial study to determine the liability associated with such membership, and accepting responsibility for the costs of such study; and
2. (2) Following receipt of the actuarial study, the governing body of the local government passes a resolution authorizing such participation and accepting the liability for such participation.
(b) The employee will make the same contributions, participate in the same manner and will be eligible for the same benefits as employees of local governments participating in the retirement system under this part.
(c) The employee will be entitled to credit for prior service as an elected purchasing agent or appointed administrator of elections as approved by the governing body of the local government under the same provisions which apply to employees of participating local governments.
(d) Notwithstanding subdivision (a)(1) to the contrary, any county with county officials participating in the retirement system pursuant to § 8-35-116(b) shall not be required to have an actuarial study performed in order to authorize membership in the retirement system for its elected purchasing agent or appointed administrator of elections. In the event the county elects not to have such an actuarial study performed, the employer contributions payable to the retirement system by the county for such participation shall be based upon the employer contribution rate established for the county pursuant to § 8-35-116(b).
(e) The retirement system shall not be liable for the payment of retirement allowance or other payments on account of employees of the local government or their beneficiaries, for which reserves have not been previously created from funds contributed by the local government and/or its employees.
(f) It is the legislative intent that the state shall realize no increased cost as a result of this section. All costs associated with retirement coverage, including administrative costs, shall be the responsibility of the local government.
(g) This section shall not be construed to require the local government to extend coverage to any other employees of the local government.

§ 8-35-238. [Reserved]

§ 8-35-239. Tennessee Association of County Mayors.

(a) The Tennessee Association of County Mayors shall be eligible to be a participating employer in the Tennessee consolidated retirement system upon passage of a resolution by the association's board of directors authorizing and funding an actuarial study, and passage by the association's board of directors of a resolution authorizing participation and accepting liability incurred as a result of such participation.
(b) The employees of the association shall make the same contributions, participate in the same manner, and shall be eligible for the same benefits as employees of the Tennessee County Services Association. The employees of the association shall be entitled to credit for such prior service as the board of directors of the association may authorize and accept liability.
(c) In case of the withdrawal of the Tennessee Association of County Mayors as a participating employer, the benefits of the association shall be determined in accordance with § 8-35-211.
(d) The retirement system shall not be liable for the payment of retirement allowances or other benefits on account of employees or beneficiaries of the Tennessee Association of County Mayors for which reserves have not been previously created from funds contributed by the association and/or its employees.
(e) It is the legislative intent that the state shall realize no increased cost as a result of this section. All costs associated with retirement coverage, including administrative costs, shall be the responsibility of the association.

§ 8-35-240. Tennessee Municipal League — Tennessee Municipal League risk management pool — Tennessee municipal bond fund.

(a) The Tennessee Municipal League (TML), the Tennessee Municipal League risk management pool (TML Pool), and the Tennessee municipal bond fund (TMBF), or any or all of them, shall be eligible to be participating employers in the Tennessee consolidated retirement system upon:
1. (1) Passage of a resolution by the board of directors of the TML, the TML Pool, and/or the TMBF authorizing an actuarial study; and
2. (2) Passage of a resolution by the board of directors of the TML, TML Pool, and/or TMBF authorizing such participation and accepting the liability as a result of the participation by its full-time employees.
(b) The employees of TML, the TML Pool, and/or the TMBF shall make the same contributions, participate in the same manner, and shall be eligible for the same benefits as employees of local governments participating in the retirement system under this part.
(c) The employees shall be entitled to credit for prior service as approved by the board of directors of TML, the TML Pool, and/or the TMBF under the same provisions that apply to employees of local governments.
(d) The retirement system shall not be liable for the payment of retirement allowances or other payments on account of employees of TML, the TML Pool, and/or the TMBF or their beneficiaries for which reserves have not been previously created from funds contributed by TML, the TML Pool, and/or the TMBF and/or their employees.
(e) It is the legislative intent that the state shall realize no increased cost as a result of this section. All costs associated with retirement coverage, including administrative costs, shall be the responsibility of TML, the TML Pool, and/or the TMBF.
(f) In case of the withdrawal of TML, the TML Pool, and/or the TMBF as a participating employer, the benefits of the members and beneficiaries shall be determined in accordance with § 8-35-211.

§ 8-35-241. Teachers.

(a) Any member employed as a teacher with a political subdivision on the date the political subdivision began participation in the retirement system shall be entitled to establish retirement credit for such periods of previous service rendered to such political subdivision if the following conditions are met:
1. (1) The chief legislative body of the political subdivision passes a resolution authorizing an actuarial study to determine the liability associated with such prior service, and accepting responsibility for the costs of such study;
2. (2) The member files with the political subdivision, within sixty (60) days of the passage of the resolution authorizing the study, a notice of the member's intention to establish such prior service. Any member who fails to file the notice of election within the sixty-day period shall not later be eligible to establish such prior service;
3. (3) Following receipt of the actuarial study, the chief legislative body by a two-thirds (⅔) vote adopts a resolution authorizing prior service for such members and accepting the liability therefor; provided, that the political subdivision may only authorize credit for such periods of previous service as authorized for other employees of the political subdivision; and
4. (4) A teacher may establish prior service with the board of education under the same terms and conditions which were applicable when the local government authorized participation in the retirement system.
(b) It is the legislative intent that the state shall realize no increased cost as a result of this section. All costs associated with retirement coverage, including administrative costs, shall be the responsibility of the political subdivision.

§ 8-35-242. Teachers and employees of a public charter school.

(a) All teachers and employees of a public charter school that converts from a public school shall continue to participate in the same retirement program as the teachers and employees of the local board of education to which the charter school is associated. Such participation shall be under the same terms and conditions as the teachers and employees of the local board of education. For retirement purposes, all teachers and employees of such a public charter school shall be considered employees of the local board of education and such board of education shall be responsible for all reporting and submission of funds to the appropriate retirement system.
(b) All teachers and employees of a new public charter school shall participate in the same retirement program as the teachers and employees of the local board of education to which the charter school is associated. Such participation shall be under the same terms and conditions as the teachers and employees of the local board of education. For retirement purposes, all teachers and employees of such a public charter school shall be considered employees of the local board of education and such board of education shall be responsible for all reporting and submission of funds to the appropriate retirement system.

§ 8-35-243. Participation by solid waste authority.

(a) Notwithstanding anything in § 8-35-201 to the contrary, a solid waste authority created by two (2) or more counties or municipalities pursuant to title 68, chapter 211, part 9, may request approval of the board of trustees to become a participating employer in the Tennessee consolidated retirement system upon satisfying the following conditions:
1. (1) The board of directors of the authority passes a resolution authorizing an actuarial study to determine the liability associated with such participation, and accepting responsibility for the costs of such study; and
2. (2) Following receipt of the actuarial study, the board of directors of the authority passes a resolution authorizing such participation and accepting the liability therefor.
(b) The employees of the authority shall make the same contributions, participate in the same manner, and shall be eligible for the same benefits as employees of other local governments participating in the retirement system under this part.
(c) The employees shall be entitled to credit for prior service as approved by the board of directors of the authority under the same provisions which apply to employees of other local governments.
(d) The retirement system shall not be liable for the payment of retirement allowances or other payments on account of employees of the authority or their beneficiaries, for which reserves have not been previously created from funds contributed by the authority and/or its employees.
(e) It is the legislative intent that the state shall realize no increased cost as a result of this section. All costs associated with retirement coverage, including administrative costs, shall be the responsibility of the authority.
(f) If an authority is admitted and participates in the retirement system pursuant to § 8-35-201(d), any county or municipality becoming a member of the authority by agreement after its coverage in the retirement system shall, as a condition of such agreement, be deemed to have accepted its share of the liability incurred by the authority's participation.
(g) The board of directors of any authority admitted in the retirement system pursuant to § 8-35-201(d) prior to March 25, 1993, may authorize the optional provisions of the retirement plan; provided, that the liability incurred by such optional provisions shall be payable only from funds or money of the authority available therefor.
(h) In case of the withdrawal of an authority as a participating employer, the benefits of the members and beneficiaries shall be determined in accordance with § 8-35-211.

§ 8-35-244. Employees of the County Officials Association of Tennessee.

(a) The County Officials Association of Tennessee may be a participating employer in the Tennessee consolidated retirement system upon passage of a resolution by the board of directors of the association authorizing and funding an actuarial study and passage by the board of directors of the association of a resolution authorizing participation and accepting liability incurred as a result of such participation.
(b) The employees of the association shall make the same contributions, participate in the same manner, and shall be eligible for the same benefits as employees of the Tennessee County Services Association. Such employees shall be entitled to credit for such prior service as the board of directors of the association may authorize and accept the liability therefor.
(c) In case of the withdrawal of the County Officials Association of Tennessee as a participating employer, the benefits of the association shall be determined in accordance with § 8-35-211.
(d) The retirement system shall not be liable for the payment of retirement allowances or other benefits on account of employees or beneficiaries of the County Officials Association of Tennessee which reserves have not been previously created from funds contributed by the association or its employees, or both.
(e) It is the legislative intent that the state shall realize no increased cost as a result of this section. All costs associated with retirement coverage, including administrative costs, shall be the responsibility of the association.

§ 8-35-245. Administration of preexisting public employee retirement plans.

(a) The retirement system, on request of the chief governing body of a political subdivision participating in the retirement system, may administer on behalf of such political subdivision any preexisting public employee retirement plan maintained by the political subdivision. However, any such plan must be a qualified plan under the Internal Revenue Code (26 U.S.C.) and must have a benefit structure suitable for efficient administration by the retirement system. Acceptance of the administration of the preexisting plan shall be subject to the approval of the board of trustees. If approval is given, such administration shall be in accordance with the terms specified by the chair of the board of trustees, and all assets and requisite records of the preexisting plan shall be transferred to the retirement system.
(b) The state treasurer shall be responsible for investment of the plan assets in accordance with the laws, guidelines and policies which govern investments of the assets of the retirement system. All assets of the preexisting plan may be commingled for investment purposes with assets of the retirement system.
(c) The retirement system shall not be liable for the payment of any retirement allowances or other benefits on account of the members, retirees or beneficiaries of any preexisting plan administered pursuant to this section for which reserves have not been previously created from funds contributed by the respective political subdivision or its employees for such benefits.
(d) It is the legislative intent that the state shall realize no increased cost as a result of this section. All costs associated with this section, including administrative costs, shall be the responsibility of the respective political subdivision.

§ 8-35-246. Tennessee Association of Assessing Officers.

(a) The Tennessee Association of Assessing Officers may be a participating employer in the Tennessee consolidated retirement system upon passage of a resolution by the board of directors of the association authorizing and funding an actuarial study and passage by the board of directors of the association of a resolution authorizing participation and accepting liability incurred as a result of such participation.
(b) The employees of the association shall make the same contributions, participate in the same manner, and shall be eligible for the same benefits as employees of local governments participating in the retirement system under this part. Such employees shall be entitled to credit for such prior service as approved by the board of directors of the association under the same provisions which apply to employees of local governments.
(c) In case of the withdrawal of the association as a participating employer, the benefits of the association shall be determined in accordance with § 8-35-211.
(d) The retirement system shall not be liable for the payment of retirement allowances or other benefits on account of employees of the association or their beneficiaries for which reserves have not been previously created from funds contributed by the association or its employees, or both.
(e) It is the legislative intent that the state shall realize no increased cost as a result of this section. All costs associated with retirement coverage, including administrative costs, shall be the responsibility of the association.

§ 8-35-247. Member employed by Tennessee Appalachia Education Cooperative.

Any member who is employed by a county which participated in the Tennessee Appalachia Education Cooperative shall be eligible to establish retirement credit for time during which such member was employed with the cooperative if the following conditions are met:
1. (1) The member has one (1) year or more of current membership service in the retirement system based upon service rendered to the county;
2. (2) The chief legislative body of the county passes a resolution authorizing an actuarial study to determine the liability associated with such prior service, and accepting responsibility for the costs of such study;
3. (3) The member files with the county, within sixty (60) days of the passage of the resolution authorizing the study, a notice of the member's intention to establish such prior service. Any member who fails to file the notice of election within the sixty-day period shall not later be eligible to establish such prior service;
4. (4) Following receipt of the actuarial study, the county adopts a resolution approved by a two-thirds (⅔) majority of the chief legislative body authorizing the prior service and accepting the liability therefor; and
5. (5) The member makes a lump sum payment to the retirement system equal to the employee contributions such member would have made had such member been a member of the system during the period claimed, plus interest at the rate provided in § 8-37-214.

§ 8-35-248. Membership of separate local governmental entities — Actuarial study.

(a) Except as otherwise expressly provided by law, should any department, agency, or instrumentality of a participating political subdivision become a separate local governmental entity from the political subdivision, the employees of such entity are not entitled to future membership in the retirement system on account of continued service with the entity unless the chief governing body of the entity elects to become a participating employer pursuant to § 8-35-201.
(b) Upon such election, the chief governing body of the political subdivision may request the retirement system to have an actuarial study conducted to determine the share of the assets of the retirement system attributable to contributions of the political subdivision that would be needed for the entity to maintain a comparable employer contribution rate or funding level as the political subdivision as of the date of separation. Upon receipt of the actuarial study, the chief governing body of the political subdivision has the authority to pass and file with the retirement system a resolution requesting that such amount be transferred from the credit of the political subdivision to the entity.
(c)
1. (1) The chief governing body of the political subdivision may also request the retirement system to have an actuarial study conducted, at the political subdivision's expense, to determine the share of the assets of the retirement system and associated liabilities attributable to the new political subdivision for the time period before or after a department, agency, or instrumentality of the political subdivision became a separate governmental entity participating in the retirement system.
2. (2) The actuarial study must calculate the political subdivision's pension liability for this period of time based on the following factors:
  1. (A) Review of assets and liabilities;
  2. (B) Member creditable service;
  3. (C) Demographics and salaries;
  4. (D) Required and optional plan provisions;
  5. (E) Contributions made;
  6. (F) Investment earnings; and
  7. (G) Any other factors that will assist in determining the political subdivision's pension obligations before a part of it became a separate entity.
3. (3) Based on the results of the actuarial study, the political subdivision and the entity, in consultation with the actuary, may determine payment of the entity's pension liabilities using all, any one (1), or a combination of the factors contained in the actuarial study. The actuary shall compare this calculation to the new entity's assets, liabilities, and the structure and solvency of any of its other pension plans.
4. (4) Upon receipt of the actuarial study, the chief governing bodies of the political subdivision and the entity have the authority to pass and file with the retirement system resolutions, acceptable to the retirement system in both form and substance, requesting that all or a portion of the assets and the liabilities associated thereto contributed by the political subdivision to fund the pension liability that was accrued while the entity was a part of the political subdivision, be transferred from the retirement system account of the political subdivision to the retirement system account of the new entity. Such transfer must include some or all of the assets with the associated liabilities which may include, without limitation, employer contributions or investment earnings.
5. (5) Prior to the transfer of some or all of the assets and the associated liabilities from the political subdivision to the new governmental entity, the state treasurer may approve such a request if the political subdivision demonstrates that such a transfer would not negatively impact the long-term solvency of the entity. The state treasurer may require the political subdivision and the entity to provide documentation, including, but not limited to, financial statements, actuarial assessments, and an opinion of an independent actuary.
(d) Any amounts transferred pursuant to this section are considered retirement system assets of the new governmental entity pursuant to chapters 34-37 of this title, and shall not be used for any other purposes.

§ 8-35-249. Regional jail authority as participating employer.

(a) A regional jail authority created by two (2) or more counties or municipalities pursuant to title 41, chapter 12 may request approval of the board of trustees to become a participating employer in the Tennessee consolidated retirement system upon satisfying the following conditions:
1. (1) The board of commissioners of the authority passes a resolution authorizing an actuarial study to determine the liability associated with such participation, and accepting responsibility for the costs of the study; and
2. (2) Following receipt of the actuarial study, the board of commissioners of the authority passes a resolution authorizing such participation and accepting the liability for participation.
(b) The employees of the authority shall make the same contributions, participate in the same manner and shall be eligible for the same benefits as employees of other local governments participating in the retirement system under this part.
(c) The employees shall be entitled to credit for prior service as approved by the board of commissioners of the authority under the same provisions that apply to employees of other local governments.
(d) The retirement system shall not be liable for the payment of retirement allowances or other payments on account of employees of the authority or their beneficiaries, for which reserves have not been previously created from funds contributed by the authority or its employees, or both.
(e) It is the legislative intent that the state shall realize no increased cost as a result of this section. All costs associated with retirement coverage, including administrative costs, shall be the responsibility of the authority.
(f) If an authority is admitted and participates in the retirement system pursuant to this section, any county or municipality becoming a member of the authority by agreement after its coverage in the retirement system shall, as a condition of the agreement, be deemed to have accepted its share of the liability incurred by the authority's participation.
(g) In case of the withdrawal of an authority as a participating employer, the benefits of the members and beneficiaries shall be determined in accordance with § 8-35-211.

§ 8-35-250. Resolution to discontinue noncontributory provisions of § 8-34-206.

(a) The chief governing body of any employer participating in the retirement system pursuant to this part may by resolution, legally adopted and approved by a two-thirds (⅔) majority of that body, elect to discontinue the noncontributory provisions of § 8-34-206 for all employees employed after the effective date of the resolution and to have the contributions made by the employees treated as employer contributions pursuant to § 8-37-216. Employees who were employed prior to this date will continue to be eligible for the noncontributory provisions of § 8-34-206; provided, however, any such employee who thereafter leaves or is discharged from employment with that employer and later returns to employment with that employer shall not be eligible for the noncontributory provisions of § 8-34-206. Any such resolution shall set forth the effective date of the discontinuance; provided, that the date shall be on the first day of any quarter following a minimum of three (3) months' notice to the retirement system.
(b) Any resolution to discontinue the noncontributory provisions of § 8-34-206 that is adopted pursuant to this section shall be irrevocable and the employer shall not be permitted to elect at a later date to provide the noncontributory provisions of § 8-34-206.

§ 8-35-251. Resolution to discontinue the mandatory retirement provisions of § 8-36-205.

(a) The chief governing body of any political subdivision participating in the retirement system may by resolution, legally adopted and approved by a two-thirds (⅔) majority of that body, elect to discontinue the mandatory retirement provisions of § 8-36-205 for all its firefighters and police officers, and for anyone who has been transferred from such a position to a supervisory or administrative position within the police or fire department of the political subdivision. All such employees who were employed prior to the effective date of the resolution will continue to be subject to the mandatory retirement provisions of § 8-36-205 and will continue to be eligible for the supplemental bridge benefit established pursuant to § 8-36-211. Such resolution shall set forth the effective date of the discontinuance; provided, that the date shall be on the first day of any quarter following a minimum of three (3) months' notice to the retirement system.
(b) Any resolution to discontinue the mandatory retirement provisions of § 8-36-205 that is adopted pursuant to this section shall be irrevocable and the political subdivision shall not be permitted to elect at a later date to provide the mandatory retirement provisions of § 8-36-205.

§ 8-35-252. Resolution to discontinue the base benefit improvement provisions of § 8-36-124.

(a) The chief governing body of any employer participating in the retirement system pursuant to this part may by resolution, legally adopted and approved by a two-thirds (⅔) majority of that body, elect to discontinue the base benefit improvement provisions of § 8-36-124 for all employees employed with such employer after the effective date of the resolution. Employees who were employed prior to the effective date of the resolution will continue to be eligible for the base benefit improvement described in § 8-36-124. Such resolution shall set forth the effective date of the discontinuance; provided, that the date shall be on the first day of any quarter following a minimum of three (3) months' notice to the retirement system.
(b) Any resolution to discontinue the base benefit improvement provisions of § 8-36-124 that is adopted pursuant to this section shall be irrevocable and the employer shall not be permitted to elect at a later date to provide the base benefit improvement provisions of § 8-36-124.

§ 8-35-253. Additional plan options for political subdivisions to participate in the retirement system.

(a) For purposes of §§ 8-35-253 – 8-35-256, “political subdivision” means any entity authorized to participate in the retirement system pursuant to this part.
(b) Sections 8-35-253 – 8-35-256 are not applicable to:
1. (1) State officials, including legislative officials elected by the general assembly, or who are employed in the service of, and whose compensation is payable in whole or in part by, the state, including employees under supervision of the state whose compensation is paid, in whole or in part, from federal or other funds;
2. (2) Employees of state-supported institutions of higher education; or
3. (3) Teachers as defined by § 8-34-101.
(c) Sections 8-35-253 – 8-35-256 are applicable only to those employees that political subdivisions hire on or after July 1, 2012.
(d) It is the intent of the general assembly that there shall be multiple options for political subdivisions of the state to participate in the retirement system. It is further the intent of the general assembly that any political subdivision already participating in the retirement system on July 1, 2012, may continue to do so without making any changes to its existing plan. Accordingly, the following additional plans are established and available for adoption by political subdivisions of the state on or after July 1, 2012, in accordance with § 8-35-201.
(e) With respect to any of the plans adopted by a political subdivision on or after July 1, 2012, the following provisions are applicable:
1. (1) A political subdivision may for employees hired on or after July 1, 2012, freeze, suspend or modify benefits, employee contributions, plan terms and design prospectively; provided, that these actions are authorized by an enactment of the general assembly;
2. (2) Nothing under state law may confer to employees of a political subdivision who are hired on or after July 1, 2012, or after the date the political subdivision authorizes its employees to participate in the retirement system in accordance with this part, whichever is later, an implied right to future retirement benefit arrangements. For such employees, a political subdivision may adjust retirement benefit formulas, cost of living adjustments, if allowable, contribution rates, and retirement eligibility ages in accordance with this section, unless prohibited by federal law;
3. (3) Employees hired on or after July 1, 2012, or after the date the political subdivision authorizes its employees to participate in the retirement system in accordance with this part, whichever occurs later, may not assert the indefinite continuation of the retirement formulas, contribution rates and eligibility ages in effect at the time of employment;
4. (4) For all employees hired on or after July 1, 2012, or after the date the political subdivision authorizes its employees to participate in the retirement system in accordance with this part, whichever occurs later, the actuarial value of accrued benefits earned prior to any adjustment pursuant to subdivision (e)(2) above shall remain an enforceable right and may not be reduced without written consent of the employee unless the employee is subject to the forfeiture of the employee's retirement benefits in accordance with § 8-35-124; and
5. (5) Benefits accrued under any of the plans adopted pursuant to §§ 8-35-253 – 8-35-256 shall be in accordance with 26 U.S.C. § 411.
(f) Any political subdivision participating in any of the plans available to it shall be subject to the withdrawal provisions of § 8-35-211 and § 8-35-218. Notwithstanding any other law to the contrary, a political subdivision, by resolution legally adopted and approved by a majority of the membership of the chief governing body of the political subdivision, may change the plan in which it participates, prospectively for employees hired on or after July 1, 2012. Any such resolution shall set forth the effective date of the change; provided, that the date shall be on the first day of any quarter following a minimum of six (6) months' notice to the retirement system.
(g) A political subdivision may change its plan and cost of living election, if allowable by the respective plan, no more frequently than once every two (2) years, but only for those employees hired on or after July 1, 2012, or after the date the political subdivision authorizes its employees to participate in the retirement system in accordance with this part, whichever is later.
(h) Notwithstanding any provision of §§ 8-35-253 – 8-35-256 to the contrary and on or after July 1, 2012, a political subdivision may change its employee contribution rate within a plan as it applies to employees hired on or after July 1, 2012. A political subdivision may change its employee contribution rate no more frequently than once a year, or at such other intervals as the board may determine by rule.
(i) A political subdivision that provided notice of withdrawal pursuant to § 8-35-218 but whose effective withdrawal date is July 1, 2012, is not subject to the above-referenced six (6) months' notice requirement in order to change plans; provided, that the resolution to select an alternate plan is adopted prior to July 1, 2012.
(j) In the event a political subdivision participating in the retirement system changes to any other plan offered by the retirement system pursuant to chapters 34-37 of this title, a person hired by that political subdivision after the effective date of the change will not be eligible for the political subdivision's former plan unless the person participated in the former plan as an employee of that political subdivision before the effective date of the change to the new plan and has not otherwise lost membership in the retirement system. Any employee serving a temporary employment period pursuant to § 8-35-107 on the effective date of the change will be eligible for the plan in effect as of the date the employee becomes eligible to join the retirement system.

§ 8-35-254. Continuation of prior retirement system — Employee contributions for new employees.

(a) A political subdivision participating in the retirement system prior to July 1, 2012, may continue to do so under the terms and conditions in effect on July 1, 2012, without taking any additional action.
(b) Notwithstanding any other law to the contrary and only as it applies to new employees hired on or after July 1, 2012, the political subdivision may require employee contributions of zero percent (0%) of the employees' earnable compensation, or may require employee contributions of two and five-tenths percent (2.5%) of the employees' earnable compensation, or employee contributions of five percent (5%) of the employees' earnable compensation. Any employee contributions assumed or paid by a political subdivision on behalf of its employees shall not be credited to the individual account balances of the employees. In order to effectuate a change in the employee contributions, the political subdivision must pass a resolution legally adopted by a majority of the membership of the chief governing body of the subdivision. Any such resolution shall set forth the effective date of the change in employee contributions; provided, that the date shall be on the first day of any quarter following a minimum of three (3) months' notice to the retirement system.

§ 8-35-255. Establishment of alternative defined benefit plan.

(a) There is established an alternate defined benefit plan that shall offer a service retirement allowance of one and four-tenths percent (1.4%) of the member's average final compensation, multiplied by the number of years of creditable service.
(b) A political subdivision may, by resolution legally adopted and approved by the chief governing body and in accordance with the procedure set out in § 8-35-201, authorize its employees in all of its departments or instrumentalities to become eligible to participate in the alternate defined benefit plan.
(c) Except as otherwise provided in this subsection (c), any member in the alternate defined benefit plan shall be eligible for service retirement upon attainment of sixty-five (65) years of age and upon completion of five (5) years of creditable service, or upon attainment of a combination of age and years of creditable service as to equal ninety (90). Any member serving in a position covered by the mandatory retirement provisions of § 8-36-205 shall be eligible for service retirement upon attainment of sixty (60) years of age and upon completion of five (5) years of creditable service, or at any age upon completion of thirty (30) years of creditable service. Further, any member who has creditable service in a position covered by the mandatory retirement provisions of § 8-36-205 and who is entitled to the supplemental bridge benefit established pursuant to § 8-36-211 shall be eligible for service retirement upon attainment of fifty-five (55) years of age and upon completion of twenty-five (25) years of creditable service; provided, that the service rendered while the member was in a position covered by the mandatory retirement provisions shall be independent of all other creditable service for the purpose of calculating the member's retirement benefits under subsection (a). Section 8-36-211(b)(2) shall not apply in calculating the supplemental bridge benefit for members covered by the mandatory retirement provisions of § 8-36-205(a)(2) who retire on an early service retirement allowance pursuant to this subsection (c). Instead, the supplemental bridge benefit shall be equal to three-fourths of one percent (0.75%) of the member's average final compensation, multiplied by the member's years of creditable service when the member was in a position covered by the mandatory retirement provisions of § 8-36-205(a)(2), but reduced by an actuarially determined factor as set by the board from time to time.
(d) Except as otherwise provided in this subsection (d), any member in the alternate defined benefit plan shall be eligible for early service retirement upon attainment of sixty (60) years of age with five (5) years of creditable service, or upon attainment of a combination of age and years of creditable service as to equal eighty (80). Any member serving in a position covered by the mandatory retirement provisions of § 8-36-205 shall be eligible for early service retirement upon attainment of fifty-five (55) years of age and upon completion of five (5) years of creditable service. The early service retirement allowance calculated under this subsection (d) shall be computed as a service retirement allowance in accordance with subsection (a) but reduced by an actuarially determined factor as set by the board from time to time.
(e) Any member may apply for a disability retirement benefit pursuant to the provisions and criteria set forth in chapter 36, part 5 of this title. All provisions of chapter 36, part 5 of this title shall be applicable, except that the disability retirement allowance shall be equal to nine-tenths (⁄) of a service retirement allowance as computed in subsection (a) and as may be further reduced in accordance with chapter 36, part 5 of this title.
(f) Any reference in chapters 34-37 of this title to the eligibility requirements for an early or service retirement allowance shall for purposes of this section mean the eligibility requirements set forth in subsections (c) and (d). Any reference in chapters 34-37 of this title to the formula for computing an early or service retirement allowance, or for computing a disability retirement allowance, shall for purposes of this section mean the applicable formula as set out in subsections (a), (d) or (e).
(g) Sections 8-36-109(b)(1)(C) and 8-36-123(a)(3) shall not apply in determining the retirement allowance payable under § 8-36-109(b) or under § 8-36-123(a) to a deceased member's surviving spouse, if any. Instead, the retirement allowance payable under such sections shall be reduced by an actuarially determined factor as set by the board from time to time.
(h) In no event shall any member in this alternate defined benefit plan receive a base annual pension benefit of more than eighty thousand dollars ($80,000) beginning July 1, 2012. 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. The member's annual pension benefit shall be limited to the base benefit in effect at the time of the member's retirement. This provision does not preclude any cost-of-living adjustments authorized pursuant to § 8-36-701(b)(1) and (2). Notwithstanding this subsection (h), the service retirement allowance payable under this section shall not exceed ninety percent (90%) of the member's average final compensation, as may be adjusted by the cost-of-living provisions of § 8-36-701(b)(1) and (2).
(i) A political subdivision electing to participate in the retirement system pursuant to this section shall participate in the provisions of the plan as they exist for state employees on the date of participation, except that §§ 8-36-123(b), 8-36-124, and 8-36-209 shall not apply and shall not be optional. Further, the provisions of the hybrid plan established under chapter 36, part 9 of this title shall not apply unless the political subdivision subsequently elects to participate in such plan on a prospective basis pursuant to § 8-36-919. Notwithstanding the foregoing, the following provisions shall remain optional to the political subdivision:
1. (1) Employee contributions as provided in § 8-35-203(a)(1)(B)(iii), § 8-35-254, or § 8-37-202, as applicable;
2. (2) Part-time, seasonal, or temporary employee service credit in accordance with § 8-34-621;
3. (3) Mandatory retirement in accordance with § 8-36-205; and
4. (4) Cost of living increase allowance in accordance with § 8-36-701.
(j) Any member who desires to establish service credit pursuant to chapters 34-37 of this title shall pay employee contributions equal to the amount the member would have paid had such member been a member of the system during the period claimed, plus interest at the rate provided in § 8-37-214. Any such service shall be credited to the plan in existence at the time the service is established, provided such plan is with the political subdivision for which the service was rendered.

§ 8-35-256. Establishment of hybrid plan which consists of defined benefit plan with a defined contribution plan.

(a)
1. (1) There is established a hybrid plan which consists of a defined benefit plan with a defined contribution plan. The defined benefit plan shall offer a service retirement allowance of one percent (1.0%) of the member's average final compensation, multiplied by the number of years of creditable service. The defined contribution plan shall be a plan that conforms to all applicable laws, rules and regulations of the internal revenue service governing such plans, may be any plan selected by the political subdivision, and may be acquired from any source. Notwithstanding any law to the contrary, a political subdivision electing to participate in the hybrid plan authorized in this section shall provide a cost of living increase allowance pursuant to § 8-36-701(b).
2. (2) Notwithstanding § 8-35-111 or another law to the contrary, a political subdivision that adopts the hybrid plan authorized in this section may make employer contributions to the defined contribution plan component of the hybrid plan and to any one (1) or more additional tax deferred compensation or retirement plans; provided, that the total combined employer contributions to such defined contribution plans on behalf of an employee, with the exception of contributions made to a tax deferred retirement plan under § 457(f) of the Internal Revenue Code (26 U.S.C. § 457(f)), shall not exceed seven percent (7%) of the employee's salary.
3. (3) Notwithstanding this or any other law to the contrary, the amount of any employer matching shall not exceed the maximum allowed under the Internal Revenue Code (26 U.S.C.) and shall conform to all applicable laws, rules and regulations of the internal revenue service.
(b) A political subdivision may, by resolution legally adopted and approved by the chief governing body and in accordance with the procedure set out in § 8-35-201, authorize its employees in all of its departments or instrumentalities to become eligible to participate in the hybrid plan.
(c) Except as otherwise provided in this subsection (c), any member in the hybrid plan shall be eligible for service retirement upon attainment of sixty-five (65) years of age and upon completion of five (5) years of creditable service, or upon attainment of a combination of age and years of creditable service as to equal ninety (90). Any member serving in a position covered by the mandatory retirement provisions of § 8-36-205 shall be eligible for service retirement upon attainment of sixty (60) years of age and upon completion of five (5) years of creditable service, or at any age upon completion of thirty (30) years of creditable service. Further, any member who has creditable service in a position covered by the mandatory retirement provisions of § 8-36-205 and who is entitled to the supplemental bridge benefit established pursuant to § 8-36-211 shall be eligible for service retirement upon attainment of fifty-five (55) years of age and upon completion of twenty-five (25) years of creditable service; provided, that the service rendered while the member was in a position covered by the mandatory retirement provisions shall be independent of all other creditable service for the purpose of calculating the member's retirement benefits under subsection (a). Section 8-36-211(b)(2) shall not apply in calculating the supplemental bridge benefit for members covered by the mandatory retirement provisions of § 8-36-205(a)(2) who retire on an early service retirement allowance pursuant to this subsection (c). Instead, the supplemental bridge benefit shall be equal to three-fourths of one percent (0.75%) of the member's average final compensation, multiplied by the member's years of creditable service when the member was in a position covered by the mandatory retirement provisions of § 8-36-205(a)(2), but reduced by an actuarially determined factor as set by the board from time to time.
(d) Except as otherwise provided in this subsection (d), any member in the hybrid plan shall be eligible for early service retirement upon attainment of sixty (60) years of age with five (5) years of creditable service, or upon attainment of a combination of age and years of creditable service as to equal eighty (80). Any member serving in a position covered by the mandatory retirement provisions of § 8-36-205 shall be eligible for early service retirement upon attainment of fifty-five (55) years of age and upon completion of five (5) years of creditable service. The early service retirement allowance calculated under this subsection (d) shall be computed as a service retirement allowance in accordance with subsection (a) but reduced by an actuarially determined factor as set by the board from time to time.
(e) Any member may apply for a disability retirement benefit pursuant to the provisions and criteria set forth in chapter 36, part 5 of this title. All provisions of chapter 36, part 5 of this title shall be applicable, except that the disability retirement allowance shall be equal to nine-tenths (⁄) of a service retirement allowance as computed in subsection (a) and as may be further reduced in accordance with chapter 36, part 5 of this title.
(f) Any reference in chapters 34-37 of this title to the eligibility requirements for an early or service retirement allowance shall for purposes of this section mean the eligibility requirements set forth in subsections (c) and (d). Any reference in chapters 34-37 of this title to the formula for computing an early or service retirement allowance, or for computing a disability retirement allowance, shall for purposes of this section mean the applicable formula as set out in subsections (a), (d) or (e).
(g) Sections 8-36-109(b)(1)(C) and 8-36-123(a)(3) shall not apply in determining the retirement allowance payable under § 8-36-109(b) or under § 8-36-123(a) to a deceased member's surviving spouse, if any. Instead, the retirement allowance payable under such sections shall be reduced by an actuarially determined factor as set by the board from time to time.
(h) In no event shall any member in this hybrid plan receive a base annual pension benefit of more than eighty thousand dollars ($80,000) beginning July 1, 2012. 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. The member's annual pension benefit shall be limited to the base benefit in effect at the time of the member's retirement, but shall be subject to increase in accordance with the cost-of-living provisions of § 8-36-701(b)(1) and (2). Notwithstanding this subsection (h), the service retirement allowance payable under this section shall not exceed ninety percent (90%) of the member's average final compensation, as may be adjusted by the cost-of-living provisions of § 8-36-701(b)(1) and (2).
(i) A political subdivision electing to participate in the retirement system pursuant to this section shall participate in the provisions of the plan as they exist for state employees on the date of participation, except that §§ 8-36-123(b), 8-36-124, and 8-36-209 shall not apply and shall not be optional. Further, the provisions of the hybrid plan established under chapter 36, part 9 of this title shall not apply unless the political subdivision subsequently elects to participate in such plan on a prospective basis pursuant to § 8-36-919. Notwithstanding the foregoing, the following provisions shall remain optional to the political subdivision:
1. (1) Employee contributions as provided in § 8-35-203(a)(1)(B)(iii), § 8-35-254, or § 8-37-202, as applicable;
2. (2) Part-time, seasonal, or temporary employee service credit in accordance with § 8-34-621; and
3. (3) Mandatory retirement in accordance with § 8-36-205.
(j) Any member who desires to establish service credit pursuant to chapters 34-37 of this title shall pay employee contributions equal to the amount the member would have paid had such member been a member of the system during the period claimed, plus interest at the rate provided in § 8-37-214. Any such service shall be credited to the plan in existence at the time the service is established, provided such plan is with the political subdivision for which the service was rendered.

Part 3 Membership — Teachers in Local Systems

§ 8-35-301. Teachers participating in local funds.

Any teacher in the service of an employer operating a local retirement fund, who is eligible and participates in membership therein, shall not be a member of the retirement system established by chapters 34-37 of this title, shall make no contributions to this retirement system, and shall be eligible for benefits under this retirement system only as provided in this part.

§ 8-35-302. Teachers not eligible to participate in local funds.

Any teacher employed by an employer operating a local retirement fund who is not eligible for membership in the local retirement fund shall be eligible for membership in the system established by chapters 34-37 of this title, and shall contribute to and participate in the benefits of chapters 34-37 of this title.

§ 8-35-303. State annuity for teachers eligible to participate in local funds.

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. (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;
2. (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. (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. (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. (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.

§ 8-35-304. Teachers becoming members after July 1, 1972.

Any teacher who becomes a member after July 1, 1972, shall be retired as if such teacher were a member of Group 1 of the Tennessee consolidated retirement system.

§ 8-35-305. Information from operators of local funds.

It is the duty of the employers operating local retirement funds to report to the board of trustees annually, or at such other intervals as shall be set by the board, the earnable compensation of each teacher in their employ and such other information as may be needed for establishing the prospective benefits of the member and for administering this part.

§ 8-35-306. Teacher dying prior to retirement — Lump sum payment.

(a) If a teacher who is a member of a local retirement fund dies prior to retirement under conditions which, if such teacher were a member of the retirement system, would entitle the teacher's estate or the teacher's designated beneficiary to an employer-provided lump sum payment under § 8-36-107, in addition to the payment of the teacher's accumulated contributions, the board of trustees shall pay from the state accumulation fund to the managing board of the local retirement fund, or upon the request of the managing board directly to the estate of such deceased teacher or to the person designated by the teacher, a lump sum in the amount of the employer-provided lump sum benefit which would have been payable had the teacher been a member of the retirement system.
(b) Notwithstanding the foregoing, if the lump sum payment exceeds the employer-provided benefits payable from the local retirement fund on account of the teacher's death, either in the form of a lump sum benefit or in the form of an annuity to some other person, any such excess shall be paid to the estate of the deceased teacher or to the person nominated by the teacher by written designation, duly executed and filed with the managing board of the local retirement fund.

§ 8-35-307. Member of state system entering service of operator of local fund — Establishment of prior service.

(a) Should a teacher who is a member of the retirement system enter the employ of an employer operating a local retirement fund in which the teacher is eligible for membership, the teacher shall cease to contribute to the retirement system and become subject to the local retirement fund, but shall not lose previous accrued credits in the retirement system so long as the teacher continues in the service of such employer.
(b) Any teacher who is a member of a local retirement fund and who had teaching service in the Tennessee teachers' retirement system or the Tennessee consolidated retirement system may establish this service in the Tennessee consolidated retirement system at any time prior to retirement; provided, that the teacher has taught at least ten (10) years in the public schools of Tennessee; and provided further, that the teacher makes redeposit of the contributions withdrawn plus interest at the rate provided for in § 8-37-214. Any teacher who is eligible to receive retirement credit in the local fund for service withdrawn from the Tennessee consolidated retirement system or the superseded system shall not be entitled to establish retirement credit for the withdrawn service in this system.

§ 8-35-308. Member of local fund entering service of employer without local fund.

A teacher, in the service of an employer operating a local retirement fund, who becomes a member of this retirement system by entrance into the service of an employer without a local retirement fund, shall contribute to the retirement system while so employed and continue with the previous service credits in the retirement system which the teacher had at the time of becoming a member, as if the teacher had been a member during such period of service.

§ 8-35-309. Determination of normal and accrued liability contributions.

Notwithstanding any other provision of chapters 34-37 of this title, the actuary in determining the normal and accrued liability contributions and the board in setting such contributions and the amount of the appropriation to be paid by the state to the state accumulation fund shall include the liability on account of teachers in the employ of employers having local retirement funds, and the state annuities payable from the state accumulation fund shall include those payable on account of teachers in the service of employers having local retirement funds as provided in this part.

§ 8-35-310. Consideration of creditable service not recognized by local fund.

Notwithstanding any other provisions to the contrary in chapters 34-37 of this title, if a local retirement fund does not allow a member retirement credit for all years creditable under this retirement system, the state annuity shall be computed on the basis of all years of creditable service under the retirement system as prescribed herein and then divided into two (2) parts and paid as follows:
1. (1) The payment to the local retirement system shall be based only on the number of years service creditable on which benefits are computed under the local retirement fund; and
2. (2) The payment based upon the additional years of service creditable under the retirement system shall be paid directly to the retired member of the local retirement fund.

§ 8-35-311. Adoption of provisions of this part by operator of local fund.

Any employer, as herein defined, which operates a local retirement system may adopt any of the provisions of chapters 34-37 of this title in effect on July 1, 1972, and as thereafter amended as modified, as part of the provisions and regulations of such local retirement system.

§ 8-35-312. Adjustment of teachers' benefits when local fund includes certain nonteachers.

Notwithstanding the foregoing, whenever the managing board of a local retirement fund includes municipal employees who are not elected by the people and who are not members of the board of education, nor employed or appointed by the board of education, the managing board shall pay monthly to each retired teacher, in addition to whatever retirement income such retired teacher is otherwise entitled to receive from the local retirement fund, an amount not less than such retired teacher's proportionate part of the excess of the total of the state annuities received by the managing board for all retired teachers for that month over that for the corresponding month of 1961.

§ 8-35-313. Payment of state annuity direct to retiree.

Notwithstanding any other provision to the contrary, the board of trustees shall pay the entire amount of the state annuity directly to the retired members of a local retirement fund whenever the managing board of the local retirement fund is not permitted by municipal charter or other local regulations to pay to retired teachers all or part of the state annuity in addition to the retirement income to which they are entitled from the local retirement fund.

§ 8-35-314. Optional retirement allowances.

Notwithstanding any other provisions to the contrary, optional retirement allowances may be selected in accordance with chapter 36, part 6 of this title. Until the first payment on account of any benefit becomes normally due, any member of any local retirement system may elect to convert the retirement allowance otherwise payable to such member to a reduced retirement allowance of equivalent actuarial value as provided in chapter 36, part 6 of this title.

§ 8-35-315. Deduction of amount of state annuity from allowances or supplements.

Notwithstanding any other provision to the contrary in chapters 34-37 of this title, any member of a local retirement fund whose retirement becomes effective on or after July 1, 1967, and to whom or on whose account a state service or disability retirement allowance or minimum benefit supplement under chapter 36 of this title becomes payable, there shall be deducted from such amount the teacher annuity that would have been payable to the teacher had the teacher been a member of the Tennessee consolidated retirement system.

§ 8-35-316. Payment of minimum benefit supplements to certain local fund retirees.

Notwithstanding any other provisions to the contrary, whenever a local board of education which is a part of a consolidated county-city form of government which was established prior to February 18, 1970, administers a local teacher retirement fund, the retirement payments due on and after July 1, 1967, by the Tennessee consolidated retirement system on account of the retired members of such fund shall include the increases resulting from any minimum benefit amendments to chapter 36 of this title which have become effective on or after July 1, 1963, and such increases shall be paid directly to the retired members of such local fund.

§ 8-35-317. Transfer from local fund to state system.

(a) Local Board of Education Administering Plan.
1. (1) Notwithstanding any other provisions to the contrary in chapters 34-37 of this title, any teacher who is a member of any local teacher retirement plan shall be eligible to transfer membership into the Tennessee consolidated retirement system as a Class A member whenever a local board of education administering such plan provides in such plan for such transfer or the employer authorizes such transfer by resolution. The election to transfer membership into the Tennessee consolidated retirement system is optional to each teacher in the local system. Upon election of such option, the teacher shall be given credit for the teacher annuity for the same number of years that the teacher was a member of the local retirement plan; provided, that the local retirement plan or the employer, or a combination thereof, shall transfer to this retirement system a sum of money equal to the accumulated contributions the teacher would have had, had the teacher been a contributing member of this system the entire period of such teacher's membership in the local retirement plan, which period of time shall begin no earlier than the time of the establishment of this system. A county or municipality shall have the right to issue obligations as defined in § 9-21-105, under the Local Government Public Obligations Act of 1986, to provide funding to meet any requirements or expense of a local government under this subsection (a); provided, that any obligation issued pursuant to this subsection (a) shall mature in five (5) years or less.
2. (2) Board of Commissioners Administering Plan. Notwithstanding any other provisions to the contrary in chapters 34-37 of this title, any teacher who is a member of any local retirement plan shall be eligible to transfer membership into the Tennessee consolidated retirement system as a Class A member whenever a board of commissioners administering such plan provides in such plan for such transfer. The teacher shall be given credit for the teacher's annuity for the same number of years that the teacher was a member of the local retirement plan; provided, that the local retirement plan shall transfer to this retirement system a sum of money equal to the accumulated contributions the teacher would have had, had the teacher been a contributing member of this system or the superseded system the entire period of membership in the local retirement plan, which period of time shall begin no earlier than the time of establishment of the superseded Tennessee teachers' retirement system.
(b) Neither the state of Tennessee nor the Tennessee consolidated retirement system shall, as a result of a transfer under this section, be liable for benefits beyond those benefits otherwise provided for other members of the Tennessee consolidated retirement system, nor shall the state or the Tennessee consolidated retirement system assume or incur any liability for any impairment, interruption, or diminution of the rights and privileges of any teacher which may result from a transfer under this section.
(c) If a teacher transfers from such local retirement plan to this retirement system, such teacher shall contribute to this retirement system as a Class A member as if such teacher had been a member of this system during such period of service and elected Class A membership; however, social security coverage through this system shall begin as of the date of transfer.
(d) The contributions for any period of service after July 1, 1957, shall be calculated for the teacher as a Class A member.

§ 8-35-318. Local board of education not entitled to establish local fund.

(a) Any other law to the contrary notwithstanding, a local board of education shall not be entitled to establish a local teacher retirement fund.
(b) Notwithstanding the foregoing, this section shall not affect the rights, benefits and privileges of teachers presently participating in a local retirement fund.

Part 4 [Reserved]

§ 8-35-401 — 8-35-413. [Reserved]

Part 5 Tennessee Sheriffs' Association

§ 8-35-501. Participation in consolidated retirement system.

The Tennessee Sheriffs' Association shall be a participating employer in the Tennessee consolidated retirement system upon passage of a resolution by the association's board of directors authorizing such participation and accepting the liability incurred as a result of the participation of its employees.

§ 8-35-502. Employees comparable to participating local government employees — Credit for prior service.

(a) The employees of the association shall make the same contributions, participate in the same manner, and shall be eligible for the same benefits as employees of local governments participating in the retirement system.
(b) Such employees shall be entitled to credit for such prior service as the board of directors of the association may authorize and accept the liability therefor.

§ 8-35-503. Withdrawal of Tennessee Sheriffs' Association as participating employer.

(a) In case of withdrawal of the Tennessee Sheriffs' Association as a participating employer, the benefits payable on account of service rendered as an employee of the association shall be determined in accordance with § 8-35-211.
(b) The retirement system shall not be liable for the payment of retirement allowances or other benefits on account of employees or beneficiaries of the Tennessee Sheriffs' Association for which reserves have not been previously created from funds contributed by the association and/or its employees for such benefits.

§ 8-35-504. No increased cost to state.

It is the legislative intent that the state shall realize no increased cost in the retirement plan as a result of this part.

Chapter 36 Retirement Benefits

Part 1 General Provisions

§ 8-36-101. Prohibited changes in retirement.

A current early service retiree shall not change to disability retirement. A current disability retiree shall not change to early service retirement.

§ 8-36-102. Limitation on amount of retirement allowance.

(a) Notwithstanding any other law to the contrary, no retirement allowance payable to any member retiring under the consolidated retirement system or any superseded system after June 30, 1975, shall exceed the average final compensation or benefit base of such member; provided, that this section shall not be construed to prevent any increase in retirement allowance of such member in excess of the final average compensation or benefit base when such increase is in accordance with § 8-36-701.
(b) Notwithstanding any other law to the contrary, the member contributions paid to and retirement benefits paid from the plan shall be limited to such extent as may be necessary to conform to the requirements of § 415 of the Internal Revenue Code (26 U.S.C. § 415), for a qualified plan.
(c) Participation in other qualified plans: aggregation of limits.
1. (1) The limit under § 415(b) of the Internal Revenue Code (26 U.S.C. § 415(b)) with respect to any member who at any time has been a member in any other defined benefit plan as defined in § 414(j) of the Internal Revenue Code (26 U.S.C. § 414(j)), maintained by the member's employer in this plan shall apply as if the total benefits payable under all such defined benefit plans in which the member has been a member were payable from one (1) plan.
2. (2) The limit under § 415(c) of the Internal Revenue Code (26 U.S.C. § 415(c)) with respect to any member who at any time has been a member in any other defined contribution plan, as defined in § 414(i) of the Internal Revenue Code (26 U.S.C. § 414(i)), maintained by the member's employer in this plan shall apply as if the total annual additions under all such defined contribution plans in which the member has been a member were payable from one (1) plan.
(d) Basic § 415(b) limitation. Before January 1, 1995, a member may not receive an annual benefit that exceeds the limits specified in § 415(b) of the Internal Revenue Code (26 U.S.C. § 415(b)), subject to the applicable adjustments in that section. On and after January 1, 1995, a member may not receive an annual benefit that exceeds the dollar amount specified in § 415(b)(1)(A) of the Internal Revenue Code (26 U.S.C. § 415(b)(1)(A)), subject to the applicable adjustments in § 415(b) of the Internal Revenue Code (26 U.S.C. § 415(b)) and subject to any additional limits that may be specified in the retirement system. In no event shall a member's annual benefit payable under the plan in any limitation year be greater than the limit applicable at the annuity starting date, as increased in subsequent years pursuant to § 415(d) of the Internal Revenue Code (26 U.S.C. § 415(d)) and the regulations thereunder.
(e) Effect of COLA on § 415(b) testing. Effective on and after January 1, 2009, for purposes of applying the limits under § 415(b) of the Internal Revenue Code (26 U.S.C. § 415(b)) (the “limit”) to a member with no lump sum benefit, the following shall apply:
1. (1) A member's applicable limit shall be applied to the member's annual benefit in the member's first limitation year without regard to any cost-of-living adjustment under § 8-36-701;
2. (2) To the extent that the member's annual benefit equals or exceeds the limit, the member shall no longer be eligible for cost-of-living increases until such time as the benefit plus the accumulated increases are less than the limit; and
3. (3) Thereafter, in any subsequent limitation year, a member's annual benefit, including any cost-of-living increases under § 8-36-701, shall be tested under the then applicable benefit limit including any adjustment to the § 415(b)(1)(A) of the Internal Revenue Code (26 U.S.C. § 415(b)(1)(A)) dollar limit under § 415(d) of the Internal Revenue Code (26 U.S.C. § 415(d)), and the regulations thereunder.
(f) Section 415(c) Limitations. For purposes of applying § 415(c) of the Internal Revenue Code (26 U.S.C. § 415(c)) and for no other purpose, the definition of compensation where applicable shall be compensation as defined by Treasury Regulation § 1.415(c)-2(d)(3), or successor regulation; provided, however, that member contributions picked up under § 414(h) of the Internal Revenue Code (26 U.S.C. § 415(h)) shall not be treated as compensation. A member's compensation for purposes of this subsection (f) shall not exceed the annual limit under § 401(a)(17) of the Internal Revenue Code (26 U.S.C. § 415(f)(17)), which applies for that year. If the annual additions for any member for a plan year exceed the limitation under § 415(c) of the Internal Revenue Code (26 U.S.C. § 415(c)), the excess annual addition shall be corrected as permitted under the Employee Plans Compliance Resolution System or similar IRS correction program.

§ 8-36-103. Members of the general assembly prior to June 30, 1976.

Notwithstanding any provisions to the contrary, members and former members of the general assembly, whose term of office began prior to June 30, 1976, shall be entitled to a full retirement allowance based on their years of creditable service in accordance with §§ 8-34-616, 8-36-206 – 8-36-209 and 8-36-707.

§ 8-36-104. Limitation on “average final compensation” in benefit computation for teachers employed by the University of Tennessee.

(a) Anything in chapters 34-37 of this title to the contrary notwithstanding, in determining any state annuity or lump sum death benefit payable to or on account of any retired teacher for any period of service in the employ of the University of Tennessee subsequent to September 1, 1955, shall be disregarded both for the purpose of computing the amount thereof and for the purpose of determining the teacher's eligibility for such benefits.
(b) In determining the average final compensation of a teacher having any such period of service subsequent to September 1, 1955, the teacher's earnable compensation shall be limited to two thousand five hundred dollars ($2,500) during any period between July 1, 1945 and July 1, 1949, and shall be limited to three thousand six hundred dollars ($3,600) during any other period prior to July 1, 1955.

§ 8-36-105. Lump sum payments by prior class members who limited earnable compensation.

Any prior Class B member who limited such member's deduction to four thousand two hundred dollars ($4,200) of such member's annual salary may, upon proper authorization from the board of trustees, make a deposit in a lump sum equal to the amount which the member would have paid had the member been contributing on such member's annual salary, plus interest at the rate provided for in § 8-37-214, relative to redeposits. Such an amount so deposited shall become a part of the member's accumulated contributions in the same manner as if the contributions had been timely paid.

§ 8-36-106. Suspension of allowances by beneficiaries.

(a) A beneficiary may, for personal reasons and without disclosure thereof, apply to the board of trustees to suspend for any period payment of all or any part of the retirement allowance otherwise payable to the beneficiary under chapters 34-37 of this title.
(b) Upon approval, the beneficiary shall be considered to have forfeited all rights to the amount of retirement allowance so suspended, but shall retain the right to have the full allowance otherwise payable to the beneficiary reinstated as to future monthly payments upon written notice to the board of the beneficiary's desire to revoke the prior request for a suspension under this section.

§ 8-36-107. Lump sum death benefit.

(a) Upon the death of a member prior to retirement on account of whom no benefit is payable under §§ 8-36-108, 8-36-109 or part 6 of this chapter, the member's accumulated contributions shall be paid to such entity as the member shall have nominated by written designation, duly executed and filed with the board of trustees. In the event that there are no surviving designated beneficiaries, the member's accumulated contributions shall be paid to the member's estate in accordance with § 8-36-120.
(b) If such member shall have been in service within one hundred fifty (150) days preceding such member's death, an additional amount equal to such member's accumulated contributions shall be paid in accordance with subsection (a); provided, that no benefit is payable under §§ 8-36-108, 8-36-109 or part 6 of this chapter.
(c) Notwithstanding any provision of this section to the contrary, if a member described in subsection (a) dies while on an approved medical leave of absence, an additional amount equal to such member's accumulated contributions shall be paid in accordance with subsection (a); provided, that:
1. (1) The member maintained health insurance coverage through the member's employer;
2. (2) The member dies within one (1) year upon being approved for the leave of absence; and
3. (3) No benefit is payable under §§ 8-36-108, 8-36-109 or part 6 of this chapter.
(d) Any person who is entitled to receive a retirement allowance under §§ 8-36-108, 8-36-109 or part 6 of this chapter on account of the death of a member prior to retirement may elect to receive the benefits provided in subsection (a) or (b) in lieu of the benefits to which such person would otherwise be entitled.

§ 8-36-108. Benefits upon death in line of duty.

(a)
1. (1) If a member in service in Group 2 dies prior to retirement and the board of trustees determines that the member's death was the natural and proximate result of an accident or was occasioned as the direct result of physical violence against the member's person occurring while the member was in the actual performance of the member's duty:
  1. (A)
    1. (i) A state annuity equal to one-half (½) the member's average final compensation shall be paid to the member's surviving spouse or surviving minor child or children; provided, that either and no other person, persons or institution are named in writing by the member on file with the retirement system;
    2. (ii) If the member's surviving spouse is named, the annuity will continue to such spouse until death. If the named surviving spouse dies, then the annuity shall be divided equally among the member's surviving minor children. Each child shall receive such child's share until the first day of the month following the month in which the child dies or reaches twenty-two (22) years of age, whichever occurs first, at which time the annuity shall be redistributed equally among the remaining minor children;
    3. (iii) If a surviving minor child or children are named, then the annuity shall be divided equally among them. Each child shall receive such child's share until the first day of the month following the month in which the child dies or reaches twenty-two (22) years of age, whichever occurs first, at which time the annuity shall be redistributed equally among the remaining minor children;
  2. (B) If there is no such surviving spouse or children named as beneficiary upon the member's death, to the member's father or mother, if living, for life, divided, where appropriate, in such manner as the board of trustees in its discretion shall determine.
2. (2) If the member has made an effective election of an optional benefit under part 6 of this chapter and has designated the member's spouse as beneficiary under the option, the benefit payments under this section shall be made in lieu of any benefits under the option.
3. (3) If the member has made an effective election of an optional benefit under part 6 of this chapter and has designated a person other than the member's spouse as beneficiary under the option, the benefit payments under the option shall be made in lieu of any benefits under this section.
(b)
1. (1)
  1. (A) If a member in service in Group 1, 3 or 4 dies prior to retirement and the board of trustees determines that such person's death was the natural and proximate result of an accident or was occasioned as the direct result of physical violence against the member's person occurring while the member was in the actual performance of the member's duty, a state annuity equal to one-half (½) the member's average final compensation shall be paid to the member's surviving spouse or surviving child or children; provided, that either and no other person, persons or institution are named by the member in writing on file with the retirement system.
  2. (B) If the member’s surviving spouse is named, this annuity will continue to such spouse until death. If the named surviving spouse dies, then this annuity shall be divided equally among the member’s surviving minor children. Each child shall receive such child’s share until the first day of the month following the month in which the child dies or reaches twenty-two (22) years of age, whichever occurs first, at which time the annuity shall be redistributed equally among the remaining minor children.
  3. (C) If a surviving minor child or children are named, then this annuity shall be divided equally among them. Each child shall receive such child's share until the first day of the month following the month in which the child dies or reaches twenty-two (22) years of age, whichever occurs first, at which time the annuity shall be redistributed equally among the remaining minor children. On the first day of the month following the month in which the last surviving child dies or reaches twenty-two (22) years of age, then the annuity shall be paid to the member's surviving spouse, if any, until the surviving spouse dies. Notwithstanding the foregoing or any other law to the contrary, if no surviving spouse exists on the date of the member's death and if the projected payments to be made to all the minor children pursuant to this subdivision (b)(1) do not exceed a minimum total value of fifty thousand dollars ($50,000), then the projected excess shall be paid to the member's estate for the sole benefit of all the member's surviving children, regardless of age; provided, that such excess exceeds the amount a bank may pay under § 45-2-708(a). Any such payment shall be free from the claims of any and all creditors.
2. (2) In order to be eligible for this benefit, the death must be conclusively shown by competent medical evidence to have occurred in the actual performance of duty, regardless of § 7-51-201.
3. (3) If the member has made an effective election of an optional benefit under part 6 of this chapter and has designated the member's spouse as beneficiary under the option, the benefit payments under this section shall be made in lieu of any benefits under the option.
4. (4) If the member has designated an individual or individuals other than, or in addition to, the member's surviving spouse or surviving child or children, such individuals may disclaim the death benefit otherwise payable. To be effective, the individuals must not have received any of the benefits, and the disclaimer must be in writing and filed with the division of retirement. Such writing shall contain the information required in § 8-36-125. If a disclaimer is made under this subdivision (b)(4), the state annuity described in subdivision (b)(1) shall be paid to the member's surviving spouse and surviving child or children in accordance with subdivision (b)(1)(B). If no surviving spouse exists, then the annuity shall be paid to the member's surviving child or children in accordance with subdivision (b)(1)(C).
5. (5)
  1. (A)
    1. (i) If the member has designated an individual or individuals other than, or in addition to, the member's surviving spouse or surviving child or children and such individuals do not disclaim the death benefit under subdivision (b)(4), a state annuity shall nevertheless be paid the member's surviving spouse and surviving child or children. The annuity shall be equal to the amount which would have otherwise been payable under subdivision (b)(1) had the member designated the member's surviving spouse or surviving minor child or children as beneficiary, minus:
      1. (a) The actuarial value of the benefits payable to the non-disclaiming beneficiaries; or
      2. (b) In the case of a lump sum payment, the amount of the lump sum payment made to the non-disclaiming beneficiaries.
    2. (ii) Notwithstanding this subdivision (b)(5) to the contrary, the annuity shall have a guaranteed minimum total value of fifty thousand dollars ($50,000), minus the:
      1. (a) Actuarial value of the benefits payable to the nondisclaiming beneficiaries; or
      2. (b) In the case of a lump sum payment, the amount of the lump sum payment made to the non-disclaiming beneficiaries.
    3. (iii) The guaranteed minimum value shall be paid in monthly installments calculated on a sixty-month basis and divided in the manner prescribed in subdivision (b)(5)(B).
  2. (B) The annuity provided in subdivision (b)(5)(A) shall be paid to the member's surviving spouse until such spouse's death. Upon the surviving spouse's death, this annuity shall be divided equally among the member's surviving minor children. Each child shall receive such child's share until the first day of the month following the month in which the child dies or reaches twenty-two (22) years of age, whichever occurs first, at which time the annuity shall be redistributed equally among the remaining minor children. If the guaranteed minimum total value has not been paid out under this subdivision (b)(5)(B) in the form of an annuity by the first day of the month following the month in which the last surviving child dies or reaches twenty-two (22) years of age, the remaining amount shall be divided equally among all the member's surviving children, regardless of age. If no surviving children exist, then the remaining amount shall be paid to the estate of the last to survive of the spouse and the member's children in accordance with § 8-36-120.
  3. (C) If no surviving spouse exists on the member's death, then the annuity provided in subdivision (b)(5)(A) shall be divided equally among the member's surviving minor children. Each child shall receive such child's share until the first day of the month following the month in which the child dies or reaches twenty-two (22) years of age, whichever occurs first, at which time the annuity shall be redistributed equally among the remaining minor children. Notwithstanding the foregoing or any other law to the contrary, if no surviving spouse exists on the date of the member's death and if the projected payments to be made to all the minor children pursuant to this subdivision (b)(5) do not exceed a minimum total value of fifty thousand dollars ($50,000), then the projected excess shall be paid to the member's estate for the sole benefit of all the member's surviving children, regardless of age, provided such excess exceeds the amount a bank may pay under § 45-2-708(a). Any such payment shall be free from the claims of any and all creditors.
6. (6) Notwithstanding any law to the contrary, the aggregate total death benefit payable under chapters 34-37 of this title on account of a member who dies in the line of duty shall have a value of not less than fifty thousand dollars ($50,000). Except as otherwise provided in this subsection (b), if the death benefit is payable to a single beneficiary, the guaranteed minimum value shall be paid in monthly installments calculated on a sixty-month basis. In the event the beneficiary dies before receiving all of the guaranteed minimum value, a lump sum payment equal to the actuarial equivalent of the monthly benefit due over the remaining months in the sixty-month period shall be paid to the beneficiary's estate in accordance with § 8-36-120. If the benefit is payable to multiple beneficiaries, other than to the member's surviving minor children, or to a non-human being such as a firm, organization, partnership, association, corporation, estate or trust, the guaranteed minimum value shall be paid in a lump sum. Amounts payable to multiple beneficiaries under this subdivision (b)(6) shall be distributed in equal proportions among the surviving beneficiaries.
7. (7) This subsection (b) shall not apply to individuals who are members of the retirement system by virtue of their employment with any employer participating in the retirement system pursuant to chapter 35 of this title unless the governing body of any such employer passes a resolution authorizing and accepting the associated liability and costs to provide such benefits.

§ 8-36-109. Survivor benefits.

(a) Upon the death of a member in service who has reached the applicable eligibility requirements for an early or service retirement allowance as set forth in part 2 or 3 of this chapter, a retirement allowance shall be paid to the member's surviving designated beneficiary, if any.
1. (1) No benefits shall be payable under this subsection (a) on account of any member on whose account a benefit is payable under any other provision of chapters 34-37 of this title.
2. (2) The retirement allowance payable to the beneficiary shall be equal to the retirement allowance which would have been payable had the member retired under an effective election of Option 1 as provided in part 6 of this chapter with such person nominated as the beneficiary under the option.
3. (3)
  1. (A) Notwithstanding any other law to the contrary, if the member's spouse is the designated beneficiary on the date of the member's death, and if that spouse should thereafter die leaving a surviving minor child or children of the member, then the annuity the spouse was receiving under this subsection (a) shall be divided equally among the member's surviving minor children. Each child shall receive the child's share until the first day of the month following the month in which the child dies or reaches twenty-two (22) years of age, whichever occurs first, at which time the annuity shall be redistributed equally among the remaining children.
  2. (B) If the member's spouse is designated as the sole beneficiary on the date of the member's death, and if that spouse predeceased the member or died in a common accident or occurrence with the member, then the member's surviving minor child or children shall be entitled to the same annuity as set forth in subdivision (a)(3)(A).
(b)
1. (1) Upon the death of a member in service who is vested, a retirement allowance shall be paid to the member's surviving spouse, if any, if the spouse is designated as beneficiary.
  1. (A) No benefits shall be payable under this subsection (b) on account of any member on whose account a benefit is payable under any other provision of chapters 34-37 of this title.
  2. (B) The retirement allowance payable to the surviving spouse shall be equal to the retirement allowance which would have been payable had the member retired under an effective election of Option 1 as provided in part 6 of this chapter with the member's spouse nominated as the beneficiary under that option.
  3. (C) The retirement allowance payable under this subsection (b) shall be reduced by four-tenths of one percent (0.4%) for each month by which the member's death precedes the member's service retirement date.
  4. (D) This subsection (b) does not apply to members in the employ of a political subdivision unless the governing body of the political subdivision authorizes by resolution and accepts the liability therefor.
2. (2) Should the governing body of a political subdivision elect not to accept the liability for its employees to receive a survivor's benefit in accordance with this subsection (b), a survivor's benefit shall be paid in accordance with subsection (a).
(c) A member shall be considered to be “in service” under this section, even though the member is no longer participating in this system because of advanced age, so long as the member continues to be employed by the same employer.
(d)
1. (1) Upon the death of a member in service who has completed ten (10) years of creditable service, a retirement allowance shall be paid to the member's nominated beneficiary, if any.
2. (2) No benefits shall be payable under this subsection (d) on account of any member on whose account a benefit is payable under any other provision of chapters 34-37 of this title.
3. (3) The retirement allowance payable to the beneficiary shall be determined by converting the lump sum benefit payable under § 8-36-107 into a monthly annuity payable over a period not to exceed one hundred twenty (120) months. The present value of the monthly annuity shall be equal to the lump sum benefit payable in accordance with § 8-36-107. The interest rate used in calculating the present value shall be based on the interest rate payable by annuity companies in the open market on the date the monthly benefit commences. The interest rate shall not be lower than the rate established by the board of trustees under § 8-34-505.
4. (4) In the event the beneficiary dies before receiving all of the benefits payable under subdivision (d)(3), a lump sum payment equal to the actuarial equivalent of the monthly benefit due over the remaining months in the one-hundred-twenty month period shall be paid to the beneficiary's estate in accordance with § 8-36-120.

§ 8-36-110. Rate of benefit for beneficiary with creditable service in more than one class.

(a) Anything in chapters 34-37 of this title to the contrary notwithstanding, if any member's creditable service includes a period or periods of service in an employment classification other than such member's classification at the time of separation from service for which the benefit provisions of chapters 34-37 of this title differ from those for such member's classification at the time of such member's separation from service, the following provisions shall be applicable in determining any retirement allowance or other benefit payable on such member's account.
(b) The rate of benefit with respect to the period of creditable service in each classification shall be the rate of benefit provided under chapters 34-37 of this title for such classification.
(c)
1. (1) Any flat minimum benefit shall be determined separately with respect to each such period of creditable service, but the determination as to whether the benefit based on average final compensation or the flat minimum benefit is larger shall be made with respect to the member's total creditable service.
2. (2) Any benefit for service as a member of the general assembly shall be computed independently of benefits for other creditable service.
(d) Eligibility for any benefit payable on account of a member's death prior to retirement shall be determined on the basis of the member's most recent employment classification prior to death.
(e) Upon separation from service for reasons other than death, eligibility for a retirement allowance shall be determined on the basis of the member's total creditable service, but such determination shall be made separately with respect to benefits for the period of service in each classification on the basis of the applicable eligibility requirements provided by chapters 34-37 of this title.
(f) Notwithstanding the foregoing, if any member shall have rendered a period of prior service in an employment classification for which the rate of benefit is lower than the rate for such member's classification on June 30, 1972, and if under the superseded system of which such member shall have been a member, such period would have been treated as service in such member's classification in effect on June 30, 1972, such period of prior service shall be considered for the purpose of this section to be service in the classification in effect on June 30, 1972.
(g) Any member, upon retiring, shall be eligible to use the aggregate number of years in all systems to qualify for retirement. Such member's benefits shall be computed under the applicable provisions of each superseded system based on the aggregate number of years in each superseded system or the Tennessee consolidated retirement system to determine such member's total benefits. The retirement allowance payable to such member shall not be less than the benefit determined on total years of service under Group 1.
(h) Anything to the contrary notwithstanding, the spouse of any member or former member of the superseded Tennessee county officials' retirement system who died while in office but who had not attained the minimum number of years for retirement, but who was at least fifty-five (55) years of age at the time of death, may be eligible for a benefit under the applicable provisions of this system.

§ 8-36-111. Exemption of benefits from execution, attachment, garnishment and assignment.

All retirement allowances and other benefits accrued or accruing to any person under chapters 34-37 of this title, the accumulated contributions of members and the cash and assets in the funds created under chapters 34-37 of this title shall not be subject to execution, attachment, garnishment, or other process whatsoever, nor shall any assignment thereof be enforceable in any court.

§ 8-36-112. Withholding of insurance premiums from benefit payments authorized.

Nothing in this part shall be construed to prohibit the withholding of insurance premiums for retirees under a plan approved by the state insurance committee, or for retired teachers or other retired local government employees for payment of insurance premiums under any Tennessee local government group insurance plan provided to the retirees. The director of the Tennessee consolidated retirement system may periodically establish a schedule of insurance premium support levels that local education agencies (LEAs) may assign to the retired teachers. If a schedule is established, an LEA must conform to the schedule in order for the retirement system to make or continue making premium payment deductions from the retirement benefits of that LEA's retired teachers.

§ 8-36-113. Withholding of payment of contributions or monthly benefit under certain circumstances — Satisfaction of claims of state against terminated member upon application for withdrawal of contributions.

(a) Notwithstanding § 8-36-111, the board may withhold payment of a member's accumulated contributions and interest or monthly benefit upon:
1. (1) The filing of criminal charges or a civil suit against a member relating to the member's employment with an employer;
2. (2) An audit finding from the comptroller of the treasury relating to the member's employment with an employer; or
3. (3) An affidavit submitted by the employer to the director of the retirement system containing the employee's actions that the employer asserts could constitute a crime.
(b) The board may withhold payment of the member's contributions and interest or monthly benefit until such time as the charges have been dismissed or the charges have resulted in a determination that the member owes money to the employer. Should a member not be charged criminally or civilly, the member may appeal the decision to withhold the member's accumulated contributions and earnings or monthly benefit based on an audit finding or affidavit by submitting an appeal request to the director of the retirement system.
(c) If the service of any member is terminated, for any reason, and such member is found to owe money to an employer participating in the retirement system, the employer shall be entitled to claim from the member's accumulated contributions such amounts as are owed to the employer upon the application to withdraw the member's accumulated contributions. The claim shall be made in writing to the director of the retirement system by the appropriate party of the employer involved and must specify the reason for the claim and the amount involved. After the employer's claim is satisfied from the contributions, the member may withdraw any portion of the member's remaining contributions.
(d) Should the member elect not to withdraw the accumulated contributions, no claim on the contributions shall be enforceable under this section.

§ 8-36-114. Satisfaction of claims of employer against retired beneficiary by deduction from monthly benefit.

If any member found to owe funds to an employer participating in the retirement system, within the meaning of § 8-36-113, elects to retire, the member's debt to the employer may be satisfied from the member's monthly benefit.

§ 8-36-115. Correction of errors in benefit payments.

Should any change or errors in records result in any member or beneficiary receiving from the retirement system more or less than such member or beneficiary would have been entitled to receive had the records been correct, then on discovery of any such error the board shall correct the same and shall adjust the payments in such a manner that the benefits to which such member or beneficiary was correctly entitled shall be paid.

§ 8-36-116. Legislative intent to collect overpayments — Exceptions.

It is hereby expressly declared that the intent of the general assembly is to collect amounts that have been overpaid in error to members or beneficiaries, except that:
1. (1) Repayment may be waived at the discretion of the board of trustees where overpayments in retirement benefits have been made through an error committed by the retirement division if it is determined that the member or beneficiary:
  1. (A) Was without fault or knowledge;
  2. (B) Did not participate or induce the additional payment; and
  3. (C) There was no way under the circumstance that the member or beneficiary knew or could have known that an overpayment had been made;
2. (2) It is further provided that waivers shall only be granted in cases where it can be shown to the board's satisfaction that repayment would deprive the person of income required for ordinary and necessary living expenses;
3. (3) The board's authority to grant a waiver shall be based upon a recommendation by a preliminary review committee composed of one (1) representative from each of the following state agencies or departments:
  1. (A) Treasury department;
  2. (B) Office of the comptroller of the treasury; and
  3. (C) The department of finance and administration;
4. (4) Waivers, where granted, shall only be valid during the lifetime of the member or beneficiary and shall not defeat the right of the state to proceed against the estate upon death; nor shall the granting of a waiver prohibit the retirement system from requiring security to assure repayment upon death;
5. (5) Notwithstanding anything contained herein to the contrary, overpayments of one hundred dollars ($100) or less where the error was committed by the retirement division and without fault, knowledge, or participation on the part of the person overpaid shall be reviewed by the herein designated committee and repayment may be waived; and
6. (6) In the event that a retired member receives an overpayment in retirement benefits from the retirement system and that member returns to service, the retirement system may initiate an automatic payroll deduction to recoup the overpaid amount. The employer shall comply with the retirement system's request for an automatic payroll deduction.

§ 8-36-117. Monthly benefit payments — Death of payee — Procedure for direct deposit or electronic transfer.

(a) Except for the month of December, 1999, monthly benefit payments shall be remitted to beneficiaries on the last working day of the month which shall represent payment for that month. Monthly benefit payments for the month of December, 1999, shall be remitted to beneficiaries on December 28, 1999, which shall represent payment for that month. “Remitted” means either to issue payment by first class mail or by direct deposit in an account at a financial institution selected by the beneficiary.
(b) All monthly benefit payments shall cease in the month in which the payee dies, unless otherwise specifically provided for in chapters 34-37 of this title. If the payee was a retired member who did not elect an optional allowance pursuant to § 8-36-601, a monthly benefit payment shall be issued for the month in which the retired member died and shall be payable to the person nominated as beneficiary by the member pursuant to § 8-36-121. If no surviving beneficiary exists upon the retiree's death, the payment shall be made in accordance with § 8-36-120. If the payee was a beneficiary receiving benefits under the terms of an optional allowance, a monthly benefit payment shall be issued for the month in which the beneficiary died and shall be paid in accordance with § 8-36-120.
(c) The board of trustees is hereby authorized to promulgate substantive and procedural rules and regulations requiring recipients of monthly benefits hereunder to be paid such benefits by direct deposit or by electronic transfer.

§ 8-36-118. Certain University of Tennessee extension employees — Eligibility for retirement benefits based upon longevity pay.

(a) Notwithstanding any law to the contrary, all former, present and future employees of the University of Tennessee extension, holding joint appointments with the United States department of agriculture, shall be eligible for a retirement benefit based solely on longevity pay which is or was received under § 8-23-206; provided, that credit has not been granted under the federal civil service retirement plan for such longevity pay. Before the commencement of any such retirement benefit, the former employee must make a lump sum payment equal to the contributions such former employee would have made on longevity pay had it been creditable in the federal civil service retirement plan, plus interest as provided by § 8-37-214. The University of Tennessee shall transfer to the Tennessee consolidated retirement system any employer contributions which would have been paid to the federal civil service retirement plan for longevity pay.
(b) The benefit as provided under this section shall be equal to the difference between the benefit received from the federal civil service retirement system and what would have been received had longevity pay been credited in such system. The University of Tennessee shall calculate and certify such benefit amount to the Tennessee consolidated retirement system, which shall audit and verify such benefit calculation.
(c) Payment of the benefit provided by this section shall be retroactive to the date of retirement of the retired former employee. Section 8-36-701 shall apply to all benefits provided by this section. All benefits payable under this section shall cease upon the death of the retiree. No other provisions of chapters 34-37 of this title shall apply to the benefits provided by this section.

§ 8-36-119. [Reserved]

§ 8-36-120. Lump sum payments.

(a) In cases where a lump sum is payable to an individual's estate under chapters 34-37 of this title, payment shall be made to the duly qualified executor or administrator of the estate. When no executor or administrator has qualified and given notice of such qualifications to the retirement division after the expiration of forty-five (45) days from the date of the individual's death, then payment shall be made to the executor named in any will of the individual known to the retirement division. In the absence of actual knowledge of a purported will naming a surviving executor, payment may be made to the individual's spouse if the amount payable does not exceed fifty thousand dollars ($50,000). If there is no surviving spouse at the time of the individual's death, and if the amount payable does not exceed the amount a bank may pay under § 45-2-708(a), then payment may be made to the individual's next-of-kin upon proper documentation as required by the retirement division. In making any determinations and payments under this section, the retirement division is entitled to conclusively rely on the written statements of the informant listed on individual's death certificate or on the written statements of such other person who informs the retirement division of the death.
(b) Upon payment pursuant to this section, the retirement division shall be released and discharged from all further liability from any claim which then exists or which thereafter may arise or be made in respect to the payment.

§ 8-36-121. Nomination of beneficiaries — Method — Distribution among multiple beneficiaries — Retirement.

(a) A member's nomination of a person as beneficiary to receive payments under chapters 34-37 of this title shall be made by the member in writing, duly executed and filed with the retirement division.
(b) Except as provided in subsection (f), a member may change such member's nomination at any time by a similar written designation.
(c) Prior to filing an application for retirement benefits, a member may name more than one (1) person as beneficiary. By doing so, benefits are payable in a lump sum and are not payable under § 8-36-108, § 8-36-109 or part 6 of this chapter, unless the member's surviving spouse is one of the beneficiaries named. If the member's surviving spouse is named, the spouse shall be entitled to receive any retirement allowance which would otherwise have been payable had the surviving spouse been named the sole beneficiary. If the named surviving spouse elects to receive a retirement allowance, no benefits shall be paid to the remaining beneficiaries. If the named surviving spouse elects to receive the lump sum payment provided herein, the payment shall be distributed in equal proportions among the named surviving spouse and the other surviving beneficiaries. For purposes of this section, “person” means any individual, firm, organization, partnership, association, corporation, estate or trust.
(d) Amounts payable to multiple beneficiaries shall be distributed in equal proportions among the surviving beneficiaries.
(e) Notwithstanding this section or any other law to the contrary, if a member has not nominated a beneficiary in the manner provided in subsection (a), then at the member's death, the member's surviving spouse shall be deemed the member's beneficiary and the spouse shall be entitled to receive any payments that would otherwise have been payable under chapters 34-37 of this title had the surviving spouse been named the beneficiary. If no such surviving spouse exists upon the member's death, then any lump sum payment due shall be made in accordance with § 8-36-120.
(f) Upon retirement, the member shall designate only one (1) person as beneficiary. The designation of beneficiary on the application for retirement shall supersede the designation of all previous beneficiaries, and may not be changed or revoked, except as provided in part 6 of this chapter.

§ 8-36-122. Blind employees — Retirement allowance — Computation.

The retirement allowance payable to any member participating in the retirement system pursuant to § 8-35-121 who retires before January 1, 1996, shall be computed as if such member had received the same annual cost-of-living increases and longevity payments as that received by other general state employees.

§ 8-36-123. Retirement or death of members not in service.

(a)
1. (1) Upon the death of a member not in service whose death occurs on or after July 1, 1991, and who has completed ten (10) years of creditable service, a retirement allowance shall be paid to the member's surviving spouse, if any, if the spouse is designated as beneficiary.
2. (2) The retirement allowance payable to the surviving spouse shall be equal to the retirement allowance which would have been payable had the member retired under an effective election of Option 2 as provided in part 6 of this chapter with the member's spouse nominated as the beneficiary under that option.
3. (3) The retirement allowance payable under this subsection (a) shall be reduced by four-tenths of one percent (0.4%) for each month by which the member's death precedes such member's service retirement date.
(b)
1. (1) Effective July 1, 1991, a member who does not qualify for a disability retirement allowance under § 8-36-501 or § 8-36-502 and who suffers from a total and permanent disability may be retired by the board of trustees on an ordinary disability retirement allowance provided the following conditions are met:
  1. (A) The member files with the retirement division an application for the retirement allowance in the manner prescribed by the retirement division;
  2. (B) Competent medical evidence is provided by the member which conclusively documents that the member is totally and permanently disabled from engaging in any type of substantial gainful activity;
  3. (C) The member has completed the service requirement for such member's classification as set forth in § 8-36-501(b); and
  4. (D) The member does not otherwise qualify for a service retirement allowance as provided for in §§ 8-36-201 – 8-36-205.
2. (2) Any member who applies for an ordinary disability retirement allowance pursuant to this subsection (b) shall be subject to §§ 8-36-503 – 8-36-505 and 8-36-508.
3. (3) The amount of the ordinary disability retirement allowance shall be the actuarial equivalent of the retirement allowance which would be payable to the member at fifty-five (55) years of age pursuant to part 3 of this chapter. Notwithstanding the preceding sentence, any allowance payable under this subsection (b) shall be subject to § 8-36-501(c)(4), (5) and (7).
(c) This section does not apply to members in the employ of a political subdivision unless the governing body of the political subdivision by resolution authorizes and accepts the liability for such benefits.

§ 8-36-124. Reduction in contribution requirements — Use of excess appropriation in general appropriations act.

(a) If the board of trustees determines, after reviewing the actuarial valuation as of June 30, 1993, that the recommended employer contribution rate for state employees and teachers is less than the rate in effect on June 30, 1993, any excess appropriation contained in the general appropriations act resulting from the reduction in annual contribution requirements for the fiscal year ending June 30, 1994, shall be utilized by the board of trustees as follows:
1. (1) Any excess appropriations shall first be used to reduce the amortization period of the unfunded accrued liability existing on June 30, 1993, by at least six (6) years, as authorized in [former] § 8-37-304(b) [repealed];
2. (2) If any appropriations remain after decreasing the amortization period, such appropriations shall be used to calculate the average final compensation of any active or retired member of the retirement system or any superseded system who has service in more than one (1) membership classification and whose benefits are determined pursuant to § 8-36-110 as if all the member's service was rendered in the same membership classification, except for those members covered under §§ 8-35-226 and 8-35-234;
3. (3) If any appropriations remain after implementing the above average final compensation change, such funds shall be used to increase the base benefit of Group I members, other than members of the general assembly; Group II members; members of the superseded state retirement system; members of the superseded state teachers' retirement system; state employees covered under § 8-39-101; and teachers covered under § 8-39-102, subject to the following terms and conditions:
  1. (A) The amount of any base benefit improvement authorized in this section shall be set by the board, but shall not exceed five percent (5%);
  2. (B) The board shall consider any comments of the council on pensions prior to adopting a base benefit improvement increase;
  3. (C) Any base benefit improvement increase authorized in this section shall be effective January 1, 1994, and shall apply to both active and retired members in the groups and systems referenced herein;
  4. (D) Any base benefit improvement increase authorized pursuant to this section shall not apply to employees of employers participating in the retirement system pursuant to chapter 35, part 2 of this title, unless the governing body of any such employer, after receipt of the liability information from the retirement system, passes a resolution authorizing the increase and accepting the liability thereof; and
  5. (E) Section 8-36-208(a) shall not be construed to prevent any increase in the retirement allowance of a member when such increase is in accordance with this section, nor shall § 8-36-102 be construed to prevent any increase in the retirement allowance of a member retiring prior to January 1, 1994, when such increase is in accordance with this section; and
4. (4) If any further appropriations remain after implementing the base benefit increase, such funds shall be used to further reduce the amortization period of the unfunded accrued liability existing on June 30, 1993.
(b) The board of trustees shall not adopt changes pursuant to this section which cause the actuarial funding requirement for state employees and teachers to exceed the actuarially determined employer contribution rate established pursuant to the June 30, 1991, biennial evaluation.

§ 8-36-125. Disclaimer of benefits.

(a) A person designated as the beneficiary to receive a death benefit under chapters 34-37 of this title may disclaim the benefit upon the death of the member. Such disclaimer may be made by the person's trustee, guardian, conservator, or attorney-in-fact. If the disclaimer is made by such person's fiduciary, the disclaimer shall be binding on the beneficiary and on any successor fiduciary.
(b) To be effective, the beneficiary must not have received any of the benefits, and the disclaimer must be in writing and filed with the division of retirement. Such writing shall:
1. (1) Indicate that the disclaimer is an irrevocable and unqualified refusal by the person to accept the benefit;
2. (2) Describe the amount of the benefit disclaimed; and
3. (3) Be signed by the person disclaiming or such person's representative.
(c) If a disclaimer is made under this section, the disclaiming beneficiary's share shall be distributed to the remaining beneficiary or beneficiaries in equal proportions.

§ 8-36-126. Benefits payable to a minor child — Provision of documentation establishing guardianship.

(a) No benefit payable to a minor child under chapters 34-37 of this title shall be made until the guardian of such child has provided the retirement division with documentation establishing such guardianship. In the case of a parent, the documentation may consist of the child's birth certificate or record of adoption, whichever is applicable, and a certified statement from the parent that the parent is the legal guardian of the minor child. The retirement division shall be entitled to rely on such documentation and shall not be liable for damages or other payments by reason of any payment made in reliance thereon.
(b) Notwithstanding this section or any other law to the contrary, if the member designated a custodian pursuant to the Tennessee Uniform Transfers to Minors Act, compiled in title 35, chapter 7, part 2, to receive benefits payable to a minor child under chapters 34-37 of this title and such designation was made in writing and on file with the retirement division, the benefits payable to such minor shall be made in the name of the minor and paid to the designated custodian pursuant to the Tennessee Uniform Transfers to Minors Act.

§ 8-36-127. Designation of more than one person as beneficiary.

(a)
1. (1) Notwithstanding § 8-36-121 or any other law to the contrary, members, upon retirement, may, on or after the date determined pursuant to subsection (c), name more than one (1) person as beneficiary under one (1) of the options named in § 8-36-601(b). A member may not designate a non-human being, such as a firm, organization, partnership, association, corporation, estate or trust, as a beneficiary under any of the options named in § 8-36-601(b).
2. (2) The reduced retirement allowance payable to the member under the optional form of retirement elected shall be based on the member's age and the actual ages of the designated beneficiaries at the time of the member's retirement. The portion of the member's reduced retirement allowance that continues after the member's death to a particular beneficiary shall be calculated using the appropriate reduction factors based on the actual age of the respective beneficiary at the time of the member's retirement. When a beneficiary of a retired member dies, that portion of the benefit payment shall terminate and shall not be distributed or redistributed to the remaining beneficiaries. The designation of beneficiary under an optional form of retirement shall supersede the designation of all previous beneficiaries, and may not be changed or revoked, except as provided in part 6 of this chapter.
(b)
1. (1) Notwithstanding § 8-36-109, § 8-36-121 or any other law to the contrary, if a member who has reached the applicable eligibility requirements for an early or service retirement allowance dies in service and if the member designated more than one (1) person as beneficiary, then the beneficiaries shall be entitled to a retirement allowance if the death occurs on or after the date determined pursuant to subsection (c). The retirement allowance shall be equal to the retirement allowance that would have been payable under subsection (a) had the member retired under an effective election of Option 1 as provided in § 8-36-601(b) with the persons nominated as beneficiaries under the option.
2. (2) Notwithstanding subdivision (b)(1), if any of the designated beneficiaries include a non-human being, such as a firm, organization, partnership, association, corporation, estate or trust, then the only benefit payable would be a lump sum payment made in accordance with § 8-36-107, unless the member's surviving spouse is one of the beneficiaries. If the member's surviving spouse is named, the spouse shall be entitled to receive the retirement allowance described in subdivision (b)(1). If the named surviving spouse elects to receive such retirement allowance, no benefits shall be paid to the remaining beneficiaries. If the named surviving spouse elects to receive the lump sum payment as provided in § 8-36-107, the payment shall be distributed in equal proportions among the named surviving spouse and the other surviving beneficiaries, including any non-human beneficiary.
(c) This section shall apply on such date as the retirement system's retirement operating systems are able to accommodate the payment of multiple beneficiaries as provided in this section. Such determination shall be made by the state treasurer.

§ 8-36-128. Honoring claims under a qualified domestic relations order.

(a) The retirement system shall honor claims under a qualified domestic relations order at a time designated by the state treasurer.
(b) For purposes of this section, “qualified domestic relations order” has the same meaning as provided in § 414(p) of the Internal Revenue Code of 1986 (26 U.S.C. § 414(p)); provided, that such order may only relate to the provision of marital property rights relating to the retirement system for the benefit of the retirement system member's former spouse.

Part 2 Service Retirement

§ 8-36-201. Eligibility for retirement — Dispensation of benefits.

(a) Group 1.
1. (1) Any member in Group 1 shall be one hundred percent (100%) vested in the member's service retirement benefit upon attainment of sixty (60) years of age or upon completion of thirty (30) years of creditable service; provided, that any member of Group 1 who became a member of the retirement system on or after January 1, 1992, must have five (5) years of creditable service.
2. (2) Any member in Group 1 who has creditable service in a Group 1 position covered by the mandatory retirement provisions of § 8-36-205 and who is entitled to the supplemental bridge benefit established pursuant to § 8-36-211 shall be eligible for service retirement upon attainment of fifty-five (55) years of age and upon completion of twenty-five (25) years of creditable service; provided, that the service rendered while the member was in a Group 1 position covered by the mandatory retirement provisions shall be independent of all other creditable service for the purpose of calculating the member's retirement benefits under § 8-36-206.
(b) Group 2.
1. (1) Any member in Group 2 shall be one hundred percent (100%) vested in the member's service retirement benefit upon satisfying one (1) of the following:
  1. (A) Attainment of sixty (60) years of age; provided, that any member of Group 2 who became a member of the retirement system on or after July 1, 1979, must have ten (10) years of creditable service; or
  2. (B) At any age upon completion of thirty (30) years of creditable service; provided, that this subdivision (b)(1)(B) shall be optional for political subdivisions participating under chapter 35 of this title.
2. (2)
  1. (A) Any member in Group 2 shall be eligible for an unreduced service retirement upon attainment of fifty-five (55) years of age or completion of twenty-five (25) years of creditable service; provided, that within ninety (90) days of July 1, 1985, such member irrevocably elects to contribute five percent (5%) of such member's earnable compensation in addition to the contributions required by § 8-37-202. An employee or elected or appointed official of this state or any political subdivision thereof who is convicted in any state or federal court of a felony arising out of the employee's or official's employment or official capacity constituting malfeasance in office shall forfeit that employee's or official's retirement benefits in accordance with § 8-35-124.
  2. (B)
    1. (i) Any Group 2 member who elected to come under subdivision (b)(2)(A) and who continues in service after age fifty-five (55) and after completion of twenty-five (25) years of creditable service, or after completion of thirty (30) years of creditable service regardless of age shall be paid the additional contributions made by such member under subdivision (b)(2)(A) within ninety (90) days after the member's filing with the retirement division a written request therefor. Any Group 2 member filing such a request shall cease to make and have deducted from such member's compensation the additional contributions required under subdivision (b)(2)(A).
    2. (ii) This subdivision (b)(2)(B) does not apply to any member whose Group 2 service was rendered to a political subdivision unless the governing body of such political subdivision passes a resolution authorizing the return of contributions pursuant to this subdivision (b)(2)(B).
(c) Group 3. Any member in Group 3 shall be one hundred percent (100%) vested in the member's service retirement benefit upon attainment of sixty-five (65) years of age; provided, that any member of Group 3 who became a member of the retirement system on or after July 1, 1979, must have ten (10) years of creditable service. Any member in Group 3 shall be eligible for an unreduced service retirement upon attainment of fifty-five (55) years of age and completion of twenty-four (24) years of creditable service or upon completion of thirty (30) years of creditable service.
(d) Group 4. Any member in Group 4 shall be one hundred percent (100%) vested in the member's service retirement benefit upon attainment of sixty (60) years of age with eight (8) years of creditable service. Any member in Group 4 shall be eligible for an unreduced service retirement upon the attainment of fifty-five (55) years of age with twenty-four (24) years of creditable service.
(e) No member of the general assembly shall be eligible for a retirement allowance before fifty-five (55) years of age except in the case of a disability.
(f) Any state general employee shall be one hundred percent (100%) vested in the employee's service retirement benefit upon attainment of sixty (60) years of age and the establishment of a minimum of seven (7) years of creditable service rendered during twenty (20) years of part-time employment.
(g)
1. (1) Notwithstanding any other law to the contrary, any member in Group 1 who was previously a member of the superseded state retirement system in a classification that provides a service retirement benefit after twenty-five (25) years of service shall be eligible for a service retirement benefit upon completion of twenty-five (25) years of creditable service; provided, that such member must have reestablished service withdrawn from such superseded system and that within ninety (90) days of July 1, 1989, such member irrevocably elects to contribute five percent (5%) of such member's earnable compensation in addition to the contributions required by § 8-37-202.
2. (2) Any Group 1 member who elected to come under subdivision (g)(1) and who continues in service after completion of thirty (30) years of creditable service shall be paid the additional contributions made by such member under subdivision (g)(1) within ninety (90) days after the member's filing with the retirement division a written request therefor. Any Group 1 member filing such a request shall cease to make and have deducted from such member's compensation the additional contributions required under subdivision (g)(1).
(h) A member shall be one hundred percent (100%) vested in the member's accumulated contributions at all times.
(i) In the event of a full or partial termination of, or a complete discontinuance of employer contributions to, the plan, the accrued benefits of the affected members under the plan shall be one hundred percent (100%) vested and nonforfeitable to the extent funded and to the extent required by federal law.
(j) In conformity with § 401(a)(8) of the Internal Revenue Code (26 U.S.C. § 401(a)(8)) any forfeitures of benefits by members or former members shall not be used to pay benefit increases. However, such forfeitures shall be used to reduce employer contributions.

§ 8-36-202. Application for retirement — Use of electronic means.

Any eligible member may retire on a service retirement allowance subsequent to receipt by the board of trustees of an application filed by the member through such medium as shall be prescribed by the state treasurer. At such time designated by the state treasurer, the retirement system may require the use of an electronic medium for the submission of service retirement applications. The director of the retirement system may waive the requirement to submit such application by electronic means for any member who demonstrates in writing that compliance would cause undue hardship to the member as determined by the director of the retirement system.

§ 8-36-203. Effective date of retirement — Commencement of benefits.

The retirement system shall pay all benefits in accordance with a good faith interpretation of the requirements of § 401(a)(9) of the Internal Revenue Code (26 U.S.C. § 401(a)(9)), and the regulations in effect under that section, as applicable to a governmental plan within the meaning of § 414(d) of the Internal Revenue Code (26 U.S.C. § 414(d)). The retirement system is subject to the following provisions:
1. (1) Any member eligible to retire may set the effective date of the member's retirement at any date within one hundred fifty (150) days before or after the date that the member's application is filed with the board; provided, that such effective date of retirement follows the date of the member's separation from service;
2. (2) A member may submit only one (1) retirement application even if the member has service credit in one (1) or more of the four (4) defined benefit plans administered by the retirement system pursuant to chapters 34-37 of this title. The retirement payment plan and beneficiary selected by the member on the retirement application shall be the same for all of the plans and may not be changed or revoked, except as provided in part 6 of this chapter. The retirement system shall pay benefits from each of the applicable plans on the member's effective date of retirement; provided, that the member has met the eligibility requirements of the particular plan for a retirement allowance. If on a member's effective date of retirement the member has not met the eligibility requirements for a retirement allowance from a particular plan, the retirement system shall commence payments from that plan once the member meets the eligibility requirements of the plan;
3. (3) Distribution of a member's benefit must begin by the required beginning date, which is April 1 of the calendar year following the calendar year in which the member attains age seventy and one-half (70½) or age seventy-two (72) if the member was born on or after July 1, 1949, as such age is extended or otherwise modified by the Internal Revenue Code or the regulations promulgated thereunder, or April 1 of the calendar year following the calendar year in which the member terminates, whichever is later. If a member fails to apply for retirement benefits by the later of either of those dates, the board shall begin distribution of the monthly benefit as required by this section in the applicable form provided in § 8-36-206; and
4. (4) The amount of an annuity paid to a member's beneficiary may not exceed the maximum determined under the incidental death benefit requirement of § 401(a)(9)(G) of the Internal Revenue Code (26 U.S.C. § 401(a)(9)(G)), and the minimum distribution incidental benefit rule under Treasury Regulation § 1.401(a)(9)-6, Q&A-2.

§ 8-36-204. Creditable service required.

(a) Notwithstanding this part and part 3 of this chapter, or any other law to the contrary, any member in Group 1, 2, or 3 prior to July 1, 1979, shall not be eligible for a service or early service retirement allowance unless such member has a minimum of four (4) years of creditable service.
(b)
1. (1) In addition to all requirements for service or early service retirement, any employee, except a Group 4 employee, becoming a member of the retirement system on or after July 1, 1979, must have a total of ten (10) years of creditable service to qualify for retirement benefits. A Group 4 member must have eight (8) years of creditable service to qualify for retirement benefits.
2. (2) Notwithstanding this section or any other provision to the contrary, any individual who is a Group 1 member of the retirement system on or after January 1, 1992, must have, in addition to all other requirements for service or early service retirement, a total of five (5) years of creditable service to qualify for retirement benefits; provided, that eligible individuals who are members of the retirement system by virtue of their employment with any employer participating in the retirement system pursuant to chapter 35 of this title must have a total of ten (10) years of creditable service to qualify for retirement benefits, unless the chief governing body of such employer passes and files with the board of trustees a resolution reducing the required years of service from ten (10) to five (5) years and accepting the liability therefor. Subsequent to an employer's election to decrease the required years of service from ten (10) to five (5) years, the employer, through a resolution passed by the employer's chief governing body, may then increase the required years of service from five (5) to ten (10) for employees hired on or after the increase in the years of service, without any limit to the number of increases or decreases that an employer may make by resolution from its chief governing body; provided, that any increases in the number of required years of service shall be applied prospectively for employees hired on or after the increase in the years of service. If a member has less than ten (10) years of service credit, part of which was rendered for an employer not electing to be covered by this section, eligibility for a retirement benefit on that portion of service shall be determined independently for each employer. Such member is eligible for a refund of contributions and interest credited to such member's account associated with any period of service for which a benefit is not payable.
(c) This provision shall not apply to members of the general assembly.
(d) Any general state employee who was employed with the state prior to January 1, 1979, and who terminated state employment between January 1, 1979 and December 31, 1979, shall be eligible for a service or early service allowance with a minimum of four (4) years of creditable service if all of the following requirements are met:
1. (1) The employee must have returned to state service prior to July 1, 1989;
2. (2) The employee must have been fifty (50) years of age or older at the time the employee terminated state employment in 1979; and
3. (3) In accordance with § 8-37-214, the employee must reestablish the employee's withdrawn service in the retirement system.

§ 8-36-205. Mandatory retirement age — Exceptions.

(a) There shall not be a mandatory age requirement for any member of the Tennessee consolidated retirement system, except for the following:
1. (1) Members who are employed as state police officers, wildlife officers or commissioned members of the alcoholic beverage commission and who are engaged in law enforcement activities on a day-to-day basis, or who have been transferred from law enforcement activities to a supervisory or administrative position within the same department or agency for which they served as state police officers, wildlife officers or commissioned members of the alcoholic beverage commission; provided, that the mandatory retirement of those members does not violate the Age Discrimination in Employment Act (29 U.S.C. § 621 et seq.). A mandatory age requirement shall also apply for commissioned instructors employed at the Tennessee law enforcement training academy and members who are employed with the wildlife resources agency as commissioned wildlife area managers, commissioned wildlife lake managers, commissioned boating chiefs, commissioned boating assistant chiefs, commissioned wildlife safety officers, commissioned habitat biologists, commissioned enforcement chiefs or commissioned assistant enforcement chiefs; provided, that the mandatory retirement of those members does not violate the Age Discrimination in Employment Act. In cases of doubt, the Tennessee department of human resources shall determine whether the member is employed in a position requiring the mandatory retirement of the member under this subdivision (a)(1). In making that determination, the department shall apply the applicable definitions contained in chapters 34-37 of this title and in the Age Discrimination in Employment Act. Any member employed in a position requiring mandatory retirement under this subsection (a) shall be retired on the first day of the month following the month in which the member attains sixty (60) years of age; and
2. (2) A mandatory age requirement shall also apply for members who are employed as firefighters, police officers, or correctional officers with a political subdivision participating in the Tennessee consolidated retirement system, or who have been transferred from such a position to a supervisory or administrative position within the police or fire department; provided, the political subdivision has adopted a mandatory retirement age requirement pursuant to this subdivision (a)(2), and provided, that the mandatory retirement of any such member does not violate the Age Discrimination in Employment Act. In cases of doubt, the respective political subdivision shall determine whether the member is employed in a position requiring the mandatory retirement of such member under this subdivision (a)(2). In making any such determination, the political subdivision shall apply the applicable definitions contained in chapters 34-37 of this title and in the Age Discrimination in Employment Act. Any political subdivision participating in the retirement system may establish a mandatory retirement age requirement for all its firefighters, police officers, and correctional officers and for all its employees who have been transferred from the position of a firefighter, police officer, or correctional officer to a supervisory or administrative position within their respective agency; provided, that:
  1. (A) The terms and conditions of the requirement shall be the same for all such employees within its employ;
  2. (B) The mandatory age requirement shall not be less than sixty (60) years of age;
  3. (C) Each such employee shall be retired on the first day of the month following the month in which the employee attains the age requirement established by the political subdivision;
  4. (D) If the mandatory age requirement established by the political subdivision is less than the age requirement for receipt of old age and survivors benefits under Title II of the Federal Social Security Act (42 U.S.C. §§ 401-425), each such employee shall be entitled to the supplemental bridge benefit established pursuant to § 8-36-211; and
  5. (E) The chief governing body of the political subdivision passes a resolution authorizing the establishment of the mandatory retirement age requirement. If the mandatory age requirement established by the political subdivision is less than the age requirement for receipt of old age and survivors benefits under Title II of the Federal Social Security Act, such resolution must further contain an authorization granting the supplemental bridge benefit and the acceptance by the political subdivision of the liability associated with the bridge benefit. All costs associated with providing the supplemental benefit shall be paid by the political subdivision and not by the state. Notwithstanding this section or any other law to the contrary, the terms of any resolution to adopt a mandatory retirement age requirement pursuant to this subdivision (a)(2) may include, at the option of the political subdivision, the deferral of the effective date of the mandatory retirement requirement up to the July 1 next following the passage of twelve (12) months from the effective date of the resolution; provided, however, that no such deferral shall impact the right, if any, that a member may otherwise have to receive the supplemental bridge benefit provided for in § 8-36-211.
3. (3)
  1. (A) Notwithstanding this section to the contrary, any member employed in a position requiring mandatory retirement under subdivision (a)(1) shall be retired on the first day of the month following the month in which the member attains sixty (60) years of age, unless the department of human resources determines that such member serves in a supervisory or administrative position which requires less than fifty percent (50%) of the member's duties to be involved in day-to-day law enforcement activities. Upon such determination by the department, the member may continue in service until the first day of the month following the month in which the member reaches the age requirement for receipt of old age and survivors benefits under Title II of the Federal Social Security Act; provided, that such member acknowledges that by continuing in service the member forfeits any rights to retirement benefits, including the supplemental bridge benefit provided for in § 8-36-211, during the period of the member's continued service. The acknowledgment must be made in the manner prescribed by the retirement division and must be filed with the retirement division on or before the first day of the month prior to the month in which the member attains sixty (60) years of age. Any such member who fails to file the acknowledgment at the time and in the manner prescribed by this subdivision (a)(3)(A) shall be retired on the first day of the month following the month in which the member attains sixty (60) years of age.
  2. (B) Notwithstanding this section to the contrary, any member employed in a position requiring mandatory retirement under subdivision (a)(2) shall be retired on the first day of the month following the month in which the member attains the age requirement established by the political subdivision under subdivision (a)(2), unless the respective political subdivision determines that such member serves in a supervisory or administrative position which requires less than fifty percent (50%) of the member's duties to be involved in day-to-day law enforcement or firefighting activities. Upon such determination by the respective political subdivision, the member may continue in service until the first day of the month following the month in which the member reaches the age requirement for receipt of old age and survivors benefits under Title II of the Federal Social Security Act; provided, that such member acknowledges that by continuing in service the member forfeits any rights to retirement benefits, including the supplemental bridge benefit provided for in § 8-36-211, during the period of the member's continued service. The acknowledgment must be made in the manner prescribed by the retirement division and must be filed with the retirement division on or before the first day of the month prior to the month in which the member attains the age requirement established by the political subdivision under subdivision (a)(2). Any such member who fails to file the acknowledgment at the time and in the manner prescribed by this subdivision (a)(3)(B) shall be retired on the first day of the month following the month in which the member attains the age requirement established by the political subdivision under subdivision (a)(2).
  3. (C) Notwithstanding any other provision of the law to the contrary, any member who would otherwise be covered under the mandatory retirement provisions of this section and who serves as the commissioner of safety, the director of the Tennessee bureau of investigation, the director of the Tennessee wildlife resources agency, the director of the Tennessee alcoholic beverage commission, or as the chief of a police department or of a fire department, may continue in service beyond the age requirement for receipt of old age and survivors benefits under Title II of the Federal Social Security Act.
(b) This section shall not be construed to render ineffectual the mandatory retirement of any member occurring prior to July 1, 1998.

§ 8-36-206. Formula for computing allowances.

Except as provided in § 8-36-209, the service retirement allowance of a member other than a prior class member shall consist of:
1. (1) A member annuity which shall be the actuarial equivalent of the member's accumulated contributions at retirement, plus a state annuity which, when added to the member annuity, shall be equal to:
  1. (A) In the case of a member in Group 1, one and one-half percent (1.5%) of the member's average final compensation, multiplied by the number of years of creditable service, plus one-fourth of one percent (0.25%) of the member's average final compensation in excess of the social security integration level applicable at the time of retirement, multiplied by the number of years of the member's creditable service;
  2. (B) In the case of a member in Group 2, one and three-fourths percent (1.75%) of the member's average final compensation, multiplied by the number of years of creditable service plus one-half of one percent (0.5%) of the member's average final compensation in excess of the social security integration level applicable at the time of retirement, multiplied by the number of years of creditable service plus one-half of one percent (0.5%) of the average final compensation not in excess of the social security integration level, multiplied by four-tenths of one percent (0.4%) for each month which the member's age is less than sixty-five (65) years of age, multiplied by years of service;
  3. (C) In the case of a member in Group 3, two percent (2%) of the member's average final compensation, multiplied by the number of years of creditable service plus one-half of one percent (0.5%) of the member's average final compensation in excess of the social security integration level applicable at the time of retirement, multiplied by the number of years of creditable service, plus one-half of one percent (0.5%) of the average final compensation not in excess of the social security integration level, multiplied by four-tenths of one percent (0.4%) for each month which the member's age is less than sixty-five (65) years of age, multiplied by years of service;
  4. (D) In the case of a member in Group 4, two and one-half percent (2.5%) of the member's average final compensation, multiplied by the number of years of creditable service;
2. (2) However, in the case of a member who at the time of retirement has not accumulated sufficient quarters of coverage under the Social Security Act (42 U.S.C. § 301 et seq.), to qualify for social security benefits at sixty-five (65) years of age, the member's annuity plus the state annuity shall equal:
  1. (A) In the case of a member in Group 1, one and three-fourths percent (1.75%) of the member's average final compensation, multiplied by the number of years of creditable service;
  2. (B) In the case of a member in Group 2, two and one-fourth percent (2.25%) of the member's average final compensation, multiplied by the number of years of creditable service; or
  3. (C) In the case of a member in Group 3, two and one-half percent (2.5%) of the member's average final compensation, multiplied by the number of years of creditable service.

§ 8-36-207. Computation under formula of superseded system.

Notwithstanding chapters 34-37 of this title to the contrary, any member, as defined in § 8-34-101, shall receive the greater of:
1. (1) The service retirement allowance as provided in chapters 34-37 of this title; or
2. (2) The service retirement allowance as would have been provided the member by the superseded system.

§ 8-36-208. Maximum allowance — Service after 65 years of age.

(a)
1. (1) Notwithstanding any law to the contrary, the service retirement allowance payable under this chapter shall not exceed seventy-five percent (75%) of the member's average final compensation, except as provided in subdivisions (a)(2)-(5).
2. (2) In the case of Class C members of the superseded Tennessee state retirement system, the service retirement allowance shall not exceed eighty percent (80%) of the member's average final compensation.
3. (3) In the case of Group 2 members, the service retirement allowance shall not exceed eighty percent (80%) of the member's average final compensation, unless such member is a member by virtue of employment with an employer participating in the retirement system pursuant to chapter 35, part 2, of this title. In such event, the service retirement allowance for such member shall be subject to the seventy-five percent (75%) limit, unless the chief governing body of such employer passes and files with the board of trustees a resolution increasing the limit to eighty percent (80%) and accepting the liability therefor.
4. (4) In the case of Group 1 members, the service retirement allowance shall not exceed ninety percent (90%) of the member's average final compensation, unless such member is a member by virtue of employment with an employer participating in the retirement system pursuant to chapter 35 of this title. In such event, the service retirement allowance for such member shall be subject to the seventy-five percent (75%) limit, unless the chief governing body of such employer passes and files with the board of trustees a resolution increasing the limit to ninety percent (90%) and accepting the liability therefor.
5. (5) In the case of Class B members of the superseded state retirement system, the service retirement allowance shall not exceed seventy-seven and one-half percent (77.5%) of the member's average final compensation.
(b) Any teacher or general employee of the state who remains in service after sixty-five (65) years of age shall receive a retirement benefit equal to the greater of the benefit calculated under § 8-36-206, § 8-36-209 or this subsection (b); provided, that:
1. (1) The retirement allowance payable under this subsection (b) shall be the actuarial equivalent of the benefit which would have been payable to the member at sixty-five (65) years of age in the absence of this section, based on the member's age on the effective date of retirement. The benefit under this subsection (b) shall not exceed that payable at seventy (70) years of age under this subsection (b);
2. (2) The actuarial equivalent shall be determined using tables provided by the actuary so that the cost to the retirement system for this benefit shall be equal to the cost, assuming the member had retired at sixty-five (65) years of age;
3. (3) Any option selected by a member under § 8-36-601 shall be based on the member's and beneficiary's actual ages on the effective date of retirement;
4. (4) This subsection (b) shall not be construed to be a change in formula under § 8-36-702;
5. (5) This subsection (b) shall be optional for political subdivisions and shall not be effective unless approved by the chief governing body of the political subdivision; and
6. (6) This subsection (b) shall not apply to any person who becomes a member of the retirement system on or after July 1, 2011.

§ 8-36-209. Minimum allowances.

(a)
1. (1) The minimum retirement allowance payable to any former member who retired from this system or the superseded Tennessee teachers' retirement system, the Tennessee state retirement system or any local teachers retirement system shall be:
  1. (A) Seven dollars ($7.00) per month for each year of creditable service for prior Class A, transferred Class A or Group 1 members with less than ten (10) years of creditable service and for all members so classified who served in a capacity covered by § 8-35-113, regardless of their length of service;
  2. (B) Eight dollars ($8.00) per month for each year of creditable service for prior Class A, transferred Class A or Group 1 members with ten (10) or more years of creditable service whose service was not in a capacity covered by § 8-35-113;
  3. (C) Seven dollars sixty-six cents ($7.66) per month for each year of creditable service for prior Class B or transferred Class B members with less than ten (10) years of creditable service and for all members so classified who served in a capacity covered by § 8-35-113 regardless of their length of service;
  4. (D) Eight dollars sixty-six cents ($8.66) per month for each year of creditable service for prior Class B or transferred Class B members with ten (10) or more years of creditable service whose service was not in a capacity covered by § 8-35-113; and
  5. (E) Subdivisions (a)(1)(B) and (D) are optional for political subdivisions in accordance with § 8-35-217. Political subdivisions exercising the option permitted herein must do so prior to June 15, 1984, to be effective July 1, 1984, or by May 15, 1985, to be effective July 1, 1985; thereafter, the election must be made on or before May 15, to be effective beginning the next July 1. For political subdivisions which do not elect these provisions, the minimum benefit for employees shall be determined under subdivision (a)(1)(A) or subdivision (a)(1)(C), whichever is applicable, regardless of the employee's length of service.
2. (2)
  1. (A) Notwithstanding any other law to the contrary and commencing on July 1, 2010, 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 as follows:
    1. (i) Fourteen dollars ($14.00) per month for each year of such creditable service adjusted effective July 1, 2011, and on each July 1 thereafter pursuant to the cost-of-living provisions in § 8-36-701(b)(1) and (2); or
    2. (ii) Twenty dollars ($20.00) per month for each year of such creditable service adjusted effective July 1, 2011, and on each July 1 thereafter pursuant to the cost-of-living provisions in § 8-36-701(b)(1) and (2).
  2. (B) To set the minimum service retirement allowance under either subdivision (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 either subdivision (a)(2)(A)(i) or (a)(2)(A)(ii) and accepting the liability therefore. Any such resolution shall apply to current and future retirees 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 this subdivision (a)(2). For cities, special school districts and counties that do not elect either subdivision (a)(2)(A)(i) or (a)(2)(A)(ii), the minimum benefit for service established pursuant to § 8-35-226 shall be determined pursuant to subdivision (a)(1)(A) or (a)(1)(B), depending upon which option is exercised by the respective city, school district or county.
3. (3) The increase in the retirement allowance of any member or retired member who elected an option shall be adjusted on the basis of the appropriate actuarial equivalent factor applicable at the date of retirement and payment of the increased allowance shall be subject to the terms of the option selected.
4. (4) This subsection (a) does not apply to members of the general assembly.
(b)
1. (1) Notwithstanding the foregoing, the service retirement allowance with respect to creditable service as a member of the general assembly shall not be less than two hundred forty dollars ($240) multiplied by the number of years of such creditable service.
2. (2)
  1. (A) Former members of the general assembly who have retired shall likewise be paid a minimum of two hundred forty dollars ($240) multiplied by the number of years of creditable service.
  2. (B) Effective July 1, 1989, the total benefit provided to retired members of the general assembly shall not be less than sixty percent (60%) of the amount provided in subdivision (b)(4)(A). This percentage shall be increased in equal ten percent (10%) increments each July 1, until the total retirement allowance provided to former retired members of the general assembly equals one hundred percent (100%) of the amount provided in subdivision (b)(4)(A). This provision shall be reduced in accordance with the optional retirement allowance selected by the member pursuant to § 8-36-601.
3. (3)
  1. (A) Notwithstanding anything to the contrary, effective July 1, 1988, any member of the general assembly retired prior to November 8, 1988, shall receive an increase in such member's retirement allowance equal to ten dollars ($10.00) per month for each year of creditable service. This increase shall be reduced in accordance with the optional retirement allowance selected by the member pursuant to § 8-36-601.
  2. (B) Implementation of this subdivision (b)(3) shall be subject to funding being provided in the general appropriations act.
4. (4)
  1. (A) Except as provided in subdivision (b)(5), effective November 8, 1988, the minimum allowance provided by this subsection (b) shall not be less than eight hundred forty dollars ($840) multiplied by the number of years of creditable service. In addition, § 8-36-702 does not apply to the benefit provided under this subdivision (b)(4).
  2. (B) The beneficiaries of any benefits provided in this subdivision (b)(4) may elect to receive an amount less than the amount eligible to receive; provided, that the request is in writing and irrevocable.
5. (5)
  1. (A) For members of the general assembly who retire on or after November 5, 2024, with ten (10) or more years of service, the minimum allowance provided by this subsection (b) must not be less than one thousand four hundred forty dollars ($1,440) multiplied by the number of years of creditable service. Section 8-36-702 does not apply to the benefit provided under this subdivision (b)(5).
  2. (B) The beneficiaries of benefits provided in this subdivision (b)(5) may elect to receive an amount less than the amount that the beneficiary is otherwise eligible to receive; provided, that the election is in writing and irrevocable.

§ 8-36-210. Eligibility of certain Group 1 members to elect coverage under Group 2 provisions.

Any Group 1 member employed as a sheriff on April 30, 1992, by a political subdivision participating under chapter 35, part 2 of this title who has creditable service in the Tennessee consolidated retirement system based upon service as a state police officer, wildlife officer, police officer, sheriff, or deputy sheriff prior to July 1, 1976, may elect to be covered by the retirement eligibility, benefit and contribution provisions applicable to Group 2 members; provided, that the following conditions are met:
1. (1) The political subdivision authorizes and pays for the cost of an actuarial study to determine the liability associated with the granting of such benefits;
2. (2) Following the review of the cost of granting such benefits, the chief governing body of the political subdivision passes a resolution authorizing the provisions of this section for such members, and accepting liability for such benefits; and
3. (3) Any such member electing to be covered under this section pays to the retirement system in a lump sum the difference between what such member would have contributed had such member been a Group 2 member and the amount such member actually paid, plus interest at the rate provided in § 8-37-214.

§ 8-36-211. Supplemental bridge benefit.

(a) Any Group 1 member who retires on a service retirement allowance with creditable service in a Group 1 position covered by the mandatory retirement provisions of § 8-36-205(a)(1) shall receive, in addition to that member's service retirement allowance, a supplemental bridge benefit calculated as follows:
1. (1) For any such member retiring on a service retirement allowance pursuant to § 8-36-201, the supplemental bridge benefit shall be equal to three-fourths of one percent (0.75%) of the member's average final compensation, multiplied by the member's years of creditable service established while the member was in a Group 1 position covered by the mandatory retirement provisions of § 8-36-205(a)(1); or
2. (2) For any such member retiring on an early service retirement allowance pursuant to § 8-36-301, the supplemental bridge benefit shall be computed in accordance with subdivision (a)(1), but shall be reduced by four-tenths of one percent (0.4%) for each month by which the member's date of early service retirement precedes the member's service retirement date.
(b) A supplemental bridge benefit shall further be paid to any Group 1 member who retires on a service retirement allowance with creditable service in a Group 1 position covered by the mandatory retirement provisions of § 8-36-205(a)(2), if the political subdivision for which the service was rendered adopts a mandatory retirement age requirement pursuant to § 8-36-205. The supplemental benefit shall only be paid if the mandatory retirement age requirement adopted by the political subdivision is sixty (60) years of age or older, but less than the age requirement for receipt of old age and survivors benefits under Title II of the Federal Social Security Act (42 U.S.C. § 401 et seq.). The supplemental benefit shall be calculated as follows:
1. (1) For any such member retiring on a service retirement allowance pursuant to § 8-36-201, the supplemental bridge benefit shall be equal to three-fourths of one percent (0.75%) of the member's average final compensation, multiplied by the member's years of creditable service established while the member was in a Group 1 position covered by the mandatory retirement provisions of § 8-36-205(a)(2); or
2. (2) For any such member retiring on an early service retirement allowance pursuant to § 8-36-301, the supplemental bridge benefit shall be computed in accordance with subdivision (b)(1), but shall be reduced by four-tenths of one percent (0.4%) for each month by which the member's date of early service retirement precedes the member's service retirement date.
(c) Notwithstanding subsection (a) or (b), the supplemental bridge benefit shall not exceed twenty-two and one-half percent (22.5%) of the member's average final compensation. Such limit shall not apply to any cost-of-living increases to which the member is entitled under subsection (d).
(d) Any retired member covered by this section shall be entitled to receive an adjustment in the retiree's supplemental bridge benefit pursuant to § 8-36-701. Any such adjustment to the bridge benefit shall be computed separately from the member's service retirement allowance.
(e) Sections 8-36-102 and 8-36-208(a) shall not be construed to reduce or eliminate the supplemental bridge benefit provided by this section, nor shall the supplemental benefit be reduced as a result of any optional retirement allowance selected by the member pursuant to § 8-36-601.
(f) The supplemental bridge benefit shall commence and end as follows:
1. (1) The supplemental bridge benefit shall commence on the member's effective date of retirement or on the first day of the month following the month the member reaches age sixty (60), whichever is later;
2. (2) Effective July 1, 2007, the supplemental bridge benefit shall commence on the member's effective date of retirement or on the first day of the month following the month the member reaches age fifty-five (55), whichever is later; provided, that this subdivision (f)(2) shall not apply to any member who is eligible for the supplemental bridge benefit based solely on creditable service rendered pursuant to § 8-36-205(a)(2), unless the chief governing body of the political subdivision passes a resolution accepting the associated liability and cost to provide those benefits; and
3. (3) The supplemental bridge benefit and any cost-of-living adjustments attributable to that benefit shall cease on the first day of the month following the month in which the member dies, or on the first day of the month following the month in which the member reaches the age requirement for receipt of old age and survivors benefits under Title II of the federal Social Security Act, whichever occurs first.
(g) The supplemental bridge benefit provided by this section shall apply to all current and future retired members; provided, that the benefit shall not be paid retroactively. Subdivision (f)(1) shall become effective on July 1, 1998, for service covered under subsection (a), or upon the effective date of the mandatory retirement age provision for service covered under subsection (b). Subdivision (f)(2) shall become effective on July 1, 2007, for service covered under subsection (a), or upon the effective date of the resolution adopted pursuant to subdivision (f)(2) for service covered under subsection (b).
(h) All costs associated with providing the supplemental bridge benefit shall be paid by the respective state agencies and political subdivisions for which the service covered by this section was rendered.

§ 8-36-212. [Reserved] [Effective until January 1, 2025. See the version effective on January 1, 2025.]

§ 8-36-213. Excess benefit limitations — Qualified excess benefit arrangements (QEBA).

(a) Notwithstanding any law to the contrary, no benefit shall be paid to a member from the retirement system in excess of benefit limitations established in 26 U.S.C. § 415 and applicable federal rules and regulations.
(b) The board may establish a separate qualified excess benefit arrangement (QEBA) pursuant to 26 U.S.C. § 415(m) solely for the purpose of providing eligible members with retirement system benefits that are in excess of the benefit limits established in 26 U.S.C. § 415. For purposes of this section, “eligible member” means any person included in the membership of the retirement system as provided in chapter 35, part 1 of this title who is entitled to receive a retirement benefit in excess of the limits imposed by 26 U.S.C. § 415.
(c) The board shall have the authority to adopt a plan document and a trust agreement as well as administer, maintain, modify, terminate or reestablish the QEBA, and may, in its discretion, delegate its authority to the state treasurer.
(d) On or after the date that the QEBA is established, the retirement system shall pay from the QEBA to each eligible member or beneficiary a supplemental retirement allowance equal to the difference between the eligible member's monthly benefit otherwise payable from the applicable retirement system prior to any reduction or limitation because of 26 U.S.C. § 415 and the actual monthly benefit payable from the retirement system as limited by 26 U.S.C. § 415. The retirement system shall compute and pay the supplemental retirement allowance in the same form, at the same time, and to the same persons as such benefits would have otherwise been paid as a monthly pension under the retirement system except for 26 U.S.C. § 415 limitations.
(e) The retirement system shall determine the amount of an eligible member's benefits that cannot be provided to the member or beneficiary because of limitations established by 26 U.S.C. § 415, and the amount of employer contributions that must be made to the QEBA as a separate fund, separate and apart from the retirement system, for each eligible member whose retirement allowance would exceed federal law limitations. The retirement system shall engage actuarial services required to make these determinations.
(f) The eligible member's employer shall pay the excess benefits for an eligible member to the separate QEBA fund when the retirement system makes the assessment that the member's retirement allowance would exceed federal law limitations established by 26 U.S.C. § 415. An employer's contribution to the QEBA shall be a separate contribution from the employer contributions made pursuant to chapter 35 of this title.
(g) Payments under a QEBA are exempt from garnishment, assignment, alienation, judgments, and other legal processes to the same extent as the retirement allowance under the retirement system.
(h) An eligible member shall not elect to defer the receipt of all or any part of the payments due under a QEBA.
(i) The board shall have the authority to promulgate rules as may be necessary to implement a QEBA plan as provided in this section.

Part 3 Early Service Retirement

§ 8-36-301. Eligibility.

(a) Any member in Group 1 shall be eligible for early service retirement upon satisfying one (1) of the following:
1. (1) Attainment of fifty-five (55) years of age with the applicable years of creditable service as set forth in § 8-36-204; or
2. (2) At any age less than fifty-five (55) years of age with twenty-five (25) years of creditable service; provided, that this provision shall be optional for political subdivisions participating under chapter 35 of this title.
(b) Any member in Group 2 shall be eligible for early retirement upon satisfying one (1) of the following:
1. (1) Attainment of fifty-five (55) years of age with ten (10) years of creditable service; or
2. (2) If the member is employed by a political subdivision which has not authorized unreduced service retirement benefits pursuant to § 8-36-201(b)(1)(B), at any age with thirty (30) years of creditable service.
(c) Any member in Group 3 shall be eligible for early service retirement upon attaining fifty-five (55) years of age with eight (8) years of service.

§ 8-36-302. Eligibility and computation of allowances.

(a) Notwithstanding any other law to the contrary and beginning on November 1, 1982, any of the following employees who are not eligible for social security coverage shall be eligible for early service retirement upon the completion of ten (10) years of membership service in a position covered by a local retirement system as provided for in chapter 35, part 3 of this title; the Tennessee consolidated retirement system; or a superseded system:
1. (1) General employee;
2. (2) Firefighter or police officer;
3. (3) Teacher; and
4. (4) Member of a local retirement system.
(b) The retirement allowance, as provided under this section, shall be computed as a service retirement allowance and reduced by the greater of:
1. (1) Four-tenths of one percent (0.4%) for each month by which the date of early service retirement precedes the service retirement date; or
2. (2) An actuarial equivalent of the retirement allowance.

§ 8-36-303. Setting of retirement date.

(a) Any member eligible to retire may set the effective date of the member's retirement at any date within one hundred fifty (150) days before or after the date the member's application is filed with the board; provided, that such effective date of retirement follows the date of such member's separation from service and that the member at the time so specified for the member's retirement shall have completed the applicable eligibility requirements as hereinabove set forth.
(b) A member may submit only one (1) retirement application even if the member has service credit in one (1) or more of the four (4) defined benefit plans administered by the retirement system pursuant to chapters 34-37 of this title. The retirement payment plan and beneficiary selected by the member on the retirement application shall be the same for all of the plans and may not be changed or revoked, except as provided in part 6 of this chapter. The retirement system shall pay benefits from each of the applicable plans on the member's effective date of retirement; provided, that the member has met the eligibility requirements of the particular plan for a retirement allowance. If on a member's effective date of retirement the member has not met the eligibility requirements for a retirement allowance from a particular plan, the retirement system shall commence payments from that plan once the member meets the eligibility requirements of the plan.

§ 8-36-304. Computation of allowance.

The early service retirement allowance calculated under this part shall be computed as a service retirement allowance in accordance with part 2 of this chapter on the basis of the member's average final compensation and creditable service at the time of early service as follows:
1. (1)
  1. (A) For a Group 1 member retiring under § 8-36-301(a)(1), reduced by four-tenths of one percent (0.4%) for each month by which the member's date of early retirement precedes such member's service retirement date. If the member's creditable service is less than ten (10) years, the reduced benefit shall be further limited in accordance with the following:
    2. at least 4 years 10%
    3. at least 5 years 25%
    4. at least 6 years 40%
    5. at least 7 years 55%
    6. at least 8 years 70%
    7. at least 9 years 85%
    8. at least 10 years 100%
  2. (B) For a Group 1 member retiring under § 8-36-301(a)(2), the actuarial equivalent of the benefit as reduced under subdivision (1)(A) which would be payable at fifty-five (55) years of age;
2. (2)
  1. (A) For a Group 2 member retiring under § 8-36-301(b)(1), reduced by four-tenths of one percent (0.4%) for each month by which the member's date of early retirement precedes such member's service retirement date;
  2. (B) For a Group 2 member retiring § 8-36-301(b)(2), reduced by four-tenths of one percent (0.4%) for each month by which the member's date of early retirement precedes such member's attainment of fifty-five (55) years of age; and
3. (3) For a Group 3 member retiring under § 8-36-301(c), reduced by four-tenths of one percent (0.4%) for each month by which the member's date of early retirement precedes such member's completion of twenty-four (24) years of creditable service.

§ 8-36-305. Minimum allowances.

(a) The minimum early service retirement allowance payable to any member in Group 1, 2 or 3 shall be the minimum service retirement allowance computed in accordance with § 8-36-209(a) on the basis of the member's creditable service at the time of early retirement, reduced by four-tenths of one percent (0.4%) for each month by which the member's date of early retirement precedes such member's service retirement date.
(b) The minimum early service retirement allowance payable to a transferred Class A member or a transferred Class B member shall be equal to a minimum service retirement allowance computed in accordance with § 8-36-209(b) on the basis of the member's creditable service at the time of early retirement.

§ 8-36-306. Alternative early retirement.

(a) Any member in Group 1 shall be eligible for a retirement benefit upon completion of twenty-five (25) years of creditable service.
(b) If the member is less than fifty-five (55) years of age, such benefit shall be the actuarial equivalent of the retirement benefit which would be payable to the member at fifty-five (55) years of age.
(c) This section shall be optional for political subdivisions participating under chapter 35 of this title.

§ 8-36-307. Group 2 members — Eligibility and computation of allowance.

(a) Any member in Group 2 who is employed by a political subdivision and who elected to come under § 8-36-201(b)(2)(A) shall be eligible for early service retirement upon completion of twenty (20) years of service regardless of age. Any member retiring under this section shall be entitled to receive a reduced retirement allowance based on the member's age which is the actuarial equivalent of the benefit provided in § 8-36-206 at fifty-five (55) years of age. This section must be approved by the chief governing body of the employing political subdivision within ninety (90) days of July 1, 1984.
(b) Any member in Group 2, who is employed by a political subdivision and who elected to come under § 8-36-201(b)(2)(A), shall be eligible for early service retirement upon completion of twenty (20) years of service regardless of age. Any member retiring under this section shall be entitled to a retirement allowance reduced by four-tenths of one percent (0.4%) for each month for which the member's date of early retirement precedes such member's service retirement date. This subsection (b) must be approved, along with acceptance of the associated liability, by the chief governing body of the employing political subdivision within ninety (90) days of July 1, 1986.

§ 8-36-308. Eligibility of emergency medical services personnel, police officer, or firefighter for early service retirement upon attainment of 25 years of creditable service.

(a) Notwithstanding this part or any law to the contrary, a person in a position covered by the definition of emergency medical services personnel in § 68-140-302, police officer or firefighter who is a member of the retirement system, regardless of the person's, police officer's or firefighter's participation in the legacy pension plan, the hybrid plan, or any other alternative plan, is eligible for early service retirement upon attainment of twenty-five (25) years of creditable service. The retirement allowance, as provided under this section, must be computed as the actuarial equivalent of the benefit that would have been payable under a service retirement allowance.
(b) No person in a position covered by the definition of emergency medical services personnel in § 68-140-302, police officer or firefighter is required to retire pursuant to subsection (a). Subsection (a) applies only to emergency medical services personnel as defined in § 68-140-302, police officers or firefighters who retire on or after January 1, 2020, and does not constitute a change in formula under § 8-36-702.
(c)
1. (1) A political subdivision employing a person in a position covered by the definition of emergency medical services personnel in § 68-140-302, police officer or firefighter, who voluntarily chooses to retire pursuant to subsection (a), may require the person in a position covered by the definition of emergency medical services personnel in § 68-140-302, police officer or firefighter to pay any insurance coverage otherwise provided to members who are one hundred percent (100%) vested in the service retirement benefit pursuant to § 8-36-201 from the time the person in a position covered by the definition of emergency medical services personnel in § 68-140-302, police officer or firefighter voluntarily chooses to retire pursuant to subsection (a) until the date that the person in a position covered by the definition of emergency medical services personnel in § 68-140-302, police officer or firefighter would have become one hundred percent (100%) vested in the service retirement benefit pursuant to § 8-36-201.
2. (2) A person in a position covered by the definition of emergency medical services personnel in § 68-140-302, police officer or firefighter, who voluntarily chooses to retire pursuant to subsection (a), is entitled to any insurance coverage otherwise provided to members who are one hundred percent (100%) vested in the member's service retirement benefit pursuant to § 8-36-201 on the date that the person in a position covered by the definition of emergency medical services personnel in § 68-140-302, police officer or firefighter would have become one hundred percent (100%) vested in the service retirement benefit pursuant to § 8-36-201.
(d) Subsection (c) does not apply to a municipality, as that term is defined in § 7-84-103, that is a member of the state retirement system and provides health insurance benefits in accordance with chapter 27, part 6 of this title.
(e) For purposes of this section, “police officer” means a sheriff, sheriff's deputy, or police officer employed by this state, a municipality, or political subdivision of this state whose primary responsibility is the prevention and detection of crime and apprehension of offenders.
(f)
1. (1) Emergency communications personnel are eligible for early service retirement under this part when the employing entity has elected to offer this benefit. The employing entity is responsible for one hundred percent (100%) of any increased cost necessary to provide this benefit to the emergency communications personnel.
2. (2) As used in this subsection (f), “emergency communications personnel” means a person employed as an emergency communications worker, public safety dispatcher, emergency communications telecommunicator, or emergency call taker.

§ 8-36-309. Eligibility of correctional officer for early service retirement upon attainment of 25 years of creditable service — “Correctional officer” defined.

(a) A correctional officer who is a member of the retirement system, regardless of the correctional officer's participation in the legacy pension plan, the hybrid plan, or any other alternative plan, is eligible for early service retirement after attaining twenty-five (25) years of creditable service. The retirement allowance must be computed as the actuarial equivalent of the benefit that would have been payable under a service retirement allowance.
(b) Subsection (a) does not require a correctional officer to retire. Subsection (a) applies only to a correctional officer who retires on or after January 1, 2021, and does not constitute a change in formula under § 8-36-702.
(c) A correctional officer who chooses to retire pursuant to subsection (a) is entitled to any insurance coverage otherwise provided to a member who is one hundred percent (100%) vested in the member's service retirement benefit pursuant to § 8-36-201 on the date that the correctional officer would have become one hundred percent (100%) vested in the service retirement benefit pursuant to § 8-36-201.
(d) As used in this section, “correctional officer” means a person who:
1. (1) Is employed by the department of correction; and
2. (2) Satisfies the requirements of § 41-1-116.

§ 8-36-310. Eligibility of correctional officer for early service retirement upon attainment of 25 years of creditable service.

(a) Notwithstanding this part or any law to the contrary, a correctional officer employed by a local government who is a member of the retirement system, regardless of the correctional officer's participation in the legacy pension plan, the hybrid plan, or another alternative plan, is eligible for early service retirement upon attainment of twenty-five (25) years of creditable service. The retirement allowance, as provided under this section, must be computed as the actuarial equivalent of the benefit that would have been payable under a service retirement allowance.
(b) A correctional officer is not required to retire pursuant to subsection (a). Subsection (a) applies only to correctional officers who retire on or after January 1, 2022 and does not constitute a change in formula under § 8-36-702.
(c)
1. (1) The respective local government may require a correctional officer who voluntarily chooses to retire pursuant to subsection (a) to pay a pro rata share of the cost of any insurance coverage otherwise provided to members who are one hundred percent (100%) vested in the service retirement benefit pursuant to § 8-36-201 based on the time the correctional officer voluntarily chooses to retire pursuant to subsection (a) until the date that the correctional officer would have become one hundred percent (100%) vested in the service retirement benefit pursuant to § 8-36-201.
2. (2) A correctional officer who voluntarily chooses to retire pursuant to subsection (a) is entitled to insurance coverage otherwise provided to members who are one hundred percent (100%) vested in the member's service retirement benefit pursuant to § 8-36-201 on the date that the correctional officer would have become one hundred percent (100%) vested in the service retirement benefit pursuant to § 8-36-201.

Part 4 [Reserved]

§ 8-36-401 — 8-36-403. [Reserved]

Part 5 Disability Retirement

§ 8-36-501. Ordinary disability retirement allowances.

(a) Ordinary Disability Retirement Authorized. Any member who has completed the service requirement for such member's classification as set forth in subsection (b) and suffers from a total and permanent disability may be retired by the board of trustees on an ordinary disability retirement allowance. Before approval may be granted, the member must file with the retirement division an application for the retirement allowance in the manner prescribed by the retirement division. In addition, the member must provide competent medical evidence conclusively documenting that the member is totally and permanently disabled from engaging in any type of substantial gainful activity and that such disability existed at and since the date of the member's separation from service.
(b) Creditable Service Required. The number of years of creditable service which a member shall have completed to be eligible for ordinary disability retirement shall be:
1. (1) Five (5) years for a member in Group 1 or 2; and
2. (2) Eight (8) years for a member in Group 3 or 4.
(c) Amount of Allowance.
1. (1) Upon ordinary disability retirement, a member shall receive a service retirement allowance as provided in §§ 8-36-201 — 8-36-205, if eligible therefor. Otherwise, the member shall receive an ordinary disability retirement allowance until the member's attainment of service retirement age as provided in §§ 8-36-201 — 8-36-205. The ordinary disability retirement allowance shall be equal to nine-tenths (⁄) of a service retirement allowance as computed in accordance with §§ 8-36-206, 8-36-207 on the basis of the member's average final compensation and creditable service at the time of ordinary disability retirement.
2. (2) Notwithstanding the foregoing, if the member has completed less than twenty (20) years of creditable service at the time of ordinary disability retirement, the number of years of creditable service used in calculating the ordinary disability retirement allowance under subdivision (c)(1) shall be increased to the number of years of creditable service the member would have had at the member's service retirement date had the member remained in service to such date, but not greater than twenty (20) years. This subdivision (c)(2) does not apply to members joining the retirement system after October 15, 1992. Any member joining the retirement system on or before October 14, 1992, shall receive the greater of the disability retirement allowance computed with or without this subdivision (c)(2).
3. (3) Notwithstanding subdivision (c)(1) or (c)(2), if the member has completed less than twenty (20) years of creditable service at the time of ordinary disability retirement, the number of years of creditable service used in calculating the ordinary disability retirement allowance under subdivision (c)(1) shall be increased to the greater of ten (10) years or to the number of years of creditable service the member would have had at the member's service retirement date had the member remained in service to such date, but not greater than twenty (20) years.
4. (4) The maximum ordinary disability retirement allowance payable under this section shall not exceed seventy-five percent (75%) of the member's average final compensation. This section shall not be construed to prevent any increase in the ordinary disability retirement allowance of a member in excess of the seventy-five percent (75%) limit when such increase is in accordance with § 8-36-124 or § 8-36-701.
5. (5) Except as may be reduced under subdivision (c)(7), the minimum ordinary disability retirement allowance payable under this section shall be the minimum service retirement allowance computed in accordance with § 8-36-209 on the basis of the member's creditable service at the time of ordinary disability retirement.
6. (6) Upon the member's attainment of service retirement age as provided in §§ 8-36-201 – 8-36-205, the ordinary disability retirement allowance shall become equal to the full service retirement allowance as computed in accordance with §§ 8-36-206 – 8-36-209.
7. (7) Notwithstanding anything to the contrary, in all cases where a member, including a prior class member, is receiving payments from the division of claims and risk management or workers' compensation, the disability retirement allowance payable under this section shall be reduced so that the disability retirement allowance, together with payments from the division of claims and risk management and workers' compensation, does not exceed seventy-five percent (75%) of the member's average final compensation; provided, that if the member is receiving the minimum ordinary disability retirement allowance computed in accordance with § 8-36-209, such allowance shall be reduced so that the member's disability retirement allowance, together with payments from workers' compensation and the division of claims and risk management, does not exceed one hundred percent (100%) of the member's average final compensation. This section shall not be construed to prevent any increase in the ordinary disability retirement allowance of a member in excess of the seventy-five percent (75%) or the one hundred percent (100%) limit when such increase is in accordance with § 8-36-124 or § 8-36-701. Any lump sum payment made by the division of claims and risk management or workers' compensation shall be prorated over the period of time the payments would have been made had the payments not been commuted to a lump sum.

§ 8-36-502. Accidental disability retirement allowances.

(a) Accidental Disability Retirement Authorized. Upon the application of a member in Group 1 or 2, any such member who has been disabled as the natural and proximate result of an accident or as the direct result of physical violence against the member's own person occurring while the member was in the actual performance of duty at some definite time and place, without negligence on the member's part, may be retired by the board of trustees on an accidental disability retirement allowance. A member shall not be entitled to receive disability retirement benefits under this section unless the member files with the retirement division an application for the benefits within two (2) years of the date of the claimed accident or incident causing such disability or within one (1) year of the member's last paid day of employment, whichever is later. Before approval may be granted, the member must provide competent medical evidence that conclusively documents that the member is totally and permanently disabled from engaging in any type of substantial gainful activity and that such disability occurred while in the actual performance of duty.
(b) Law Enforcement Officers and Firefighters. For purposes of this section, § 7-51-201 shall not apply.
(c) Amount of Allowance.
1. (1) For any person becoming a Group 1 or Group 2 member of the retirement system before July 1, 1997, the amount of the accidental disability retirement allowance shall equal fifty percent (50%) of the member's average final compensation, except as reduced as follows:
  1. (A) The accidental disability retirement allowance shall be reduced to one-third (⅓) of the member's average final compensation upon the member's receipt of benefits under Title II of the Social Security Act (42 U.S.C. §§ 401-425). The reduction shall not be made in the case of a member who at the time of retirement has not accumulated sufficient quarters of coverage under the Social Security Act (42 U.S.C. § 301 et seq.), to qualify for social security benefits at service retirement age as provided in §§ 8-36-201 – 8-36-205;
  2. (B) Any member who is approved for an accidental disability retirement allowance to begin at fifty percent (50%) of the member's average final compensation shall be required, as a condition of continued receipt of such, to provide adequate documentation to the retirement system within thirty (30) days after notification of such approval, that the member has made application for social security disability benefits. If the application for social security benefits is denied, the member shall be given thirty (30) days from the date of denial in which to seek a reconsideration of the member's claim from the social security administration and to notify the retirement system of such action. Should the member's claim for social security disability benefits be denied upon reconsideration, the member shall, within thirty (30) days after notice of such denial, file an appeal to the administrative law judge and notify the retirement system of the member's action. The member is required to keep the retirement system informed of the status of the member's claim for social security disability benefits through the entire appeals process as specified herein. Failure to comply with the requirements of this subdivision (c)(1) shall result in a reduction of the member's disability retirement allowance to thirty-three and one-third percent (33⅓%) of the member's average final compensation; and
  3. (C) Notwithstanding anything to the contrary, in all cases where a member, including a prior class member, is receiving payments from the division of claims and risk management or workers' compensation, the disability retirement allowance payable under this section shall be reduced so that the member's disability allowance, together with payments from the division of claims and risk management and workers' compensation, does not exceed seventy-five percent (75%) of the member's average final compensation. Any lump sum payments made by the division of claims and risk management or workers' compensation shall be prorated over the period of time the payments would have been made had the payments not been commuted to a lump sum.
2. (2) This subsection (c) shall not be construed to prevent any increase in the accidental disability retirement allowance of a member in excess of the limits set forth in subdivision (c)(1) when such increase is in accordance with § 8-36-124 or § 8-36-701.
3. (3) For any person becoming a Group 1 or Group 2 member of the retirement system on or after July 1, 1997, the amount of the accidental disability retirement allowance shall equal the amount of an ordinary disability retirement allowance calculated pursuant to § 8-36-501(c).

§ 8-36-503. Effect of division of claims and risk management or workers' compensation payments on allowance payments.

(a) For the purposes of integrating division of claims and risk management or workers' compensation payments with the disability retirement allowance provided herein, compensation shall include any payments made by the division of claims and risk management or workers' compensation, except payments made for hospital or medical expenses.
(b) Any member who is approved for a disability retirement allowance may be required to report to the retirement system, on a quarterly basis, the status of any workers' compensation claim filed by the member. The member shall provide a copy of the final workers' compensation settlement or judgment to the retirement system within thirty (30) days after the settlement or judgment becomes final. Failure to comply with the requirements of this subsection (b) may result in the suspension of the member's retirement allowance.

§ 8-36-504. Determination of disability.

(a) The medical advisors, after an examination of the medical records of such member, shall certify, and the board of trustees shall find, that the member is disabled and should be retired.
(b)
1. (1) In making the disability determination, primary consideration is given to the severity of the individual's impairment.
2. (2) When medical considerations alone are not determinative of the issue of disability, consideration shall also be given to vocational factors.
3. (3) Where vocational factors indicate the individual is capable of retraining for other employment within a twelve-month period, the individual shall not be considered disabled.
4. (4) Vocational factors shall take into consideration the individual's age, education, training and work experience.
(c)
1. (1) Except as provided in subdivision (c)(3), the board of trustees may, at its discretion, accept a disability medical determination from the social security administration in lieu of referring the matter to the medical advisors for certification.
2. (2) Any member retired by the board of trustees on a disability retirement allowance pursuant to this subsection (c) shall not be relieved from §§ 8-36-506 – 8-36-508.
3. (3) This subsection (c) shall only apply to determinations of disability made pursuant to 20 CFR 404.902 and 20 CFR 404.920 as in effect on January 19, 2005.

§ 8-36-505. Date of disability retirement.

Any member eligible for a disability retirement may set the effective date of such member's retirement at any date within one hundred fifty (150) days before or after the date such member's application is filed with the board; provided, that such effective date of retirement follows the date of such member's separation from service, the date on which the member's temporary disability benefits under the workers' compensation law cease, or the date on which the member became totally and permanently disabled, whichever is later.

§ 8-36-506. Medical examinations after disability retirement.

(a) Any disability retiree who has not attained service retirement age may be required to submit current medical records annually until attaining service retirement age, by a physician or physicians designated by the board of trustees.
(b) Should any disability beneficiary who has not yet attained sixty (60) years of age refuse to submit to at least one (1) medical examination in any such year, and should such refusal continue for ninety (90) days after the records have been requested, such beneficiary's monthly retirement benefit may be suspended by the board of trustees.

§ 8-36-507. Effect of engaging in or the ability to engage in gainful activity.

(a) Should the medical advisors report and certify to the board of trustees that such disability beneficiary is able to engage in substantial gainful activity, and should the board of trustees concur in such report, then the amount of the beneficiary's monthly benefit shall be reduced or suspended at the discretion of the board of trustees.
(b) If the board of trustees determines that the disability beneficiary is in fact engaged in substantial gainful activity, then the beneficiary's monthly benefits shall be suspended.
(c) Should the beneficiary's earning capacity be later changed, the monthly benefit may be restored; provided, that the evidence substantiates the beneficiary's inability to engage in gainful activity.
(d) Any disability retiree who has not yet attained service retirement age may be required to report, on an annual basis, all income other than retirement benefits from this system, and should the board of trustees determine from this information that the disability beneficiary is able to engage in a gainful occupation, then the amount of the benefit may be reduced accordingly, at the discretion of the board.

§ 8-36-508. Vocational rehabilitation.

(a) Any disability beneficiary, upon recommendation of the medical advisors, may be referred to the division of vocational rehabilitation, or other rehabilitation agencies, to determine whether the beneficiary is physically and/or mentally capable of retraining for some type of gainful employment.
(b) The recommendation of such agencies shall be considered by the medical advisors and board of trustees to determine the eligibility of a member to continue monthly disability benefits.
(c) Should any disability beneficiary refuse the services of such agency, such refusal shall be treated in the same manner as a refusal to be reevaluated and may result in the suspension of monthly benefits.

§ 8-36-509. Recomputation of allowances for disabled teachers retired prior to July 1, 1972.

(a) Any teacher, prior to July 1, 1972, who became disabled and who was retired on a service retirement allowance rather than under a disability because the teacher had met the conditions of service retirement, may have the benefit recomputed under the applicable disability provisions in effect on June 30, 1972; provided, that proper documentation as required by the board of trustees is furnished by the retiree and approved by the board.
(b)
1. (1) The increase in benefits, if any, shall commence with the month following the approval of the application by the board of trustees.
2. (2) Any increase in benefits provided by this section shall be in addition to any increases previously or hereafter provided by any cost-of-living provisions, § 8-36-701 or §§ 8-36-708 – 8-36-712, or any other increases in benefits effective prior to August 1, 1974.
3. (3) Any retiree who applied for increased benefits under this section prior to July 1, 1974, shall receive a retroactive recomputation as herein provided, and a lump sum payment effective from the date the application was approved by the board of trustees.

§ 8-36-510. Confidentiality of records.

(a) Any medical records submitted to, or compiled by, the retirement system pursuant to this part are confidential and shall not be disclosed except as follows:
1. (1) To the extent that the member or the member's legal representative consents to disclosure;
2. (2) To employees of the retirement system for the purpose of determining a member's qualification for disability retirement;
3. (3) To the medical advisors;
4. (4) In compliance with a subpoena or a court order;
5. (5) To other state or federal agencies; provided, that such agencies maintain the same level of confidentiality as that required hereunder;
6. (6) To the comptroller of the treasury or the comptroller's designees for the purpose of an audit of the retirement system; or
7. (7) In any administrative proceeding or court action between the member or the member's legal representative and the retirement system.
(b) Nothing contained in this section applies to statistical medical information if such information is not identified with a particular member. Further, nothing contained in this section applies to records concerning the identity of members receiving or applying for disability retirement benefits, to the amount of benefits to which a particular member is or may be entitled to receive, nor to any other nonmedical related information unless such information is made confidential by other statute of this state.

Part 6 Optional Retirement Allowances

§ 8-36-601. Election of options for designation of contingent beneficiaries authorized — Options enumerated — Retirement allowance for social security benefits.

(a) Any member may elect to convert the retirement allowance otherwise payable on the member's account after retirement, exclusive of any portion of a disability allowance not payable after commencement of unreduced social security benefits, into a retirement allowance of equivalent actuarial value under one (1) of the options named in subsection (b).
(b)
1. (1) Option 1. A reduced retirement allowance payable during the retired member's life, with the provision that it shall continue after the member's death for the life of, and to, the beneficiary nominated by the member by written designation duly acknowledged and filed with the board of trustees at the time of retirement.
2. (2) Option 2. A reduced retirement allowance payable during the retired member's life, with the provision that it shall continue after the member's death at one-half (½) the rate paid to the member and be paid for the life of, and to, the beneficiary nominated by the member by written designation duly acknowledged and filed with the board of trustees at the time of retirement.
3. (3) Option 3. A reduced retirement allowance payable during the retired member's life, with the provision that it shall continue after the member's death for the life of, and to, the beneficiary nominated by the member by written designation duly acknowledged and filed with the board of trustees at the time of retirement; provided, that if such designated beneficiary shall predecease the retired member, the retirement allowance payable to the member after the death of the designated beneficiary shall be equal to the retirement allowance which would have been payable had the member not elected an option.
4. (4) Option 4. A reduced retirement allowance payable during the retired member's life, with the provision that it shall continue after the member's death at one-half (½) the rate paid to the member and be paid for the life of, and to, the beneficiary nominated by the member by written designation duly acknowledged and filed with the board of trustees at the time of retirement; provided, that if such designated beneficiary shall predecease the retired member, the retirement allowance payable to the member after death of the designated beneficiary shall be equal to the retirement allowance which would have been payable had the member not elected an option.
(c) Prior to retirement, any member who is covered by Title II of the Federal Social Security Act (42 U.S.C. §§ 401-425), may elect to convert the retirement allowance otherwise payable on the member's account after retirement into a retirement allowance of equivalent actuarial value of such amount that, with the member's benefit under Title II of the Federal Social Security Act, the member will receive, so far as possible, approximately the same amount per year before and after the commencement of such benefit.
(d) Subsection (c) does not apply to a retiree receiving a disability retirement allowance if such retiree is also receiving social security disability benefits. Any member who is approved for a disability retirement allowance and who desires to convert such member's retirement allowance in accordance with subsection (c) shall be required to provide to the retirement system within thirty (30) days after notification of such approval, that the member has made application for social security disability benefits. If the application for social security benefits is denied, the member shall be given thirty (30) days from the date of denial in which to seek a reconsideration of such member's claim from the social security administration and to notify the retirement system of such action. Should the member's claim for social security disability benefits be denied upon reconsideration, such member shall, within thirty (30) days after notice of such denial, file an appeal to the administrative law judge and notify the retirement system of such member's action. The member is required to keep the retirement system informed of the status of such member's claim for social security disability benefits through the entire appeals process as specified herein. Failure to comply with the requirements of this subsection (d) shall result in a reduction of the member's disability retirement allowance to the amount which would have been payable had the member selected the regular plan, and the member shall be required to make a payment equal to the difference in benefits received and the regular plan.
(e) Notwithstanding this section or any other law to the contrary, the amount of survivor benefits payable to a beneficiary under one (1) of the optional allowances provided for in subsection (b) shall not exceed the maximum amount determined under the applicable incidental death benefits regulations of the Internal Revenue Code (26 U.S.C.), unless the retired member's surviving spouse is the member's sole beneficiary. Benefits shall be adjusted as necessary to satisfy those regulations.
(f) Effective as of July 1, 1989, the retirement system shall determine the amount of any optional retirement allowance on the basis of actuarial assumptions adopted by the board of trustees; such benefits shall not be subject to employer discretion. The actuarial assumptions adopted by the board for this purpose are incorporated as part of the plan document.

§ 8-36-602. Effective date of election.

The election of an option shall become effective on the member's effective date of retirement in accordance with § 8-36-203 or § 8-36-303; provided, that written application is filed with the board of trustees and the member is eligible for service or early service retirement.

§ 8-36-603. Election of option by retired member not formerly electing.

Any other provisions to the contrary notwithstanding, any retired member of any superseded system as defined in § 8-34-101, or this system, who upon retirement did not elect an option, but who now desires to do so may in the manner prescribed by the board of trustees have benefits recomputed by an actuarial reevaluation in favor of such beneficiary.

§ 8-36-604. [Reserved]

§ 8-36-605. When election of option may be changed or revoked.

The election of an option may not be changed or revoked by the member after such member's retirement date, except in accordance with rules and regulations adopted by the board of trustees.

§ 8-36-606. Cancellation of election of designated beneficiary after retirement date — Designation of new beneficiary.

(a) The election of a designated beneficiary under an optional retirement plan must not be cancelled by the member after the member's retirement date, except as provided in this section.
(b) After a member's retirement date, a retired member may cancel the member's designated beneficiary for any reason, including, but not limited to, the death of the beneficiary or the member's divorce from the designated beneficiary, upon the written request of the member; however, a retired member cannot cancel the member's beneficiary under this subsection (b) after retirement if the retiree has previously cancelled a beneficiary designation under this subsection (b).
(c) If a retired member cancels the member's designated beneficiary who is the member's spouse or former spouse, the retired member must include proper documentation with the written cancellation request, which, for a divorce, must include, but is not limited to, the final decree and marital dissolution agreement of the parties. The cancellation must not be in conflict with the decree or marital dissolution agreement.
(d) If a retired member cancels the member's designated beneficiary, the member may designate a new beneficiary, but upon the death of the retired member, the newly designated beneficiary is only entitled to the remaining accumulated contributions in the member's account or the member's retirement allowance in the month of death.
(e) The retirement allowance payable to the retired member after the cancellation of the designated beneficiary pursuant to this section is not affected by the cancellation of beneficiary designation.

§ 8-36-607. Death prior to retirement.

For death benefit purposes, a member who dies prior to retirement shall be considered as having been retired on the date death occurs or on the date such member's annual leave is exhausted, whichever is later.

§ 8-36-608. Effect of prior election of option under superseded system.

If a member of a superseded system has made an effective election of an option under such superseded system, the election shall be effective under this retirement system as of the date of establishment; provided, that the member is then eligible for service retirement or early service retirement.

§ 8-36-609. [Reserved]

§ 8-36-610. Surviving minor children as contingent beneficiaries.

(a) If a retired member of the Tennessee consolidated retirement system, including a retired prior class member, has, under the options of provisions of the preceding systems in this part, designated the spouse of the retired member as such retired member's beneficiary on the death of the retired member, then if the surviving spouse should die after the death of the retired member, and there is surviving a minor child or children of the retired member, the same annuity paid to the surviving spouse shall be divided equally among the minor children. Each child shall receive the child's share until the first day of the month following the month in which the child dies or reaches twenty-two (22) years of age, whichever occurs first, at which time the annuity shall be redistributed equally among the remaining children.
(b) If the retired member's spouse is designated as the sole beneficiary on the date of the member's death, and if that spouse predeceased the retired member or died in a common accident or occurrence with the member, then the same annuity to which the spouse of the retired member would have been entitled had such spouse survived the retired member shall be divided equally among the retired member's minor children. Each child shall receive the child's share until the first day of the month following the month in which the child dies or reaches age twenty-two (22), whichever occurs first, at which time the annuity shall be redistributed equally among the remaining children.

Part 7 Increased or Decreased Allowances

§ 8-36-701. Increase or decrease in allowance after retirement based on consumer price index — Cost-of-living adjustments.

(a)
1. (1) As of the end of each calendar year commencing with the year ending December 31, 1972, the difference between:
  1. (A) The percentage representing the consumer price index as of the end of such calendar year divided by that index as of December 31, 1971, or the most recent December 31 subsequent thereto as of which an increase or decrease in retirement allowance shall have been granted pursuant to this section; and
  2. (B) One hundred percent (100%);
2. shall be determined.
3. (2) If such percentage is at least equal to one percent (1%), the retirement allowance payable to each beneficiary in receipt of an allowance prior to the July 1 next following shall be increased or decreased, as the case may be, commencing on such July 1, by an amount determined by multiplying the retirement allowance which would have been payable without regard to this section by such percentage, but not to exceed three percent (3%).
4. (3) If the percentage increase or decrease in the consumer price index determined in accordance with this subsection (a) is less than one percent (1%), no increase or decrease in retirement allowance shall be granted.
5. (4) No reduction shall be made which has the effect of reducing a retirement allowance below the amount payable to the beneficiary without regard to this section or as of May 1, 1975, whichever is greater.
(b)
1. (1) Effective July 1, 1998, if there is a percentage increase in the consumer price index, as determined in accordance with subdivision (a)(1), of at least one-half of one percent (0.5%), the retirement allowance payable to each beneficiary in receipt of an allowance prior to the July 1 next following shall be increased commencing on such July 1 by an amount determined by multiplying the beneficiary's then current retirement allowance by such percentage, but not to exceed three percent (3%). Notwithstanding the foregoing, if such percentage is one-half of one percent (0.5%) or more but less than one percent (1%), the percentage shall be rounded to one percent (1%). This adjustment provision shall be in lieu of the adjustments provided for in subsection (a).
2. (2) If the percentage increase in the consumer price index is less than one-half of one percent (0.5%), no retirement allowance increase shall be granted pursuant to this subsection (b).
3. (3) On January 1, 1998, the retirement allowance of each beneficiary shall be increased in accordance with the following schedule to reflect what the beneficiary's current allowance would be had the beneficiary received adjustments pursuant to this subsection (b) in lieu of the adjustments provided for in subsection (a):
  3. prior to 7/2/72 17.5%
  4. 7/2/72 - 7/1/73 16.8%
  5. 7/2/73 - 7/1/74 15.14%
  6. 7/2/74 - 7/1/75 14.1%
  7. 7/2/75 - 7/1/76 12.9%
  8. 7/2/76 - 7/1/77 11.7%
  9. 7/2/77 - 7/1/78 10.5%
  10. 7/2/78 - 7/1/79 9.5%
  11. 7/2/79 - 7/1/80 8.4%
  12. 7/2/80 - 7/1/81 7.4%
  13. 7/2/81 - 7/1/82 6.5%
  14. 7/2/82 - 7/1/83 5.6%
  15. 7/2/83 - 7/1/84 4.8%
  16. 7/2/84 - 7/1/85 4.1%
  17. 7/2/85 - 7/1/86 3.4%
  18. 7/2/86 - 7/1/87 3.1%
  19. 7/2/87 - 7/1/88 2.5%
  20. 7/2/88 - 7/1/89 2.0%
  21. 7/2/89 - 7/1/90 1.5%
  22. 7/2/90 - 7/1/91 1.0%
  23. 7/2/91 - 7/1/92 0.7%
  24. 7/2/92 - 7/1/93 0.4%
  25. 7/2/93 - 7/1/94 0.2%
  26. 7/2/94 - 7/1/95 0.1%
  28. The increase in the beneficiary's monthly retirement allowance shall not be paid retroactively, but shall become effective on January 1, 1998.
4. (4) Notwithstanding any law to the contrary, this subsection (b) shall not apply to individuals who are members of the retirement system by virtue of their employment with any employer participating in the retirement system pursuant to chapter 35 of this title unless the governing body of any such employer passes a resolution to accept the associated liability and costs to provide such benefits. This increase in benefits will become effective following the adoption of the resolution. No retroactive benefits are to be paid under this subsection (b).
(c) For purposes of this section, “consumer price index” means the consumer price index (all items — United States city average), as published by the United States department of labor, bureau of labor statistics. If the method of computing the consumer price index is revised by the bureau of labor statistics, the board of trustees shall give effect to such revisions in an equitable manner.
(d) This section shall not apply to any person who retires after May 1, 1975, until such person has been retired for a minimum of twelve (12) months on July 1 next following the December 31 as of which the percentage is determined.

§ 8-36-702. Recomputation of benefits under certain superseded systems when consolidated system formula changes.

(a) Notwithstanding any other provisions to the contrary, in any year in which there is a change in the formula for retirement allowances, any beneficiary of the Tennessee teachers' retirement system, the Tennessee state retirement system, or of Group 1 of the Tennessee consolidated retirement system shall, on July 1 of such year, have such beneficiary's benefits recomputed according to the then existing provisions of the Tennessee consolidated retirement system. The recomputed benefit shall be compared to the benefit at the time of retirement or as of the date of the most recent recomputation, whichever date is later, and if the recomputed benefit is larger, the difference shall be added to the then current benefit. The increase provided by this section shall be in addition to any increases permitted under § 8-36-701.
(b)
1. (1) For the purposes of recomputing benefits as provided in subsection (a), a change in the formula shall be defined as follows:
  1. (A) The conditions of eligibility for retirement as provided in § 8-36-201;
  2. (B) The service retirement allowance formula as provided in §§ 8-36-206 – 8-36-208, and the service retirement allowance for Class B members as provided in the superseded Tennessee teachers' retirement system or the superseded Tennessee state employees' retirement system;
  3. (C) The minimum service retirement allowance as provided in § 8-36-209;
  4. (D) The early service retirement allowance as provided in part 3 of this chapter;
  5. (E) The disability retirement allowance as provided in part 5 of this chapter; and
  6. (F) The definition of “average final compensation” as defined in § 8-34-101.
2. (2) Notwithstanding the formula changes listed in subdivision (b)(1)(A)-(F), a change in the formula shall not include for recomputation purposes any increase in state retirement benefits for active employees to offset a reduction in the benefits paid by social security which is necessary to maintain the approximate level of benefits for active employees.
(c) The benefit of a state judge who retires prior to September 1, 1990, as a Group 3 member shall be recalculated under public chapter 554 of the Public Acts of 1986.
(d) The governing body of a political subdivision may, at its option, by resolution authorize and accept the liability for its active and retired employees to receive any increases due to a change in the benefit formula. It is the intent of this enactment that should the governing body elect to authorize its employees to receive increases, resulting from a change in formula, such authorization and acceptance of liability therefor shall include both active and retired employees.

§ 8-36-703. Recomputation of benefits of beneficiaries of state and teachers' superseded systems who were retired under ten-year arithmetic average.

Whenever a beneficiary of the Tennessee teachers' retirement system and the Tennessee state retirement system shall have been retired under a ten-year arithmetic average, the beneficiary shall have such beneficiary's benefits recomputed under a five-year arithmetic average. The recomputation shall be under the benefit provisions of the applicable superseded system.

§ 8-36-704. Recomputation of benefits of beneficiaries under existing provisions.

Any retired member of the Tennessee teachers' retirement system, Tennessee state retirement system, Group 1 of the Tennessee consolidated retirement system and of any local retirement system who retired prior to July 1, 1972, or thereafter, shall have such member's benefits recomputed under the existing provisions of the Tennessee consolidated retirement system. Any increase resulting from such recomputation shall be in addition to those provided by § 8-36-701.

§ 8-36-705. Recomputation of benefits of certain beneficiaries who have elected an optional form of benefit.

(a)
1. (1) In the case of a retired member of the superseded Tennessee teachers' retirement system, the superseded Tennessee state retirement system, or the Tennessee consolidated retirement system who elected an optional form of benefit, the recomputation of the member's retirement allowance determined under §§ 8-36-702 – 8-36-705, [former] 8-36-706 [repealed] shall be adjusted on the basis of the appropriate option in effect on June 30, 1972, or thereafter, but the actuarial equivalent factors in effect on July 1, 1972, or thereafter, shall be used to determine the increase in retirement allowance.
2. (2) In the case of a retired teacher who elected Option I under the superseded Tennessee teachers' retirement system, the teacher's benefits shall be recomputed under the maximum plan as provided under the retirement system.
3. (3) In the case of a beneficiary of a deceased member of a superseded system, or the retirement system, in receipt of a monthly retirement allowance as the person designated under an election of an optional form of benefit, the increase in the retirement allowance to such beneficiary shall be determined as if the member had been living on the date of recomputation.
(b) The maximum plan, Option II and Option III of the superseded Tennessee teachers' retirement system shall equate to the maximum plan, Option I and Option II of the retirement system respectively and the maximum plan, Option I and Option II of the superseded Tennessee state retirement system shall equate to the maximum plan, Option I and Option II of the retirement system respectively.
(c)
1. (1) A retired member of the superseded Tennessee teachers' retirement system who designated a beneficiary under Option II or Option III of that system and a retired member of the superseded Tennessee state retirement system who designated a beneficiary under Option I or Option II of that system, may elect to have that member's retirement allowance recomputed ab initio under the equivalent Option III or Option IV of the Tennessee consolidated retirement system by making written application and payment of any amount due to the Tennessee consolidated retirement system on or before April 30, 1976.
2. (2) Any increase in monthly retirement allowance shall not be paid retroactively, but shall become effective the next following month.

§ 8-36-706. [Reserved]

§ 8-36-707. Additional allowances for teachers and general employees retired prior to July 1, 1976.

(a)
1. (1) Beginning July 1, 1978, each retired teacher and retired general employee who retired prior to July 1, 1976, shall receive a monthly retirement allowance equal to a percentage of the total retirement allowance received in January 1978, from the state by such teacher or employee as follows:
  1. (A) Persons receiving less than five thousand dollars ($5,000) per annum in total retirement benefits shall receive a monthly allowance equal to five percent (5%) of their January monthly retirement benefits;
  2. (B) Persons receiving at least five thousand dollars ($5,000) per annum, but not more than eight thousand five hundred dollars ($8,500) per annum, in total retirement benefits shall receive a monthly allowance equal to three percent (3%) of their January monthly retirement benefits; and
  3. (C) Persons receiving more than eight thousand five hundred dollars ($8,500) per annum in total retirement benefits shall receive a monthly allowance equal to two percent (2%) of their January monthly retirement benefits.
2. (2) Such amounts shall be in addition to the retirement allowance from the state, including the amounts authorized by § 8-36-701.
(b) As used in this section:
1. (1) “Retired general employee” and “retired teacher” mean any retired teacher and any retired general employee, as defined in § 8-34-101, and any former teacher or state employee receiving benefits under chapter 39, part 1 of this title, who retired on or before June 30, 1976; provided, that for retired general employees of political subdivisions, this allowance may only be granted if the chief governing body of the political subdivision authorizes this credit and accepts the liability therefor and informs the retirement system before June 15, 1978, of its authorization of this credit; and
2. (2) “Total retirement benefits” includes benefits from both the Tennessee consolidated retirement system and from social security. The increase in benefits authorized by this section shall be based on the monthly payments made by the Tennessee consolidated retirement system.
(c) The recomputed retirement benefit paid to a retired teacher or a retired state general employee under this section as a result of passage of § 8-36-209(a)(1) shall be calculated without regard to § 8-36-102.

§ 8-36-708. Increase in allowance to beneficiaries retired under superseded state or teachers' systems — Exceptions.

(a) The retirement allowance of any beneficiary under the Tennessee teachers' retirement system or the Tennessee state retirement system shall be increased as of July 1, 1972, as follows:
1. (1) The retirement allowance which would otherwise be payable, without regard to the election of any optional modification, shall be increased by ten percent (10%) of the amount of retirement allowance which would otherwise be payable before application of any flat minimum benefit formula or any post retirement increase and without regard to the election of any optional modification, but the total retirement allowance shall not exceed seventy-five percent (75%) of the beneficiary's average final compensation;
2. (2) The retirement allowance recomputed under subdivision (a)(1) shall not be less than sixty-four dollars and eight cents ($64.08) for a retired former Class A member, multiplied by the number of years of the member's creditable service, nor less than seventy-two dollars ($72.00) for a retired former Class B member, multiplied by the number of years of the member's creditable service;
3. (3) In no event shall the increase in the retirement allowance of any beneficiary under this section be less than twelve dollars ($12.00) multiplied by the number of years of creditable service.
(b) Notwithstanding the foregoing, any member of the Tennessee state retirement system who retired as a Class C member of that system or under the special benefit provisions of that system applicable to firefighters and police officers or wildlife officers shall not be entitled to an increase in the member's retirement allowance under this section.

§ 8-36-709. Increase in retirement allowances to other beneficiaries of superseded systems.

The retirement allowance of any beneficiary of a superseded system not entitled to an increase in retirement allowance under § 8-36-708 shall be increased as of July 1, 1972, as follows. The retirement allowance which would otherwise be payable without regard to the election of any optional modification shall be increased by the excess, if any, of an amount computed on the basis of § 8-36-708(a)(2) over such retirement allowance.

§ 8-36-710. Increase in retirement allowances to beneficiaries of superseded system who elected an optional benefit.

(a) In the case of a retired member of a superseded system who elected an optional form of benefit, the increase in the member's retirement allowance determined under § 8-36-708 or § 8-36-709 shall be adjusted on the basis of the appropriate actuarial equivalent factor applicable at the time of retirement, and payment of the additional allowance shall be subject to the terms of the option elected.
(b) In the case of beneficiary of a deceased member of a superseded system in receipt of a retirement allowance as the person designated under an election of an optional form of benefit, the increase in the retirement allowance to such beneficiary shall be determined as if the member had been living on July 1, 1972.

§ 8-36-711. Effect of other provisions for increase of allowances for beneficiaries of superseded systems.

Notwithstanding any other provision of §§ 8-36-708 – 8-36-712, no increase in the retirement allowance of any beneficiary of a superseded system shall be granted on or after July 1, 1972, except as provided in § 8-36-701 or §§ 8-36-708 – 8-36-712.

§ 8-36-712. Source of payment of increases to teachers retired from a local retirement system.

Notwithstanding any other provision of chapters 34-37 of this title to the contrary, teachers who have retired from a local retirement fund shall be paid directly by the Tennessee consolidated retirement system any increases resulting from §§ 8-36-708 – 8-36-712.

§ 8-36-713. Additional benefit increase.

(a)
1. (1) In addition to any other increase in retirement benefits provided by this part, effective July 1, 1985, retired teachers and general employees shall be entitled to an increase in their monthly retirement benefit in accordance with the following schedule:
  3. on or before 6/30/73 $0.61
  4. 7/1/73 - 6/30/75 $0.37
  5. 7/1/75 - 6/30/78 $0.25
  6. 7/1/78 - 6/30/80 $0.15
2. (2) Effective July 1, 1987, and in addition to any other increase in retirement benefits provided by this part, retired teachers, wildlife officers, state police officers, firefighters, police officers and general employees shall be entitled to an increase in their monthly retirement benefits in accordance with the following schedule, which shall be in lieu of the increase in benefits provided in subdivision (a)(1):
  3. on or before 6/30/73 $1.18
  4. 7/1/73 - 6/30/75 $0.94
  5. 7/1/75 - 6/30/78 $0.48
  6. 7/1/78 - 6/30/80 $0.28
(b) The increase effective July 1, 1987, shall continue to be paid thereafter. It is the legislative intent that this section shall not be interpreted to authorize additional increases beyond those taking effect July 1, 1987.
(c) As used in this section, “retired teacher” and “retired general employee” mean any retired teacher and any retired general employee, as defined in § 8-34-101, and any former teacher or state employee receiving benefits under chapter 39, part 1 of this title.
(d) The benefit paid under this section shall be calculated without regard to § 8-36-102.
(e) This section shall be optional for political subdivisions participating in the retirement system in accordance with § 8-35-217. Political subdivisions exercising the option permitted herein must do so before June 30, in order for it to be effective the following July 1.
(f) Implementation of this section shall be subject to funding being provided in the general appropriations act.

§ 8-36-714. Requirements to be compensated as president emeritus — Continued eligibility requirements — Filing of agreement.

(a) The board of trustees of the University of Tennessee may grant to any former president of the University of Tennessee the title “president emeritus.” A state university board or the board of regents may grant to any former president of any college or university it governs a similar “emeritus” title. No former president shall receive any compensation or remuneration for holding the emeritus title, unless the following conditions are met:
1. (1) The remuneration is for time actually spent by the former president in performing services for the respective governing board;
2. (2) An agreement is executed between the respective governing board and the former president which sets forth the duties to be performed by the former president;
3. (3) The agreement cannot exceed a term of one (1) year. The respective governing board may enter into additional one-year agreements with the former president. No renewal agreement shall be entered into until the governing board reviews and is satisfied with the emeritus work performed by the former president. Any such renewal must be approved by an affirmative vote of a majority of the respective governing board;
4. (4) The former president must reside in the state of Tennessee at the time of the initial appointment and at the time of any subsequent appointment; and
5. (5) The former president shall not accrue any additional retirement credit as a result of such appointment.
(b) Notwithstanding any other law to the contrary, any former president receiving compensation or remuneration for holding the emeritus title pursuant to this section shall be eligible to continue drawing such person's retirement allowance; provided, that the former president does not work and is not compensated for more than one hundred twenty (120) days or the equivalent of one hundred twenty (120) days during the one-year appointment, or, if working as a teacher, for more than twenty-four (24) quarter credit hours or eighteen (18) semester credit hours during the one-year appointment. If the period exceeds that specified in this subsection (b), the former president's monthly retirement allowance shall be reduced in direct proportion thereto. The retirement system is authorized to obtain reimbursement for any retirement benefits overpaid as a result of any compensation being paid to a former president in excess of that permitted by this section. Such reimbursement may be made by deductions from the former president's monthly benefit.
(c) For each emeritus appointment for which compensation or remuneration will be paid, the respective governing board shall be responsible for filing with the retirement division the agreement, which sets forth the name of the person holding the title, and the beginning and ending date of the appointment. The agreement shall be accompanied with documentation showing the amount of compensation to be paid to the person and the number of hours to be worked. The agreement and documentation shall be filed annually, if applicable, and signed by the former president acknowledging the conditions of the appointment. The governing board shall send written notice to the speaker of the senate, the speaker of the house of representatives, the chairs of the senate standing committees on education and on finance, ways and means, the chairs of the standing committees on education administration and finance, ways and means of the house of representatives, and the office of legislative budget analysis of each emeritus appointment for which compensation or remuneration will be paid.

§ 8-36-715. Increase in retirement allowance for retired teachers, wildlife officers, state police officers, firefighters, police officers and general employees.

(a)
1. (1) The retirement allowance of each retired teacher, wildlife officer, state police officer, firefighter, police officer and general employee shall be increased effective January 1, 2007, in accordance with the following schedule:
  3. prior to 7/2/75 10.0%
  4. 7/2/75 - 7/1/77 7.5%
  5. 7/2/77 - 7/1/79 6.0%
  6. 7/2/79 - 7/1/81 3.0%
  7. 7/2/81 - 7/1/83 1.2%
  8. 7/2/83 - 7/1/85 0.9%
  9. 7/2/85 - 7/1/87 0.5%
  10. 7/2/87 - 7/1/89 0.3%
2. (2) The increase provided in subdivision (a)(1) shall be in addition to any other increase in retirement benefits provided by this part and shall not be paid retroactively, but shall become effective on January 1, 2007.
(b) As used in this section, “teacher” and “general employee” mean any retired teacher and any retired general employee, as defined in § 8-34-101, and any former teacher or state employee receiving benefits under chapter 39, part 1 of this title.
(c) Sections 8-36-102 and 8-36-208(a) shall not be construed to prevent any increase in the retirement allowance of a retiree when the increase is in accordance with this section.
(d) Notwithstanding any law to the contrary, this section shall not apply to individuals who are members of the retirement system by virtue of their employment with any employer participating in the retirement system pursuant to chapter 35, part 2 of this title, unless the governing body of the employer passes a resolution to accept the associated liability and costs to provide the benefits. This increase in benefits shall become effective following the adoption of the resolution. No retroactive benefits are to be paid under this subsection (d). It is the legislative intent that the state shall realize no increased cost as a result of providing the increase to employees of employers participating in the retirement system pursuant to chapter 35, part 2 of this title. All costs associated with the increase shall be the responsibility of the respective employer.
(e)
1. (1)
  1. (A) On July 1, 2006, and on each July 1 thereafter, the minimum retirement allowance provided for in § 8-36-209(b)(4)(A) shall be adjusted pursuant to the cost-of-living provisions in § 8-36-701(b)(1) and (2) until the person has been retired from the retirement system for twelve (12) months on July 1 next following the December 31 as of which the adjustment is determined; provided, however, that the first adjustment under this subdivision (e)(1) shall occur on November 7, 2006, and on each July 1 thereafter, in accordance with this subdivision (e)(1), for persons who are in service on July 1, 2006.
  2. (B) On July 1, 2025, and on each July 1 thereafter, the minimum retirement allowance provided for in § 8-36-209(b)(5)(A) must be adjusted pursuant to the cost-of-living provisions in § 8-36-701(b)(1) and (2) until the person has been retired from the retirement system for twelve (12) months on July 1 next following the December 31 as of which the adjustment is determined.
2. (2) Any beneficiary of any benefit provided to a member of the general assembly pursuant to subdivision (e)(1) may elect to receive an amount less than the amount that member is eligible to receive; provided, that the request is in writing and irrevocable.

Part 8 Reemployment After Retirement

§ 8-36-801. Suspension of benefits while reemployed — Further contributions optional.

(a) Except as provided in this part, any retired member of the Tennessee consolidated retirement system, or of any superseded system, or of any local retirement fund established pursuant to chapter 35, part 3 of this title who accepts employment in a position covered by the Tennessee consolidated retirement system shall, as a condition of such employment, cease to draw the member's retirement allowance during the period of the employment; however, the member shall keep the member's retirement benefit in the month that the member returns to work.
(b) A retiree restored to employment shall not be required to reenroll as an active member of the retirement system, to make further contributions to the retirement system or to void the retirement payment plan elected by the member. Employees covered by the noncontributory provisions of the system in accordance with § 8-34-206 shall reenroll and accrue service. Any retiree restored to employment who reenrolls as an active member of the retirement system shall be treated as voiding any optional benefit previously elected under § 8-36-601 for purposes of in-service death benefits. Subject to § 8-36-802(c), any such optional benefit previously elected shall be restored upon subsequent retirement.
(c) Notwithstanding subsection (b), any retiree who is hired or rehired in a position covered by the retirement system on or after July 1, 2018, shall reenroll as an active member of the retirement system, make such contributions as are required for the retiree's position, and establish credit for the additional service. This subsection (c) shall not apply to retirees who return to service in a position covered by the retirement system as provided in § 8-36-805, § 8-36-810, § 8-36-818, or § 8-36-821. This subsection (c) shall also not apply to retired members who are employees of a political subdivision that subsequently elects to cover its employees under the retirement system, unless the employee was a member or former member of a preexisting defined benefit plan maintained by that political subdivision.

§ 8-36-802. Reenrollment upon reemployment or local system's inclusion in consolidated system.

(a) If a retiree restored to employment reenrolls as an active member of the retirement system, the excess, if any, of the retired member's accumulated contributions at retirement over the sum of the retirement allowance payments received by the retired member shall be credited to the retiree as accumulated contributions.
(b) Any creditable service to which the retiree was entitled when the retiree retired shall be restored to the retiree, and upon subsequent retirement, the retiree's retirement allowance shall be based on the retiree's compensation and creditable service before and after the period of prior retirement.
(c)
1. (1) If the retiree does not complete three (3) years of creditable service after restoration to service, the part of the retiree's retirement allowance upon subsequent retirement payable with respect to creditable service rendered before the period of the retiree's previous retirement, or included in the computation of the retiree's previous retirement allowance, shall be equal to the retiree's previous retirement allowance with all of the provisions of the retirement payment plan elected by the retiree, with respect to such part of the retiree's retirement allowance.
2. (2) If the retiree completes three (3) years or more of creditable service after restoration to service, the retirement payment plan elected by the retiree shall be void. Upon subsequent retirement, the retiree shall again elect the payment plan under which the retiree's retirement benefits shall be paid. The benefits shall be recomputed under such plan based on the total service and salary credit accrued by the retiree both before and after the retiree's previous retirement, unless such recomputation results in the retiree receiving a lower retirement allowance than the retiree would have received under that plan prior to restoration to service. If the recomputation results in a lower allowance, then the retiree's retirement allowance under the payment plan elected upon subsequent retirement shall be computed pursuant to subdivision (c)(1). Notwithstanding this subsection (c) or any other law to the contrary, the retirement benefits of any retiree who previously elected the social security leveling retirement payment plan pursuant to § 8-36-601(c) shall not be recomputed pursuant to this subdivision (c)(2) unless the retiree pays to the retirement system the difference in benefits received under the social security leveling plan during the retiree's previous retirement and the regular retirement payment plan. Any such retiree who fails to make such payment shall have such retiree's benefits computed pursuant to subdivision (c)(1).

§ 8-36-803. Election not to reenroll in retirement system.

Should the reemployed retiree elect not to participate as provided in § 8-36-801, the retiree shall make no further contributions nor establish any additional service, but, upon final retirement, shall be entitled to the same benefits to which the retiree was entitled before restoration to service.

§ 8-36-804. Retirement credit not earned during benefit period.

No member shall be entitled to establish retirement credit for any period during which the member received a retirement allowance; however, should a member return to a position covered by the retirement system, the member shall be able to obtain retirement credit for the month in which the member returns to work even though the member shall keep the member's retirement benefit in the month that the member returns to work as provided in § 8-36-801(a).

§ 8-36-805. Reemployment permitted.

Any retired member or prior class member of the Tennessee consolidated retirement system, and any retiree of a local retirement fund receiving benefits in accordance with chapter 35, part 3 of this title may return to service temporarily in a position covered by the Tennessee consolidated retirement system and continue to draw such person's retirement allowance; provided, that all of the following conditions are met:
1. (1) During a twelve-month period, that person does not work more than one hundred twenty (120) days or the equivalent of one hundred twenty (120) days; or if employed as a teacher by an institution of higher learning, twenty-four (24) quarter credit hours or eighteen (18) semester credit hours;
2. (2) For temporary employment periods commencing on or after July 1, 2002, the entire compensation payable to the retired member for the work shall not exceed an amount equal to the sum of sixty percent (60%) of the annual full-time salary received by the retired member in the year immediately prior to the member's last paid day of covered employment, adjusted by five percent (5%) for each year since the member's last paid day of covered employment or by such other percentage as may be determined by the treasurer and the commissioner of human resources. In determining such percentage for any given year, the treasurer and the commissioner of human resources may consider any matter which, in their discretion, they deem relevant including, but not limited to, the condition of the labor market and the ability to fill the respective positions;
3. (3) The retired member may work in addition to the one hundred twenty (120) days prescribed above if employed as a substitute teacher in a public school system; provided, that the compensation payable to the retired member for such work does not exceed the rate of compensation set by the public school system for substitute teachers filling similar vacant positions, and the total salary paid to any such retired member for teaching during the twelve-month period does not exceed the pertinent pro rata share of average salary being paid at the institution in the academic discipline concerned;
4. (4) The retired member does not return to service until the expiration of at least sixty (60) calendar days from the member's effective date of retirement, unless such member returns to service in a position wherein the member renders no more than one-half (½) the hours the member was scheduled to work prior to retirement and the head of the employing entity certifies to the division of retirement that no other qualified persons are reasonably available to fill the position;
5. (5) The head of the employing entity or the head's designee:
  1. (A) Shall certify to the retirement division the member's name, period to be employed, number of days to be worked, compensation to be paid, and anticipated termination date. The certification shall be made in the manner prescribed by the retirement division and shall be filed annually, if applicable, and acknowledged by the member;
  2. (B) Shall submit a statement showing working hours and compensation for the retiree when requested; and
  3. (C) Shall be subject to audit to verify working hours and the compensation being paid;
6. (6) Should the period of return to service or the compensation therefor exceed that specified in this section, the person's monthly retirement allowance shall be reduced by the greater of the following:
  1. (A) Each day worked in excess of the limitation shall result in the loss of one-twentieth (⁄) of the monthly retirement allowance; or
  2. (B) Any compensation received in excess of the limitation shall reduce the retirement allowance payable by the ratio such compensation exceeds the limitation;
7. (7) The retirement system is authorized to obtain reimbursement for any retirement benefits overpaid as a result of a retiree's reemployment in excess of that permitted by this section, by deductions from a retiree's monthly benefit; and
8. (8) The retiree will not accrue any additional retirement credit during the retiree's period of reemployment.

§ 8-36-806. Assignment to duty of retired state judges — Compensation — Creditable service.

(a) The chief justice of the supreme court is empowered to assign any retired state judge to:
1. (1) Hold any court in the state whenever in the chief justice's judgment it is necessary to do so in order to relieve congested dockets; or
2. (2) Sit for judges who may be incapacitated or who may be absent because of illness or otherwise.
(b) A retired state judge holding court hereunder shall be paid, in addition to the retirement allowance for the period during which the retired state judge sits as judge, the difference between the retired state judge's retirement allowance for the period and the amount the retired state judge would receive for that period if the retired state judge were an active judge of the same court.
(c) The chief justice shall certify to the judicial cost accountant the date on which such service commences and the date on which such service terminates.
(d)
1. (1) Any retired judge assigned to duty under this section who has not attained the maximum creditable service shall be entitled to receive credit for services performed in such duty; provided, that:
  1. (A) Such judge elects to receive such credit by notice to the board; and
  2. (B) Such judge authorizes the deduction of the applicable contributions as set forth under chapter 37, part 2 of this title.
2. (2) Such service shall be added to the creditable service of such judge and, on July 1 of each year, such judge's benefits shall be adjusted according to the superseded system or of the retirement system hereby created as may be appropriate.
3. (3) Notwithstanding this subsection (d) to the contrary, any retired judge assigned to duty under this section on or after July 1, 2018, shall reenroll as an active member of the retirement system, make such contributions as are required for the retiree's position, and establish credit for the additional service.

§ 8-36-807. Assignment of certain retired attorneys general to sit as state judges — Jurisdiction — Compensation — Certification of dates of service.

(a) The chief justice of the supreme court shall likewise be empowered to assign and designate any retired attorney general to sit as judge and hold any court in the same manner, for the same purpose and such person shall have the same authority, duty and jurisdiction as any retired state judge is authorized to perform or exercise under § 8-36-806.
(b) A retired attorney general assigned and designated to sit and perform the duties and functions of a judge shall have served at least twenty-four (24) years as an attorney general prior to retirement, and jurisdiction shall be limited and restricted to habeas corpus cases and such cases as may arise under the Post Conviction Procedure Act, compiled in title 40, chapter 30, part 1.
(c) Such person's compensation hereunder shall include such person's retirement allowance, plus the difference between such person's retirement allowance and the amount that person would receive if that person were an active or regular judge of the same court.
(d) The chief justice shall certify to the administrative director of the courts the date on which such service commences, and the date on which such service terminates.

§ 8-36-808. Members of general assembly.

(a) Notwithstanding any law to the contrary, any retired member of the Tennessee consolidated retirement system or of any superseded system administered by the state of Tennessee who becomes a member of the general assembly after November 1, 1982, may continue service in the general assembly without loss or suspension of retirement benefits; provided, that:
1. (1) The retirement benefits are based on service and salary rendered in a capacity other than that as a general assembly member; and
2. (2) For any such retiree who is elected to the general assembly on or after July 1, 2018, the retiree shall reenroll as an active member of the retirement system, make such contributions as are required for the retiree's position, and establish credit for the general assembly service.
(b) Any retirement benefits accrued as a result of general assembly service will only be paid upon termination of services in the general assembly.
(c) Any general assembly member previously denied retirement credit:
1. (1) Under this section prior to its amendment by Acts 1985, ch. 449, §§ 22 and 23; or
2. (2) Under any other law governing the retirement system because such member was receiving a retirement benefit;
3. shall be entitled to claim retirement credit for general assembly service upon making application therefor to the retirement system and making any contributions such member would have made had such member been a member during such period plus interest as provided by § 8-37-214. Any adjustment in retirement benefits shall be effective at the beginning of the following month.

§ 8-36-809. Acceptance of employment as law enforcement officer without loss or suspension of retirement benefits. [Repealed effective June 30, 2025.]

(a) As used in this section, “law enforcement officer” means a police officer as defined in § 8-34-101, state police officer as defined in § 8-34-101, sheriff, or sheriff's deputy, whose primary responsibility is the prevention and detection of crime and apprehension of offenders.
(b) Notwithstanding a law to the contrary, a retired member of the Tennessee consolidated retirement system or a superseded system, or a local retirement fund established pursuant to chapter 35, part 3 of this title may be reemployed in a position covered by the retirement system as a law enforcement officer without the loss or suspension of the retired member's Tennessee consolidated retirement system benefits, provided that the following conditions are met:
1. (1) The retired member, as of the date of reemployment, must have successfully completed annual training required by title 38, chapter 8, part 1, and as required by the Tennessee peace officer standards and training commission;
2. (2) The retired member is not reemployed until the expiration of at least sixty (60) calendar days from the member's effective date of retirement;
3. (3) During the reemployment, the retirement benefit payable to the retired member must be reduced to seventy percent (70%) of the retirement allowance the member would have otherwise been entitled to receive;
4. (4) The retired member's reemployment must not exceed one (1) year; provided, that the retired member may be reemployed for additional one-year periods if the conditions contained in this section are met for each period of reemployment;
5. (5) To fund the liability created by this section, the retired member's new employer shall pay to the Tennessee consolidated retirement system during each period of reemployment the greater of:
  1. (A) A payment equal to the amount the employer would have contributed to the retirement system had the retired member been a member of the retirement system during the period of reemployment; or
  2. (B) An amount equal to five percent (5%) of the retired member's pay rate;
6. (6) The retired member is not eligible to accrue additional retirement benefits as a result of the member's reemployment;
7. (7) Upon the reemployment of the retired member, the retired member's new employer shall:
  1. (A) Notify the retirement system of the member's reemployment with any documents or information required by the retirement system; and
  2. (B) Certify in writing to the retirement system that the retired member has the requisite experience and training for the position to be filled and that no other qualified persons are available to fill the position; and
8. (8) The retiree is not drawing disability retirement benefits under chapter 36, part 5 of this title.
(c) This section is repealed on June 30, 2025.

§ 8-36-810. Reemployment without loss or suspension of retirement benefits.

Any retired member of the Tennessee consolidated retirement system or of any superseded system administered by the state of Tennessee may accept employment in a position covered under § 8-35-113(c) without loss or suspension of retirement benefits; provided, that:
1. (1) The retirement benefits are based on service and salary rendered in a position other than a position covered under § 8-35-113(c); and
2. (2) The retired member shall not be eligible to claim or accrue additional retirement benefits as a result of the employment.

§ 8-36-811. Reemployment as emergency medical services employee after retirement. [Repealed effective June 30, 2025.]

(a) As used in this section, “emergency medical services employee” means an individual who is licensed pursuant to the Emergency Medical Services Act of 1983, compiled in title 68, chapter 140, part 3, to provide emergency medical services, as defined in § 68-140-302.
(b) Notwithstanding another law to the contrary, a retired member of the Tennessee consolidated retirement system or of a superseded system, or of a local retirement fund established pursuant to chapter 35, part 3 of this title, may be reemployed in a position covered by the retirement system as an emergency medical services employee without the loss or suspension of the retired member's Tennessee consolidated retirement system benefits, if:
1. (1) The retired member, as of the date of reemployment, possesses a current, valid license issued by the emergency medical services board through the department of health to provide emergency medical services;
2. (2) The retired member is not reemployed until the expiration of at least sixty (60) calendar days from the member's effective date of retirement;
3. (3) During the reemployment, the retirement benefit payable to the retired member is reduced to seventy percent (70%) of the retirement allowance the member would have otherwise been entitled to receive;
4. (4) The retired member's reemployment does not exceed one (1) year; however, the retired member may be reemployed for additional one-year periods as long as the conditions contained in this section are met for each period of reemployment;
5. (5) To fund the liability created by this section, the retired member's new employer pays to the Tennessee consolidated retirement system during each period of reemployment the greater of:
  1. (A) A payment equal to the amount the employer would have contributed to the retirement system had the retired member been a member of the retirement system during the period of reemployment; or
  2. (B) An amount equal to five percent (5%) of the retired member's pay rate;
6. (6) The retired member does not accrue additional retirement benefits as a result of the member's reemployment;
7. (7) Upon the reemployment of the retired member, the retired member's new employer:
  1. (A) Notifies the retirement system of the member's reemployment with documents or information required by the retirement system; and
  2. (B) Certifies in writing to the retirement system that the retired member has the requisite experience and training for the position to be filled and that no other qualified persons are available to fill the position; and
8. (8) The retiree is not drawing disability retirement benefits under chapter 36, part 5 of this title.
(c) This section is repealed on June 30, 2025.

§ 8-36-812. Filing of federal wage reports on reemployed retired members.

Nothing in this part shall be interpreted to relieve the employer from filing the required employee wage reports with the appropriate federal agencies on behalf of retired members that are reemployed under this part.

§ 8-36-813 — 8-36-817. [Reserved]

§ 8-36-818. Reemployment without suspension of benefits.

Any retired member of the Tennessee consolidated retirement system or of any superseded system administered by the state of Tennessee may accept employment in a position covered under § 8-35-226(a) without loss or suspension of retirement benefits; provided, that:
1. (1) Such retirement benefits are based on service and salary rendered in a position other than a position covered under § 8-35-226(a); and
2. (2) The retired member shall not be eligible to accrue additional retirement benefits as a result of such employment.

§ 8-36-819. Limitations on switching reemployment provisions.

Within a one-year period, a retiree who is reemployed in a position covered by the Tennessee consolidated retirement system pursuant to this part must not:
1. (1) Switch from one (1) reemployment provision under this part to another; or
2. (2) Simultaneously be reemployed under more than one (1) reemployment provision under this part.

§ 8-36-820. Reemployment of retired members of the Tennessee consolidated retirement system — Requirements — Employment of resource officers — Repealer. [Repealed effective June 30, 2026.]

(a) Notwithstanding another law to the contrary, a retired member of the Tennessee consolidated retirement system or of a superseded system, or of a local retirement fund established pursuant to chapter 35, part 3 of this title, may be reemployed in a position covered by the retirement system without the loss or suspension of the retired member's retirement benefits; provided, that:
1. (1) The member retired on an unreduced service retirement allowance pursuant to chapters 35 and 36 of this title, including, but not limited to, §§ 8-35-255, 8-35-256, 8-36-201, and 8-36-906;
2. (2) The retired member is reemployed as a law enforcement officer with a law enforcement agency for the sole purpose of serving full-time as a school resource officer, as defined in § 49-6-4202, at a public school in an LEA as defined in § 49-1-103 that serves students in any of the grades kindergarten through twelve (K-12);
3. (3) The retired member is not reemployed until the expiration of at least sixty (60) calendar days from the member's effective date of retirement;
4. (4) The retired member's reemployment must not exceed one (1) year; provided, that the retired member may be reemployed for an additional one-year period if the conditions in this section are met for each period of reemployment. A retiree must not be reemployed pursuant to this section for more than two (2) years;
5. (5) To fund the liability created by this section, the retired member's new employer shall pay to the Tennessee consolidated retirement system, during each period of reemployment, a payment equal to the amount the employer would have contributed to the retirement system had the retired member been a contributing member of the retirement system during the period of reemployment;
6. (6) The retired member is not eligible to accrue additional retirement benefits as a result of the member's reemployment pursuant to this section;
7. (7) Upon the reemployment of the retired member, the retired member's new employer shall:
  1. (A) Notify the retirement system of the member's reemployment pursuant to this section and provide any documents or information required by the retirement system;
  2. (B) Certify, in writing, to the retirement system that the retired member has the requisite experience and training for the position to be filled and that no other qualified person is available to fill the position; and
  3. (C) Certify, in writing, to the retirement system that the employer is employing the retired member to serve full-time as a school resource officer at a public school in this state that serves students in any of the grades kindergarten through twelve (K-12); and
8. (8) The retiree is not drawing disability retirement benefits under chapter 36, part 5 of this title.
(b) If an LEA or multiple LEAs in the jurisdiction of a law enforcement agency have multiple full-time school resource officer positions available at one (1) or more public schools in the LEA or LEAs, then a law enforcement agency may employ a retired member for each position; provided, that the conditions of subsection (a) are met.
(c) This section is repealed on June 30, 2026.

§ 8-36-821. Employment as a teacher.

(a) Notwithstanding any law to the contrary, any person retired for at least one (1) year from the Tennessee consolidated retirement system, from any superseded system administered by the state, or from any local retirement fund pursuant to chapter 35, part 3 of this title may accept employment as a kindergarten through twelfth (K-12) grade teacher without loss or suspension of retirement benefits under the following conditions:
1. (1) The retired member holds any teacher's professional license or certificate as may be required in title 49, chapter 5;
2. (2) [Deleted by 2023 amendment.]
3. (3) [Deleted by 2023 amendment.]
4. (4) The retired member shall not be entitled to tenure status as provided in title 49, chapter 5, part 5;
5. (5) Such retired member shall not be eligible to accrue additional retirement benefits, accrue leave or receive medical insurance coverage as a result of such employment; and
6. (6) The retired member shall not receive automatic credit for years of experience in determining compensation; provided, that the salary paid to such retired member for performing the teaching services shall not be less than the rate of compensation set by the school system for teachers with no experience filling similar positions, nor shall such salary exceed eighty-five percent (85%) of the rate of compensation set by the school system for teachers with comparable training and years of experience filling similar positions. Once such compensation is set, the retired member shall not be entitled to supplements paid under the [former] career ladder program [repealed].
7. (7) [Deleted by 2023 amendment.]
(b) [Deleted by 2023 amendment.]

§ 8-36-822. Reemployment as teacher, substitute teacher, or bus driver after retirement.

(a) Notwithstanding another law to the contrary, a retired member of the Tennessee consolidated retirement system or of a superseded system, or of a local retirement fund established pursuant to chapter 35, part 3 of this title may be reemployed in a position covered by the retirement system without the loss or suspension of the retired member's Tennessee consolidated retirement system benefits; provided, that the following conditions are met:
1. (1) The retired member is reemployed as a kindergarten through twelfth (K-12) grade teacher as defined in § 8-34-101, as a kindergarten through twelfth (K-12) grade substitute teacher, or as a kindergarten through twelfth (K-12) grade school bus driver;
2. (2) The retired member is not reemployed until the expiration of at least sixty (60) calendar days from the member's effective date of retirement;
3. (3) During the reemployment, the retirement benefit payable to the retired member must be reduced to seventy percent (70%) of the retirement allowance the member would have otherwise been entitled to receive;
4. (4) [Deleted by 2023 amendment.]
5. (5) To fund the liability created by this section, the retired member's new employer shall pay to the Tennessee consolidated retirement system during each period of reemployment the greater of:
  1. (A) A payment equal to the amount the employer would have contributed to the retirement system had the retired member been a member of the retirement system during the period of reemployment; or
  2. (B) An amount equal to five percent (5%) of the retired member's pay rate;
6. (6) The retired member is not eligible to accrue additional retirement benefits as a result of the member's reemployment;
7. (7) Upon the reemployment of the retired member, the retired member's new employer shall:
  1. (A) Notify the retirement system of the member's reemployment with documents or information required by the retirement system; and
  2. (B) [Deleted by 2023 amendment.]
8. (8) The retiree is not drawing disability retirement benefits under chapter 36, part 5 of this title.
(b) [Deleted by 2023 amendment.]

§ 8-36-823. Employees of subsidiaries of an association or independent contractors.

An association whose employees participate in the Tennessee consolidated retirement system under § 8-35-209 shall annually submit to the board of trustees a list of retired members of the Tennessee consolidated retirement system who are assigned to perform any functions or duties for the association as an employee of a subsidiary of the association or an independent contractor.

Part 9 Hybrid Retirement Plan for State Employees and Teachers

§ 8-36-901. Short title.

This part shall be known and may be cited as the “Hybrid Retirement Plan for State Employees and Teachers.”

§ 8-36-902. Part definitions.

(a) As used in this part, unless the context otherwise requires:
1. (1) “County judge” means a judge of a general sessions court, probate judge, or judge of a juvenile and/or domestic relations court;
2. (2) “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;
3. (3) “Defined contribution component” means the portion of the hybrid plan that provides a defined contribution plan within the profit sharing and/or salary reduction plan established under chapter 25, part 3 of this title;
4. (4) “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.S.C.) that are applicable to governmental plans;
5. (5) “Participant” means any state employee, teacher, or political subdivision employee participating in the hybrid plan;
6. (6) “Political subdivision” means any entity authorized to participate in the retirement system pursuant to chapter 35, part 2 of this title;
7. (7) “Political subdivision employee” means any person in the employ of a political subdivision, including a county judge, but does not include any person performing services on a contractual or percentage basis;
8. (8) “State employee” means any person who is a state official, including members of the general assembly, the attorney general and reporter, district attorneys general, state judges, and district public defenders, or any person who is employed in the service of and whose compensation is payable by the state, or any person who is employed by the state whose compensation is paid in whole or in part from federal or other funds. “State employee” also means any person who is employed in the service of and whose compensation is payable by a public institution of higher education, or any person who is employed by a public institution of higher education whose compensation is paid in whole or in part from federal or other funds. For purposes of this part, “state employee” does not include the governor or any person employed on a contractual or percentage basis. Any retirement allowances payable in respect of a former governor shall be as prescribed by chapter 39, part 2 of this title in lieu of any other benefits to which the governor may otherwise be entitled under chapters 34-37 of this title;
9. (9) “State judge” has the meaning set forth in § 8-34-101; and
10. (10) “Teacher” has the meaning set forth in § 8-34-101(49)(B), but does not include any person employed by a public institution of higher education.
(b) Terms used in this part that are not otherwise defined shall have the same meaning ascribed to them in chapters 34-37 of this title.

§ 8-36-903. Persons eligible to participate in hybrid retirement plan — Determination of eligibility — Continuing membership in optional retirement program — Transfer to hybrid plan — Application of provisions of the Tennessee consolidated retirement system.

(a) Notwithstanding any other law to the contrary and except as provided in this section, any person otherwise eligible to participate in the retirement system or in the optional retirement program established in the Optional Retirement Program for Employees of Public Institutions of Higher Education, compiled in chapter 25, part 2 of this title who enters service as a state employee or teacher on or after July 1, 2014, shall participate in the hybrid plan established under this part; provided, however, that any person who enters service with a state-supported institution of higher education on or after July 1, 2014, and who is exempt from the Fair Labor Standards Act (29 U.S.C. § 201 et seq.), may elect membership in the optional retirement program as provided in § 8-36-923 in lieu of the hybrid plan. In all cases of doubt, the state treasurer shall determine whether the person is eligible to participate in the optional retirement program.
(b) Any state employee or teacher who is a member of the retirement system or of the optional retirement program established in chapter 25, part 2 of this title on June 30, 2014, shall continue membership in the retirement system pursuant to the terms of chapters 34-37 of this title or in the optional retirement program pursuant to the terms of chapter 25, part 2 of this title, as applicable, that were in effect on June 30, 2014. Any person who reenters service as a state employee or teacher on or after July 1, 2014, having previously served as a state employee or teacher prior to July 1, 2014, and who has not otherwise lost membership in the retirement system pursuant to § 8-35-104(a)(1) or (a)(2) or in the optional retirement program shall continue membership in the retirement system pursuant to the terms of chapters 34-37 of this title or in the optional retirement program pursuant to the terms of chapter 25, part 2 of this title, as applicable, that were in effect on June 30, 2014. A person loses membership in the optional retirement program by either annuitizing that person's entire account, rolling the person's entire account balance over to another plan, or by taking a distribution of the person's entire account balance.
(c)
1. (1) Except as provided in subdivision (c)(6), membership in the hybrid plan or the optional retirement program, as applicable, shall not be required for any part-time state employee or part-time teacher who would otherwise be covered under this part, or for any state employee who has optional membership in the retirement system pursuant to chapters 34-37 of this title.
2. (2) Notwithstanding any other law to the contrary and except as provided in subdivision (c)(6), any person who becomes a part-time state employee or a part-time teacher on or after July 1, 2016, and who otherwise would be covered under this part, shall upon initial date of hire file an irrevocable election to become or not to become a participant in the hybrid plan or in the optional retirement program described in § 8-36-923, as applicable. Any person serving as a part-time state employee or part-time teacher on June 30, 2016, and who otherwise would be covered under this part, but who did not elect to participate in the hybrid plan or in the optional retirement program described in § 8-36-923, shall, by no later than October 31, 2016, file an irrevocable election to become or not to become a participant in the hybrid plan or in the optional retirement program described in § 8-36-923, as applicable. This subdivision (c)(2) shall not be construed to prohibit an eligible employee from making the elections authorized in chapter 25, part 2 of this title.
3. (3) Notwithstanding this subsection (c), § 8-35-109, or any other law to the contrary, any person who becomes a state judge, district attorney general, or member of the general assembly on or after July 1, 2016, and who has not otherwise maintained membership in the retirement system based on previous service as a state employee or teacher, shall, upon the initial date of taking office, file an irrevocable election to become or not to become a participant in the hybrid plan. A person serving as a state judge, district attorney general, or member of the general assembly on June 30, 2016, and who is not a participant in the hybrid plan or who has not otherwise maintained membership in the retirement system based on previous service as a state employee or teacher, shall, by no later than October 31, 2016, file an irrevocable election to become or not to become a participant in the hybrid plan.
4. (4) Notwithstanding any other law to the contrary and except as provided in subdivision (c)(6), any member of the state election commission who has not otherwise maintained membership in the retirement system based on previous service as a state employee or teacher, shall, on the first day following completion of five (5) years of service on the commission, file an irrevocable election to become or not to become a participant in the hybrid plan. Any member of the state election commission who has completed a minimum of five (5) years of service on the commission as of June 30, 2016, and who is not a participant in the hybrid plan or who has not otherwise maintained membership in the retirement system based on previous service as a state employee or teacher, shall, by no later than October 31, 2016, file an irrevocable election to become or not to become a participant in the hybrid plan.
5. (5) The elections provided for in this subsection (c) shall be made in the manner prescribed by the retirement system and shall be filed with the retirement system. The elections provided for in this subsection (c) shall not include any option for the employee to have a cash or deferred election right with respect to designated employee contributions, and the employee contributions shall be picked up in accordance with § 8-36-904(b).
6. (6) Notwithstanding this subsection (c), any current or former member of the retirement system or of a superseded system who accepts, or is elected to, a position on or after July 1, 2018, for which membership in the hybrid plan is otherwise optional pursuant to this subsection (c) shall become a member of the hybrid plan as a condition of employment. This subdivision (c)(6) shall not apply to retired members of the retirement system or of a superseded system who return to service in a position covered by the retirement system as provided in § 8-36-805, § 8-36-810, § 8-36-818, or § 8-36-821.
(d) Any teacher as defined in § 8-34-101(49)(B) who is a member of the retirement system pursuant to § 8-35-101 shall have the option to transfer from the retirement system to the hybrid plan on a prospective basis; provided, that allowing such choice meets all applicable state and federal requirements, including § 414(h) of the Internal Revenue Code (26 U.S.C. § 414(h)), that are necessary for the retirement system to maintain its status as a qualified plan under the Internal Revenue Code. The election to transfer shall be made in the manner prescribed by the retirement system and filed with the retirement system. Any such election shall become effective on the first day of the month next following the month the election is filed with the retirement system, and shall be irrevocable. The actuarial value of accrued benefits earned prior to the effective date of the transfer shall be determined under the applicable provisions of the retirement system in effect on the date of the transfer. The teacher shall thereafter be subject to the applicable provisions of this part for all service rendered and compensation received by the teacher as a teacher with any elementary or secondary Tennessee public school system or as a future state employee.
(e) All provisions of chapter 25, part 2 and of chapters 34-37 of this title that are not inconsistent with this part shall continue to apply, as applicable, to participants in the hybrid plan or the optional retirement program.

§ 8-36-904. Requirement to make employee contributions to defined benefit component of the plan — Employer to pick up employee contributions.

(a) Participants in the hybrid plan shall be excluded from the noncontributory provisions of § 8-34-206 and shall be required to make employee contributions to the defined benefit component of the plan equal to five percent (5%) of the participant's earnable compensation.
(b) Each employer shall pick up the employee contributions required under this section. The contributions so picked up shall be treated as employer contributions pursuant to § 414(h) of the Internal Revenue Code (26 U.S.C. § 414(h)) in determining tax treatment under said Code. 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 hybrid plan benefits trust account created pursuant to § 8-36-920.

§ 8-36-905. Establishing service credit under Tennessee consolidated retirement system.

Any participant who desires to establish service credit pursuant to chapters 34-37 of this title shall pay employee contributions to the defined benefit component of the plan equal to the amount of the employee contributions required under the terms of the hybrid plan as they existed at the time the service was established, plus interest at the rate provided in § 8-37-214. In the case of refunded service, the amount shall be equal to the total amount that was previously withdrawn, plus interest at the rate provided in § 8-37-124. Any service established or reestablished pursuant to this section shall be credited under the terms of the hybrid plan as they existed at the time the service was established and not at the time the service was rendered.

§ 8-36-906. Eligibility for service retirement allowance from defined benefit component of plan.

(a)
1. (1) Except as otherwise provided in this section and in § 8-36-921, any participant shall be eligible for a service retirement allowance from the defined benefit component of the plan upon attainment of sixty-five (65) years of age and completion of five (5) years of creditable service, or upon attainment of a combination of age and years of creditable service as to equal ninety (90).
2. (2) Any participant serving in a position covered by the mandatory retirement provisions of § 8-36-205 shall be eligible for a service retirement allowance from the defined benefit component of the plan upon attainment of sixty (60) years of age and upon completion of five (5) years of creditable service, or at any age upon completion of thirty (30) years of creditable service. Further, any participant who has creditable service in a position covered by the mandatory retirement provisions of § 8-36-205 and who is entitled to the supplemental bridge benefit pursuant to § 8-36-211 shall be eligible for a service retirement allowance from the defined benefit component of the plan upon attainment of fifty-five (55) years of age and upon completion of twenty-five (25) years of creditable service; provided, that the service rendered while the participant was in a position covered by the mandatory retirement provisions shall be independent of all other creditable service for the purpose of calculating the participant's retirement allowance under § 8-36-907.
(b) Any participant serving as the attorney general and reporter, a district attorney general, district public defender, or state judge shall be eligible for a service retirement allowance from the defined benefit component of the plan upon attainment of sixty (60) years of age and upon completion of eight (8) years of creditable service, or upon the attainment of fifty-five (55) years of age and upon completion of twenty-four (24) years of creditable service.
(c) Any participant serving as a member of the general assembly shall be eligible for a service retirement allowance from the defined benefit component of the plan upon attainment of sixty (60) years of age and upon completion of four (4) years of creditable service.
(d) A member in the defined benefit component of the hybrid plan shall be one hundred percent (100%) vested in the member's service retirement allowance upon attaining the normal retirement age of sixty-five (65) with at least five (5) years of creditable service, except that if such member is:
1. (1) Covered by the mandatory retirement provisions of § 8-36-205, then the normal retirement age of sixty (60) with at least five (5) years of creditable service;
2. (2) Serving as the attorney general and reporter, a district attorney general, district public defender, or state judge, then the normal retirement age of sixty (60) with eight (8) years of creditable service; or
3. (3) A member of the general assembly, then the normal retirement age of sixty (60) with four (4) years of creditable service.
(e) A member who leaves the service of the employer before reaching normal retirement age but after completing at least five (5) years of creditable service shall have a vested right to accrued benefits from the plan.
(f) A member shall be one hundred percent (100%) vested in the member's accumulated contributions at all times. A member in the hybrid plan shall be one hundred percent (100%) vested in the employee and employer contributions under the defined contribution component of the hybrid plan at all times.
(g) In the event of a full or partial termination of, or a complete discontinuance of employer contributions to the plan, the accrued benefits of the affected members under the plan shall be one hundred percent (100%) vested and nonforfeitable to the extent funded and to the extent required by federal law.
(h) In conformity with § 401(a)(8) of the Internal Revenue Code (26 U.S.C.§ 401(a)(8)), any forfeitures of benefits by members or former members shall not be used to pay benefit increases. However, such forfeitures shall be used to reduce employer contributions.

§ 8-36-907. Service retirement allowance as an annuity.

(a) Except as provided in §§ 8-36-908 and 8-36-909, the service retirement allowance payable to a participant under § 8-36-906 shall consist of a member annuity which shall be the actuarial equivalent of the participant's accumulated contributions in the defined benefit component of the plan at retirement, plus a state annuity which, when added to the member annuity, shall be equal to:
1. (1) In the case of a participant, other than those participants described in subdivision (a)(2), one percent (1.0%) of the participant's average final compensation, multiplied by the number of years of creditable service, unless reduced in accordance with § 8-36-921 or § 8-36-922; and
2. (2) In the case of a participant who is the attorney general and reporter, a district attorney general, district public defender, or state judge, one and six-tenths percent (1.6%) of the participant's average final compensation, multiplied by the number of years of creditable service, unless reduced in accordance with § 8-36-921 or § 8-36-922.
(b) Section 8-36-124 shall not apply in determining the retirement allowance payable under this section.

§ 8-36-908. Determination of the amount of annual service retirement allowance.

(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).
(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).

§ 8-36-909. Minimum service retirement allowance payable under the defined benefit component of the plan.

(a) Notwithstanding § 8-36-209 or any other law to the contrary, there shall be no minimum service retirement 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.
(b)
1. (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. (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. (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 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. (1)
  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).
  2. (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. (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. (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. (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.

§ 8-36-910. Early service retirement allowance.

(a) Except as otherwise provided in this section and in § 8-36-921, any participant shall be eligible for an early service retirement allowance from the defined benefit component of the plan upon attainment of sixty (60) years of age and completion of five (5) years of creditable service, or upon attainment of a combination of age and years of creditable service as to equal eighty (80).
(b) Any participant serving in a position covered by the mandatory retirement provisions of § 8-36-205 shall be eligible for an early service retirement allowance from the defined benefit component of the plan upon attainment of fifty-five (55) years of age and upon completion of five (5) years of creditable service, or at any age upon completion of twenty-five (25) years of creditable service.
(c) Any participant serving as the attorney general and reporter, a district attorney general, district public defender, state judge, or as a member of the general assembly shall not be eligible for an early service retirement allowance under the defined benefit component of the plan. Instead, such participants shall be eligible for a retirement allowance from the defined benefit component of the plan upon meeting the applicable conditions set forth in § 8-36-906.

§ 8-36-911. Computation of early service retirement allowance.

(a) Except as provided in § 8-36-912, the early service retirement allowance payable to a participant under § 8-36-910 shall be computed as a service retirement allowance in accordance with § 8-36-907, but reduced by an actuarially determined factor as set by the board from time to time.
(b) Section 8-36-124 shall not apply in determining the retirement allowance payable under this section. Further, § 8-36-211(a)(2) shall not apply in calculating the supplemental bridge benefit for participants covered by the mandatory retirement provisions of § 8-36-205(a)(1) who retire on an early service retirement allowance pursuant to this section, nor shall § 8-36-211(b)(2) apply in calculating the supplemental bridge benefit for participants covered by the mandatory retirement provisions of § 8-36-205(a)(2) who retire on an early service retirement allowance pursuant to this section and whose employer adopted this part. Instead, the supplemental bridge benefit shall be equal to three-fourths of one percent (0.75%) of the participant's average final compensation, multiplied by the participant's years of creditable service when the participant was in a position covered by the mandatory retirement provisions of § 8-36-205, but reduced by an actuarially determined factor as set by the board from time to time.

§ 8-36-912. Computation of minimum early service retirement allowance.

The minimum early service retirement allowance payable under the defined benefit component of the plan pursuant to § 8-36-911 shall be the minimum service retirement allowance computed in accordance with § 8-36-909 on the basis of the participant's creditable service at the time of early retirement, reduced by an actuarially determined factor as set by the board from time to time. Section 8-36-124 shall not apply in determining the retirement allowance payable under this section.

§ 8-36-913. Applying for a disability retirement benefit.

Any participant may apply for a disability retirement benefit pursuant to the provisions and criteria set forth in part 5 of this chapter. All of part 5 of this chapter shall be applicable, except that the disability retirement allowance shall be equal to nine-tenths (⁄) of a service retirement allowance as computed in § 8-36-907 and as may be further reduced in accordance with part 5 of this chapter. Sections 8-36-124 and 8-36-209 shall not apply in determining any disability retirement benefit allowance payable under this section. The minimum disability retirement allowance, if applicable, shall be computed in accordance with § 8-36-909.

§ 8-36-914. Determining the retirement allowance payable to a deceased participant's surviving spouse.

Sections 8-36-109(b)(1)(C) and 8-36-123(a)(3) shall not apply in determining the retirement allowance payable under § 8-36-109(b) or under § 8-36-123(a) to a deceased participant's surviving spouse, if any. Instead, the retirement allowance payable under such sections shall be reduced by an actuarially determined factor as set by the board from time to time.

§ 8-36-915. Administration of the defined benefit component of the hybrid plan.

Except as otherwise provided in this part, administration of the defined benefit component of the hybrid plan shall be governed by chapters 34-37 of this title and administration of the optional retirement program shall be governed by chapter 25; provided, however, that any reference in chapters 34-37 of this title to the eligibility requirements for an early or service retirement allowance under the hybrid plan shall for purposes of this part mean the eligibility requirements set forth in §§ 8-36-906 and 8-36-910. Any reference in chapters 34-37 of this title to the formula for computing an early or service retirement allowance, or for computing a disability retirement allowance under the hybrid plan shall for purposes of this part mean the applicable formula as set out in §§ 8-36-907 – 8-36-909 and §§ 8-36-911 – 8-36-913.

§ 8-36-916. Defined contribution component of the hybrid plan.

(a) There is established the defined contribution component of the hybrid plan that provides a defined contribution plan within the profit sharing and/or salary reduction plan established under chapter 25, part 3 of this title and as supplemented pursuant to this part.
(b)
1. (1) Any person who becomes a participant in the hybrid plan shall have an initial two percent (2%) of that participant's compensation automatically deferred into the defined contribution component of the plan during the initial year of participation, unless such participant files with that participant's employer a notice of that participant's election not to contribute. Any notice of non-election shall be made in such format and through such medium as prescribed by the retirement system and must be filed with that participant's employer by no later than thirty (30) calendar days from the date of the notice of automatic deferral letter.
2. (2) All contributions made by or on behalf of a participant to the defined contribution component of the plan who does not file a notice of non-election within the prescribed period shall be directed to the default option established by the trustees of the profit sharing and/or salary reduction plan established under chapter 25, part 3 of this title until such time as the participant selects a different investment option or options. Notwithstanding any provision of this section or any other law to the contrary, future deferrals may be cancelled or adjusted at any time by a participant provided the participant notifies that participant's employer in such format and through such medium as may be prescribed by the retirement system at least one (1) month before the payday on which the cancellation or change is to be effective; provided, however, that any adjustment in the deferrals, other than a cancellation, cannot cause the amount of the deferrals to be less than twenty dollars ($20.00) per month, or if the employee is paid twice a month, ten dollars ($10.00) semimonthly, or such other lower amount as may be established under chapter 25, part 3 of this title. In addition, any adjustment in the deferrals cannot cause the amount of the deferrals to exceed the maximum allowed under the Internal Revenue Code (26 U.S.C.).
3. (3) Any participant who affirmatively declines to make employee deferrals after the first automatic enrollment contribution was made, may make an election to withdraw that participant's entire automatic enrollment contribution. This election must be submitted no later than ninety (90) calendar days after the payroll date in which the first automatic enrollment contribution is made on behalf of the participant. The amount of the distribution shall be the value of the automatic enrollment contributions plus or minus investment gains or losses as of the date the distribution is processed. Automatic enrollment contributions made after such date shall remain in the defined contribution component of the plan and shall be subject to the plan's regular distribution rules. Further, a participant who has made an election to withdraw and who thereafter leaves employment and is then rehired by the same employer as defined below or, by the same political subdivision in the case of a political subdivision employee, before a twelve (12) continuous month absence shall not be permitted to make another election to withdraw that participant's automatic enrollment contribution. For purposes of this subdivision (b)(3), “same employer” means the employer for which the person last worked prior to separation from covered employment. All departments, agencies and instrumentalities in the executive, legislative and judicial branches of state government, including public institutions of higher education, shall be deemed one and the same employer. All public schools within the Tennessee public school system, except for public institutions of higher education, shall be deemed one and the same employer. Notwithstanding subsection (d) below, the employer matching contributions described in subsection (c) that are attributable to the distribution of the automatic enrollment contributions shall be forfeited and placed in a forfeiture account. Amounts in the forfeiture account shall be used in the manner provided in the plan document established for the profit sharing and/or salary reduction plan established under chapter 25, part 3 of this title. The employer matching contributions described in subsection (c) shall not be made if a permissible withdrawal is taken pursuant to this subsection (b) before the date the matching contribution is allocated.
4. (4) The initial two percent (2%) automatic enrollment contribution described in this subsection (b) shall be subject to a percentage annual increase thereafter if provided for in the plan document established for the profit sharing and/or salary reduction plan established under chapter 25, part 3 of this title.
5. (5) The automatic deferrals shall be contributed on a pre-tax basis and shall continue until the participant affirmatively elects otherwise.
(c)
1. (1) Notwithstanding § 8-35-111, each employer shall make a mandatory contribution to the defined contribution component of the plan on behalf of each of its employees participating in the hybrid plan, regardless of whether the employees make any employee contributions pursuant to subsection (b). Employer contributions for kindergarten through twelfth (K-12) grade teachers shall be paid by the respective local education agency for which the teachers are employed. The amount of the contribution shall be five percent (5%) of the respective employee's salary. The mandatory contributions required in this subdivision (c)(1) are in addition to any match provided for in § 8-25-303 to participants who otherwise participate in a profit sharing or salary reduction plan under chapter 25, part 3 of this title; provided, that the total combined employer contributions to all defined contribution plans, with the exception of contributions made to a tax deferred retirement plan under § 457(f) of the Internal Revenue Code (26 U.S.C. § 457(f)), on behalf of a single employee shall not exceed seven percent (7%) of the employee's salary and must conform to all applicable laws, rules, and regulations of the internal revenue service governing profit sharing and salary reduction plans for governmental employees. If the employer contributions to all such plans combined exceed such amount, the employer shall reduce its contributions to any other defined contribution plans such that the contributions to the defined contribution component of the plan and to the other plans do not exceed the limit.
2. (2) Each participant who affirmatively elects to make employee deferrals shall select the investment option or options in which the contributions made by or on behalf of such participant are to be directed. Should a participant fail to select an investment option, the contributions attributable to the participant shall be directed to the default option established for the defined contribution component of the plan until such time as the person selects a different investment option or options.
(d) The total amount contributed by the employee and employer under this section shall vest to the participant's benefit immediately.
(e) The state treasurer may offer financial educational services for participants in the defined contribution component of the hybrid plan. The services may include, but are not limited to, offering financial planning guidance on matters such as investment diversification, investment risks, investment costs, asset allocation, and other topics regarding investing, generally.

§ 8-36-917. Reemployment in a covered position

Except as otherwise provided in part 8 of this chapter, any retired participant who returns to service in a position covered by the retirement system shall have such participant's retirement allowance under the defined benefit component of the plan suspended while so employed. The participant shall be subject to §§ 8-36-801 – 8-36-804; provided, however, that reemployment in a covered position shall have no effect on a payment under the defined contribution component of the plan.

§ 8-36-918. Forfeiture of retirement benefits due to conviction of felony arising out of employment.

(a) Notwithstanding § 8-35-124 or any other law to the contrary, an employee or elected or appointed official of this state, an employee or elected or appointed official of any political subdivision thereof, or a teacher employed with a local education agency who is convicted in any state or federal court of a felony arising out of that employee's or official's employment or official capacity constituting malfeasance in office shall forfeit that person's retirement benefits under the defined benefit component of the plan.
(b) Upon initial conviction, or upon a plea of guilty or nolo contendere, any person subject to this section shall:
1. (1) Have the employee's or official's benefit stopped immediately, if the employee or official is receiving a benefit under the defined benefit component of the plan; and
2. (2) Receive a refund of the employee contributions and interest credited to the employee's or official's account, less any benefits received, unless the person elected to have a monthly retirement allowance paid upon such person's death in accordance with subsection (e).
(c) The employing agency is responsible for immediately notifying the administrator of the retirement system of the conviction of any person subject to this section.
(d) In the event the conviction of such person is later overturned in any court and such person is acquitted, or is granted a full pardon, the person shall be restored to all rights, privileges and benefits as if the conviction had never occurred.
(e) Any person convicted of a felony as provided in this section may elect, within six (6) months of the person's conviction, to have a monthly retirement allowance paid to whomever that person had designated as beneficiary on file with the retirement system at the time of that person's conviction; provided, that such beneficiary must have been that person's spouse or child at the time of that person's conviction. The amount of any allowance payable hereunder shall be equal to the retirement allowance which would have been payable under the defined benefit component of the plan had the person retired under an effective election of Option 1 as provided in part 6 of this chapter. The benefits shall be paid to such beneficiary following the person's death and upon meeting all other eligibility requirements applicable to a beneficiary.

§ 8-36-919. Membership in the hybrid plan for employees of political subdivisions electing to participate.

(a)
1. (1) A political subdivision that is not otherwise participating under any of the plans afforded under chapters 34-37 of this title may, by resolution legally adopted and approved by its chief governing body and in accordance with the procedure set out in § 8-35-201, authorize its employees in all of its departments or instrumentalities to become eligible to participate in the hybrid plan. Membership in the hybrid plan for employees of political subdivisions that are admitted into the hybrid plan pursuant to this subsection (a) shall be:
  1. (A) Optional for all employees in the service of the political subdivision on the date the approval is given, except as provided in subdivisions (a)(2) and (3); and
  2. (B) Mandatory for all eligible employees entering the service of the political subdivision thereafter; provided, however, and except as provided in subdivision (a)(3), membership shall not be required for any part-time employee who would otherwise be covered under this part, or for any employee who has optional membership in the retirement system pursuant to chapters 34-37 of this title. Any election made by an employee to become a participant shall be irrevocable and such employee shall thereafter be subject to the terms and conditions of the hybrid plan.
2. (2)
  1. (A) If the political subdivision continues to maintain a preexisting pension plan that is closed to new membership on the date of the political subdivision's participation date in the hybrid plan, the political subdivision may, by resolution duly adopted by its chief legislative body, authorize its current employees who participate in the preexisting plan the choice of maintaining membership in the preexisting plan or joining the hybrid plan; provided, that allowing such choice meets all applicable state and federal requirements, including § 414(h) of the Internal Revenue Code (26 U.S.C. § 414(h)), that are necessary for the hybrid plan to maintain its status as a qualified plan under the Internal Revenue Code.
  2. (B) Notwithstanding § 8-36-904 or any other law to the contrary, any political subdivision described in subdivision (a)(2)(A) shall set the employee contribution rate for its employees at the same rate as required under the political subdivision's preexisting plan. The political subdivision shall submit to the retirement system a duly executed adoption resolution as provided in subdivision (a)(1) prior to the political subdivision's effective date of participation in the hybrid plan, which must be approved by the board of trustees. If the employee contribution rate is set at an amount less than five percent (5%) of the employees' earnable compensation, the four percent (4%) employer contribution rate described in § 8-36-922 shall be increased by the percentage difference between five percent (5%) and the employee contribution rate.
3. (3)
  1. (A) Except as provided in subdivision (a)(3)(B), any current or former member of the retirement system or of a superseded system who accepts, or is elected to, a position on or after July 1, 2018, for which membership in the hybrid plan is otherwise optional pursuant to subdivision (a)(1) shall become a member of the hybrid plan as a condition of employment.
  2. (B) Subdivision (a)(3)(A) shall not apply to an employee having optional membership who was employed by a political subdivision on the date the political subdivision elected to extend retirement coverage to the employee, unless the employee was a member or former member of a preexisting defined benefit plan maintained by that employer. Subdivision (a)(3)(A) shall also not apply to retired members of the retirement system who return to service in a position covered by the retirement system as provided in § 8-36-805, § 8-36-818, or § 8-36-821.
4. (4) Any person who is employed by a political subdivision that is admitted into the hybrid plan on or after July 1, 2016, and who has optional membership pursuant to this section, shall, upon the date approval is given, file an irrevocable election to become or not to become a participant in the hybrid plan. Any employee of a political subdivision who had optional membership in the hybrid plan on June 30, 2016, and who has not elected to participate, shall, by no later than October 31, 2016, file an irrevocable election to become or not to become a participant in the hybrid plan. The elections provided for in this subdivision (a)(4) shall be made in the manner prescribed by the retirement system and shall be filed with the retirement system. The elections provided for in this subdivision (a)(4) shall not include any option for the employee to have a cash or deferred election right with respect to designated employee contributions and the employee contributions shall be picked up in accordance with § 8-36-904(b).
(b) Except as otherwise specifically provided in this part, any political subdivision electing to participate in the hybrid plan pursuant to this section shall participate in the provisions of the plan as they exist for state employees on the date of participation or at any other given time pursuant to any changes made pursuant to §§ 8-36-921 and 8-36-922; provided, however, that any subsequent changes that increase the liability of a participating political subdivision within the meaning of Constitution of Tennessee, Article II, § 24 shall not apply to the political subdivision unless the chief governing body of the political subdivision agrees to such changes and accepts the liability therefore. Notwithstanding this subsection (b), the following provisions shall remain optional to political subdivisions:
1. (1) Part-time, seasonal, or temporary employee service credit in accordance with § 8-34-621; and
2. (2) Mandatory retirement in accordance with § 8-36-205.
(c) A political subdivision already participating in the retirement system under one of the additional plans afforded under chapters 34-37 of this title may change from that plan to the hybrid plan on a prospective basis by passage of a resolution pursuant to subsection (a) above. Any such resolution shall set forth the effective date of the change; provided, that the date shall be on the first day of any quarter following a minimum of six (6) months' notice to the retirement system. The actuarial value of accrued benefits earned by employees of the political subdivision prior to the effective date of the change shall remain an enforceable right and may not be reduced or otherwise forfeited except by the consent of the employee or in accordance with § 8-35-124.
(d) Any political subdivision that participates in the hybrid plan shall have the right to change from the hybrid plan to any of the additional plans afforded to the political subdivision under chapters 34-37. Any such change shall be in accordance with and subject to the terms and conditions of §§ 8-35-253 – 8-35-256. In addition, any political subdivision that participates in the hybrid plan shall be subject to the withdrawal provisions of §§ 8-35-211 and 8-35-218. Benefits accrued under the hybrid plan or under any of the plans adopted pursuant to §§ 8-35-253 – 8-35-256 shall be in accordance with 26 U.S.C. § 411. Notwithstanding this section or any other law to the contrary, the cost-of-living provisions of § 8-36-701 shall not be deemed an accrued benefit and may be subject to change pursuant to this section and §§ 8-36-921 and 8-36-922.
(e) Notwithstanding this section or any other law to the contrary, a political subdivision may authorize its county judges to participate in the hybrid plan under the same provisions governing state judges as set forth in this part provided the political subdivision authorizes and pays for the cost of an actuarial study to determine the liability associated with such membership and, following review of the cost of such membership, the chief governing body of the political subdivision passes a resolution authorizing the membership and accepting the liability therefor. In addition, a political subdivision may authorize its county judge to participate in the hybrid plan under this subsection (e) without extending retirement coverage to its other employees provided the political subdivision authorizes and pays for the cost of an actuarial study to determine the liability associated with such membership and, following review of the cost of such membership, the chief governing body of the political subdivision passes a resolution authorizing the membership and accepting the liability therefor. The retirement system shall not be liable for the payment of retirement allowances or other payments on account of such membership for which reserves have not been previously created from funds contributed by the political division and/or its county judges. It is the legislative intent that the state shall realize no increased cost as a result of this section. All costs associated with retirement coverage, including administrative costs, shall be the responsibility of the political subdivision.
(f) Notwithstanding this part or any law to the contrary, a political subdivision that extends retirement coverage to its employees under this section may elect to provide its own profit sharing and/or salary reduction plan that is authorized under § 401(k) of the Internal Revenue Code (26 U.S.C. 401(k)) in lieu of participating in the state's profit sharing and/or salary reduction plan established under chapter 25, part 3 of this title; provided, that the political subdivision makes mandatory contributions to such plan on behalf of each of its employees participating in the hybrid plan, regardless of whether the employees make any employee contributions to that plan. The amount of the employer contributions shall be five percent (5%) of the respective employee's salary unless suspended or reduced pursuant to § 8-36-922.
(g) Any political subdivision that participates in the hybrid plan that previously participated in the retirement system under the plan afforded under chapters 34-37 of this title that was established on July 1, 1972, may, by resolution legally adopted and approved by its chief governing body, authorize its current employees who continue to participate under the previous plan the option to transfer from the previous plan to the hybrid plan on a prospective basis, but only under the following conditions:
1. (1) The employee contribution rate in the previous plan must be the same as the employee contribution rate required under the hybrid plan;
2. (2) The election shall not include any option for the employee to have a cash or deferred election right with respect to designated employee contributions, and the employee contributions shall be picked up in accordance with § 8-36-904(b);
3. (3) The option to transfer to the hybrid plan must meet all applicable state and federal requirements, including § 414(h) of the Internal Revenue Code (26 U.S.C. § 414(h)), that are necessary for the hybrid plan to maintain its status as a qualified plan under the Internal Revenue Code;
4. (4) The election to transfer shall be made in the manner prescribed by the retirement system and filed with the retirement system;
5. (5) The election shall become effective on the first day of the month next following the month the election is filed with the retirement system;
6. (6) The actuarial value of accrued benefits earned prior to the effective date of the transfer shall be determined under the applicable provisions of the previous plan in effect on the date of the transfer; and
7. (7) Any employee who elects to transfer shall be subject to the applicable provisions of this part on and after the effective date of the transfer.

§ 8-36-920. Hybrid plan benefits trust account.

(a) There shall be established in the retirement system trust fund a hybrid plan benefits trust account into which contributions made to the defined benefit component of the plan shall be deposited.
(b) All interest and dividends earned on the funds of the defined benefit component of the hybrid plan shall be credited to the hybrid plan benefits trust account.
(c) Within the hybrid plan benefits trust account created pursuant to this section, there shall be established a reserve trust account, which shall consist of two (2) subaccounts as follows:
1. (1)
  1. (A) An employer reserve trust account into which shall be deposited:
    1. (i) The employer contributions as determined by the actuary pursuant to § 8-36-922(b) and any payments made to establish service credit in the hybrid plan that result from employer contributions rolled over or otherwise transferred from another qualified plan;
    2. (ii) All amounts transferred from the participants' reserve trust account pursuant to subdivision (c)(2)(B);
    3. (iii) Transfers from the stabilization reserve trust account pursuant to subdivision (d)(3) and transfers from the pension stabilization reserve trust fund pursuant to subdivision (d)(4);
    4. (iv) A pro rata share of the interest and dividends earned on the funds of the defined benefit component of the hybrid plan; and
    5. (v) Any penalties assessed against an employer pursuant to § 8-37-504;
  2. (B) All costs of administering the hybrid plan, and all retirement allowances and other benefits payable under the defined benefit component of the hybrid plan other than those payable from the participants' reserve trust account established in subdivision (c)(2) below shall be paid from the employer reserve trust account.
2. (2)
  1. (A) A participants' reserve trust account shall also be established within the reserve trust account into which shall be deposited:
    1. (i) The contributions deducted from the compensation of participants to provide for their member annuities, together with any contributions of participants and interest thereon to establish service credit in the hybrid plan; and
    2. (ii) All amounts transferred from the employer reserve trust account pursuant to subdivision (c)(2)(C).
  2. (B) The accumulated contributions of a participant that are withdrawn by the participant, or paid to the participant's designated beneficiary or to the participant's estate pursuant to § 8-36-120, shall be paid from the participants' reserve trust account. Upon the retirement of a participant, or if a retirement allowance becomes payable on account of the participant's death prior to retirement, the participant's accumulated contributions shall be transferred from the participants' reserve trust account to the employer reserve trust account.
  3. (C) The board of trustees shall annually show interest at such rate or rates as it shall determine from time to time on the individual accounts of participants in the participants' reserve trust account and shall transfer such amounts from the employer reserve trust account.
(d)
1. (1) There shall be established within the hybrid plan benefits trust account a stabilization reserve trust account into which shall be deposited:
  1. (A) All employer contributions made in excess of the actuarial rate determined pursuant to § 8-36-922(b); and
  2. (B) A pro rata share of the interest and dividends earned on the funds of the defined benefit component of the hybrid plan.
2. (2) Notwithstanding subdivision (d)(1)(A), any employer contributions attributable to federal funds shall not be deposited into the stabilization reserve trust account if such deposits are prohibited by an agency of the federal government or contrary to the advice of competent legal counsel or government accounting professionals of the retirement system.
3. (3) If in any given year the total amount in the employer reserve account is not sufficient to meet the benefit liabilities of the defined benefit component of the plan as determined by the most recent actuarial study, then such amount as may be necessary to fund the benefits shall be transferred from the stabilization reserve trust account to the employer reserve trust account.
4. (4) Notwithstanding this section, after the terms of the trust instrument governing the pension stabilization reserve trust are approved by the attorney general and reporter as provided in § 9-4-1001, all employer contributions made thereafter in excess of the actuarial rate determined pursuant to § 8-36-922(b) shall be deposited into the pension stabilization reserve trust fund established pursuant to § 9-4-1001. All funds contributed to the pension stabilization reserve trust fund pursuant to this subdivision (d)(4) shall be administered in accordance with title 9, chapter 4, part 10.
(e)
1. (1) For accounting purposes only, the reserve trust account and the stabilization reserve trust account created by this section shall each consist of the following individual separate accounts for the purpose of accounting for:
  1. (A) The benefits payable to state employees other than those described in subdivisions (e)(1)(B) and (C);
  2. (B) The benefits payable to the attorney general and reporter, district attorneys general, district public defenders and state judges;
  3. (C) The supplemental bridge benefits payable to state employees pursuant to § 8-36-211; and
  4. (D) The benefits payable to teachers.
2. (2) In addition and for accounting purposes only, the reserve trust account and the stabilization reserve trust account shall each consist of individual separate accounts established in the name of each political subdivision participating under this part. Each political subdivision shall have the following three (3) separate subaccounts for the purpose of accounting for:
  1. (A) The benefits payable to employees of the political subdivision other than those described in subdivisions (e)(2)(B) and (C);
  2. (B) The benefits payable to its county judges pursuant to § 8-36-919(e); and
  3. (C) The supplemental bridge benefits payable to its employees pursuant to § 8-36-211.
(f) All monies deposited into the hybrid benefits plan trust account shall be used exclusively for the purposes set forth in this section.
(g) Notwithstanding subdivision (d)(1)(A), deposits of employer contributions into the stabilization reserve trust account shall be suspended effective July 1 of any given year next following the most recent actuarial valuation for an employer whose stabilization reserve trust account equals or exceeds a certain maximum amount that is determined by the board of trustees. The amount shall be expressed in dollars, as a percentage, or other form as shall be determined at the sole discretion of the board. The board, in consultation with the actuary, shall establish the methodology and procedures to be used in ascertaining the maximum amount. Unless the terms of the trust instrument governing the pension stabilization reserve trust are approved as provided in § 9-4-1001, deposits into the stabilization reserve trust account shall be reinstated for the employer effective July 1 of any given year next following the most recent actuarial valuation when the total amount in the employer's stabilization reserve trust account is less than the maximum amount adopted by the board pursuant to this subsection (g). Once the terms of the trust instrument governing the pension stabilization reserve are approved as provided in § 9-4-1001, deposits of employer contributions into the pension stabilization reserve trust fund shall be suspended and reinstated as provided in § 9-4-1005.

§ 8-36-921. Right of legislature to change hybrid plan on prospective basis.

The general assembly shall have the right to freeze, suspend, or modify benefits, employee and employer contributions, plan terms, and design of the hybrid plan on a prospective basis through amendments to or repeals of chapters 34-37 of this title. Nothing under state law may confer to participants in the hybrid plan an implied right to future retirement benefit arrangements and such participants may not assert the indefinite continuation of the retirement formulas, contribution rates, eligibility ages, or any other provision of the plan; provided, however, that the actuarial value of accrued benefits earned by participants prior to the effective date of any such amendment or repeal shall remain an enforceable right and may not be reduced or otherwise forfeited except by the consent of the participant or in accordance with § 8-36-918. Notwithstanding this section or any other law to the contrary, the cost-of-living provisions of § 8-36-701 shall not be deemed an accrued benefit and may be subject to change pursuant to this section and § 8-36-922.

§ 8-36-922. Annual employer contributions to the hybrid plan benefits trust account.

(a)
1. (1) Every employer participating in the hybrid plan shall contribute each year a sum equal to the greater of:
  1. (A) The normal contribution rate and the accrued liability contribution rate as determined pursuant to subsection (b), multiplied by the earnable compensation of all its participating employees; or
  2. (B) Four percent (4%), rounded to the nearest whole number, of the earnable compensation of all its participating employees, except as otherwise provided in subdivision (a)(3).
2. (2) All employer contributions shall be deposited to the hybrid plan benefits trust account until such time as the pension stabilization reserve trust takes effect as provided in § 9-4-1001. Once the trust takes effect, any employer contributions made in excess of the actuarial rate determined pursuant to subsection (b) shall be deposited into the pension stabilization reserve trust fund established pursuant to § 9-4-1001.
3. (3) Employer contributions for kindergarten through twelfth (K-12) grade teachers shall be paid by the respective local education agency for which the teachers are employed. Employer contributions for political subdivision employees shall be paid by the respective participating political subdivision. Notwithstanding any other law to the contrary, the director of the retirement system is authorized, at the director's sole discretion, to determine the amount of employer contributions, if any, that must be paid by a local education agency into the stabilization reserve trust account or to the pension stabilization reserve trust fund pursuant to § 8-36-920; provided, that the amount shall not exceed the amount that would otherwise be required. The director of the retirement system is further authorized, at the director's sole discretion, to determine the amount of employer contributions, if any, that must be paid by a participating political subdivision into its individual pension stabilization reserve trust fund pursuant to § 8-36-920; provided, that the amount shall not exceed the amount that would otherwise be required.
4. (4) Notwithstanding this section, if deposits of employer contributions attributable to federal funds are prohibited to be made to the stabilization reserve trust account or to the pension stabilization reserve trust fund pursuant to § 8-36-920(d)(2), the employer contributions attributable to those funds shall be based solely on subdivision (a)(1)(A).
5. (5) Notwithstanding this section, employer contributions shall be based solely on subdivision (a)(1)(A) on July 1 of any given year for an employer whose deposits into the stabilization reserve trust account are suspended pursuant to § 8-36-920(g) or whose deposits into the pension stabilization reserve trust fund are suspended pursuant to § 9-4-1005. Nothing in this subdivision (a)(5) shall be deemed to give any participating employer or any participant a valid claim or cause of action for refund or credit for any sum or sums paid or to be paid to the hybrid plan or to the pension stabilization reserve trust fund.
(b) The actuary of the retirement system shall compute the normal contribution rate and the accrued liability contribution rate payable to the defined benefit component of the plan for each account described in § 8-36-920(e); provided, however, the computation shall not include the stabilization reserve trust account and shall be made by an actuarial valuation in the manner provided by chapter 37, part 3 of this title; provided, further, that the entry age actuarial cost method, as defined by the Actuarial Standards Board, shall be used in determining normal costs and contributions for unfunded accrued liabilities. Level dollar amortization of unfunded accrued liabilities shall be used over a period of time as set by the board, but not to exceed twenty (20) years. The asset valuation method shall be based on the market value of plan assets and provide for smoothing of investment gains and losses over a period of time established by the board, but not to exceed ten (10) years. In addition, the actuarial demographic assumptions shall include projections of mortality improvement.
(c)
1. (1) Notwithstanding this part or any other law to the contrary, if the actuarial valuation as of any year establishes a normal contribution rate and an accrued liability contribution rate, combined, that exceeds four percent (4%), the following steps in the order provided below shall automatically take effect the next July 1 immediately following the actuarial valuation as determined by the actuarial valuation process:
  1. (A) Transfer such amounts as may be necessary from the stabilization reserve trust account created in § 8-36-920 to the reserve trust account to fund the increase in the employer contribution rate;
  2. (B) Request a transfer pursuant to § 9-4-1004 of such amounts as may be necessary from the pension stabilization reserve trust fund created in § 9-4-1001 to the reserve trust account to fund the increase in the employer contribution rate;
  3. (C) Suspend or reduce, as necessary, the three percent (3%) maximum cost-of-living adjustment as provided for in § 8-36-701(b)(1). Any such suspension or reduction shall begin on the July 1 next following the actuarial valuation;
  4. (D) Suspend or reduce, as necessary, the amount of employer contributions required to the defined contribution component of the plan and redirect such amount to the reserve trust account to fund the increase in the employer contribution rate;
  5. (E) Increase the employee contributions required in § 8-36-904 by one percent (1%) of the participant's earnable compensation;
  6. (F) Reduce the retirement allowance formulas in § 8-36-907 from one percent (1%) and one and six-tenths percent (1.6%) to such lesser amount as is necessary to reduce the employer contribution rate to four percent (4%). The reduction in formulas shall only apply to future service accruals; and
  7. (G) If the employer contribution rate still exceeds four percent (4%) after taking the above steps, then the hybrid plan shall be suspended for future service accruals until such time as the employer rate equals four percent (4%) or lower.
2. (2) If the actuarial valuation as of any year establishes a normal contribution rate and an accrued liability contribution rate, combined, that equals four percent (4%) or lower, the above steps in the reversed order as provided above shall automatically take effect the next July 1 immediately following the actuarial valuation as determined by the actuarial valuation process.
(d)
1. (1) The actuary of the retirement system shall determine the amount of the unfunded accrued liability for the defined benefit component of the hybrid plan. If the unfunded liability exceeds the maximum unfunded liability, the following steps in the order provided in subdivisions (d)(1)(A)-(E) shall automatically apply on the effective date that the maximum unfunded liability has been reached. The unfunded liability shall be determined by the calculation of the net pension liability in accordance with the standards and other pronouncements issued by the governmental accounting standards board. For purposes of this section, “maximum unfunded liability” means with respect to state employees an unfunded liability of no greater than twelve and one-half percent (12.5%) of a five-year moving market average of the general obligation debt of the state of Tennessee, including its commercial paper. With respect to teachers, “maximum unfunded liability” means an unfunded liability of no greater than twelve and one-half percent (12.5%) of a five-year moving market average of the general obligation debt of the state of Tennessee, including its commercial paper. With respect to political subdivision employees, “maximum unfunded liability” means an unfunded liability of no greater than the amount as determined by the employees' respective employer as shall be set forth in the political subdivision's participation resolution, but in no event shall the maximum unfunded liability be greater than twenty percent (20%) of the political subdivision's total pension liability:
  1. (A) Suspend or reduce, as necessary, the three percent (3%) maximum cost-of-living adjustment as provided for in § 8-36-701(b)(1). Any such suspension or reduction shall begin on the July 1 next following the actuarial valuation;
  2. (B) Suspend or reduce, as necessary, the amount of employer contributions required to the defined contribution component of the plan and redirect such amount to the reserve trust account to fund the increase in the maximum unfunded liability;
  3. (C) Increase the employee contributions required in § 8-36-904 by one percent (1%) of the participant's earnable compensation;
  4. (D) Reduce the retirement allowance formulas in § 8-36-907 from one percent (1%) and one and six-tenths percent (1.6%) to such lesser amount as is necessary to reduce the unfunded liability to the maximum unfunded liability. The reduction in formulas shall only apply to future service accruals; and
  5. (E) If the maximum unfunded liability is still exceeded, then the hybrid plan shall be suspended for future service accruals until such time as the unfunded liability equals or is less than the maximum unfunded liability.
2. (2) If the unfunded liability equals or is less than the maximum unfunded liability, the above steps in the reversed order as provided above shall automatically apply on the effective date that the unfunded liability equals or is less than the maximum unfunded liability.

§ 8-36-923. Election to participate in the optional retirement program by persons exempt from the Fair Labor Standards Act.

(a) Notwithstanding any other law to the contrary and except as otherwise provided in § 8-36-903(c), any person who enters service with a state-supported institution of higher education on or after July 1, 2014, and who is exempt from the Fair Labor Standards Act (29 U.S.C. § 201 et seq.), may elect membership in the optional retirement program established in chapter 25, part 2 of this title in lieu of the hybrid plan. The election shall be made in the manner prescribed by the state treasurer and shall be filed with the state treasurer and with the institution of higher education where the employee is employed. The election shall be made within the time frame described in § 8-25-204. In all cases of doubt, the state treasurer shall determine whether the person is eligible to participate in the optional retirement program.
(b) Any employee participating in the optional retirement program as provided in this part who attains either five (5) or more but less than six (6) years of creditable service in the optional retirement program, or five (5) or more but less than six (6) years of creditable service in the retirement system and the optional retirement program combined, shall have the option of transferring membership from the optional retirement program to the hybrid plan under the terms and conditions prescribed in § 8-25-204. The amount paid by the employee pursuant to § 8-25-204 shall be credited to the individual account of the employee in an amount equal to the employee contributions, if any, that were in the employee's optional retirement accounts immediately before the transfer, plus any difference between the amount paid and the employee's account balance in the optional retirement program immediately before the transfer. All other sums shall be credited to the employer reserve trust account established in § 8-36-920.
(c) Any person who elects to participate in the optional retirement program as provided in subsection (a) shall participate in the program under chapter 25, part 2 of this title except as otherwise provided in subsection (d).
(d) The employer and employee contribution provisions of § 8-25-205 shall not apply. Instead, the employer shall make employer contributions on behalf of each such eligible employee at the rate of nine percent (9%) of the employee's earnable compensation, or such alternate amount as may be prescribed in the general appropriations act each year. In addition, each such eligible employee shall contribute five percent (5%) of the employee's earnable compensation to the optional retirement program. The contributions made by such employees shall be treated as employer contributions pursuant to § 8-36-904(b).
(e) The general assembly shall have the right to freeze, suspend, or modify benefits, employee and employer contributions, plan terms, and design of the optional retirement program on a prospective basis through amendments to or repeals of chapter 25 of this title. Nothing under state law may confer to participants in the optional retirement program an implied right to future retirement benefit arrangements and such participants may not assert the indefinite continuation of the retirement formulas, contribution rates and eligibility ages in effect at the time of employment; provided, however, that the actuarial value of accrued benefits earned by participants prior to the effective date of any such amendment or repeal shall remain an enforceable right and may not be reduced or otherwise forfeited except by the consent of the employee.

§ 8-36-924. Establishment of retirement credit for previous service.

(a) Any participant who previously served as a state employee or teacher whose membership in the retirement system was optional, but who elected not to participate, may establish retirement credit in the hybrid plan for the previous service pursuant to § 8-36-905.
(b) Any political subdivision employee participant who previously served in a position having optional membership in the retirement system, but who elected not to participate, may be eligible to establish retirement credit in the hybrid plan for the previous service pursuant to § 8-36-905 if the following conditions are met:
1. (1) The political subdivision is a participating employer in the hybrid plan and the prior service was rendered to that political subdivision;
2. (2) The chief legislative body of the political subdivision passes a resolution authorizing an actuarial study to determine the liability associated with the prior service, and accepting responsibility for the costs of the study; and
3. (3) Following receipt of the actuarial study, the chief legislative body of the political subdivision passes a resolution authorizing the prior service and accepting the liability for the credit.
(c) To establish credit under this section, a member must have at least one (1) year of current membership service or previous service established pursuant to chapter 35, part 2 of this title and must establish credit for all back service before such service is creditable, except as otherwise provided in chapters 34-37 of this title.

Chapter 37 Retirement — Financing and Funds

Part 1 Custody and Management of Funds — Investment

§ 8-37-101. Assets of system held in two funds.

All of the assets of the retirement system shall be credited, according to the purpose for which they are held, between two (2) funds, namely, the members' fund and the state accumulation fund.

§ 8-37-102. Custodian of funds — Disbursements.

(a) The state treasurer shall be the custodian of the funds of the retirement system.
(b) All payments from such funds shall be made by the state treasurer on warrants or vouchers issued and signed by such person as is designated by the board.
(c) A duly attested copy of a resolution, if the board designating such person and bearing on its face the specimen signature of such person, shall be filed with the commissioner of finance and administration as the state treasurer's authority for issuing warrants upon such vouchers.
(d) For the purpose of meeting disbursements for state annuities, member annuities, and other payments, there may be kept available cash, not exceeding ten percent (10%) of the total amount in the funds of the retirement system, on deposit in one (1) or more banks, savings and loan associations or trust companies in the state, organized under the laws of the state or of the United States, and qualified as state depositories.

§ 8-37-103. Trustees of funds.

The members of the board shall be the trustees of the funds created by chapters 34-37 of this title.

§ 8-37-104. Power of investment — Restrictions on investments.

(a) The board of trustees shall invest and manage assets solely in the interest of the beneficiaries of the retirement system in a manner consistent with § 35-14-107, the prudent investor rule pursuant to § 35-14-103, the standard of care pursuant to § 35-14-104, and the exercise of reasonable care in delegation of investment and management functions pursuant to § 35-14-111. Notwithstanding the foregoing, the power of investment of retirement system funds shall be subject to the approval by the board of trustees through its investment policy and in accordance with the following:
1. (1) The total sum invested in common and preferred stocks shall not exceed seventy-five percent (75%) of the total of the funds of the retirement system;
2. (2) The total sum invested in notes and bonds or other fixed income securities shall not exceed seventy-five percent (75%) of the total funds of the retirement system;
3. (3) Within the restrictions set forth in subdivisions (a)(1) and (2), the board of trustees may invest in or otherwise acquire stocks, bonds and other securities in such foreign countries as the board may determine with the approval of the council on pensions. However, any such securities must be substantially of the same kinds, classes, and investment grades as those otherwise eligible for investment by the board and no more than fifteen percent (15%) of the system's total assets may be invested in such securities; provided, however, that such percentage may be increased by the board with the subsequent approval of the council on pensions;
4. (4) Subject to the limitations in subdivisions (a)(1) and (2), funds of the retirement system may be invested in Canadian securities which are substantially of the same kinds, classes and investment grades as those otherwise eligible for investment;
5. (5) The board of trustees shall have the power and authority to invest in derivative instruments for hedging, replication, or income-generating purposes. For the purposes of this subdivision (a)(5), “derivative transaction” includes, but is not limited to, an agreement, option or instrument, or any series or combinations of an agreement, option or instrument: to make or take delivery of, or assume or relinquish, a specified amount of one (1) or more underlying interests, or to make a cash settlement in lieu thereof; or that has a price, performance, value, or cash flow based primarily upon the actual or expected price, yield, level, performance, value or cash flow of one (1) or more underlying interests. Derivative instruments include, but are not limited to, options, warrants (not attached to another investment), caps, floors, collars, swaps, security-based swaps, security-based swap agreements, mixed swaps, swaptions, forwards, futures, and any other agreements, options or instruments substantially similar thereto, or any series or combinations thereof. Derivative instruments do not include collateralized mortgage obligations, treasury-inflation protected securities, other asset-backed securities, principal-protected structured securities, and floating rate securities;
6. (6) The board of trustees shall have the power and authority to enter into securities lending agreements whereby securities are loaned for a fee; provided, that such loans are limited so that the total amount of securities lent does not exceed thirty percent (30%) of the market value of the total assets in the retirement system's portfolio; and provided further, that such loans are secured by collateral. Securities received as collateral hereunder shall have a market value equal to at least one hundred two percent (102%) of the market value of the loaned securities. Cash received as collateral hereunder shall equal at least one hundred percent (100%) of the market value of the loaned securities; and may be invested by or on behalf of the retirement system in any investment instrument in which the system's assets may be directly invested. Such cash may also be invested in short-term investment funds; provided, that the portfolio of such funds contains only those investment instruments in which the system's assets may be directly invested;
7. (7) The board of trustees shall have the power and authority to purchase or sell domestic and international stock index futures contracts for the purpose of asset allocation relating to the equity portfolios. Stock index futures contracts shall not be utilized for purposes of speculative leveraging. For purposes of this subdivision (a)(7), “speculative leveraging” is defined as buying financial futures where the amount of the contract obligation is an amount greater than the market value of the system's cash and short-term securities. The total amount of the system's financial futures contract obligation shall not exceed ten percent (10%) of the market value of the system's total assets. The sum total of the domestic and international equity portfolios, together with the value of the stock index futures contract obligation, should be within the asset allocation range for domestic and international equity securities. The board may use cash and obligations of the United States government or any of its agencies to meet the variation margin requirement of such futures contracts;
8. (8) The board of trustees shall have the power and authority to enter into contracts to serve as a standby note purchaser for the Tennessee state school bond authority, the Tennessee state funding board and the Tennessee local development authority; provided, that:
  1. (A) The retirement fund receives an annual commission which represents a fair market value fee adjusted for any additional cost incurred by the issuer due to the retirement fund serving as the standby note purchaser; and
  2. (B) If called upon to purchase such notes, the retirement fund receives a rate of return exceeding the market rate for short-term investments;
9. (9) The board of trustees shall have the power and authority to establish an investment policy to authorize the retirement system to acquire, hold and convey real property for investment purposes. Such acquisitions may be direct, with or without partners, or in a commingled pool; provided, that:
  1. (A) The retirement system cannot acquire real property located in the state of Tennessee, unless such acquisition is in the shares or interests of a regulated investment company, mutual fund, common trust fund, investment partnership, real estate investment trust, or similar organizations in which funds are commingled and investment determinations as to which properties to purchase are made by persons other than the board;
  2. (B) The board shall establish limitations on the percentage of ownership that the retirement system may hold in individual real estate properties; and
  3. (C) The investment policy adopted by the board pursuant to this subdivision (a)(9) shall be approved by the legislative council on pensions and insurance;
10. (10)
  1. (A)
    1. (i) The board of trustees shall have the power and authority to establish an investment policy to permit the retirement system to invest system assets in private equity. Private equity investments may include, but shall not be limited to, strategic lending, domestic and international venture capital, corporate buyouts, mezzanine and distressed debt, special situations and secondary funds;
    2. (ii) The investment policy adopted by the board pursuant to subdivision (a)(10)(A)(i) shall be approved by the legislative council on pensions and insurance;
  2. (B) Records of the retirement system relating to the identity of the name of the private equity investment vehicle used, such as the name of any limited partnership, the name of the funds-of-funds manager and title of the fund, the amount invested in the vehicle, or the present value of the investment shall be open to public inspection pursuant to title 10, chapter 7, part 5; provided, however, that records relating to the retirement system's review of any private equity investment shall not be public to the extent that:
    1. (i) The records contain confidential information provided to the retirement system or analysis or evaluation by the retirement system; or
    2. (ii) Disclosure of the records would have a potentially adverse effect on the retirement system's private equity program, the value of an investment, or the provider of the information;
11. (11) Relative to the retirement system's transactions that require collateralization, the board of trustees shall have the authority to pledge, post, accept, and rehypothecate a counterparty's collateral and allow other entities or individuals to rehypothecate the retirement system's collateral;
12. (12) The board of trustees shall have the power and authority to invest in publicly listed investment companies, including, but not limited to, unit investment trusts, exchange-traded funds, open-ended mutual funds, and close-ended mutual funds;
13. (13) The board of trustees shall have the power and authority to invest currency; and
14. (14) The total sum invested in real property and private equity, as authorized and described in subdivisions (a)(9) and (10)(A), shall not exceed forty percent (40%) of the total funds of the retirement system, unless further restricted or qualified by the board and the legislative council on pensions and insurance in the investment policy adopted pursuant to this section.
(b) In determining compliance with the percentage limitations of this section, the funds of the retirement system shall be valued at their market value. Accordingly, an investment may be made on any given day; provided, that such investment does not cause any applicable limitation prescribed in subsection (a) to be exceeded on such day.
(c) Notwithstanding any other law to the contrary, the board of trustees is expressly authorized to contract for investment management services for the retirement system's portfolios. The board shall provide for the powers, duties, functions and compensation of any investment managers so engaged. Any contract for the investment management services shall be procured in the manner prescribed by the board. The board may authorize the system's investment consultant to initially evaluate and make recommendations regarding proposals submitted by investment managers. Personal services, professional services, consultant services, and management of the portfolios may be procured in the manner prescribed by the board without regard to the requirements of [former] § 12-4-109 [see the Compiler's Notes], if the board determines that the services are necessary or desirable for the efficient administration of the retirement system's investment program. All expenses and fees incidental to the outside investment management shall be charged to and paid from the earnings of the funds.
(d)
1. (1) The treasurer shall report to the members of the council on pensions and insurance any holdings of the Tennessee consolidated retirement system in securities issued by companies that have substantial current operations in nations determined by the United States department of state to be state-sponsors of terrorism. The names of the companies shall be obtained by the treasurer from a publicly available list at no cost to the retirement system formulated by an authoritative entity, which entity may include another public pension system. The disclosures required in this section shall commence no later than as of the quarter ending December 31, 2008, and continue quarterly thereafter.
2. (2) Notwithstanding any law to the contrary, no person or entity may bring any civil, criminal, or administrative action against this state, its officers, employees, or agents, or against the Tennessee consolidated retirement system, its officers, directors, board members, employees, or agents for any act done in good faith in accordance with this subsection (d).
3. (3) If a civil action or proceeding is nevertheless commenced by any person or entity against any official or employee of the state, or against any officers, directors, board members or employees of the Tennessee consolidated retirement system for any act done in good faith in accordance with this subsection (d), the state shall defend, indemnify and hold harmless the person from any costs, damages, awards, judgments or settlements arising from the claim or proceeding.
(e) The board may adopt a group trust instrument for the purpose of pooling funds of the retirement system with other assets in the custody of the state treasurer, solely for investment purposes, that consist exclusively of assets of pension and profit sharing trusts qualified under § 401(a) of the Internal Revenue Code (26 U.S.C. § 401(a)), individual retirement accounts that are exempt under § 408(e) of the Internal Revenue Code (26 U.S.C. § 408(e)), eligible governmental plans that meet the requirements of § 457(b) of the Internal Revenue Code (26 U.S.C. § 457(b)), and governmental plans under § 401(a)(24) of the Internal Revenue Code (26 U.S.C. § 401(a)(24)), as permitted under Rev. Rul. 81-100, as modified by Rev. Ruls. 2004-67, 2008-40, 2011-1, and 2014-24 or subsequent guidance. For this purpose, a trust includes a custodial account or separate tax-favored account maintained by an insurance company that is treated as a trust under § 401(f) or under § 457(g)(3) of the Internal Revenue Code (26 U.S.C. §§ 401(f) or 457(g)(3)). Such group trust declaration shall, upon its adoption by the board, convert the trust established for the retirement system into the group trust. The board will act as trustee for the group trust under the terms and conditions of the group trust declaration. The board may amend the terms of the group trust from time to time. The terms of the group trust, including any subsequent amendments, are hereby incorporated by reference and made a part of the retirement system. Simultaneously with the adoption of the group trust declaration, there shall be established a sub trust for the retirement system which will exclusively hold all of the assets of the retirement system and shall not be used for, or diverted to, any purpose other than for the exclusive benefit of the members and beneficiaries of the retirement system. On the date of creation of the group trust, one hundred percent (100%) of the interest in the group trust will be allocable to the sub trust for the retirement system, and the value of the sub trust maintained by the group trust for the retirement system, determined in accordance with generally recognized valuation procedures. The assets of the sub trust invested in the group trust shall be subject to all the provisions of the group trust instruments establishing and governing such trust.

§ 8-37-105. Powers of fund trustees.

Subject to the limitations in § 8-37-104, the board, or its nominee, has full power to hold, purchase, sell, assign, transfer, or dispose of any of the securities or investments in which the funds created herein have been invested, including the purchasing and selling of stock options, as well as of the proceeds of such investments and any moneys belonging to such funds.

§ 8-37-106. Transaction of business — Nominees.

All of the board's business shall be transacted, all of its funds invested, all warrants for money drawn, any payments made, and all of its cash and securities and other property shall be held:
1. (1) In the name of the board;
2. (2) In the name of its nominee; provided, that the nominee is authorized by retirement board resolution solely for the purpose of facilitating the transfer of securities and restricted to members of the board, or a partnership composed of any such members; or
3. (3) For the account of the board or its nominee in such forms as are standard in the investment community for the timely transaction of business or ownership identification, such as book entry accounts.

§ 8-37-107. Personal interest in investments prohibited.

Except as otherwise herein provided, no trustee and no employee of the board of trustees shall have any personal interest in the gains or profits of any investment made by the board; nor shall any trustee or employee of the board, directly or indirectly, for such trustee or employee or as an agent, in any manner for such trustee or employee or as an agent, in any manner use the same except to make such current and necessary payments as are authorized by the board; nor shall any trustee or employee of the board become an endorser or surety, or in any manner an obligor, for money loaned to or borrowed from the board.

§ 8-37-108, 8-37-109. [Reserved]

§ 8-37-110. Delegation to treasurer of implementation of policy.

(a) Implementation of the policy established by the board of trustees may be delegated by the board to the state treasurer who shall put such policy into effect.
(b) Subject to the delegation of the board of trustees, the state treasurer shall have full power to invest and reinvest such funds as are created by this chapter and chapters 34-36 of this title.
(c) The investment committee for the board of trustees may cause the retirement system to divest, as expeditiously as possible, from an investment the system has with an entity found to be doing business with or supporting a country sanctioned by the office of foreign assets control. Any such divestment must be made in a manner consistent with § 35-14-107, the prudent investor rule pursuant to § 35-14-103, the standard of care pursuant to § 35-14-104, and the applicable portions of the board of trustees' investment policy relative to asset allocations and investment strategy. The state treasurer shall report a divestment made pursuant to this section to the council on pensions.

§ 8-37-111. Outside investment counsel — Expenses.

(a) Any other law to the contrary notwithstanding, the board of trustees shall have the authority to employ outside investment counsel for advisory services.
(b) The expenses of the fees charged by such investment counsel and any expense incurred under the authority of title 9, chapter 4, part 4, relative to the safekeeping and servicing of retirement system securities shall be charged to and paid from the earnings of the funds.

§ 8-37-112. Assets — Exclusive purposes.

The assets of the plan shall never inure to the benefit of an employer and shall be held for the exclusive purposes of providing benefits to members and their beneficiaries and defraying reasonable expenses of administering the plan.

§ 8-37-113. Emerging investment managers as outside investment managers.

(a) In the event the board of trustees directs that outside investment managers be engaged to invest assets of the Tennessee consolidated retirement system, the board of trustees shall endeavor to use emerging investment managers to the greatest extent feasible within the bounds of financial and fiduciary prudence. Any such emerging investment manager must have at least five (5) years of professional investment experience in the asset class for which outside investment managers are being sought.
(b) If the board of trustees directs that outside investment managers be engaged, the treasurer shall submit an annual statement to the general assembly regarding the use of emerging investment managers. The statement shall identify the emerging investment managers used by the board, the percentage of the system's assets under the investment control of emerging investment managers, and the actions undertaken to increase the use of emerging investment managers, including encouraging other investment managers to use emerging investment managers as subcontractors when the opportunity arises. Inclusion of such statement within the state treasurer's annual report to the general assembly shall satisfy this requirement.
(c) As used in this section:
1. (1) “Emerging investment manager” means a qualified investment adviser that manages an investment portfolio of at least ten million dollars ($10,000,000) but less than one hundred million dollars ($100,000,000) and is a minority-owned business;
2. (2) “Minority-owned business” means a business concern which is at least fifty-one percent (51%) owned by one (1) or more minority persons, or in the case of a corporation, at least fifty-one percent (51%) of the stock of which is owned by one (1) or more minority persons; and the management and daily business operations of which are controlled by one (1) or more of the minority individuals who own it; and
3. (3) “Minority person” means a person who is a citizen or lawful permanent resident of the United States and who is:
  1. (A) African American; or
  2. (B) Hispanic.

§ 8-37-114. Authorization to contract for investment management services.

(a) Notwithstanding any other provision of the law to the contrary, the board of trustees is expressly authorized to contract for investment management services for the retirement system's foreign portfolios and for the retirement system's real estate portfolios. The board shall provide for the powers, duties, functions and compensation of any investment managers so engaged. Any contract for such investment management services shall be procured in the manner prescribed by the board. The board may authorize the system's investment consultant to initially evaluate and make recommendations regarding proposals submitted by investment managers. Personal services, professional services, consultant services, management of the foreign portfolios, and management of the real estate portfolios may be procured in such manner as prescribed by the board without regard to the requirements of [former] § 12-4-109 [see the Compiler's Notes], if the board determines that such services are necessary or desirable for the efficient administration of the retirement system's investment program, and provided such procurement method is approved by the council on pensions.
(b) All expenses and fees incidental to such outside investment management shall be charged to and paid from the earnings of the funds.

§ 8-37-115. Entities for purpose of acquiring, holding title to, and collecting income from real property on behalf of retirement system — Authority to enter into agreements.

(a) The board of trustees is hereby authorized to create one (1) or more not-for-profit corporations, limited liability companies, limited liability partnerships, or trusts for the purpose of acquiring, holding title to, and collecting income from real property on behalf of the retirement system pursuant to § 8-37-104(a)(9). The board of trustees is further authorized to create one (1) or more not-for-profit corporations, limited liability companies, limited liability partnerships, or trusts for the purpose of acquiring, holding title to, and collecting income from private equity investments on behalf of the retirement system pursuant to § 8-37-104(a)(10).
(b) The board of trustees is hereby authorized, at its discretion, to transfer funds of the retirement system to any organization created pursuant to this section for the payment of any costs or expenses incidental to the activities of the organization.
(c) An organization created pursuant to this section may enter into such agreements as it may deem necessary or advisable in carrying out any purpose for which the organization was created. Any such agreement may contain terms and conditions determined by the board of trustees to be appropriate, including, but not limited to, indemnification, liquidated damages, warranties of title to real estate, and choice of law. Any such agreements authorized by this section shall be exempt from the requirements contained in title 12, chapters 3 and 4.
(d) The attorney general and reporter or an assistant designated by the attorney general and reporter shall be the legal advisor of any organization created pursuant to this section. Notwithstanding any other law, in cases where the interest of such organization requires additional counsel to the attorney general and reporter, the chair of the organization, with the approval of the attorney general and reporter, is authorized to employ such additional counsel.

§ 8-37-116. Bonds, notes and investment contracts — Issuance to state entities.

(a) The board of trustees has the power and authority to enter into investment contracts with, or to issue notes, bonds or other evidences of indebtedness to, any instrumentality of the state which is designated to invest funds received pursuant to the tobacco litigation master settlement agreement entered into by Tennessee and certain other states, United States territories and possessions, and participating tobacco manufacturers, dated November 23, 1998.
(b) In exercising the authority granted in subsection (a), the board of trustees is authorized to enter into such arrangements under terms and conditions the board determines to be in the best interest of the retirement system. Any debt issued pursuant to this section shall not be invalid for any irregularity or defect in the proceedings for the issuance or sale thereof. Further, all obligations issued under this section shall be exempt from taxation by the state, or by any county, municipality or taxing district of the state.
(c) Notwithstanding § 8-6-106 or other law to the contrary, the board may employ bond counsel, financial advisors, underwriters, and such other professionals deemed necessary to assist the board in the issuance, management and servicing of all debt issued by the board hereunder. Any professional so employed hereunder shall be paid such compensation as the board may deem just and such compensation may be paid out of the proceeds of any debt issued hereunder or from the assets of the retirement system. The board is further authorized to pay any or all costs or expenses incurred by the board relative to the issuance, management and servicing of any debt issued hereunder from the proceeds of any such debt or from other assets of the retirement system.

§ 8-37-117. Funds created by this chapter and chapters 34 through 36 deemed funds of retirement system.

The funds created by this chapter and chapters 34-36 of this title shall be deemed to be the funds of the retirement system and not state funds.

Part 2 Members' Fund

§ 8-37-201. Source of funds.

The members' fund shall be a fund in which shall be accumulated the contributions deducted from the compensation of members to provide for their member annuities, together with any contributions of members and interest thereon transferred thereto from a superseded system.

§ 8-37-202. Rates of contribution.

(a) The rate of contribution payable by members shall be:
1. (1)
  1. (A) In the case of a member in Group 1, five percent (5%) of the member's earnable compensation;
  2. (B) In the case of a member in Group 2, five and one-half percent (5.5%) of the member's earnable compensation;
  3. (C) In the case of a member in Group 3 or 4, five and one-half percent (5.5%) of the member's covered compensation, plus seven percent (7%) of the part of the member's earnable compensation in excess of the member's covered compensation; and
  4. (D) Notwithstanding any law to the contrary, a state judge participating in the retirement system as a Group 1 member may voluntarily elect to contribute five and one-half percent (5.5%) of the member's earnable compensation, plus seven percent (7%) of the part of the member's earnable compensation in excess of the member's covered compensation. It is further provided that prior to September 1, 1990, voluntary contributions under this subsection (a) will not be used to increase any benefits payable under chapters 34-37 of this title. Upon termination of membership, these voluntary contributions are refundable;
2. (2) A member participating in the optional retirement program as provided under chapter 25, part 2 of this title shall contribute five percent (5%) of the member's covered compensation, plus five and one-half percent (5.5%) of the part of the member's earnable compensation in excess of the member's covered compensation;
3. (3) An employee in the employ of a political subdivision or participating under chapter 35, part 2 of this title shall contribute:
  1. (A) In the case of Group 1 members, five percent (5%) of the member's covered compensation, plus five and one-half percent (5.5%) of the part of the member's earnable compensation in excess of the member's covered compensation; and
  2. (B) In the case of a Group 2 member, five and one-half percent (5.5%) of the member's covered compensation, plus seven percent (7%) of the part of the member's earnable compensation in excess of the member's covered compensation;
4. (4) The governing body of a political subdivision may authorize by resolution and accept the liability for its employees to contribute:
  1. (A) In the case of a member in Group 1, five percent (5%) of the member's earnable compensation; and
  2. (B) In the case of a member in Group 2, five and one-half percent (5.5%) of the member's earnable compensation;
5. (5) Notwithstanding any other provisions to the contrary, for all services rendered after September 1, 1974, the rate of contribution payable by a member of the superseded Tennessee judges' retirement system, the retirement system for county paid judges of Tennessee, the attorneys general retirement system of Tennessee, the public service commissioners' retirement system and the Tennessee retirement system for county officials shall be eight percent (8%) of gross wages;
6. (6) The county legislative body may, by resolution duly adopted, contribute for all eligible county officials up to three percent (3%) of the eight percent (8%) of gross wages specified by subdivision (a)(5) as contribution to the superseded Tennessee retirement system for county officials; and
7. (7) For service rendered from and after July 1, 1989, the county legislative body of any political subdivision that has adopted the noncontributory provisions of § 8-34-206 may, by resolution duly adopted, assume the total amount of contributions required under this section for all eligible county officials and county judges participating in the Tennessee consolidated retirement system or a superseded retirement system.
(b) A noncontributory member as defined in § 8-34-206 shall cease to make and have deducted from the noncontributory member's compensation employee contributions as required under this part; provided, that such contribution is not in excess of five percent (5%) of earnable compensation. A noncontributory member who was contributing at more than five percent (5%) prior to July 1, 1981, shall continue to make and have deducted from the noncontributory member's compensation the difference between the contribution rate applicable for the noncontributory member's group or classification and five percent (5%). The rates of contributions payable by a noncontributory member as defined by § 8-34-206, shall be:
1. (1) In the case of a Group 1 member or a transferred Class B member, zero percent (0%) of the member's earnable compensation;
2. (2) In the case of a prior Class B member, two percent (2%) of the member's earnable compensation;
3. (3) In the case of a prior Class C member, six and sixty-three hundredths percent (6.63%) of the member's earnable compensation;
4. (4) In the case of a Group 2 member, one-half of one percent (0.5%) of the member's earnable compensation;
5. (5) In the case of a Group 3 member who is a noncontributory member under § 8-34-206, one-half of one percent (0.5%) of the member's covered compensation, plus two percent (2%) of the part of the member's earnable compensation in excess of the member's covered compensation;
6. (6) In the case of a prior class public service commissioner, three percent (3%) of the member's earnable compensation;
7. (7) In the case of a prior class member of the attorneys general retirement system presently employed by the executive branch of the state and compensated under the compensation plan administered by the department of human resources or employees of the general assembly who are classified under § 8-34-101, three percent (3%) of the member's earnable compensation; and
8. (8) In the case of a prior class member of the attorneys general retirement system who is a noncontributory member under § 8-34-206, three percent (3%) of the member's earnable compensation.

§ 8-37-203. [Reserved]

§ 8-37-204. Certification of rate of contribution — Deduction of contribution from compensation by employer.

(a) The board of trustees shall certify to the commissioner of finance and administration and the state treasurer, in the case of any employee paid by warrants on the state treasurer, or to the department, institution, commission, board or agency by which the salary of any employee is paid, the proportion or percent to be deducted from the compensation of each member.
(b) Such authority or officer shall cause to be deducted from the compensation of each member, on each and every payroll of such employer for each and every payroll period, the percentage of earnable compensation applicable to such member.
(c) To facilitate the making of deductions, the authority or officer may modify the deduction required of any member by such an amount as shall not exceed one-tenth of one percent (0.1%) of the annual earnable compensation upon the basis of which such deduction is made.

§ 8-37-205. [Reserved]

§ 8-37-206. Disposition of sums deducted — Records and reports.

(a) All sums deducted shall be transmitted to the state treasurer, and the state treasurer shall furnish the comptroller of the treasury, the commissioner of finance and administration and the board of trustees with a record of all such moneys.
(b) The amounts deducted shall be reported to the board of trustees.
(c) Each of such amounts, when deducted, shall be paid to the retirement system and credited to the individual account, in the members' fund, of the member from whose compensation the deduction was made.

§ 8-37-207. Contributions credited to individual accounts — Interest on contributions.

Each contribution shall be credited, with interest thereon, to the individual account of the member from whose compensation the deduction was made.

§ 8-37-208. Consent to deductions as condition of membership.

Every member shall be deemed to consent and agree to the deductions herein provided as a condition of membership.

§ 8-37-209. Effect of payroll deductions on minimum compensation.

The deductions provided for herein shall be made, notwithstanding that the minimum compensation provided for by law for any member shall be reduced thereby.

§ 8-37-210. Right of withdrawal of accumulated contributions upon termination of employment or death prior to retirement.

(a) If a member other than a teacher is separated from service for reasons other than retirement or death, the amount of the member's accumulated contributions shall be paid to the member within ninety (90) days after the member's written request for such accumulated contributions.
(b) Should a member cease to be a teacher except by death or retirement under chapters 34-37 of this title, the member shall be paid upon application, made not less than four (4) months following the member's cessation of service, the amount of the accumulated contributions standing to the credit of the member's individual account in the member's fund. Any teacher who provides documentation to the satisfaction of the board of trustees that the teacher has terminated employment, is not reemployed by any employer covered by the retirement system, and is no longer residing in this state, shall be paid the amount of such person's accumulated contributions within ninety (90) days after making application for such accumulated contributions. Any teacher who has been dismissed, and the employer certifies that dismissal occurred due to budgetary problems, shall be paid the amount of such person's accumulated contributions within ninety (90) days after making application. Any teacher employed and paid on a continuous twelve-month basis shall be paid such teacher's accumulated contributions within ninety (90) days after such teacher's written request for such accumulated contributions.
(c) Distribution of a member's benefit must begin by the required beginning date, which is April 1 of the calendar year following the calendar year in which the member attains age seventy and one-half (70½) or age seventy-two (72) if the member was born on or after July 1, 1949, as such age is extended or otherwise modified by the Internal Revenue Code or the regulations promulgated thereunder, or April 1 of the calendar year following the calendar year in which the member terminates, whichever is later. If a member fails to apply for retirement benefits by the later of either of those dates, the board shall begin distribution of the monthly benefit as required by this section in the applicable form provided in § 8-36-206.

§ 8-37-211. Return of accumulated contributions to terminated CETA employees.

Notwithstanding any provisions to the contrary in § 8-37-210, § 8-37-212, or chapter 35, part 1 of this title, in cases where employer contributions have been refunded on behalf of CETA employees, the employee contributions will be refunded to the member.

§ 8-37-212. Return of excess accumulated contributions upon death of retiree.

(a) Upon the death of a retired member after the retired member's retirement allowance payments have commenced (provided, that the retired member has not elected an optional allowance that has become effective), any excess of the amount of the retired member's accumulated contributions at retirement over the sum of the retirement allowance payments received shall be paid in one (1) sum to the person nominated by the member, if living, otherwise to the member's estate in accordance with § 8-36-120.
(b) Upon the death of a retired member and the beneficiary nominated by the retired member under the terms of an option, if an option was elected and had become effective, any excess of the retired member's accumulated contributions at retirement over the sum of the retirement allowance payments received by the retired member and such beneficiary shall be paid to the estate of the last to survive of the member and such beneficiary in accordance with § 8-36-120.

§ 8-37-213. Payment from members' fund upon withdrawal of accumulated contributions.

The accumulated contributions of a member withdrawn by the member, or paid to the member's designated beneficiary or to the member's estate in accordance with § 8-36-120, shall be paid from the members' fund.

§ 8-37-214. Back payment or redeposit of contributions — Establishment of lost or withdrawn noncontributory service.

(a)
1. (1) Subject to the approval of the board of trustees, any member who has one (1) year of current membership service or previous service established pursuant to chapter 35, part 2 of this title may make a back payment or redeposit in accordance with the applicable provisions of chapters 34-37 of this title.
2. (2) A back payment shall be equal to the amount of contributions such member would have made had such member been a member of the state retirement system during the period claimed, plus interest compounded annually from the date the contributions would have been made to the date of payment.
3. (3) A redeposit shall be equal to the total amount that was previously withdrawn, plus interest compounded annually from the date of withdrawal to the date of payment.
4. (4) The rate of interest to be used under this section shall be the assumed actuarial interest rate of return established by the board of trustees under § 8-34-505 at the time the payment is made.
(b) Any back payment or redeposit must be made in a lump sum, unless otherwise authorized in § 8-37-220.
(c) Except for payments previously made to establish retirement credit under chapters 34-37 of this title and for payments being made through monthly installments pursuant to § 8-37-220 on May 23, 2005, the interest rate as provided for under this section shall have application in all cases where a different rate of interest was provided for in making back payments or redeposits.
(d) This section shall not apply to any person coming under [former] § 8-34-609(b) [repealed] with respect to the one (1) year membership service requirements; and application of this section shall be subject to § 8-35-111.
(e) A “noncontributory member,” as defined in § 8-34-206, who has one (1) year of current membership service may establish withdrawn or lost noncontributory service upon application and repayment of any withdrawn contributions, including contributions made by the employer on behalf of the employee, plus interest at the rate provided for in this section.
(f) Any member applying for prior service must establish all back service before such service is creditable, except as otherwise provided in chapters 34-37 of this title.
(g)
1. (1) Lump sum payments to establish service credit in the Tennessee consolidated retirement system in accordance with this section and chapter 34, part 6 of this title may be funded in whole or in part through amounts transferred from an eligible retirement account to the Tennessee consolidated retirement system. For the purposes of this subsection (g), amounts transferred from an eligible retirement account means:
  1. (A) Amounts transferred to the Tennessee consolidated retirement system directly from a retirement account that are eligible for rollover treatment under the Internal Revenue Code (26 U.S.C.); or
  2. (B) Lump sum distributions received by a member from a retirement account that are eligible for rollover treatment under the Internal Revenue Code and which are transferred by the member to the Tennessee consolidated retirement system within sixty (60) days following the member's receipt of such lump sum distribution.
2. (2) Prior to accepting any such transfers, the consolidated retirement system may require the member to establish that the amounts to be transferred meet the requirements of this subsection (g) and the Internal Revenue Code. Amounts transferred shall not be forfeitable for any reason and may not be distributed to the member except as otherwise provided in this chapter and chapters 34-37 of this title.
3. (3) This subsection (g) will be administered in accordance with the rollover provisions of the Internal Revenue Code.
(h) Any person who desires to establish credit pursuant to chapters 34-37 of this title, shall establish such service under the terms of the retirement system plan that existed at the time the service was established and not at the time the service was rendered, unless the person is still eligible to participate in the former plan and has not lost membership in the retirement system.
(i) A retired member may establish prior service within thirty (30) days after the member's date of retirement and have the member's existing benefit adjusted to reflect that member's newly established prior service as of the date of retirement. A retired member who establishes prior service more than thirty (30) days after the member's date of retirement must receive from the retirement system a second benefit, calculated using the date the service was established as the date of retirement for the second benefit.

§ 8-37-215. Transfer of accumulated contributions to the state accumulation fund for payment of allowances.

Upon the retirement of a member, or if a retirement allowance becomes payable on account of the member's death prior to retirement, the member's accumulated contributions shall be transferred from the members' fund to the state accumulation fund.

§ 8-37-216. Employer assumption of employee contributions.

(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.
(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.

§ 8-37-217. Refund of additional contributions.

Any Group 2 member who elected to contribute an additional five percent (5%) in accordance with chapter 885, § 1 of the Public Acts of 1982, amending § 8-36-201, shall have ninety (90) days from July 1, 1987, to request a refund of the additional contributions required by such public chapter. The member's additional five percent (5%) of contributions plus interest thereon shall be refunded within ninety (90) days of the member's application for such refund. Following the refund of these contributions, a Group 2 member will not be entitled to participate in the benefits provided by such public chapter. Eligibility for service retirement benefits will be determined in accordance with § 8-36-201(b)(1) or the superseded Tennessee state retirement system, if applicable. This section shall apply to Group 2 employees of political subdivisions only if the chief governing body has passed a resolution authorizing such refund and accepting any liability associated with the refund.

§ 8-37-218. Payment of additional contributions — Members employed by political subdivisions.

(a) Any Group 2 member who elected to come under § 8-36-201(b)(2)(A) and who continues in service after age fifty-five (55) and after completion of twenty-five (25) years of creditable service shall be paid the additional contributions made by such member under § 8-36-201(b)(2) within ninety (90) days after the member's filing with the retirement division a written request therefor. Any Group 2 member filing such a request shall cease to make and have deducted from such member's compensation the additional contributions required under § 8-36-201(b)(2).
(b) This section shall not apply to any member whose Group 2 service was rendered to a political subdivision unless the governing body of such political subdivision passes a resolution authorizing the return of contributions pursuant to this section.

§ 8-37-219. Rollovers — Eligibility.

(a) For purposes of compliance with § 401(a)(31) of the Internal Revenue Code (26 U.S.C. § 401(a)(31)), this section applies notwithstanding any other law to the contrary that would otherwise limit a distributee's election to make a rollover. A distributee may elect, at the time and in the manner prescribed by the board, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover.
(b) For purposes of this section:
1. (1) “Direct rollover” means a payment by the plan to the eligible retirement plan specified by the distributee;
2. (2) “Distributee” means an employee or former employee. “Distributee” includes the employee's or former employee's surviving spouse and the employee's or former employee's spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in § 414(p) of the Internal Revenue Code (26 U.S.C. § 414(p)). Effective April 16, 2010, “distributee” also includes a nonspouse beneficiary who is a designated beneficiary as defined by § 401(a)(9)(E) of the Internal Revenue Code (26 U.S.C. § 401(a)(9)(E)). However, a nonspouse beneficiary may only make a direct rollover to an individual retirement account or individual retirement annuity established for the purpose of receiving the distribution, and the account or annuity shall be treated as an “inherited” individual retirement account or annuity;
3. (3) “Eligible retirement plan” means any of the following that accepts the distributee's eligible rollover distribution:
  1. (A) A qualified retirement plan described in § 401(a) of the Internal Revenue Code (26 U.S.C. § 401(a));
  2. (B) An annuity plan described in § 403(a) of the Internal Revenue Code (26 U.S.C. § 403(a));
  3. (C) An individual retirement account described in § 408(a) of the Internal Revenue Code (26 U.S.C. § 408(a));
  4. (D) An individual retirement annuity described in § 408(b) of the Internal Revenue Code (26 U.S.C. § 408(b));
  5. (E) Effective January 1, 2002, an annuity contract described in § 403(b) of the Internal Revenue Code (26 U.S.C. § 403(b));
  6. (F) Effective January 1, 2002, a plan eligible under § 457(b) of the Internal Revenue Code (26 U.S.C. § 457(b)) that is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or a political subdivision of a state that agrees to separately account for amounts transferred into that plan from the retirement system; or
  7. (G) Effective January 1, 2008, a Roth IRA described in § 408A of the Internal Revenue Code (26 U.S.C. § 408A); and
4. (4) “Eligible rollover distribution”:
  1. (A) Means any distribution of all or any portion of the balance to the credit of the distributee, except that “eligible rollover distribution” does not include:
    1. (i) Any distribution that is one (1) of a series of substantially equal periodic payments, not less frequently than annually, made for the life or the life expectancy of the distributee or the joint lives or joint life expectancies of the distributee and the distributee's designated beneficiary, or for a specified period of ten (10) years or more;
    2. (ii) Any distribution to the extent such distribution is required under § 401(a)(9) of the Internal Revenue Code (26 U.S.C. § 401(a)(9));
    3. (iii) The portion of any distribution that is not includible in gross income; provided, however, effective January 1, 2002, a portion of a distribution shall not fail to be an eligible rollover distribution merely because the portion consists of after-tax employee contributions that are not includible in gross income, but such portion may be transferred only:
      1. (a) To an individual retirement account or annuity described in § 408(a) or (b) of the Internal Revenue Code (26 U.S.C. § 408(a) or (b)) or to a qualified defined contribution plan described in § 401(a) of the Internal Revenue Code (26 U.S.C. § 401(a)) that agrees to separately account for amounts so transferred and earnings thereon, including, separately accounting for the portion of the distribution that is includible in gross income and the portion of the distribution that is not so includible;
      2. (b) On or after January 1, 2007, to a qualified defined benefit plan described in § 401(a) of the Internal Revenue Code (26 U.S.C. § 401(a)) or to an annuity contract described in § 403(b) of the Internal Revenue Code (26 U.S.C. § 403(b)), that agrees to separately account for amounts so transferred and earnings thereon, including separately accounting for the portion of the distribution that is includible in gross income and the portion of the distribution that is not so includible; or
      3. (c) On or after January 1, 2008, to a Roth IRA described in § 408A of the Internal Revenue Code (26 U.S.C. § 408A); and
    4. (iv) Any other distribution which the Internal Revenue Service does not consider eligible for rollover treatment, such as certain corrective distributions necessary to comply with § 415 of the Internal Revenue Code (26 U.S.C. § 415) or any distribution that is reasonably expected to total less than two hundred dollars ($200) during the year or any greater amount as provided under Treasury Regulation § 1.401(a)(31)-1, Q&A-11; and
  2. (B) Includes a distribution to a surviving spouse, or to a spouse or former spouse who is an alternate payee under a qualified domestic relations order, as defined in § 414(p) of the Internal Revenue Code (26 U.S.C. § 414(p)).
(c) Prior to making a direct rollover, the retirement system may require the individual requesting the direct rollover to establish that the receiving plan or account meets the requirements of this section and the Internal Revenue Code.
(d) This section shall be administered in accordance with the direct rollover provisions of the Internal Revenue Code.

§ 8-37-220. Retirement credit established through monthly installments.

(a) Subject to the conditions set forth in this section, the board of trustees may promulgate substantive and procedural rules to permit members, including retired members, to establish the retirement credit authorized in chapters 34-37 of this title through equal monthly installments over a period not to exceed five (5) years from the date the first monthly installment payment is due and payable, or the length of service being established, whichever is shorter. Any rules promulgated under this section shall set forth the date on which the retirement system may begin accepting monthly installment payments pursuant hereto. Nothing in this section shall be construed to allow a member or retired member to establish retirement credit unless such member otherwise meets all the eligibility requirements to establish the credit.
(b) Notwithstanding any law to the contrary, this section shall have no application to the following code sections: §§ 8-34-605(a), 8-34-612, 8-34-620, 8-34-623, 8-35-317, 8-25-204(g) and 8-36-105. Any payment required to establish retirement credit under such sections must be made in a lump sum and cannot be made in monthly installments.
(c) Any member or retired member electing to purchase retirement credit through monthly installments must make such payments by electronic transfer. Each installment shall be due and payable on the first business day of each calendar month during the payment period or on a date designated by the member. If a member does not designate a date, then the date that each installment shall be due and payable will default to the first business day of each calendar month during the payment period. In the event any member or retired member fails to remit the full amount of an installment within sixty (60) calendar days after its due date, the retirement system is authorized to refund to such member all installment payments made for the retirement credit being established. In that event, the member or retired member shall not be permitted to purchase any retirement credit through monthly installments for a period of three (3) years from the date of the refund.
(d) The right of a member or retired member to establish retirement credit through monthly installments shall cease upon such member's death. In that event, any installment payments made by the member or retired member under an installment payment plan which is incomplete on the date of the member or retired member's death shall be paid in a lump sum to the person or persons nominated by such member pursuant to § 8-36-121, if living, otherwise to such member's estate in accordance with § 8-36-120.
(e) Retirement credit being established through monthly installments cannot be used in determining any rights or benefits under the retirement system until all payments for the same have been received by the retirement system.

Part 3 State Accumulation Fund

§ 8-37-301. Source of funds.

(a) The state accumulation fund shall be the fund in which shall be accumulated:
1. (1) All reserves for the payment of all state annuities payable from contributions made by employers;
2. (2) Any amounts transferred thereto from a superseded system;
3. (3) The amounts transferred from the members' fund; and
4. (4) The amount of the penalty assessed against the employer;
5. and from which shall be paid all costs of administering the retirement system, and all retirement allowances and other benefits payable under the retirement system other than those payable from the members' fund.
(b) The total amount payable to the state accumulation fund in each year on account of each member classification shall not be less than the sum of the normal contribution rate and the accrued liability contribution rate, multiplied by the total compensation earnable by all members in such classification for each year, plus the amount determined as the cost-of-living contribution.
(c) Until the completion of the first actuarial valuation, the normal contribution rate and the accrued liability contribution rate shall be set at such percentages of the earnable compensation of members as the actuary shall recommend and the board of trustees shall approve.
(d) The assets accumulated in the state accumulation fund on behalf of kindergarten through twelfth (K-12) grade teachers shall be used exclusively for the benefit of such teachers. The assets accumulated in the state accumulation fund on behalf of state employees, including the employees of public institutions of higher education, shall be used exclusively for the benefit of such employees.

§ 8-37-302 — 8-37-305. [Reserved]

§ 8-37-306. Inclusion of cost-of-living benefits in computation.

The normal contribution rate and the accrued liability contribution rate as computed by the actuary are to include all liability resulting from cost-of-living benefits as provided by § 8-36-701.

§ 8-37-307. Interest and dividends earned — Transfer to individual accounts of members.

All interest and dividends earned on the funds of the retirement system shall be credited to the state accumulation fund. The board of trustees annually shall show interest at such rate or rates as it shall determine from time to time on the individual accounts of members in the members' fund and shall transfer such amounts from the state accumulation fund.

§ 8-37-308. Return of contributions made on behalf of terminated CETA employees.

Employer contributions made on behalf of Comprehensive Employment Training Act (CETA) employees, plus interest credited to these funds at the same rate as for employee accounts, shall be refundable from the state accumulation fund if the CETA employee has terminated participation in the CETA program having not obtained vesting or unsubsidized employment.

§ 8-37-309. Certification to general assembly of amount of contributions required for state judges and attorneys general.

The board of trustees shall annually certify to the general assembly the amount of normal contributions, accumulated liability contribution and cost of living contribution required from the employer to meet the provisions of this chapter for state judges and attorneys general participating in Groups 1, 3 and 4 of the consolidated retirement system. Commencing July 1, 1981, the general assembly shall make appropriations sufficient to provide such amounts and the state treasurer shall make funds available to the board of trustees.

§ 8-37-310. Adoption of funding policy with respect to obligations of the Tennessee consolidated retirement system.

(a) The state treasurer shall develop and recommend to the board of trustees a funding policy with respect to the obligations of the Tennessee consolidated retirement system. The board of trustees shall adopt a funding policy which complies with this section. Such adopted funding policy shall be in effect until amended.
(b) For the purposes of this section, “actuarially determined contribution (ADC)”, formerly known as the actuarially required contribution means the actuarially determined annual required contribution that incorporates both the normal cost of benefits and the amortization of the pension plan's unfunded accrued liability.
(c) The funding policy established by the board of trustees shall include, but not be limited to the following:
1. (1) The ADC for the retirement system shall include the normal costs and the amortization of the unfunded accrued liability, to the extent that the retirement system has any unfunded accrued liability for a particular fiscal year;
2. (2) The maximum amortization period for which any unfunded accrued liabilities will be paid; and
3. (3) A statement that the retirement system's budget shall include funding of at least one hundred percent (100%) of the ADC.
(d) The actuarial methodology is expected to provide that projected revenues (employer contributions, employee contributions, and investment earnings), and current assets will finance all of the projected benefits (death, disability, and retirement) provided by the retirement system. In the event the retirement system has an unfunded accrued liability, then the level dollar amortization method shall be utilized for financing the unfunded accrued liability.
(e) The ADC calculated by the retirement system's actuary shall be calculated utilizing the following methodology, and in accordance with the Actuarial Standards of Practice established by the Actuarial Standards Board:
1. (1) Actuarial cost method allocating normal costs over a period beginning no earlier than the date of employment which should not exceed the last assumed retirement age. This method is designed to fully fund the long-term costs of promised benefits, consistent with the objective of keeping contributions relatively stable and equitably allocating the costs over the employees' period of active service. Entry age normal cost method shall be used to achieve this purpose;
2. (2) Actuarial value of assets calculated using a maximum ten (10) year asset smoothing period. Any smoothing period greater than five (5) years will have a maximum twenty percent (20%) market corridor. For the purposes of this subsection (e), the term “market corridor” means a range beyond which deviations are not smoothed;
3. (3) Level dollar amortization method of unfunded accrued liabilities;
4. (4) Mortality assumptions, which should consider the effect of expected mortality improvements, and shall be used no later than 2024;
5. (5) Investment earnings assumption based on the rate adopted by the board of trustees; and
6. (6) A closed amortization period not to exceed thirty (30) years for all unfunded accrued liabilities.
(f) In the event that an entity participating in the retirement system is funded below sixty percent (60%), such entity shall not establish benefit enhancements.

Part 4 State Contributions

§ 8-37-401. Certification to governor of estimated contributions needed.

(a) At least thirty (30) days prior to each regular session of the general assembly, the board of trustees shall certify to the governor the estimated amounts of normal contribution, accrued liability contribution and cost-of-living contribution required to meet the provisions of chapters 34-37 of this title during the year next following, and the estimated amount required to cover the expenses of administering the retirement system during such year.
(b) The board shall certify such amounts as are required on account of state employees other than teachers separately for each department, institution, commission, board, or agency of the state and shall also certify separately such amounts as are required on account of teachers and on account of members in Group 3 not employed by the state.

§ 8-37-402. Appropriation of required funds.

(a) The general assembly shall make appropriations sufficient to provide:
1. (1) The amounts of normal contribution and accrued liability contribution so ascertained to be required on account of state employees, other than teachers, shall be included in the general appropriations act for the various departments, institutions, commissions, boards and agencies of the state;
2. (2) The amounts of normal contribution and accrued liability contribution so ascertained to be required on account of teachers shall be included by the commissioner of education in the commissioner's estimate submitted to the general assembly of the funds necessary for the operation of the school system. Effective July 1, 1992, each local education agency shall provide for any increased amounts needed for its teachers, above the amount funded by the state for fiscal year 1991-1992, from funds appropriated for the Tennessee investment in student achievement formula (TISA); and
3. (3) The amounts of normal contribution and accrued liability contribution so ascertained to be required on account of members in Group 3 not employed by the state shall be provided by a separate appropriation for this purpose.
(b) The state treasurer shall make such funds available to the board.

§ 8-37-403. State departments and agencies authorized to provide funds.

Each department, institution, commission, board or agency of the state is authorized to make available, for each year, such funds as are necessary to meet the provisions of chapters 34-37 of this title.

§ 8-37-404. Employer's contribution where compensation provided by federal or public agency.

In the event that the compensation received by a member is reimbursed to the state by a federal or other public agency, the employer's contribution may be paid by the federal or public agency.

Part 5 Contributions — General

§ 8-37-501. All contributions are due and payable first of each month.

The contributions deducted from the compensation of the members and contributions of the employer shall be due and payable monthly on the first day of each month.

§ 8-37-502. Reports and payments.

(a) Monthly Report of Salaries and Contributions. For the purpose of ascertaining the amount of contributions payable under this chapter and chapters 34-36 of this title, it shall be the duty of the employer on or before the tenth day of each month to transmit to the state treasurer, in the manner prescribed by the state treasurer, the gross salary and amount of contributions deducted, if any, from the compensation of employees and contributions of the employer payable under this chapter and chapters 34-36 of this title during the preceding calendar month. The board of trustees is authorized to promulgate substantive and procedural rules requiring that all or a portion of the information described in § 8-35-105(a) is provided in such manner.
(b) At the time of transmitting the information required pursuant to subsection (a), the employer shall remit to the state treasurer therewith the amount of contributions due under this chapter and chapters 34-36 of this title; provided, however, that employers shall remit payments due to the stabilization reserve trust account within five (5) business days after receipt of an invoice from the retirement system. Failure to so remit such contributions or failure to remit such payments due to the stabilization reserve trust account shall cause them to become delinquent and liabilities to the employer.

§ 8-37-503. Exceptions to monthly reporting and payment authorized.

(a) The board of trustees for good cause may extend not to exceed thirty (30) days the time for transmitting the information and remitting of contributions required under chapters 34-37 of this title.
(b) The board of trustees is specifically authorized to establish by regulation periodic filing and payment dates other than monthly in those instances where the board of trustees deems it to be in the best interest of the state to do so.

§ 8-37-504. Penalties for delinquent reporting and payment.

(a) When any employer fails to forward payroll data or pay the full amount of contributions required by chapters 34-37 of this title, there shall be imposed a specific civil penalty to be added to the contributions in the amount of five and one-half percent (5.5%), if the failure is not more than thirty (30) days, with an additional five percent (5%) for each additional thirty (30) days or fraction thereof, during which the failure continues, not to exceed twenty-five percent (25%) in the aggregate. Effective for the payroll period ending July 1, 2006, and thereafter, the penalty imposed under this subsection (a) shall in no case be less than twenty-five dollars ($25.00), if the failure is not more than thirty (30) days, with an additional twenty-five dollars ($25.00) for each additional thirty (30) days, or fraction thereof, during which the failure continues, not to exceed one hundred fifty dollars ($150) in the aggregate.
(b) Any penalties assessed under this section shall be credited to the state accumulation fund pursuant to § 8-37-301.

§ 8-37-505. Collection of delinquent payments from local governmental units.

(a) In the event any political subdivision or other body qualifying as a political subdivision electing to cover its employees under chapter 35, part 2 of this title fails to remit in a timely manner funds determined by the actuary and/or board of trustees to be necessary to provide employer contributions or any delinquent fees, as provided in this chapter and chapter 35, part 2 of this title, then, and in that event, at the direction of the board of trustees, the commissioner of finance and administration is hereby authorized to withhold such sum or part of such sum from any state-shared taxes which are otherwise apportioned to the political subdivision.
(b) The deduction, where authorized, shall be made as a first charge against any moneys payable to an employer regardless of the source of such payment, and also regardless of purpose or contemplated use of such funds.
(c) In lieu of or in addition to the foregoing deductions, the board of trustees may proceed to recover the delinquent payments in a court of competent jurisdiction against the employer.

§ 8-37-506. Electronic transmission of contributions and reports.

Effective for the payroll period ending July 1, 2011, or on such later date as the state treasurer may otherwise provide, the contributions described in this part shall be paid by the employer to the retirement division by electronic funds transfer. The payroll data associated with such electronically transferred contributions shall be filed with the division concurrent with the contributions through such electronic medium as shall be prescribed by the treasurer. The director of the retirement system may waive the requirement to submit such contributions or payroll data by electronic means for employers that are unable to comply despite good faith efforts or due to circumstances beyond the employer's reasonable control.

Part 6 Financing from Other Sources

§ 8-37-601. Additional funds for public service commissioners' retirement.

(a) For the purpose of providing funds to aid in meeting the cost of benefits provided by chapters 34-37 of this title for commissioners, there is appropriated to the retirement system annually a sum equal to the amount of employer contributions required on account of commissioners pursuant to part 3 of this chapter.
(b)
1. (1) Such appropriation to be paid out of the unexpended balance standing to the credit of the department of safety in the “motor vehicle account” prescribed by § 65-15-112.
2. (2) The “motor vehicle account” is comprised of the motor carrier inspection, supervision and control fees set forth in § 65-15-112 and of all fines, fees and penalties collected by virtue of title 65, chapter 15, and/or out of the unexpended balance standing to the credit of the department of safety in the “public utilities account” prescribed by § 65-4-307.
3. (3) The “public utilities account” is comprised of the inspection, control and supervision fees and penalties therein required to be paid to the department of safety by public utilities subject to its control and jurisdiction, as prescribed by §§ 65-4-116 – 65-4-118, and title 65, chapter 4, part 3.
(c) Notwithstanding anything herein to the contrary, the funds appropriated by this section shall not exceed four percent (4%) annually of the balance in the motor vehicle account and the public utilities account as of the first day of the preceding fiscal year, together with a like percentage of all moneys paid into those accounts during such preceding fiscal year.

Chapter 38 Social Security

§ 8-38-101. Chapter definitions.

As used in this chapter, unless the context otherwise requires:
1. (1) “Agreement” means the federal-state agreement between the federal agency and the state of Tennessee entered into on August 16, 1951, as authorized by the Social Security Enabling Act for the purpose of extending coverage under Title II of the Social Security Act (42 U.S.C. §§ 401-425);
2. (2) “Commissioner of social security” includes any individual to whom the commissioner of social security has delegated any of the commissioner's functions under the Social Security Act (42 U.S.C. § 301 et seq.), with respect to coverage under such act of employees of states and their political subdivisions;
3. (3) “Employee” includes an officer of a state or political subdivision thereof;
4. (4) “Employment” means any service performed by an employee in the employ of the state, or any political subdivision thereof, for such employer, except:
  1. (A) Service which, in the absence of an agreement entered into under this chapter, would constitute “employment” as defined in the Social Security Act; or
  2. (B) Service which under the Social Security Act may not be included in an agreement between the state and the commissioner of social security, entered into under this chapter;
5. (5) “Employer” means the state, a political subdivision, or a local instrumentality of either;
6. (6) “Federal Insurance Contributions Act” means chapter 21 of the federal Internal Revenue Code of 1954 (26 U.S.C. § 3101 et seq.), as such code has been and may from time to time be amended or codified;
7. (7) “Modification” means an amendment to the original federal-state agreement to modify coverage for coverage groups or to extend coverage to additional coverage groups consistent with Section 218 of the Social Security Act (42 USC § 418) and this chapter;
8. (8) “Plan of agreement” means an agreement between the state social security administrator and an employer for the purpose of extending the benefits of the Social Security Act to coverage groups within its employ;
9. (9) “Political subdivision” includes an instrumentality of a state, or one (1) or more of its political subdivisions, including the Tennessee Municipal League, the Tennessee School Boards Association and the Tennessee County Services Association, or of a state and one (1) or more of its political subdivisions, but only if such instrumentality is a juristic entity which is legally separate and distinct from the state or subdivision and only if its employees are not by virtue of their relation to such juristic entity employees of the state or subdivision;
10. (10) “Social Security Act” means the act of congress approved August 14, 1935, chapter 531 (49 Stat. 620), officially cited as the “Social Security Act”, including regulations and requirements issued pursuant thereto, as such act has been and may from time to time be amended;
11. (11) “State agency” means the state old age and survivors insurance agency; and
12. (12) “Wages” means all remuneration for employment, regardless of the medium in which paid, which would constitute wages within the meaning of the Social Security Act, as amended.

§ 8-38-102. Declaration of policy.

In order to extend to employees of the state and its political subdivisions, and to the dependents and survivors of such employees, the basic protection accorded to others by the old-age and survivors insurance system embodied in the Social Security Act (42 U.S.C. § 301 et seq.), it is hereby declared to be the policy of the general assembly, subject to the limitations of this chapter, that such steps be taken as to provide such protection to employees of the state and its political subdivisions.

§ 8-38-103. Agreement with federal administrator.

(a) The state agency, with the approval of the governor, is hereby authorized to enter on behalf of the state into an agreement with the commissioner of social security, consistent with the terms and provisions of this chapter, for the purpose of extending the benefits of the federal old-age and survivors insurance system to employees of the state or any political subdivision thereof with respect to services specified in such act which constitute “employment” as defined in § 8-38-101.
(b) Such agreement may contain such provisions relating to coverage, benefits, contributions, effective date, and modification of the agreement, administration, and other appropriate provisions as the state agency and commissioner of social security shall agree upon, but, except as may be otherwise required by or under the Social Security Act (42 U.S.C. § 301 et seq.), as to the services to be covered, such agreement shall provide in effect that:
1. (1) Benefits will be provided for employees whose services are covered by the agreement, and their dependents and survivors, on the same basis as though such services constituted employment within the meaning of Title II of the Social Security Act (42 U.S.C. § 401 et seq.);
2. (2) The employer will pay to the internal revenue service, at such time or times as may be prescribed under the Social Security Act contributions with respect to wages, as defined in § 8-38-101, equal to the sum of the taxes which would be imposed by §§ 3101 and 3111 of the Federal Insurance Contributions Act (26 U.S.C. §§ 3101 and 3111), if the services covered by the agreement constituted employment within the meaning of that act;
3. (3) Such agreement or modification of an agreement shall be effective, with respect to services in the employment covered by the agreement or modification thereof, as of the beginning date within the limits provided by paragraph 218(e)(1) of the Social Security Act (42 U.S.C. § 418(e)(1));
4. (4) All services which constitute employment as defined in § 8-38-101 and are performed in the employ of the state by employees of the state shall be covered by the agreement; and
5. (5) All services which:
  1. (A) Constitute employment as defined in § 8-38-101;
  2. (B) Are performed in the employ of a political subdivision of the state; and
  3. (C) Are covered by a plan which is in conformity with the terms of the agreement and which has been approved by the state agency under §§ 8-38-101 – 8-38-110;
6. shall be covered by the agreement.

§ 8-38-104. Employees of interstate instrumentalities.

(a) Any instrumentality jointly created by this state and any other state or states is hereby authorized, upon the granting of like authority by such other state or states to:
1. (1) Enter into an agreement with the commissioner of social security whereby the benefits of the federal old-age and survivors' insurance system shall be extended to employees of such instrumentality;
2. (2) Require its employees to pay, and for that purpose to deduct from their wages, contributions equal to the amounts which they would be required to pay under § 8-38-105 if they were covered by an agreement made pursuant to § 8-38-103; and
3. (3) Make payments to the internal revenue service in accordance with such agreement, including payments from its own funds, and otherwise to comply with such agreements.
(b) Such agreements shall, to the extent practicable, be consistent with the terms and provisions of § 8-38-103 and other provisions of this chapter.

§ 8-38-105. Contributions by employees required.

Every employee of the state whose service is covered by an agreement entered into under §§ 8-38-103 and 8-38-104 shall be required to pay for the period of such coverage, contributions, with respect to wages, as defined in § 8-38-101, equal to the amount of the employee's tax which would be imposed by the “Rate of Tax” sections of the Federal Insurance Contributions Act (26 U.S.C. §§ 3101 et seq.), if such services constituted employment within the meaning of that act. Such liability shall arise in consideration of the employee's retention in the service of the state, or the employee's entry upon such service, after the enactment of this chapter.

§ 8-38-106. Deduction from wages.

The contribution imposed by § 8-38-105 shall be collected by deducting the amount of the contribution from wages as and when paid, but failure to make such deduction shall not relieve the employee from liability for such contribution.

§ 8-38-107. [Reserved]

§ 8-38-108. Political subdivisions — Terms of plans — Exclusions.

(a) Each political subdivision of the state is hereby authorized to submit for approval by the state agency a plan for extending the benefits of Title II of the Social Security Act (42 U.S.C. §§ 401 et seq.), in conformity with applicable provisions of such act, to employees of such political subdivision.
(b) Each such plan and any amendment thereof shall be approved by the state agency if it finds that such plan, or such plan as amended, is in conformity with such requirements as are provided in regulations of the state agency, except no such plan shall be approved unless it:
1. (1) Is in conformity with the requirements of the Social Security Act (42 U.S.C. §§ 301 et seq.), and with the agreement entered into under § 8-38-103;
2. (2) Provides that all services which constitute employment as defined in § 8-38-101 are performed in the employ of the political subdivision by employees thereof shall be covered by the plan, except that it may exclude services performed by individuals to whom § 218(c)(3)(B) or § 218(d) of the Social Security Act (42 U.S.C. § 418(c)(3)(B) and (d)), respectively, is applicable;
3. (3) Specifies the source or sources from which the funds necessary to make the payments required by §§ 8-38-111 and [former] 8-38-114 [repealed] are expected to be derived and contains reasonable assurance that such sources will be adequate for such purpose. Such reasonable assurance shall include a requirement that political subdivisions with no general taxing authority supply a form of financial guarantee within the guidelines established by the state agency;
4. (4) Provides for such methods of administration of the plan by the political subdivision as are found by the state agency to be necessary for the proper and efficient administration of the plan;
5. (5) Provides that the political subdivision will make such reports, in such form and containing such information, as the state agency may from time to time require, and comply with such provisions as the state agency or the commissioner of social security may from time to time find necessary to ensure the correctness and verification of such reports; and
6. (6) Authorizes the state agency to terminate the plan in its entirety in the discretion of the state agency, if it finds that there has been a failure to comply substantially with any provision contained in such plan, such termination to take effect at the expiration of such notice and on such conditions as may be provided by regulation of the state agency and may be consistent with the Social Security Act. No plan may be terminated, either in its entirety or with respect to any coverage group, on or after the effective date of the Social Security Amendments of 1983. In instances where a political subdivision is legally dissolved or ceases to exist, the state agency shall submit a notice to the social security administration with evidence of dissolution.

§ 8-38-109. [Reserved]

§ 8-38-110. Election as to coverage groups.

In the case of coverage groups employed by political subdivisions, who are not participating in any existing retirement plan, the governing body of the political subdivision shall have the right to elect whether or not such coverage groups shall be covered under this chapter.

§ 8-38-111. Payments by political subdivisions.

Each political subdivision that has an approved plan under §§ 8-38-108 – 8-38-110 shall pay to the internal revenue service, at such time or times as may be required by applicable federal law, contributions with respect to wages, equal to the applicable taxes which would be imposed by the “Rate of Tax” sections of the Federal Insurance Contributions Act (26 U.S.C. 3101 et seq.) if the services covered by the agreement constituted employment within the meaning of that act.

§ 8-38-112. Deductions from subdivision employees' wages.

Each political subdivision required to make payments under § 8-38-111 is authorized to impose upon each of its employees, as to services which are covered by an approved plan of agreement, a contribution with respect to the employee's wages, not exceeding the amount of the employee's tax which would be imposed by the “Rate of Tax” sections of the Federal Insurance Contributions Act (26 U.S.C. 3101 et seq.), if such services constituted employment within the meaning of that act. Each political subdivision is authorized to deduct the amount of such contribution from the employee's wages. Failure to deduct such contributions shall not relieve the employee or employer of liability for such contributions.

§ 8-38-113 — 8-38-115. [Reserved]

§ 8-38-116. Appropriations for contributions and administrative costs.

The general assembly shall make appropriations sufficient to provide contributions and administrative costs in accordance with §§ 8-38-105 – 8-38-114 [see the Compiler's Notes] on behalf of state employees and teachers. Effective July 1, 1992, each local education agency shall provide for any increased amounts needed for its teachers, above the amount funded by the state for fiscal year 1991-1992, from funds appropriated for the Tennessee investment in student achievement formula (TISA).

§ 8-38-117 — 8-38-121. [Reserved]

§ 8-38-122. Rules and regulations.

The state treasurer shall make and publish such rules and regulations not inconsistent with this chapter as it finds necessary or appropriate to the efficient administration of the functions with which it is charged under this chapter.

§ 8-38-123. State retirement systems unaffected — Two retirement systems — National guard employees — Regional boards and university — Referendum.

(a) Nothing in this chapter shall apply to the judges' retirement system or the attorneys general retirement system, §§ 17-301 – 17-325 [superseded] inclusive and §§ 8-618 – 8-622 [superseded] inclusive respectively, nor shall it impair existing retirement contracts under title 49, chapter 15 [superseded] or chapters 34-36 of this title as amended, they being the teachers' retirement system and the state retirement system. The state agency is expressly deprived of power to make any agreements voiding or changing any of the terms and conditions of the acts creating and setting up either the teachers' retirement system or the state retirement system, but it may make agreements in conformity with § 218 of the Social Security Act (42 U.S.C. § 418), with reference to the teachers' retirement system and the state retirement system.
(b) Pursuant to § 218(d)(6) of the Social Security Act (42 U.S.C. § 418(d)(6)), the Tennessee teachers' retirement system and the state employees' retirement system, or such components thereof as may be established by the governor or the governor's agent pursuant to sentence one (1) of such § 218(d)(6), shall, for the purpose of this chapter, each be deemed to constitute two (2) retirement systems, one (1) of which is composed of the members of each such system who have expressed their desire to be covered under the Social Security Act (42 U.S.C. § 301 et seq.), and all individuals becoming members of each such system after the date such coverage under the Social Security Act is extended, and the other composed of the members who have not expressed a desire for such coverage. Upon request of the governing body of any political subdivision operating a retirement system, the membership of its retirement system may likewise be divided.
(c) Other public civilian employees, such as those civilians employed by the Tennessee national guard, who are paid out of federal funds or to the extent they are so paid, may be regarded as state employees for the purpose of social security coverage under this section. Regional boards, such as regional libraries of the state of Tennessee and the University of Tennessee, may be classified as political subdivisions for the purpose of social security coverage under this section.
(d) With respect to any retirement system of the state to which this chapter applies or to any retirement system of a political subdivision, including the University of Tennessee whose governing body so requests, the governor is empowered to authorize a referendum, and shall designate an agency or individual to supervise its conduct, in accordance with the requirements of § 218(d)(3) of the Social Security Act (42 U.S.C. § 418(d)(3)), on the question of whether service in positions covered by a retirement system established by the state or by a political subdivision thereof should be excluded from or included under an agreement under this chapter. The notice of referendum required by § 218(d)(3)(C) of the Social Security Act (42 U.S.C. § 418(d)(3)(C)), to be given to employees shall contain or shall be accompanied by a statement, in such form and such detail as the agency or the individual designated to supervise the referendum shall deem necessary and sufficient to inform the employees of the rights which will accrue to them and their dependents and survivors, and the liabilities to which they will be subject, if their services are included under an agreement under this chapter. Upon receiving evidence satisfactory to the governor that, with respect to any such referendum, the conditions specified in § 218(d)(3) of the Social Security Act have been met, the governor or an individual designated by the governor shall so certify to the commissioner of social security.
(e) The governor shall delegate signature authority to the state treasurer, who is the administrator for the state. The governor shall also delegate the authority to designate an agency or individual to supervise the state old age and survivors insurance agency, and shall delegate the authority to supervise referenda to the state treasurer. The state treasurer may designate an individual to administer the state old age and survivors insurance agency and to supervise referenda as needed.

§ 8-38-124, 8-38-125. [Reserved]

§ 8-38-126. Public charter school employees — Social security.

Each public charter school formed pursuant to title 49, chapter 13 shall enter into such agreements with the commissioner of social security as deemed necessary or desirable by the state agency to ensure that the benefits of the federal old-age and survivors' insurance system are extended to eligible employees of such charter school. The local board of education to which the charter school is associated shall be responsible for all reporting and submission of funds pursuant to this chapter.

§ 8-38-127. Old age and survivors insurance agency attached to department of the treasury.

The old age and survivors' insurance agency shall be attached to the department of the treasury in a division as designated by the state treasurer.

§ 8-38-128. Electronic filing and retention of social security documents.

(a) The state social security administrator may implement procedures for the filing and retention of social security documents by electronic means and may authorize electronic signatures in the signing of such documents.
(b) If a document is filed by electronic means pursuant to this section, the electronic record and the electronic signature of the person who executes the same shall be binding on all persons. The use of an electronic signature shall have the same validity and effect as the use of a signature affixed by hand.
(c) For the purposes of this section, the following definitions shall apply:
1. (1) “Electronic” means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities;
2. (2) “Electronic record” means information which is created, generated, sent, communicated, received, or stored by electronic means; and
3. (3) “Electronic signature” means an electronic sound, symbol, or process, attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record.

Chapter 39 Miscellaneous Pensions and Retirement Funds

Part 1 State Employees and Teachers Not Covered by Any Retirement System

§ 8-39-101. Eligibility of state employees.

All employees of the state of Tennessee who were employed by the state prior to July 1, 1947, for not less than eight (8) years and have reached sixty-five (65) years of age and who are not otherwise covered by any other retirement system administered by the state, shall be entitled to benefits as provided for in this part.

§ 8-39-102. Eligibility of teachers — Amount of allowances.

(a) All teachers who have taught in the public schools of Tennessee for a period of not less than eight (8) years, and who have reached sixty-five (65) years of age, or are disabled to perform productive work as determined by the standards currently applicable to the members of the former Tennessee teachers' retirement system seeking disability benefits, and who are not otherwise covered by any other teachers' retirement act now in effect in this state, shall be entitled to a monthly retirement allowance equal to the product of six dollars and fifty cents ($6.50) for teachers with less than ten (10) years of service and eight dollars ($8.00) for teachers with ten (10) or more years of service, multiplied by the number of years of teaching experience.
(b) The maximum sum payable hereunder shall be the sum of two hundred forty dollars ($240) per month regardless of the number of years taught.
(c) Any former teachers retiring under this part shall be entitled to any increase in benefit as provided for in § 8-36-701 as though they were retired members of the Tennessee consolidated retirement system.
(d) Notwithstanding any other provisions to the contrary, one who taught a minimum of eight (8) years in this state, part of which was prior to the establishment of the Tennessee teachers' retirement system, shall be eligible to receive retirement benefits based upon years taught prior to the establishment of the Tennessee teachers' retirement system; provided, that the years have been or are eligible to be established in the Tennessee consolidated retirement system.

§ 8-39-103. Payment monthly — Termination at death.

All retirement allowances shall be payable in equal monthly installments which shall cease with the month in which death occurs.

§ 8-39-104. Funding.

Funds for the payment of the allowances provided by this part shall not be taken from the funds of the teachers' retirement system now in effect in this state, but there is appropriated a sufficient sum from the general fund to carry out this part.

§ 8-39-105. Administration.

This part shall be administered by the state treasurer.

§ 8-39-106. Participation in other retirement systems.

(a) It is expressly declared to be the intent of the general assembly in awarding this gratuitous allowance that the teacher or state employee, as the case may be, shall, in order to qualify for the allowance herein, never have participated in or had the opportunity to participate in any of the superseded systems as defined in § 8-34-101 or the Tennessee consolidated retirement system and, therefore, never had an opportunity to earn a retirement allowance during the teacher's or state employee's total period of service.
(b) Any teacher or state employee who otherwise qualifies for the allowance granted by this part shall not be qualified therefor if the teacher or employee continued such teacher's or employee's career in teaching or public employment in another state wherein retirement credit is or may be granted for service performed in or for the state of Tennessee.

Part 2 Former Governors and Surviving Spouses

§ 8-39-201. Application of part.

Notwithstanding any provision of chapters 34-37 of this title to the contrary, this part shall apply only to a former governor.

§ 8-39-202. Retirement allowance upon reaching sixty-five years of age.

(a) Any former governor, upon reaching sixty-five (65) years of age, shall be eligible to receive a retirement allowance.
(b) The amount of such retirement allowance shall be an amount per annum equal to fifty percent (50%) of the then current annual salary of the office of the governor, payable in twelve (12) equal monthly payments, to commence on the first day of the month following the former governor's sixty-fifth birthday and to be payable monthly thereafter for life.

§ 8-39-203. Allowance not paid when former governor on public payroll.

Any retirement allowance payable in accordance with this part shall not be due or payable, however, during any period of time that a former governor is holding any public office, elective or appointive, or is otherwise on the payroll of the federal government or any state or local government.

§ 8-39-204. Allowance to surviving spouse upon death of governor.

(a) Death After Age 65. If a former governor dies after reaching sixty-five (65) years of age, one-half (½) of the amount of the former governor's retirement allowance shall be payable thereafter to the former governor's surviving spouse to continue until the surviving spouse's remarriage or death.
(b) Death Before Age 65. If a former governor dies before reaching sixty-five (65) years of age, a survivor benefit shall be payable to the former governor's surviving spouse thereafter to continue until the surviving spouse's remarriage or death. Such survivor benefit shall be a retirement allowance commencing on the first day of the calendar month next following the former governor's date of death, which shall be the actuarial equivalent of a retirement allowance payable to the surviving spouse at sixty-five (65) years of age equal to one-half (½) of the amount of the retirement allowance which the former governor would have received if the former governor had lived to sixty-five (65) years of age.
(c)
1. (1) Notwithstanding any provision to the contrary, if the surviving spouse of a former governor was married to the former governor during any period while the former governor served in office as governor, the monthly survivor benefit payable to such surviving spouse under this section shall be subject to adjustment pursuant to subdivisions (c)(2) and (3).
2. (2) Effective July 1, 1999, if there is a percentage increase in the consumer price index, as determined in accordance with § 8-36-701(a)(1), of at least one-half of one percent (0.5%), the monthly survivor benefit payable to each such surviving spouse in receipt of an allowance prior to the July 1 next following shall be increased commencing on such July 1 by an amount determined by multiplying the surviving spouse's then current monthly survivor benefit by such percentage, but not to exceed three percent (3%). Such increased benefit shall be the surviving spouse's base benefit. Notwithstanding the foregoing, if such percentage is one-half of one percent (0.5%) or more but less than one percent (1%), the percentage shall be rounded to one percent (1%).
3. (3) Notwithstanding subdivision (c)(2), in any year in which there is an increase in the annual salary of the office of the governor, the surviving spouse shall, on July 1 of such year, have such surviving spouse's then current base benefit recomputed according to the then annual salary of the office of the governor. For recomputation purposes, previous cost-of-living adjustments given pursuant to subdivision (c)(2) shall not be included. The recomputed benefit shall be compared to the current base benefit received by the surviving spouse. If the recomputed benefit is larger, the surviving spouse's base benefit shall become the recomputed benefit effective on July 1 of such year. The new base benefit shall thereafter be subject to the cost-of-living provisions of subdivision (c)(2).
4. (4) Any increase in benefits provided by this subsection (c) shall not be paid retroactively, but shall become effective on July 1, 1999.

§ 8-39-205. Benefits in lieu of all other provisions.

Benefits payable under this part in respect of any former governor shall be in lieu of all other benefits of which the governor may otherwise be entitled under chapters 34-37 of this title.

§ 8-39-206. Written application required.

Any benefit pursuant to this part shall be payable only upon written application by the former governor or the former governor's surviving spouse, as the case may be, made to the state treasurer.

§ 8-39-207. Funding.

(a) The amounts payable under this part shall be provided annually by a separate appropriation for this purpose.
(b) The general assembly shall make an annual appropriation to the state treasurer in an amount sufficient to provide the allowances granted herein.

§ 8-39-208. Relationship to consolidated retirement system.

Nothing in this part shall be construed to include the operation or funding of this part in the Tennessee consolidated retirement system.

§ 8-39-209. Allowance for less than full terms.

(a) A former governor or the former governor's surviving spouse shall receive the full allowance payable pursuant to this part; provided, that such governor served at least one (1) full year in office. The allowance payable to a former governor or the former governor's surviving spouse, who served less than one (1) full year, shall be prorated in accordance with the time actually served as compared with the one (1) year minimum required to receive a full benefit. If the death of a governor shall occur while the governor is serving in office, the governor's surviving spouse shall receive the full allowance payable regardless of the time served by the governor.
(b) This section shall not apply during the current term of the governor in office on May 12, 1982, or to any former governor who served in office prior to May 12, 1982.

Chapters 40, 41 [Reserved]

Chapter 42 Defense of State Employees

§ 8-42-101. Chapter definitions.

As used in this chapter, unless the context otherwise requires:
1. (1) “Attorney general and reporter” means the attorney general and reporter of Tennessee;
2. (2) “Counsel” means any practicing attorney licensed to practice law in the state; and
3. (3)
  1. (A) “State employee” means any person who is a state official, including members of the general assembly and legislative officials elected by the general assembly, or any person who is employed in the service of and whose compensation is payable by the state, or any person who is employed by the state whose compensation is paid in whole or in part from federal funds, but does not include any person employed on a contractual or percentage basis. “State employee” includes a foster parent under a contract with the state, or with an agency under contract with the state, to provide foster home care for children in the care and custody of the state and within the confines of the foster parent-child relationship. Notwithstanding any statute to the contrary, for the purposes of provision of legal representation, “state employee” also includes employees of community service agencies, and for purposes of §§ 9-8-112 and 9-8-307, including, but not limited to, § 9-8-307(a)(1)(K), “state employee” also includes employees of community service agencies. “State employee” also includes a contract security employee working with the department of children's services, solely to the extent that such contract security employee shall be permitted to drive a state vehicle pursuant to the rules and regulations of the department of general services, division of motor vehicle management, if such contract security employee's duties include the transportation of juveniles and, such contract security employee shall not be considered a state employee for any other purpose;
  2. (B) “State employee” also includes any person designated by a department or agency head as a participant in a volunteer program authorized by the department or agency head. “State employee” also includes community service agency volunteers designated by the commissioner of health; provided, that designated volunteers who are medical professionals providing direct health care pursuant to title 37, chapter 5, part 3 shall be considered state employees solely for the category of “professional liability” pursuant to § 9-8-307. Volunteers shall not be eligible for workers' compensation benefits from the state. It is the duty of each agency and department to register with the board of claims the names of all persons participating in a volunteer program authorized by such department or agency head. If an agency or department head fails to register the name of a volunteer with the board of claims, any amounts paid by the state pursuant to this chapter or title 9, chapter 8 as a result of the volunteer's actions shall be funded through the agency's or department's budget. The commissioner of finance and administration is authorized to promulgate rules and regulations to determine who is qualified to be designated as a volunteer. Such rules and regulations may set forth the criteria for qualification of participants in volunteer programs. All such rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5;
  3. (C) “State employee” under this chapter and under title 9, chapter 8, also includes, as a volunteer, a person designated by the district attorney general of each judicial district as a member of a judicial district task force relating to the investigation and prosecution of drug cases. The district attorney general of each judicial district shall register only the names of properly qualified and designated task force members with the board of claims. Any member of such a task force designated by the district attorney general shall meet the criteria for qualifying as such a member pursuant to § 8-7-110 and as set forth in rules and regulations promulgated by the commissioner of finance and administration. The commissioner, after consultation with the department of safety and the Tennessee bureau of investigation, is authorized to promulgate rules and regulations to determine who shall qualify to be designated as a member of such judicial district task forces. Such rules and regulations may set criteria for qualifications of members and may set limits on the numbers of task force members from each district who may be registered. All such rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act. Task force members are not eligible for workers' compensation benefits from the state of Tennessee;
  4. (D) “State employee” also includes persons who are members of community-based screening processes or mandatory pre-screening agents that function under title 33, chapter 6, and who screen individuals to make judgments required by title 33, chapter 6. “State employee” further includes the department of mental health and substance abuse services “medical consultant”; this individual shall be a licensed physician who is designated by the commissioner of mental health and substance abuse services to provide medical consultation and advisory services to and on behalf of the commissioner and to the department of mental health and substance abuse services under title 33. “State employee” further includes any physician, psychologist or designated professional, while acting under § 33-6-404(3)(B)(iii), who is engaged in assessing the need or absence of need for physical restraint or vehicle security during transportation to a hospital or treatment resource. The commissioner shall register only the names of properly qualified and designated persons with the board of claims. Persons designated under this subdivision (3)(D) are not eligible for workers' compensation benefits from the state of Tennessee. For purposes of legal actions resulting from acts or omissions by these properly qualified and designated persons while performing duties referenced in this subdivision (3)(D), the state shall be considered the sole employer of these persons;
  5. (E) “State employee” also includes, solely for purposes of this chapter and under § 9-8-307(a)(1)(A), (D), (E), (F), (M), (N), (Q) and (R), staff of a child advocacy center that meets the requirements for funding under § 9-4-213(a) or that qualifies for start-up funding as a new child advocacy center under § 9-4-213(b), to the extent the person is performing functions authorized by § 9-4-213. “State employee” does not include any person employed on a contractual or percentage basis. Such staff shall not be eligible for workers' compensation or other benefits from the state, nor shall such staff be members of the Tennessee consolidated retirement system;
  6. (F) “State employee” also includes, solely for purposes of this chapter and under §§ 9-8-112 and 9-8-307, a person directly participating or selected to directly participate in the process of executing a sentence of death as a contractor or volunteer. Such persons shall not be eligible for any other state employee benefits, including, but not limited to, workers' compensation, nor shall they be members of the Tennessee consolidated retirement system;
  7. (G) “State employee” also includes, solely for purposes of this chapter and under §§ 9-8-112 and 9-8-307, a qualified individual employed pursuant to § 68-115-203(b) to assist ring officials and commission members pursuant to § 68-115-203(b) in the regulation of professional contests under title 68, chapter 115, part 2. Such individuals shall not be eligible for any other state employee benefits, including, but not limited to, workers' compensation, nor shall they be members of the Tennessee consolidated retirement system;
  8. (H) “State employee” also includes, solely for purposes of this chapter and under §§ 9-8-112 and 9-8-307, directors, officers, employees of the Doe Mountain recreation authority, and persons designated by the authority as participants in volunteer programs authorized by the authority; and
  9. (I) “State employee” also includes, solely for purposes of this chapter and under §§ 9-8-112 and 9-8-307, a contracted court reporter when the contracted court reporter is named in a civil action for damages alleging an act or omission by the contracted court reporter in the course of performing the contracted court reporter's official duties.

§ 8-42-102. [Reserved]

§ 8-42-103. Defense counsel for state employees.

(a) When a civil action for damages is commenced in any court by any person against any state employee as defined in this chapter for any acts or omissions of the state employee within the scope of the employee's employment, except for willful, malicious, or criminal acts or omissions or for acts or omissions done for personal gain, the attorney general and reporter has the discretion to provide representation to the employee. Such representation may be provided by:
1. (1) The attorney general and reporter's assistants;
2. (2) Attorneys appointed by the attorney general and reporter; or
3. (3) Payment of reasonable compensation of counsel approved by the attorney general and reporter. Attorney's compensation, court costs, and other necessary incidental expenses in connection with the action shall be paid from the funds appropriated to the attorney general and reporter pursuant to this chapter. The method of providing representation is within the sole discretion of the attorney general and reporter. Notwithstanding any law to the contrary, the attorney general and reporter is specifically authorized to appoint attorneys and to determine their compensation to fulfill the purpose of this chapter.
(b) For the exclusive purpose of this section, “state employee” also includes attorneys appointed by a court, or other agency authorized by law to make such appointments, to represent an indigent when a civil action for damages is commenced against such attorney for any act or omission in the course of representing such indigent. Notwithstanding any law to the contrary, such attorney shall not be considered a state employee for any other purpose including, but not limited to, §§ 9-8-112 and 9-8-307.
(c) For the exclusive purpose of this section, “state employee” also includes any person who performs the functions of disciplinary counsel or other investigatory or prosecutorial functions pursuant to title 17, chapter 5 when a civil action for damages is commenced against such person for any act or omission in the course of performing the duties described in title 17, chapter 5. Notwithstanding any law to the contrary, such person shall not be considered a state employee for any other purpose including, but not limited to, §§ 9-8-112 and 9-8-307.
(d) For the exclusive purpose of this section, “state employee” also includes any expert witness appearing and testifying on behalf of the department of health at any administrative hearing or other similar proceeding held with respect to a disciplinary or other action against any person or entity required to be licensed, permitted, certified, or authorized by any board, council, committee, or agency created pursuant to title 63 and title 68, when a civil action for damages is commenced against such expert witness for any act or omission in the course of appearing and testifying. Notwithstanding any law to the contrary, such witness shall not be considered a state employee for any other purpose including, but not limited to, §§ 9-8-112 and 9-8-307.

§ 8-42-104. No attorney general and reporter representation in criminal actions — Compensation — Costs.

(a) When a criminal action is initiated in any court by warrant, information, or indictment against any state employee, as defined in this chapter, for an act apparently done by the employee in the scope of the employee's assigned official duty, the attorney general and reporter will not represent the employee or provide representation. In the event that the criminal charges against the employee are dismissed with prejudice or in the event that the employee is acquitted at trial or upon appeal, all reasonable compensation for the employee's counsel, court costs or necessary incidental expenses, as determined by the attorney general and reporter, in connection with the action, shall be payable from the funds appropriated to the attorney general and reporter pursuant to this chapter. In the event that the charges against the employee are retired or dismissed, or the case is not prosecuted for any other reason, the attorney general and reporter may compensate such counsel for all reasonable fees and necessary incidental expenses and pay court costs in connection with the action, where the attorney general and reporter finds that the employee did act in the scope of the employee's assigned duties under apparent lawful orders or authority when the employee took the actions resulting in the institution of the criminal action. In no event shall any funds be expended for compensation for counsel, court costs or necessary incidental expenses, where the employee is convicted of any criminal offense.
(b) For the exclusive purpose of this section, “state employee” includes attorneys appointed by a court, or other agency authorized by law to make such appointments, to represent an indigent when a criminal action is commenced against such attorney for any act or omission in the course of representing such indigent. When a criminal action is initiated against such an attorney, the written request shall be made by the administrative director of the courts. Notwithstanding any law to the contrary, such attorney shall not be considered to be a state employee for any other purpose including, but not limited to, §§ 9-8-112 and 9-8-307.

§ 8-42-105, 8-42-106. [Reserved]

§ 8-42-107. Appropriations for defense costs.

(a) There shall be appropriated to the attorney general and reporter a sum sufficient from the risk management fund established pursuant to § 9-8-109, to pay for the representation provided to state employees, court costs and any necessary incidental expenses incurred in providing the representation authorized by this chapter.
(b) Subsequent to the close of each fiscal year, the attorney general and reporter shall provide to the state board of claims a report describing the manner in which funds received from the risk management fund were used in representing state employees pursuant to this chapter.

§ 8-42-108. Attorney general and reporter's actions not reviewable.

All decisions and determinations of the attorney general and reporter shall be final and shall not be reviewable by any court.

Chapter 43 [Reserved]

Chapter 44 Public Meetings

Part 1 General Provisions

§ 8-44-101. Policy — Construction.

(a) The general assembly hereby declares it to be the policy of this state that the formation of public policy and decisions is public business and shall not be conducted in secret.
(b) This part shall not be construed to limit any of the rights and privileges contained in the Constitution of Tennessee, Article I, § 19.

§ 8-44-102. Open meetings — “Governing body” defined — “Meeting” defined.

(a) All meetings of any governing body are declared to be public meetings open to the public at all times, except as provided by the Constitution of Tennessee.
(b)
1. (1) “Governing body” means:
  1. (A) The members of a public body which consists of two (2) or more members, excluding a county mayor in accordance with § 5-6-106(b)(1)(B), with the authority to make decisions for or recommendations to a public body on policy or administration and also means a private nonprofit community organization eligible to receive funds from the community services block grant program under 42 U.S.C. §§ 9901 — 9926. Any governing body so defined by this section shall remain so defined, notwithstanding the fact that such governing body may have designated itself as a negotiation committee for collective bargaining purposes, and strategy sessions of a governing body under such circumstances shall be open to the public at all times;
  2. (B) The board of directors of any nonprofit corporation which contracts with a state agency to receive community grant funds in consideration for rendering specified services to the public; provided, that community grant funds comprise at least thirty percent (30%) of the total annual income of such corporation. Except such meetings of the board of directors of such nonprofit corporation that are called solely to discuss matters involving confidential doctor-patient relationships, personnel matters or matters required to be kept confidential by federal or state law or by federal or state regulation shall not be covered under this chapter, and no other matter shall be discussed at such meetings;
  3. (C) The board of directors of any not-for-profit corporation authorized by the laws of Tennessee to act for the benefit or on behalf of any one (1) or more counties, cities, towns and local governments pursuant to title 7, chapter 54 or 58. This subdivision (b)(1)(C) shall not apply to any county with a metropolitan form of government and having a population of four hundred thousand (400,000) or more, according to the 1980 federal census or any subsequent federal census;
  4. (D) The board of directors of any nonprofit corporation which through contract or otherwise provides a metropolitan form of government having a population in excess of five hundred thousand (500,000), according to the 1990 federal census or any subsequent federal census, with heat, steam or incineration of refuse;
  5. (E)
    1. (i) The board of directors of any association or nonprofit corporation authorized by the laws of Tennessee that:
      1. (a) Was established for the benefit of local government officials or counties, cities, towns or other local governments or as a municipal bond financing pool;
      2. (b) Receives dues, service fees or any other income from local government officials or such local governments that constitute at least thirty percent (30%) of its total annual income; and
      3. (c) Was authorized as of January 1, 1998, under state law to obtain coverage for its employees in the Tennessee consolidated retirement system.
    2. (ii) This subdivision (b)(1)(E) shall not be construed to require the disclosure of a trade secret or proprietary information held or used by an association or nonprofit corporation to which this chapter applies. In the event a trade secret or proprietary information is required to be discussed in an open meeting, the association or nonprofit corporation may conduct an executive session to discuss such trade secret or proprietary information; provided, that a notice of the executive session is included in the agenda for such meeting.
    3. (iii) As used in this subdivision (b)(1)(E):
      1. (a) “Proprietary information” means rating information, plans, or proposals; actuarial information; specifications for specific services provided; and any other similar commercial or financial information used in making or deliberating toward a decision by employees, agents or the board of directors of such association or corporation; and which if known to a person or entity outside the association or corporation would give such person or entity an advantage or an opportunity to gain an advantage over the association or corporation when providing or bidding to provide the same or similar services to local governments; and
      2. (b) “Trade secret” means the whole or any portion or phrase of any scientific or technical information, design, process, procedure, formula or improvement which is secret and of value. The trier of fact may infer a trade secret to be secret when the owner thereof takes measures to prevent it from becoming available to persons other than those selected by the owner to have access thereto for limited purposes.
2. (2) “Meeting” means the convening of a governing body of a public body to make a decision or to deliberate toward a decision on any matter. “Meeting” does not include any on-site inspection of any project or program.
(c) Nothing in this section shall be construed as to require a chance meeting of two (2) or more members of a public body to be considered a public meeting. No such chance meetings, informal assemblages, or electronic communication shall be used to decide or deliberate public business in circumvention of the spirit or requirements of this part.
(d) Notwithstanding subsection (a), one (1) or more members of a local legislative body who meet with one (1) or more members of the state legislative delegation that represent the county or city is not a meeting under this section; provided, that the meeting is an exchange of information and not deliberative in nature or the member or members of the state legislative delegation conduct the meeting to discuss state matters. A meeting under this subsection (d) must not be used to decide or deliberate public business in circumvention of the spirit or requirements of this part.

§ 8-44-103. Notice of public meetings.

(a) Notice of Regular Meetings. Any such governmental body which holds a meeting previously scheduled by statute, ordinance, or resolution shall give adequate public notice of such meeting.
(b) Notice of Special Meetings. Any such governmental body which holds a meeting not previously scheduled by statute, ordinance, or resolution, or for which notice is not already provided by law, shall give adequate public notice of such meeting.
(c) The notice requirements of this part are in addition to, and not in substitution of, any other notice required by law.

§ 8-44-104. Minutes recorded and open to public — Secret votes prohibited.

(a) The minutes of a meeting of any such governmental body shall be promptly and fully recorded, shall be open to public inspection, and shall include, but not be limited to, a record of persons present, all motions, proposals and resolutions offered, the results of any votes taken, and a record of individual votes in the event of roll call.
(b) All votes of any such governmental body shall be by public vote or public ballot or public roll call. No secret votes, or secret ballots, or secret roll calls shall be allowed. As used in this chapter, “public vote” means a vote in which the “aye” faction vocally expresses its will in unison and in which the “nay” faction, subsequently, vocally expresses its will in unison.

§ 8-44-105. Action nullified — Exception.

Any action taken at a meeting in violation of this part shall be void and of no effect; provided, that this nullification of actions taken at such meetings shall not apply to any commitment, otherwise legal, affecting the public debt of the entity concerned.

§ 8-44-106. Enforcement — Jurisdiction.

(a) The circuit courts, chancery courts, and other courts which have equity jurisdiction, have jurisdiction to issue injunctions, impose penalties, and otherwise enforce the purposes of this part upon application of any citizen of this state.
(b) In each suit brought under this part, the court shall file written findings of fact and conclusions of law and final judgments, which shall also be recorded in the minutes of the body involved.
(c) The court shall permanently enjoin any person adjudged by it in violation of this part from further violation of this part. Each separate occurrence of such meetings not held in accordance with this part constitutes a separate violation.
(d) The final judgment or decree in each suit shall state that the court retains jurisdiction over the parties and subject matter for a period of one (1) year from date of entry, and the court shall order the defendants to report in writing semiannually to the court of their compliance with this part.
(e) If a court finds that a governing body knew that a meeting of the body was subject to the requirements of this part and willfully refused to comply, the court may, in its discretion, assess all or part of the reasonable costs incurred by the petitioners in enforcing the provisions of this part, including reasonable attorneys' fees, against the governing body. In determining whether the action of the governing body was willful, the court may consider the testimony and other guidance provided to the governing body by staff of the office of open records counsel created pursuant to § 8-4-601.

§ 8-44-107. Board of directors of Performing Arts Center Management Corporation.

The board of directors of the Tennessee Performing Arts Center Management Corporation shall be subject to, and shall in all respects comply with, all of the provisions made applicable to governing bodies by this chapter.

§ 8-44-108. Participation by electronic or other means.

(a) As used in this section, unless the context otherwise requires:
1. (1) “Electronic means of communication” means communication by video conference or audio conference and may include the use of an internet-based platform, but does not include email;
2. (2) “Governing body” means the governing body of a board, agency, or commission of state government, including state debt issuers;
3. (3) “Meeting” has the same definition as defined in § 8-44-102;
4. (4) “Necessity” means that the matters to be considered by the governing body at that meeting require timely action by the body, that physical presence by a quorum of the members is not practical within the period of time requiring action, and that participation by a quorum of the members by electronic or other means of communication is necessary; and
5. (5) “State debt issuers” means the Tennessee state funding board, Tennessee local development authority, Tennessee housing development agency, and Tennessee state school bond authority, and any of their committees.
(b)
1. (1) A governing body may, but is not required to, allow participation by electronic or other means of communication for the benefit of the public and the governing body in connection with any meeting authorized by law; provided, that a physical quorum is present at the location specified in the notice of the meeting as the location of the meeting.
2. (2) If a physical quorum is not present at the location of a meeting of a governing body, then in order for a quorum of members to participate by electronic or other means of communication, the governing body must make a determination that a necessity exists. Such determination, and a recitation of the facts and circumstances on which it was based, must be included in the minutes of the meeting.
3. (3) If a physical quorum is not present at the location of a meeting of a governing body other than a state debt issuer, the governing body other than a state debt issuer must file such determination of necessity, including the recitation of the facts and circumstances on which it was based, with the office of secretary of state no later than two (2) working days after the meeting. The secretary of state shall report, no less than annually, to the general assembly as to the filings of the determinations of necessity. This subdivision (b)(3) does not apply to the board of regents, the board of trustees of the University of Tennessee, the Tennessee higher education commission, a state university board, or an advisory board for a University of Tennessee system if the advisory board has had a physical quorum present at the location of the advisory board meeting at least one (1) time in the previous twelve (12) months.
4. (4) Nothing in this section shall prohibit a governing body from complying with § 8-44-109.
(c)
1. (1) Any meeting held pursuant to the terms of this section shall comply with the requirements of the Open Meetings Law, codified in this part, and shall not circumvent the spirit or requirements of that law.
2. (2) If a meeting will be conducted permitting participation by members by electronic means of communication, then the governing body shall allow members of the public who are not in attendance at the physical location of the meeting to:
  1. (A)
    1. (i) View and listen to the meeting by electronic means in real time, if the meeting is conducted using video conference; or
    2. (ii) Listen to the meeting by electronic means in real time, if the meeting is conducted with audio only with no video; and
  2. (B) Participate or provide comment by electronic means of communication, if participation or public comment would normally be allowed at the meeting.
3. (3) A notice required by this part or other law and the agenda for the meeting must:
  1. (A) State that the meeting will include members of the governing body who are participating by electronic means of communication;
  2. (B) Contain information necessary for members of the public to access the meeting by electronic means to view or listen; and
  3. (C) Contain instructions on how to provide public comment by electronic means of communication, which may include contacting the governing body or registering in advance to receive information enabling a person to provide public comment by electronic means. This subdivision (c)(3)(C) does not require a governing body to allow public comment as part of its meetings or alter its rules for public comment or public participation in a meeting.
4. (4) A governing body that conducts a meeting allowing participation by electronic means of communication shall make a recording of the meeting, and post the recording or a link to the recording on its website that contains information about the governing body and its meetings. The governing body shall post the recording or link to the recording as soon as possible but no later than three (3) business days after the meeting. The governing body shall retain the recording or link for at least three (3) years after the recording was created.
5. (5) Each part of a meeting required to be open to the public shall be audible to the public at the location specified in the notice of the meeting as the location of the meeting. Each member participating electronically or otherwise must be able to simultaneously hear each other and speak to each other during the meeting. Any member participating in such fashion shall identify the persons present in the location from which the member is participating.
6. (6) Any member of a governing body not physically present at a meeting shall be provided, before the meeting, with any documents that will be discussed at the meeting, with substantially the same content as those documents actually presented.
7. (7) All votes taken during a meeting held pursuant to the terms of this section shall be by roll call vote.
8. (8) A member participating in a meeting by this means is deemed to be present in person at the meeting for purposes of voting, but not for purposes of determining per diem eligibility. However, a member may be reimbursed expenses of such electronic communication or other means of participation.
(d) Notwithstanding this chapter to the contrary, members of an emergency communications district board of directors may participate in meetings by any electronic means approved by such board. A board member who participates in a meeting electronically under this subsection (d) is present for purposes of creating a quorum and voting on matters presented to the board for consideration during the meeting to the same extent as a board member who is physically present at the meeting. Subdivisions (c)(1)-(6) apply to meetings held pursuant to this subsection (d).

§ 8-44-109. Electronic communication via internet forum.

(a) A governing body may, but is not required to, allow electronic communication between members by means of a forum over the internet only if the governing body:
1. (1) Ensures that the forum through which the electronic communications are conducted is available to the public at all times other than that necessary for technical maintenance or unforeseen technical limitations;
2. (2) Provides adequate public notice of the governing body's intended use of the electronic communication forum;
3. (3) Controls who may communicate through the forum;
4. (4) Controls the archiving of the electronic communications to ensure that the electronic communications are publicly available for at least one (1) year after the date of the communication; provided, that access to the archived electronic communications is user-friendly for the public; and
5. (5) Provides reasonable access for members of the public to view the forum at the local public library, the building where the governing body meets or other public building.
(b) Electronic communications posted to a forum shall not substitute for decision making by the governing body in a meeting held in accordance with this part. Communications between members of a governing body posted to a forum complying with this section shall be deemed to be in compliance with the open meetings laws compiled in this part.
(c) Prior to a governing body initially utilizing a forum to allow electronic communications by its members that meets the requirements of this section, including the public notice required in subsection (a), the governing body shall file a plan with the office of open records counsel. The plan shall describe how the governing body will ensure compliance with subsection (a). Within thirty (30) days of receipt of the plan, the office of open records counsel shall acknowledge receipt of the plan and shall report whether or not the plan and the proposed actions comply with subsection (a). If the office determines that compliance with subsection (a) has not been met, the office shall provide written comments regarding the plan to the governing body. Until such time as the governing body complies with the written comments provided by the office and the office issues a report of compliance, the governing body shall not be allowed to establish or utilize such forum. This subsection (c) shall not apply to any governing body that had established a forum pursuant to this section prior to May 7, 2009.
(d) No member participating in an electronic communication pursuant to this section is deemed to be eligible for per diem for such participation.
(e) As used in this section, “governing body” means the elected governing body of a county, city, metropolitan form of government or school board.

§ 8-44-110. Public accessibility of legislative body agenda — Withholding items prohibited — Posting on website.

(a) At least forty-eight (48) hours prior to a regular meeting, a state governing body or a local government legislative body shall make available to the public, at no charge, the agenda for the upcoming regular meeting in a place accessible to the public. The agenda must reasonably describe the matters to be deliberated or acted upon during the public meeting.
(b) A state governing body or a local government legislative body may deliberate or act upon matters not listed on the agenda of its regular meeting if the body follows its bylaws or properly adopted rules and procedures and complies with all other applicable state laws.
(c) A state governing body or a local government legislative body shall not circumvent the spirit or requirements of this section by withholding items from an agenda for the purpose of avoiding public disclosure of business to be considered by the state governing body or a local government legislative body.
(d) A state governing body or a local government legislative body that maintains a website may make an agenda available to the public through the website. The website is considered a place that is accessible to the public for purposes of compliance with subsection (a).
(e) As used in this section, “local government legislative body” means the legislative body of an incorporated city or town, a metropolitan government, or a county.

§ 8-44-111. Open meetings — Development of educational program required — Materials.

(a) The municipal technical advisory service (MTAS) for municipalities and the county technical assistance service (CTAS) for counties, in order to provide guidance and direction, shall develop a program for educating their respective public officials about the open meetings laws codified in this chapter, and how to remain in compliance with such laws.
(b) The Tennessee school board association shall develop a program for educating elected school board members about the open meetings laws and how to remain in compliance with such laws.
(c) The Tennessee board of utility regulation shall develop a program for members of the governing bodies of utility systems under the board's jurisdiction to educate the board members about the open meetings laws and how to remain in compliance with such laws.
(d) The state emergency communications board created by § 7-86-302 shall develop a program for educating emergency communications district board members about the open meetings laws and how to remain in compliance with such laws.
(e) The office of open records counsel established in chapter 4, part 6 of this title shall establish educational programs and materials regarding open meetings laws in this state, to be made available to the public and to public officials.

§ 8-44-112. Reserved period for public comment — Reasonable restrictions allowed — Notice to public commenters — Applicability.

(a) A governing body shall, for each public meeting, reserve a period for public comment to provide the public with the opportunity to comment on matters that are germane to the items on the agenda for the meeting.
(b) The governing body may put reasonable restrictions on the period for public comment, such as the length of the period, the number of speakers, and the length of time that each speaker will be allowed to provide comment. The governing body may require a person to give notice in advance of the desire to offer comments at a meeting. The governing body shall take all practicable steps to ensure that opposing viewpoints are represented fairly, if any.
(c) A notice for a public meeting shall indicate the manner in which a person may indicate the person's desire to provide public comment at the meeting.
(d) This section does not apply to:
1. (1) A meeting of a governing body, or a portion thereof, where the governing body is conducting a disciplinary hearing for a member of the governing body or a person whose profession or activities fall within the jurisdiction of the governing body; or
2. (2) A meeting for which there are no actionable items on the agenda.

Part 2 Labor Negotiations

§ 8-44-201. Labor negotiations between public employee union and state or local government.

(a) Notwithstanding any other Tennessee law to the contrary, labor negotiations between representatives of public employee unions or associations and representatives of a state or local governmental entity shall be open to the public, whether or not the negotiations by the state or local governmental entity are under the direction of the legislative, executive or judicial branch of government.
(b) Nothing contained in this section shall be construed to require that planning or strategy sessions of either the union committee or the governmental entity committee, meeting separately or with the entity it represents, be open to the public.
(c) Nothing contained in this section shall be construed to grant recognition rights of any sort.
(d) Both sides shall decide jointly and announce in advance of any such labor negotiations where such meetings shall be held.

Chapter 45 [Reserved]

Chapter 46 Impeachment

Part 1 General Provisions

§ 8-46-101. Officers liable — Effect of judgment.

The governor, judges of the supreme court and court of appeals, judges of inferior courts, chancellors, attorneys for the state, state treasurer, comptroller of the treasury and secretary of state shall be liable to impeachment whenever they may, in the opinion of the house of representatives, commit any crime in their official capacity which may require disqualification; but judgment shall only extend to removal from office, and disqualification to fill any office thereafter. The party shall, nevertheless, be liable to indictment, trial, judgment, and punishment according to law.

§ 8-46-102. Majority of house of representatives required.

A majority of all the members of the house of representatives elected shall concur in an impeachment.

§ 8-46-103. Contents of impeachment — Right to counsel.

The impeachment shall specify the offenses charged with the same precision required in an indictment, and the accused shall be allowed counsel as in cases of other prosecutions.

§ 8-46-104. Suspension pending trial.

Every officer impeached shall be suspended from the exercise of such officer's official duties until such officer's acquittal.

§ 8-46-105. Jurisdiction of trial.

The senate of the general assembly is the court for the trial of impeachments, and has such jurisdiction as is conferred by the Constitution of Tennessee, Article V.

§ 8-46-106. Summons by senate.

When possessed of an impeachment, the senate shall forthwith cause the person accused to be brought before it.

§ 8-46-107. Issuance and service of process.

All writs and process shall be issued by the clerk of the senate, and tested in the clerk's name, and may be served by any person authorized by the senate or its speaker.

§ 8-46-108. Copy of impeachment — Answer.

Upon the appearance of the person impeached, such person is entitled to a copy of the impeachment, and to a reasonable time in which to answer the same.

Part 2 Fees and Costs

§ 8-46-201. Witness fees.

Witnesses on the trial of an impeachment before the senate shall be allowed the following fees:
1. (1) For every day's attendance on such trial $1.00
2. (2) For every twenty-five (25) miles the witness may necessarily travel in going to and returning from the place of trial $1.00

§ 8-46-202. Fees of sergeant at arms.

The sergeant at arms, or such other officer as may be appointed, shall be allowed the following fees:
1. (1) For every arrest under process from the senate $2.00
2. (2) For each mile the sergeant or other appointed officer may travel in going to and returning from such arrest $0.05
3. (3) For executing each subpoena $0.50
4. (4) For each day the sergeant or other appointed officer may attend the senate on any such trial $2.00

§ 8-46-203. Probate of fees.

The witness and officer shall prove their account by oath before the clerk of the senate, and the clerk's certificate annexed thereto shall enable the holder to collect the amount from the defendant or the state, according as either is liable.

§ 8-46-204. Defendant's liability for costs.

If the defendant is found guilty, the defendant is liable for all such costs, and the same may be recovered by action before any tribunal having cognizance of the amount.

§ 8-46-205. Costs paid by state.

If the defendant is acquitted, or is unable to pay the costs, after due course of law has been had thereon, the state treasurer shall pay the witnesses and officer, upon the production of their certified accounts as provided in § 8-46-203.

Chapter 47 Removal of Officers

§ 8-47-101. Officers subject to removal — Grounds.

Every person holding any office of trust or profit, under and by virtue of any of the laws of the state, either state, county, or municipal, except such officers as are by the constitution removable only and exclusively by methods other than those provided in this chapter, who shall knowingly or willfully commit misconduct in office, or who shall knowingly or willfully neglect to perform any duty enjoined upon such officer by any of the laws of the state, or who shall in any public place be in a state of intoxication produced by strong drink voluntarily taken, or who shall engage in any form of illegal gambling, or who shall commit any act constituting a violation of any penal statute involving moral turpitude, shall forfeit such office and shall be ousted from such office in the manner hereinafter provided.

§ 8-47-102. Institution by prosecuting attorneys on own initiative.

The attorney general and reporter has the power, on the attorney general and reporter's own initiative, and without any complaint having been made to the attorney general and reporter or request made of the attorney general and reporter, to institute proceedings in ouster against any and all state, county, and municipal officers, under this chapter, and the district attorneys general, county attorneys, and city attorneys, within their respective jurisdictions, may institute such actions, without complaint being made to them or request made of them, as they are authorized to institute upon request made of them or complaint made to them.

§ 8-47-103. Investigation and institution of proceedings.

It is the duty of the attorney general and reporter, the district attorneys general, county attorneys, and city attorneys, within their respective jurisdictions, upon notice being received by them in writing that any officer herein mentioned has been guilty of any of the acts, omissions, or offenses set out in § 8-47-101, forthwith to investigate such complaint; and, if upon investigation such person finds that there is reasonable cause for such complaint, such person shall forthwith institute proceedings in the circuit, chancery, or criminal court of the proper county, to oust such officer from office.

§ 8-47-104. Subpoena to appear before prosecuting attorney.

The attorney general and reporter, the district attorneys general, county attorneys, and city attorneys have the power and they are hereby directed, whenever complaint has been made, and the names of the witnesses furnished them, or whenever they deem necessary, to issue subpoenas for such witnesses so furnished them and for such persons as they shall have reason to believe have any knowledge of the complaint made, to appear before the attorney general and reporter, district attorney general, county attorney, or city attorney, at a time and place to be designated in the subpoena then and there to testify concerning the subject matter set out in the complaint.

§ 8-47-105. Testimony before prosecuting attorneys.

Each witness shall be sworn true answers to make to all questions propounded to the witness, touching the matter under investigation, and the testimony of each witness shall be reduced to writing and be signed by the witness. The attorney general and reporter, the district attorneys general, county attorneys, and city attorneys are hereby authorized and empowered to administer the necessary oaths and affirmations to such witnesses.

§ 8-47-106. Disobedience to attorney's subpoena.

Any disobedience to such subpoena, or refusal to answer any proper questions propounded by the officers at such inquiry, is a Class C misdemeanor.

§ 8-47-107. Self-incrimination privilege unavailable — Immunity from prosecution.

No person shall be excused from testifying before the attorney general and reporter, district attorney general, county attorney, or city attorney, at such investigation, or in any investigation, or be excused from testifying in any proceeding brought in any court of competent jurisdiction, under this chapter, on the ground that such person's testimony may incriminate such person; but no person shall be prosecuted or punished on account of any transaction, matter, or thing concerning which such person shall be compelled to testify, nor shall such testimony be used against such person in prosecutions for any crime or misdemeanor under the laws of this state.

§ 8-47-108. Filing of complaint on direction of governor.

It is also the duty of the attorney general and reporter, in the case of state officers, and of the district attorney general and the county attorney, if there is one in the county, in the case of county officers, and of the city attorney, or the district attorney general, in case of municipal officers, to file such petition or complaint, upon being directed or requested in writing so to do by the governor.

§ 8-47-109. Governor's duty to direct prosecution.

The governor shall have power, and it shall be the governor's duty, whenever the governor has knowledge that reasonable grounds exist for the proceedings authorized by this chapter against any state, county, or municipal officer, to direct the attorney general and reporter, or district attorney general, or county attorney, or city attorney, as the case may be, to institute and prosecute the same against the offending officer.

§ 8-47-110. Petition in name of state — Filing by relators.

The petition or complaint shall be in the name of the state and may be filed upon the relation of the attorney general and reporter, or the district attorney general for the state, or the county attorney in the case of county officers, and of the city attorney, or the district attorney general, in the case of municipal officers; and in all cases it may be filed, without the concurrence of any of such officers, upon the relation of ten (10) or more citizens and freeholders of the state, county, or city, as the case may be, upon their giving the usual security for costs.

§ 8-47-111. Assistance to prosecution by relators.

It is the duty of the attorney general and reporter, upon request of relator citizens and freeholders, to aid and assist in the prosecution of such proceedings against state officers, and of district attorneys general and county attorneys, upon like request, to aid and assist in the prosecution of such proceedings against county officers, and of city attorneys or the district attorneys general for the state, upon like request, to aid and assist in the prosecution of such proceedings against municipal officers other than themselves.

§ 8-47-112. Additional counsel for prosecution.

The governor may in all cases, by and with the concurrence of the attorney general and reporter, employ on behalf of the state additional counsel to aid in the prosecution of such proceedings whenever the default charged involves the failure or neglect of the accused to perform the accused's duty under any law or laws of the state.

§ 8-47-113. Form and contents of petition.

The accused shall be named as defendant, and the petition or complaint, except when filed upon the relation of the law officers of the state, district, county, or municipality, shall be verified by oath or affidavit, shall state the charges against defendant, with reasonable certainty, and be subject to amendment as in other actions.

§ 8-47-114. Summons — Time to answer.

Upon the filing of the complaint or petition for the writ of ouster, a summons shall issue for the defendant, and there shall accompany the summons and be served upon the defendant a copy of the complaint or petition filed against the defendant, and the defendant shall have the right to answer within twenty (20) days from such service.

§ 8-47-115. Pleadings.

The petition and answer shall constitute the only pleadings allowed, and all allegations in the answer shall be deemed controverted, and any and all questions as to the sufficiency of the petition or complaint shall be raised and determined upon the trial of the case, and if such petition or complaint is held to be insufficient in form, the same shall be amended at once, and such amendment shall not delay the trial of the case.

§ 8-47-116. Suspension pending hearing — Filling of vacancy.

Upon petition or complaint being filed, praying for a writ of ouster against any of the officers herein named, and whether such action is brought by the attorney general and reporter, district attorney general, county attorney, city attorney, or by relator citizens and freeholders, the court, judge, or chancellor may, on application of the attorney general and reporter, the district attorney general for the state, the county attorney, city attorney, or relator citizens and freeholders bringing such action, suspend such officer or officers so accused from performing any of the duties of their office, pending a final hearing and determination of the matter; and, thereupon, the vacancy shall be filled as the law provides for the filling of vacancies in such office, and such person or persons so filling such vacancy shall carry on the duties of the office until such hearing shall be finally determined or until the successor of the officer so suspended shall be elected or appointed as provided by law, and shall have qualified.

§ 8-47-117. Hearing on suspension.

No person shall be suspended under this chapter until at least five (5) days' notice of the application for the order of suspension shall be served upon such person, which notice shall set forth the time and place of the hearing of the application, and the officer shall have the right to appear and make any defense that the officer may have, and shall be entitled to a full hearing upon the charges contained in the complaint and upon the application for the order of suspension; and no order of suspension shall be made, except upon finding of good cause therefor.

§ 8-47-118. Application of chancery procedure.

The proceedings under this chapter, whether in the circuit, chancery, or criminal courts, shall be conducted in accordance with the procedure of courts of chancery, where not otherwise expressly provided herein. All of such courts having cognizance of such proceedings are hereby given the full jurisdiction and powers of courts of equity with respect to such proceedings.

§ 8-47-119. Trial — Continuance — Right to jury.

(a) Such proceedings in ouster shall be summary and triable as equitable actions, shall have precedence over civil and criminal actions, and shall be tried at the first term after the filing of the complaint or petition herein named; provided, that the answer herein named shall have been on file at least ten (10) days before the day of trial.
(b) A continuance may be granted either side for good cause shown, but no continuance shall be granted by an agreement of the parties.
(c) Both upon hearing of preliminary motion to suspend and also upon any final hearing of such proceedings, any defendant shall be entitled to demand and have a trial by jury as to any issue of fact.

§ 8-47-120. Judgment of ouster.

If the defendant is found guilty, judgment of ouster shall be rendered against the defendant, and the defendant shall be ousted from office.

§ 8-47-121. Restoration to office — Salary during suspension — Attorney fees.

If, on the final hearing of the complaint or petition herein provided, the officer is not removed from office, the officer shall, if the officer has been suspended, be immediately restored to office, and be allowed the officer's full costs and the salary and fees of the officer's office during the time of the officer's suspension, as the case may be, against the state, county, or municipality, to be taxed and paid as in other cases. Such officer so temporarily filling the office shall receive the same salary and fees as is provided by law to be paid to the officer so suspended. After final hearing on the complaint or petition, any public officer not removed from office, or if the officer has been suspended, any officer immediately restored to office, may be reimbursed reasonable attorney fees by the appropriate state, county, municipality, or other political subdivision. If either party appeals pursuant to § 8-47-123, no such reimbursement shall be made until a final judgment is rendered.

§ 8-47-122. Liability for costs.

(a) Such proceedings against state officers, when brought by or upon relation of the attorney general and reporter, shall be at the expense of the state; when brought against county officers by or upon the relation of any of the officers above named, they shall be at the expense of the county; when brought against municipal officers by or upon the relation of the city attorney, or the district attorney general, they shall be at the expense of the municipality; and when brought by or upon the relation of citizens and freeholders, they shall be at the expense of relators; provided, that in all cases, where such proceedings are successful, full costs shall be adjudged against the defendant.
(b) Notwithstanding subsection (a) or any other law to the contrary, the complainant may be taxed for costs and attorney fees pursuant to Rule 11 of the Tennessee Rules of Civil Procedure, if the complaint or petition is withdrawn or if the court finds the charges alleged to be without merit.

§ 8-47-123. Appeal.

Either party may appeal from the final judgment or decree, but such appeal shall not operate to suspend or vacate the judgment or decree, but the same shall remain in full force until vacated, reversed, or modified.

§ 8-47-124. Procedure.

In all appeals, the procedure shall be governed by the Tennessee Rules of Appellate Procedure.

§ 8-47-125. Priority on appeal.

On appeal, such cause shall stand for trial at the first term after such appeal is perfected and filed, and shall have precedence over all civil and criminal cases.

§ 8-47-126. Criminal liability unaffected.

(a) Nothing in this chapter shall be construed as repealing any law now in force making it a crime or misdemeanor for such public officers to violate certain statutes of this state and providing a punishment for the violation.
(b) Proceedings under this chapter shall not be a bar to proceedings under any criminal statute now in force or which may be in force.

§ 8-47-127. Lottery construed.

Participation in any activity which is conducted pursuant to law and authorized by the Constitution of Tennessee, Article XI, § 5 shall not be construed as gambling for the purposes of § 8-47-101.

Chapter 48 Vacancies in Office

Part 1 General Provisions

§ 8-48-101. Causes of vacancies.

Any office in this state is vacated by:
1. (1) The death of the incumbent;
2. (2) The incumbent's resignation, when permitted by law;
3. (3) Ceasing to be a resident of the state, or of the district, circuit, or county for which the incumbent was elected or appointed;
4. (4) The decision of a competent tribunal, declaring the election or appointment void or the office vacant;
5. (5) An act of the general assembly abridging the term of office, where it is not fixed by the constitution;
6. (6) The sentence of the incumbent, by any competent tribunal in this or any other state, to the penitentiary, subject to restoration if the judgment is reversed, but not if the incumbent is pardoned; or
7. (7) Due adjudication of the incumbent's insanity.

§ 8-48-102. Notice by county clerk of death of officer.

On the death of any senator or representative from this state to the congress of the United States, or of any member of the general assembly, the county clerk of the county in which such officer, at the time of death, resided, shall give notice thereof to the governor; or on the death of the governor, such county clerk shall give notice to the speaker of the senate; and, in case of the death of any other officer, to the officer who is to fill the vacancy.

§ 8-48-103. Transmittal of resignation of governor.

The governor, if the governor resigns during the session of the general assembly, shall transmit the governor's resignation to the speaker of the senate; otherwise, to the secretary of state, who shall notify the speaker of the senate.

§ 8-48-104. Transmittal of resignations of other officers.

The resignation of senators and representatives in congress and members of the general assembly shall be transmitted to the governor; and in all other cases the resignation of officers shall be transmitted to the officer or tribunal authorized to fill the vacancy.

§ 8-48-105. Notice of removal.

Notice of the removal of any officer from the state, or from the district, circuit, or county for which the officer was elected or appointed, shall be given by and to the same officers as notice of such officer's death.

§ 8-48-106. Certification of judgment of vacancy.

Whenever there is a final judgment of a competent tribunal declaring any election or appointment void, or any office vacated, such judgment shall promptly be certified by the clerk to the appointing power or power whose duty it is to take steps to fill the vacancy.

§ 8-48-107. Notice of vacancies to general assembly.

The governor shall give notice to the general assembly, at each session thereof, of all offices to be filled by that body which have become vacant or which will be vacant by the expiration of the term of office, before the next regular session.

§ 8-48-108. Acting to fill vacancy without notice.

The provisions of §§ 8-48-102 – 8-48-107 for notice of official vacancy are merely directory, and the appointing power, or officer whose duty it is to take steps to supply the vacancy, need not wait for such notice, but may act upon information derived from other sources.

§ 8-48-109. Judicial vacancies filled from same grand division.

Any vacancy in the office of supreme court or appeals court judge shall be filled by a person residing in the grand division of the state in which the vacancy occurs.

§ 8-48-110. Emergency interim successors to local offices where vacancy filled by legislative body.

With respect to local offices for which the legislative bodies of cities, towns, villages, townships, and counties may enact resolutions or ordinances relative to the manner in which vacancies will be filled or temporary appointments to office made, such legislative bodies are hereby authorized to enact resolutions or ordinances providing for emergency interim successors to offices of the aforementioned governmental units. Such resolutions and ordinances shall not be inconsistent with this section and § 8-48-111.

§ 8-48-111. Emergency interim successors to local offices not included in § 8-48-110.

This section shall be applicable to officers of political subdivisions, including, but not limited to, cities, towns, villages, townships and counties, as well as school, fire, power and drainage districts, not included in § 8-48-110. Such officers, subject to such regulations as the executive head of the political subdivision may issue, shall designate by title (if feasible) or by named person, emergency interim successors and specify their order of succession. The officer shall review and revise, as necessary, designations made pursuant to this section to ensure their current status. The officer will designate a sufficient number of persons so that there will be not less than three (3), nor more than seven (7), deputies or emergency interim successors or any combination thereof, at any time. In the event that any officer of any political subdivision, or the officer's deputy provided for pursuant to law, is unavailable, the powers of the office shall be exercised and duties shall be discharged by the officer's designated emergency interim successors in the order specified. The emergency interim successors shall exercise the powers and discharge the duties of the office to which designated until such time as a vacancy which may exist shall be filled in accordance with the constitution or statutes, or until the officer, or the officer's deputy or a preceding emergency interim successor, again becomes available to exercise the powers and discharge the duties of office.

Part 2 Absence in Military Service

§ 8-48-201. “Military service” defined.

“Military service,” as used in this part, includes the enlistment or induction into the United States army or any branch thereof, the United States navy, the air force, the marine corps, the coast guard, the merchant marine, or any other military activity carried on in the aid of the war effort.

§ 8-48-202. Return from military service before expiration of term.

Whenever any person holding a state or county office is inducted into the military service of the United States, such induction shall not operate to create a permanent vacancy in the office, but upon the return of the officer from the military service, such person shall be entitled to resume the duties of the office for the remainder of the term for which the officer was elected; provided, that it has not theretofore already expired.

§ 8-48-203. Return from service after term.

If the regular officer who may be inducted into the military service does not return prior to the expiration of the term to which the officer was elected, then and in that event the officer's successor shall be elected in the regular manner as provided by the general law.

§ 8-48-204. Temporary officer acting for officer in military service.

Whenever any state or county officer is inducted into the military service of the United States, the duties of the office shall be discharged temporarily during the absence of such officer by some other person legally qualified to discharge the duties of the office and selected in the manner hereinafter set out as to the various offices involved.

§ 8-48-205. Appointment of temporary officers.

The appointment or election of persons to fill such offices temporarily shall be as follows:
1. (1) In the event a judge of any court of record in the state, including county judges and general sessions judges in counties where vacancies are filled by appointment of the governor, shall be inducted into the military service of the United States, such office shall be filled during the absence of the regular incumbent by appointment of the governor;
2. (2) In the event a district attorney general is in like manner inducted into the military service, such office shall be filled during the district attorney general's absence by the appointment, to be made by the circuit or criminal judge of the district, of a qualified person to serve during the temporary absence of the regular incumbent;
3. (3) In the event a commissioner of the Tennessee public utility commission is inducted into the military service, the member's office shall be filled during the member's absence by appointment by the governor of a qualified person to serve temporarily in the member's place;
4. (4) In the event a clerk and master is inducted into the military service, the clerk and master's office shall be filled by appointment by the chancellor of a qualified person to serve temporarily in the clerk and master's place; and
5. (5) In the event any other county officer is inducted into the military service, such office shall be filled temporarily by election by the county legislative body of the county from which such regular incumbent is temporarily absent.

§ 8-48-206. Qualifications of temporary officers.

All persons selected under authority of this part to fill offices temporarily shall be persons possessing qualifications under the general law to fill such offices.

§ 8-48-207. Bond and oath.

Every person either appointed or elected under this part to discharge the duties of any office and who is required by the general law to execute bond or subscribe to an oath of office shall, before entering upon the discharge of the duties of the office, qualify by executing and filing such bond or bonds and oath of office as required by the general law.

§ 8-48-208. Salary of temporary officer.

(a) The person filling an office temporarily under authority of this part shall be entitled to and shall receive the salary attached to the office, payable out of the funds provided for that purpose.
(b) The person shall discharge the duties of the office and be clothed with all the power and authority of the regular officer in whose place the person is serving, and be entitled to the same privileges and emoluments as the regular officer.

§ 8-48-209. Removal of assistants.

Any person chosen under this part to serve in the place and stead of any official inducted into the military service, as herein defined, shall be without power to remove any assistant or assistants appointed by the official whose duties the person is performing temporarily; but such power of appointment shall remain with the person originally chosen to fill such office.

Chapter 49 Transfer of Records and Property of Office

§ 8-49-101. Delivery to successor required.

In all cases in which it is not otherwise expressly provided, when any office is vacated, all books, papers, property and moneys belonging or appertaining to such office, shall, on demand, be delivered over to the qualified successor. Every person knowingly and willfully violating this section commits a Class C misdemeanor.

§ 8-49-102. Order to show cause for nondelivery.

(a) If any person having the possession thereof refuses or neglects, after a demand is made by a qualified officer, to deliver over any books, papers, or property, as required in § 8-49-101, such officer may make complaint to the circuit judge, or judge of the court of general sessions of the county in which the person refusing resides.
(b) If such judge is satisfied by the oath of the complainant, and such other evidence as may be offered, that any such books, papers, or property are withheld, the judge shall grant an order upon the person so refusing to show cause, on a day and at a place to be therein named, why the person should not be compelled to deliver the same.

§ 8-49-103. Inquiry as to nondelivery.

At the time so appointed, or at any other time to which the matter may be adjourned, a copy of such order having been personally served on the person so refusing, such officer shall proceed to inquire into the circumstances.

§ 8-49-104. Oath of delivery to qualified successor.

If the person charged makes oath that such person has delivered over to the qualified successor all such books, papers, and property in such person's possession or appertaining to such office, all further proceedings shall cease, without prejudice to the officer to take other steps allowed by law.

§ 8-49-105. Commitment for failure to deliver records and property.

If such affidavit is not made, and it appears that any such books, papers, and property are withheld, the officer before whom the proceedings are had, shall, by warrant, commit the person so withholding them to the county jail, there to remain until that person delivers such books, papers, and property, or is otherwise discharged by law.

§ 8-49-106. Search warrant for records and property.

In the case stated in § 8-49-105, if required by the complainant, such officer shall also issue warrant, directed to any lawful officer, commanding that officer, in the daytime, to search such places as may be designated in the warrant, for such books, papers, and property as belonged and appertained to the office vacated, and to seize and bring them before the officer issuing such warrant.

§ 8-49-107. Delivery of records and property returned on warrant.

Upon any books, papers, or property being brought before such officer, by virtue of such warrant, the officer shall examine and inquire whether the same appertained to the office vacated, in which case the officer shall cause such books, papers, and property to be delivered to the complainant.

Chapter 50 Miscellaneous Provisions

Part 1 General Provisions

§ 8-50-101. Foster parent training for state employees — In-service training — Forms.

(a) As used in this section, “state employee” means an employee of this state within the executive, legislative, or judicial branch of state government.
(b) Notwithstanding another law to the contrary, during a twelve-month period:
1. (1) A state employee may participate in Tennessee foster parent training during the course of their employment for up to twenty-five (25) hours without having to use paid sick, annual, or compensatory time. If a state employee participates in such training in accordance with this subdivision (b)(1), the state employee is not entitled thereafter to participate in such training during the course of their employment without using paid sick, annual, or compensatory time. The department of human resources shall develop a form to be used by the department of children's services to document the completion of foster parent training under this subdivision (b)(1) by a state employee. Upon completion of such training, the department of children's services shall document the amount of training completed on the appropriate form and return the form to the employee's employing state agency in accordance with the pay period for such employee; and
2. (2) A state employee may complete annual in-service training during the course of their employment for up to eight (8) hours without having to use paid sick, annual, or compensatory time. The department of human resources shall develop a form to be used by an employee to complete the training under this subdivision (b)(2).

§ 8-50-102. Automatic salary advancements after passing certified administrative professional examinations.

Any administrative assistant or administrative professional or any employee performing closely related administrative support duties of the state who successfully passes the certified administrative professional examination sponsored by the International Association of Administrative Professionals shall be granted an automatic two-step salary advancement under the state's basic compensation plan. Any automatic pay increase pursuant to this section shall take effect with the next pay period beginning after the department receives documentation of the certification. The automatic pay increase provided for in this section shall not affect any employee's eligibility for any regular merit increase. If necessary, one (1) or two (2) steps shall be added to the compensation plan to provide for the automatic increase provided for by this section.

§ 8-50-103. Employment of the disabled — Discrimination prohibited — Penalty — Complaint.

(a) This section and § 8-50-104 shall be known and may be cited as the “Tennessee Disability Act.”
(b) There shall be no discrimination in the hiring, firing and other terms and conditions of employment of the state of Tennessee or any department, agency, institution or political subdivision of the state, or of any private employer, against any applicant for employment based solely upon any physical, mental or visual disability of the applicant, unless such disability to some degree prevents the applicant from performing the duties required by the employment sought or impairs the performance of the work involved. Furthermore, no blind person shall be discriminated against in any such employment practices because such person uses a guide dog. A violation of this subsection (b) is a Class C misdemeanor.
(c)
1. (1) Any person claiming to be aggrieved by a discriminatory practice prohibited by this section may file with the Tennessee human rights commission a written sworn complaint stating that a discriminatory practice has been committed, setting forth the facts sufficient to enable the commission to identify the persons charged.
2. (2) Upon receipt of such complaint, the commission shall follow the procedure and exercise the powers and duties provided in §§ 4-21-302 – 4-21-311, and the person shall have all rights provided therein.
(d) For purposes of this section, “employer” means the state, or any political or civil subdivision thereof, and persons employing eight (8) or more persons within the state.

§ 8-50-104. Employment of the disabled — Assistance programs — Studies.

It is the policy of the state to give positive emphasis to the recruitment, evaluation, and employment of disabled persons in the public service. The department of human resources shall develop methods and programs to assist and encourage the departments, agencies and institutions of the state and the various political subdivisions of the state in carrying out the stated policy, and shall provide for appropriate study and review of the employment of disabled persons in the public service. Private employers in the state may in like manner develop policies for complying with § 8-50-103.

§ 8-50-105. Counselors for educational or correctional institutions.

No person shall be hired for a position as counselor in any educational or correctional institution in this state unless that person possesses adequate training and competence in the field of counseling.

§ 8-50-106. Social worker's qualifications for state institution positions.

No person shall hold a position as social worker in any mental health institution in this state unless that person possesses adequate training and competence in the field of social work.

§ 8-50-107. Discrimination concerning employees of local government on basis of nonresidence prohibited — First responders.

(a) Notwithstanding any public law, private act, or municipal charter to the contrary, no person currently under employment with any municipality, county, or metropolitan form of government, shall be dismissed or penalized solely on the basis of nonresidence in such local government.
(b) [Deleted by 2024 amendment.]
(c) [Deleted by 2024 amendment.]
(d)
1. (1) Notwithstanding any law, private act, charter, resolution, or ordinance to the contrary, a local government shall not dismiss, discipline, fine, or penalize a first responder employed by a local government, or deny employment to a person applying to be a first responder, based on where the first responder or person applying to be a first responder resides.
2. (2) As used in this subsection (d):
  1. (A) “First responder” means paid, full-time law enforcement officers, including jailers and correctional officers, firefighters, emergency medical personnel, and dispatchers of law enforcement, fire, and emergency medical service departments. “First responder” does not mean the chief or head of the department; and
  2. (B)
    1. (i) “Local government” means a county, metropolitan government, municipality, or other political subdivision of this state;
    2. (ii) [Deleted by 2024 amendment.]
3. (3) This subsection (d) does not affect a local agency's policies:
  1. (A) Regarding the use of a department vehicle while not on duty; or
  2. (B) That require responses by employees who, based upon their assignment, are required to respond to an emergency or call out within a specific time period.

§ 8-50-108. Access to personnel files.

Notwithstanding any other provisions of this title to the contrary, any state employee, regardless of position or classification, shall be entitled to have access at any reasonable time to such employee's personnel files. The employee may request copies of any material contained in such personnel files, which copies shall be furnished to the employee upon the employee's payment of the cost of such reproduction.

§ 8-50-109. Leave of absence for officers of employee associations.

(a) The chief elected officer of any employee association which has qualified for payroll deductions for association dues in accordance with § 8-23-204, shall, upon application to the employee's department head, be allowed up to two (2) years leave of absence without pay to perform the responsibilities and duties of such person's office. This shall not apply to a chief elected officer of any employee association who is under the executive grade pay plan or the doctor and dentist pay plan. At the option of such person, the person may be paid for any accrued annual leave or any accrued annual leave may be carried forward to such time as the person returns to such person's position in state government. In the event the person elects to be paid for annual leave, the period of time for the leave of absence without pay shall be accordingly reduced.
(b) Except as otherwise provided herein, no such person on leave without pay shall be entitled to any benefits unless the full cost of the same are paid by the person on leave and/or the association of which the person is the chief elected officer.
(c) At the end of the period of leave, any person who has taken such leave shall be entitled to return to the person's former position at the same place of employment in the same class or rank in the division or department which such person held prior to taking such leave.
(d) Any leave granted under this section shall not diminish any employee rights, including accrued but unused leave, longevity or those arising from longevity or time in grade.
(e) Such person shall be entitled during the period of such leave to all benefits that person is otherwise entitled to, including, but not limited to, insurance and retirement; provided, that the person or the association involved reimburses the state for its cost for such benefits in the same manner and to the same extent that would have accrued had the person not taken such leave.

§ 8-50-110. Use of annual leave to attend statewide meeting of employee association.

(a) Subject to the limitations hereinafter established, an officer or an employee who belongs to any employee association which is qualified for payroll deduction for association dues as set forth in § 8-23-204 shall be entitled to use two (2) days of their accrued annual leave pursuant to part 8 of this chapter each year to attend a statewide meeting, conference or convention of the association. The total number of officers or employees entitled to such annual leave shall not exceed five percent (5%) of the total number of employees who are members of the association according to the latest certification of the chief administrative officer made to the commissioner of finance and administration as required by § 8-23-204. Each such association may determine the method of allocating such leave among its members and shall, not more than thirty (30) nor less than fifteen (15) days prior to the date such leave is to be taken, certify to the commissioner of human resources the names of each person and that person's alternates who have been selected by the association as being entitled to such annual leave to attend the statewide meeting, conference or convention.
(b) The first twenty-five percent (25%) of the employees of any work unit shall be granted such absence from work with pay based upon accrued annual leave. More than twenty-five percent (25%) of the employees of any work unit may be granted such absence from work with pay at the discretion of the head of the department or agency.
(c) An officer or an employee who belongs to any employee association which is qualified for payroll deduction for association dues as set forth in § 8-23-204 and who is a member of the official board of such association shall be entitled to receive administrative leave days in order to attend board meetings to conduct business of the association; provided, that such leave shall not exceed twelve (12) days in any calendar year.

§ 8-50-111. Disabling assault injuries in the line of duty — Retention on regular payroll — Conditions.

(a) Whenever an employee of the state of Tennessee is injured in the line of duty as a result of the commission of an assault upon the employee, and whenever such injury disables the employee from performing the employee's regular duties, whether such disability is temporary or permanent, it is lawful for the appointing authority, with the prior approval of the commissioners of finance and administration and of human resources, to retain the injured employee on the regular payroll for a period of time not to exceed twenty-eight (28) calendar days without requiring the employee to use any sick leave benefits authorized by § 8-50-802.
(b) The length of time an injured employee will be permitted to remain on the regular payroll shall be based upon a written statement from the attending physician that the employee is unable to perform the employee's regular duties. In no event shall this period exceed twenty-eight (28) calendar days from the date of the injury.
(c) In circumstances where an employee so injured shall make a claim for compensation for such injury to the division of claims and risk management, then the appointing authority is authorized to compensate the employee for the difference between the employee's weekly salary at the time of the injury and the weekly compensation for such injury as determined by the division for the period of time between the date of the injury and the effective date of the action of the division. In no event shall the period of this compensation exceed ninety (90) calendar days. This provision shall not apply to employees who have failed to file a claim with the division within ten (10) calendar days after the date of the injury causing the temporary or permanent disability.
(d) In the event that the injured employee receives any monetary recovery from or settlement with a third party where the state recovers any part of such recovery in compensation for payments made pursuant to this section, the state shall pay a pro rata share, based upon the percentage of the recovery it receives, of any attorneys fees paid or agreed to by the injured employee to secure such settlement or recovery.
(e) Nothing in this section shall be construed to prevent an injured state employee from requesting permission to use any sick leave benefits in accordance with § 8-50-802.
(f) This section shall apply to injuries sustained after July 1, 1981.

§ 8-50-112. Announcement for employment for covered position — Noncovered positions — Criminal history — Definitions.

(a) If an employer announces a position for employment that is a covered position, the announcement shall include the following statement:
2. NOTICE
3. This position requires a criminal background check. Therefore, you may be required to provide information about your criminal history in order to be considered for this position.
(b) If an employer announces a position for employment that is not a covered position, the employer shall not inquire about an applicant's criminal history on the initial application form. An employer may inquire about an applicant's criminal history after the initial screening of applications. If an employer inquires about an applicant's criminal history, the employer shall provide the applicant with an opportunity to provide an explanation of the applicant's criminal history to the employer.
(c) In considering an applicant with a criminal history for a position for employment other than a covered position, an employer shall consider:
1. (1) The specific duties and responsibilities of the position;
2. (2) The bearing, if any, that an applicant's criminal history may have on the applicant's fitness or ability to perform the duties required by the position;
3. (3) The amount of time that has elapsed since the applicant's conviction or release;
4. (4) The age of the applicant at the time of the commission of each offense;
5. (5) The frequency and seriousness of each offense;
6. (6) Any information produced by the applicant regarding the applicant's rehabilitation and good conduct since the occurrence of an offense; and
7. (7) Any public policy considerations with respect to the benefits of employment for applicants with criminal histories.
(d) Except as otherwise required or expressly permitted by state or federal law, a criminal history obtained by an employer shall be confidential and not subject to the open records law, compiled in title 10, chapter 7.
(e) An employer shall be held harmless and not liable for any damages arising from the employer's failure or refusal to hire an applicant for any covered position or other position based on information obtained by the employer from an inquiry into the criminal history of the applicant.
(f) As used in this section, unless the context otherwise requires:
1. (1) “Covered position” means a position for employment for which a criminal background check is required under federal law or for which the commission of an offense is a disqualifying event for employment under federal or state law; and
2. (2) “Employer”:
  1. (A) Means the state and any agency, authority, branch, bureau, commission, corporation, department, or instrumentality of the state; and
  2. (B) Does not include a contractor, subcontractor, a political subdivision of the state, the department of education, the state board of education, or the Tennessee bureau of investigation.

§ 8-50-113. Bereavement leave.

(a) The officers and employees of the various agencies, boards, and departments of state government shall be granted three (3) days paid leave in the event of death of such officers' or employees' spouse, children, stepchildren, parents, siblings, grandparents, grandchildren, stepparents, foster parents, or parents-in-law without charge to the affected officers' or employees' accumulated leave accounts.
(b) This section shall not be construed to increase the total number of leave days provided in rules of the department of human resources for the death of a family member as defined in this section.

§ 8-50-114. Continuing education — Limited waiver of tuition and fees.

(a)
1. (1) Full-time employees of the state are eligible for enrollment in up to four (4) courses per academic year at any state-supported college or university, college of applied technology, or the Tennessee Foreign Language Institute without paying tuition charges, maintenance fees, student activity fees, registration fees, or online course fees for courses taken through the regents online degree programs. A course for which the waiver is granted shall consist of no more than four (4) credit hours or one hundred twenty (120) clock hours, and the waiver shall be used for only one (1) course at a time. The availability of waivers of online course fees for courses taken through the regents online degree program shall be limited each year by the amount of funds specifically appropriated for such online course fee waivers in the general appropriations act.
2. (2) For purposes of this section, current members of the general assembly shall be considered as full-time employees of the state.
(b) Enrollment privileges may be limited or denied by the college, university, college of applied technology or Tennessee Foreign Language Institute on an individual basis according to space availability. Enrollment under this section is on a first-come, first-served basis. No tuition-paying student shall be denied enrollment in a course because of a state employee enrollment pursuant to this section.
(c) Courses taken under this section are governed by the academic rules and regulations of the institution or school offering the course or courses.
(d) This section does not diminish or affect in any way the rights provided to full-time employees of the state university and community college system and the University of Tennessee in § 49-7-116.
(e) The Tennessee higher education commission is hereby directed, authorized and empowered to promulgate and adopt such rules and regulations as are necessary to implement this section, including rules and regulations for the allocation of appropriations specifically appropriated for the implementation of this section.
(f)
1. (1) The number of students permitted to attend classes beyond the limits established in this section or in the general appropriations act for any fiscal year shall be discounted from the effects of the higher education funding formula by the Tennessee higher education commission.
2. (2) Any reimbursements to the state-supported colleges, universities or area vocational-technical schools for the enrollments provided by this section shall be limited to those funds specifically appropriated for that purpose in the general appropriations act. Such reimbursement shall be limited to assessed charges and fees of enrollment.
3. (3) Any reimbursement to the Tennessee Foreign Language Institute for enrollments provided by this section shall be limited to those funds specifically appropriated for the fee waiver and fee discount programs authorized by this section and §§ 8-50-115 and 49-7-119.
(g) Eligible employees may apply the cost equivalent of the full waiver credit toward payment for a class exceeding four (4) credit hours or one hundred twenty (120) clock hours.
(h) Full-time employees of the state eligible for a waiver of tuition and fees pursuant to this section who are required to work more hours each week than typically required of full-time employment for at least four (4) weeks per year shall be exempt from the requirement that the waiver be used for only one (1) course at a time. Certification of eligibility for this exemption shall be completed by the applicant's employer at the time of application for the waiver. Nothing in this subsection (h) shall allow an employee to exceed enrollment in more than four (4) courses per academic year.

§ 8-50-115. Education tuition reduction for children of state employees.

(a)
1. (1) Every child in Tennessee under twenty-four (24) years of age whose parent is a full-time employee of the state or whose parent died while employed full-time or was killed on the job or in the line of duty while a full-time employee of the state shall receive a twenty-five percent (25%) reduction in the tuition at any state-operated area technical vocational school or institution of higher learning.
2. (2) Every child in Tennessee under twenty-four (24) years of age whose parent is a retired employee of the state who retired after a minimum of twenty-five (25) years of full-time creditable service shall receive a twenty-five percent (25%) reduction in the tuition at any state-operated area technical vocational school or institution of higher learning.
(b) The Tennessee higher education commission is hereby directed, authorized and empowered to promulgate and adopt such rules and regulations as are necessary to implement this section. Such rules and regulations are subject to approval by the department of human resources.
(c) Any reimbursements to a state-operated institution of higher learning for the tuition discounts provided by this section shall be limited to those funds specifically appropriated for that purpose in the general appropriations act. Such reimbursement shall be limited to providing for the discount on tuition provided for in this section.

§ 8-50-116. Reporting violations of state agency, employee, or contractor.

(a)
1. (1) It is the intent of the general assembly that state employees shall be encouraged to report verbally or in writing to their supervisor, department head, or other appropriate authority or entity, evidence of activity by a state agency or state employee or state contractor constituting violations of state or federal law or regulations, fraud in the operations of government programs, misappropriation of state or federal resources, acts which endanger the health or safety of the public or employees, and mismanagement of programs, funds, or abuses of authority.
2. (2) The general assembly further finds and declares that public servants best serve the citizens when they can be candid and honest without reservation in conducting the public's business.
3. (3) It is the further intent of the general assembly that state employees be free of intimidation or harassment when reporting to public bodies about matters of public concern, including offering testimony to, or testifying before, appropriate legislative panels.
(b)
1. (1) No head of any state department, agency or institution, state employee exercising supervisory authority, other state employee or state contractor shall recommend or act to discharge, demote, suspend, reassign, transfer, discipline, threaten or otherwise discriminate against a state employee regarding the state employee's evaluation, promotion, compensation, terms, conditions, location or privileges of employment, nor may any state employee or state contractor retaliate against another state employee because the employee, or a person acting on behalf of the employee, reports or attempts to report, verbally or in writing:
  1. (A) The willful efforts of such person or agency or contractor to violate a state or federal law, rule or regulation which had or would have had a material and adverse effect upon program operations or program integrity, or the willful efforts to conceal such a violation;
  2. (B) Acts which constituted fraud against the state, the federal government, the public or any fellow employee;
  3. (C) The willful misappropriation of state or federal resources;
  4. (D) Acts which posed an unreasonable and specific danger to the health or safety of the public or employees; or
  5. (E) Acts constituting gross mismanagement of a program, gross waste of state or federal funds, or gross abuse of authority;
2. (2) The head of the state department, agency or institution or other state employee exercising supervisory authority over the state employee may, however, take any appropriate action or appropriate disciplinary action in relation to the reporting or attempted reporting of any information which is believed in good faith by such department head or other state employee exercising supervisory authority to be fraudulent, dishonest or with willful disregard for the truth or falsity of the information.
3. (3) No head of any state department, agency, or institution, state employee exercising supervisory authority, other state employee or state contractor shall recommend or act to discharge, demote, suspend, reassign, transfer, discipline, threaten or otherwise retaliate or discriminate against a state employee regarding the state employee's evaluation, promotion, compensation, terms, conditions, location, or privileges of employment because the employee refused to carry out a directive if the directive constitutes a violation of state or federal law, rule or regulation, written policy or procedure which materially and adversely affects the operations or integrity of a program or if the directive poses an unreasonable and specific danger to the health or safety of the employee, the employees or the public.
(c) Any state employee injured by a violation of subsection (b) may maintain an action in circuit or chancery court within one (1) year after the occurrence of the alleged violation of this section for actual damages, injunctive relief, or other remedies provided in this section against the person or agency or state contractor, or any of them, who committed the violation. An act or conduct constituting part of an alleged continuing pattern of violations of this section shall only be considered in calculating any damages if an action is brought within one (1) year of the occurrence of the act.
(d)
1. (1) A court, in rendering a judgment in an action brought pursuant to this section, may order injunctive relief, actual damages, reinstatement of the employee, the payment of back wages, full reinstatement of fringe benefits and seniority rights, costs, reasonable attorney's fees or any combination thereof.
2. (2) If an application for a permanent injunction is granted, the employee shall be awarded costs and reasonable attorney's fees.
3. (3) If in an action for damages the court finds that the employee was injured by a willful and malicious violation of this section, by a criminal violation based upon this section or by a violation based upon an effort to obtain personal gain, the court may award as damages up to three (3) times the amount of actual damage plus costs and reasonable attorney's fees against the individual or individuals found to be in violation of this section.
(e) No head of any state department, agency or institution or other state employee exercising supervisory authority nor any agency of the state of Tennessee shall be found liable pursuant to this section if the head of any state department, agency or institution or other state employee exercising supervisory authority was acting within the scope of such employee's apparent lawful orders or authority and in good faith in such person's reasonable interpretation of any rule or regulation or was acting in good faith in such person's direction to the employee to implement any law, regulation, policy or procedure related to the operation of any program of such agency which is the subject of the report or attempted report pursuant to this section.
(f) Notwithstanding any law to the contrary, any head of any state department, agency or institution or other state employee exercising authority shall be subject to the protections of § 8-42-103 if it is determined such person was acting within the scope of such person's apparent lawful orders or authority and was not acting willfully, maliciously, criminally or for personal gain; and such person shall be further subject to the protection contained in the provisions for the board of claims under § 9-8-112 relative to the payment of any judgments, costs and attorney's fees where it is determined that such person was acting within the scope of such person's apparent lawful orders or authority and was not acting willfully, maliciously, criminally or for personal gain.
(g) Nothing in this section shall be deemed to diminish the rights, privileges or remedies of any employee under any other federal or state law or regulation.

§ 8-50-117. Job classifications for marital and family therapists.

The department of human resources shall establish job classifications for marital and family therapists licensed pursuant to title 63, chapter 22, part 1, consistent with their scope of practice.

§ 8-50-118. Keeping employee photo identification on retirement.

The state shall allow an employee upon retirement to keep such employee's employee photo identification card issued by the state. A sticker or other designation shall be placed on the employee photo identification card to indicate that the employee is retired.

§ 8-50-119. Tennessee Public Safety Behavioral Health Act.

(a) This section shall be known and may be cited as the “Tennessee Public Safety Behavioral Health Act.”
(b) As used in this section:
1. (1) “Mental health service provider” means a person who:
  1. (A)
    1. (i) Is licensed as:
      1. (a) A professional counselor designated as a mental health service provider under title 63, chapter 22, part 1;
      2. (b) A licensed clinical social worker under title 63, chapter 23;
      3. (c) A psychiatric mental health nurse practitioner under title 63, chapter 7;
      4. (d) A licensed marital and family therapist under title 63, chapter 22; or
      5. (e) A licensed occupational therapist under title 63, chapter 13, part 2;
    2. (ii) Is in good standing with:
      1. (a) The board for professional counselors, marital and family therapists, and clinical pastoral therapists;
      2. (b) The board of nursing;
      3. (c) The board of social worker licensure; or
      4. (d) The board of occupational therapy;
    3. (iii) Has successfully completed education and training in at least one (1) trauma therapy and can provide evidence of successful completion to a public safety employer; and
    4. (iv) Has a minimum of two (2) years of post-licensure work experience working with trauma patients; or
  2. (B) Is licensed in good standing as a:
    1. (i) Physician licensed under title 63, chapter 6 or 9;
    2. (ii) Psychological examiner licensed under § 63-11-201(a)(1);
    3. (iii) Senior psychological examiner licensed under § 63-11-201(a)(2); or
    4. (iv) Psychologist licensed under § 63-11-201(a)(3);
2. (2) “Post traumatic stress disorder” or “PTSD” has the same meaning as defined in the most recent publication of the Diagnostic and Statistical Manual of Mental Disorders;
3. (3) “Public safety employee” means an emergency medical worker or professional firefighter who is a paid, full-time employee of a public safety employer;
4. (4) “Public safety employer” means this state, a local government, or any other political subdivision of this state that employs public safety employees on a full-time basis; and
5. (5) “Trauma therapy” means, with respect to victims of trauma, at least one (1) of the following evidence-based trauma treatment practices: trauma-focused cognitive behavior therapy, exposure therapy, stress inoculation therapy, or eye movement desensitization reprocessing.
(c) Public safety employers shall:
1. (1) Provide not less than ten (10) visits or sessions with a mental health service provider for the purpose of treating PTSD through the employee's health benefits or otherwise. Public safety employers may require a co-pay or co-insurance for these visits that is no more than co-pays or co-insurance for other health benefits offered by the employer;
2. (2) Promote the use of a mental health service provider and other behavioral health professionals to public safety employees;
3. (3) Establish, in conjunction with a mental health service provider, support programs in an effort to mitigate behavioral health issues within the public safety employee community; and
4. (4) Maintain, and regularly provide public safety employees with, at a minimum of once per year, a list of mental health service providers who are qualified to provide trauma therapy under this section.
(d) Public safety employers shall not engage in the retaliatory treatment of public safety employees seeking or utilizing mental health service providers or behavioral health programs, including, but not limited to, discharge, denial of promotions, punitive work assignments, transfers, or other similar retaliatory actions.
(e)
1. (1) At a minimum of once per year, a mental health service provider providing services to public safety employees shall participate in training, within the jurisdiction in which the public safety employees work, that familiarizes the provider with the unique problems associated with each public safety profession lifestyle, including, but not limited to, critical incident response training, critical incident stress management, field exercises such as ride-alongs and visits to fire and emergency medical services (EMS) stations, and similarly appropriate training.
2. (2) This subsection (e) does not apply to a mental health service provider described in subdivision (b)(1)(B).
(f) Any benefits offered and provided for by this section do not apply to workers' compensation plans under title 50.

§ 8-50-120. Acceptance of identification documents to determine person's citizenship, immigration status, or residency.

(a) An official or employee of this state or any political subdivision of this state shall not accept an identification document issued or created by any person, organization, county, city, or other local authority to determine a person's citizenship, immigration status, or residency, except where expressly authorized to be used for identification purposes by the general assembly or by federal law.
(b) A local government or law enforcement agency shall not authorize, by policy, resolution, or ordinance, the use of any document described in subsection (a) as a form of identification to be used to determine the citizenship, immigration status, or residency of any person. Any local government or law enforcement policy, resolution, or ordinance that conflicts with this section is unenforceable and must be repealed or rescinded by the appropriate authority.

Part 2 [Reserved]

§ 8-50-201 — 8-50-206. [Reserved]

Part 3 [Reserved]

§ 8-50-301 — 8-50-307. [Reserved]

Part 4 Interchange of Personnel

§ 8-50-401. Interchange of personnel among state governmental agencies.

The state of Tennessee recognizes that intergovernmental cooperation is an essential factor in resolving problems affecting this state, and that the interchange of personnel between and among governmental agencies at the same or different levels of government is a significant factor in achieving such cooperation.

§ 8-50-402. Part definitions.

As used in this part, unless the context otherwise requires:
1. (1) “Receiving agency” means any department or agency of the federal government or a state government which receives an employee of another government under this part; and
2. (2) “Sending agency” means any department or agency of the federal government or a state government which sends any employee thereof to another government agency under this part.

§ 8-50-403. Program participants — Limitations on assignments — Exempted persons.

(a) Any department, agency, or instrumentality of the state is authorized to participate in a program of interchange of employees with departments, agencies, or instrumentalities of the federal government, or another state, as a sending or receiving agency.
(b) Details relating to any matter covered in this part may be the subject of an agreement between the sending and receiving agencies.
(c) Elected officials shall not be assigned from a sending agency nor detailed to a receiving agency.

§ 8-50-404. Compensation, supervision and status of transferred employees with respect to sending agency.

(a) Employees of a sending agency participating in an exchange of personnel as authorized in § 8-50-403 shall be considered during such participation to be on detail to regular work assignments of the sending agency.
(b) Employees who are on detail shall be entitled to the same salary and benefits to which they would otherwise be entitled and shall remain employees of the sending agency for all other purposes, except that the supervision of their duties during the period of detail may be governed by agreement between the sending agency and the receiving agency.
(c) Any employee who participates in an exchange under the terms of this section who suffers disability or death as a result of personal injury arising out of and in the course of an exchange, or sustained in performance of duties in connection therewith, shall be treated, for the purposes of the sending agency's employee compensation program, as an employee, as defined in such act, who has sustained such injury in the performance of such duty, but shall not receive benefits under that act for any period for which such employee is entitled to and elects to receive similar benefits under the receiving agency's employee compensation program.

§ 8-50-405. Travel expenses — Payment by sending agency.

A sending agency in this state may, in accordance with the travel regulations of the state, pay the travel expenses of employees assigned to a receiving agency, but shall not pay the travel expenses of such employees incurred in connection with their work assignments at the receiving agency.

§ 8-50-406. Compensation, supervision and status of transferred employees with respect to receiving agency.

(a) When any unit of government of this state acts as a receiving agency, employees of the sending agency who are assigned under authority of this part may be considered to be on detail to the receiving agency.
(b) Appointments of persons so assigned may be made without regard to the laws or regulations governing the selection of employees of the receiving agency. Such person shall be in the executive service of the state.
(c) Employees who are detailed to the receiving agency shall not by virtue of such detail be considered to be employees thereof, except as provided in subsection (d), nor shall they be paid a salary or wage by the receiving agency during the period of their detail. The supervision of the duties of such employees during the period of detail may be governed by agreement between the sending agency and the receiving agency.
(d) Any employee of a sending agency assigned in this state who suffers disability or death as a result of personal injury arising out of and in the course of such assignment, or sustained in the performance of duties in connection therewith, shall be treated for the purpose of the receiving agency's employee compensation program, as an employee, as defined in such act, who has sustained such injury in the performance of such duty, but shall not receive benefits under that act for any period for which the employee elects to receive similar benefits as an employee under the sending agency's employee compensation program.

§ 8-50-407. Travel expenses — Payment by receiving agency.

A receiving agency in this state may, in accordance with the travel regulations of the state, pay travel expenses of persons assigned thereto under this part during the period of such assignments on the same basis as if they were regular employees of the receiving agency.

Part 5 Disclosure Statements of Conflict of Interests

§ 8-50-501. Disclosure statements of conflict of interests by certain public officials.

(a) Disclosure of the interests named in § 8-50-502 shall be made to the Tennessee ethics commission by candidates for and appointees to the following offices:
1. (1) Each member of the general assembly;
2. (2) The secretary of state, comptroller of the treasury, state treasurer and each member of the state election commission;
3. (3) Each commissioner of the Tennessee public utility commission;
4. (4) The governor;
5. (5) Each officer of the governor's cabinet;
6. (6) Each supreme court justice, judge of the court of criminal appeals, judge of the court of appeals, chancellor, circuit court judge, criminal court judge, or judge of a state trial court of record;
7. (7) Each delegate to a constitutional convention called to consider a new constitution or amendments to the Constitution of Tennessee;
8. (8) The attorney general and reporter;
9. (9) The district attorneys general and the public defenders for each judicial district;
10. (10) The administrative director of the courts;
11. (11) The executive director of the district attorneys general conference;
12. (12) The state election coordinator;
13. (13) Members of the board of parole;
14. (14) Members and executive director of the alcoholic beverage commission;
15. (15) The chancellor of the board of regents, the president of each institution governed by the board of regents, and the president of each university governed by a state university board as that term is used in title 49, chapter 8;
16. (16) The president of the University of Tennessee, and the chancellor of each separate branch or campus of the University of Tennessee;
17. (17) Members of the registry of election finance;
18. (18) Members of the Tennessee ethics commission;
19. (19) Each candidate or appointee to a local public office as defined in § 2-10-102;
20. (20) Members of any local planning commission;
21. (21) Members of any regional planning commission; and
22. (22) The chief procurement officer appointed pursuant to § 4-56-104.
(b) A candidate for any of the offices in subsection (a) that are elective shall file a disclosure statement no later than thirty (30) days after the last day provided by law for qualifying as a candidate. An appointee to any of the offices listed in subsection (a) shall file a disclosure statement within thirty (30) days from the date of appointment. The appointing authority shall notify the commission of any such appointment within three (3) days of the appointment.
(c) Any candidate or appointee who is running for reelection or is reappointed to the same office or position the candidate or appointee currently holds shall not be required to file the statement required by subsection (b), as long as such candidate or appointee is in compliance with §§ 8-50-503 and 8-50-504.
(d)
1. (1) The disclosure shall be in writing in the form prescribed by the Tennessee ethics commission and shall be a public record; provided, however, that no candidate or appointee to a local public office required to disclose pursuant to subdivision (a)(19) shall be required to electronically file documents with the commission.
2. (2) A person required to file the form required by this part shall have one (1) attesting witness sign the form before it is submitted to the appropriate authority. The form need not be notarized before it is submitted to the appropriate authority.
3. (3) Any disclosure filed as a candidate or appointee by a member of the general assembly, the secretary of state, the comptroller of the treasury, the state treasurer, the governor, or an officer of the governor's cabinet, and any amended disclosures filed by any such persons, shall be posted on the website of the commission.
(e) The computation of time within which to do any act required by this part shall be in accordance with § 1-3-102.

§ 8-50-502. Disclosure statements — Contents.

Disclosure shall be made of:
1. (1) The major source or sources of private income of more than one thousand dollars ($1,000), including, but not limited to, offices, directorships, and salaried employments of the person making disclosure, the spouse, or minor children residing with such person, but no dollar amounts need be stated. This subdivision (1) shall not be construed to require the disclosure of any client list or customer list;
2. (2) Any investment which the person making disclosure, that person's spouse, or minor children residing with that person has in any corporation or other business organization in excess of ten thousand dollars ($10,000) or five percent (5%) of the total capital; however, it shall not be necessary to state specific dollar amounts or percentages of such investments;
3. (3) Any person, firm, or organization for whom compensated lobbying is done by any associate of the person making disclosure, that person's spouse, or minor children residing with the person making disclosure, or any firm in which the person making disclosure or they hold any interest, complete to include the terms of any such employment and the measure or measures to be supported or opposed;
4. (4) In general terms by areas of the client's interest, the entities to which professional services, such as those of an attorney, accountant, or architect, are furnished by the person making disclosure or that person's spouse;
5. (5) By any member of the general assembly, the amount and source, by name, of any:
  1. (A) Contributions from private sources for use in defraying the expenses necessarily related to the adequate performance of that member's legislative duties. The expenditure of campaign funds by an officeholder for the furtherance of the office of the officeholder is considered an expenditure under title 2, chapter 10, and such expenditures need not be reported under this chapter; and
  2. (B) Travel expenses, including any expenses incidental to such travel, paid on behalf of the member by a person with an interest in a public policy of this state if the travel was for the purpose of informing or advising the member with respect to the public policy. Travel expenses do not include expenses for travel, if such expenses are paid for or reimbursed by a governmental entity or an established and recognized organization of elected or appointed state government officials, staff of state government officials, or both officials and staff, or any other established and recognized organization that is an umbrella organization for such officials, staff, or both officials and staff;
6. (6) Any retainer fee which the person making the disclosure receives from any person, firm, or organization who is in the practice of promoting or opposing, influencing or attempting to influence, directly or indirectly, the passage or defeat of any legislation before the general assembly, the legislative committees, or the members to such entities;
7. (7) Any adjudication of bankruptcy or discharge received in any United States district court within five (5) years of the date of the disclosure;
8. (8)
  1. (A) Any loan or combination of loans of more than one thousand dollars ($1,000) from the same source made in the previous calendar year to the person making disclosure or to the spouse or minor children unless:
    1. (i) The loan is from an immediate family member;
    2. (ii) The loan is from a financial institution whose deposits are insured by an entity of the federal government, or such loan is made in accordance with existing law and is made in the ordinary course of business. A loan is made in the ordinary course of business if the lender is in the business of making loans, and the loan bears the usual and customary interest rate of the lender for the category of loan involved, is made on a basis which assures repayment, is evidenced by a written instrument, and is subject to a due date or amortization schedule;
    3. (iii) The loan is secured by a recorded security interest in collateral, bears the usual and customary interest rate of the lender for the category of loan involved, is made on a basis which assures repayment, is evidenced by a written instrument, and is subject to a due date or amortization schedule;
    4. (iv) The loan is from a partnership in which the legislator has at least ten percent (10%) partnership interest; or
    5. (v) The loan is from a corporation in which more than fifty percent (50%) of the outstanding voting shares are owned by the person making disclosure or by a member of such person's immediate family;
  2. (B) As used in this subdivision (8), “immediate family member” means a spouse, parent, sibling or child;
9. (9) Such additional information as the person making disclosure might desire;
10. (10) The name of any agency, branch, bureau, commission, department, or other division of state government for which a member of the general assembly continues to provide or offer to provide a service and the nature of the service provided or offered, as required by § 12-4-103. The disclosure required pursuant to this subdivision (10):
  1. (A) Must be made prior to September 1, 2021, and annually thereafter, on the consolidated form in accordance with § 2-10-128; and
  2. (B) Must be made only by members of the general assembly elected prior to July 1, 2021, who are seeking an exemption to the application of § 12-4-103(a)(2)(A); and
11. (11)
  1. (A) By any member of the general assembly or candidate for the general assembly, the name of any multicandidate political committee established or controlled by the member or candidate within the immediately preceding five (5) years of the date of the disclosure;
  2. (B) Disclosure under this subdivision (11) must be made annually beginning with the candidate or official's next statement due after January 1, 2023.

§ 8-50-503. Amendments of disclosure statements.

Any disclosure statement shall be amended from time to time as conditions change because of the termination or acquisition of interests as to which disclosure is required.

§ 8-50-504. Filing of amended disclosure statement.

As long as any person required by this part to file a disclosure statement retains office or employment, such person shall file an amended statement with the Tennessee ethics commission or notify the Tennessee ethics commission in writing that such person has had no change of condition which requires an amended statement, not later than January 31 of each and every year, except that a delegate to a constitutional convention shall submit an amended statement with the Tennessee ethics commission or notify the Tennessee ethics commission, in writing, that such person has had no change of condition, not later than fifteen (15) days after the date provided in the call for the convening of the constitutional convention. If January 31 falls on a Saturday, a Sunday, or a legal holiday, § 1-3-102 shall apply.

§ 8-50-505. Enforcement powers.

(a) The ethics commission has the jurisdiction to administer and enforce the provisions of this part concerning disclosure statements of conflicts of interest. This enforcement power includes the full range of powers and penalties and procedures established in title 3, chapter 6.
(b) It is the intent of the general assembly that the sanctions provided in this section are the civil penalties enacted into law by § 3-6-205.

§ 8-50-506. Preferred service employees — Financial disclosure.

(a) No employee in the preferred service under chapter 30 of this title, shall be required by the appointing authority to submit a disclosure statement or any financial disclosure statement, unless such employee or a member of the employee's immediate family has a financial interest with a value of more than five thousand dollars ($5,000) which would constitute a conflict of interest or a potential conflict of interest under state law or the department of human resources' policy or other departmental policy.
(b) Notwithstanding subsection (a) to the contrary, the appointing authority shall require any employee or person whose duties are to regulate, inspect, audit or procure goods or services or to administer tax laws to disclose the employee's or a member of the employee's immediate family's financial interests that would constitute a conflict of interest or a potential conflict of interest under state law or the department of human resources' policy or other departmental policy. Disclosures are required for individuals who have authority over these persons or these functions.
(c) Disclosure to the immediate supervisor is required at the time an assignment is received which could result in a conflict. The immediate supervisor would then determine if a conflict exists which warrants reassignment of that task to another employee.
(d) The appointing authority has responsibility for clearly communicating these provisions in writing to agency employees upon hiring and annually thereafter.

§ 8-50-507. Signature on disclosure statement or amendment to disclosure statement — Penalty of perjury.

Each disclosure statement or amendment to a disclosure statement filed under this part must be signed either in writing or electronically under penalty of perjury, and contain substantially the following language:
I understand that, pursuant to T.C.A. § 8-50-507, submitting a disclosure or amendment to a disclosure form which contains false or incomplete information may subject me to the penalties of perjury. The information contained in this disclosure or amendment to a disclosure form is true, complete, and correct to the best of my knowledge, information, and belief.
____________________ Signature _____________ Date

Part 6 Public Employee Political Freedom Act of 1980

§ 8-50-601. Short title.

This part shall be known and may be cited as the “Public Employee Political Freedom Act of 1980.”

§ 8-50-602. Public employee's communication with elected public officials.

(a) No public employee shall be prohibited from communicating with an elected public official for any job-related purpose whatsoever.
(b) For purposes of this part, “public employee” means any person providing services for the state of Tennessee, state agencies, counties, municipalities, or subdivisions of such governmental bodies in Tennessee for which compensation is paid.

§ 8-50-603. Discipline or discrimination for communication prohibited — Damages.

(a) It is unlawful for any public employer to discipline, threaten to discipline or otherwise discriminate against an employee because such employee exercised that employee's right to communicate with an elected public official.
(b) If the court of competent jurisdiction determines that a public employer has disciplined, threatened to discipline or otherwise discriminated against an employee because such employee exercised the rights provided by this part, such employee shall be entitled to compensatory damages plus reasonable attorney fees.

§ 8-50-604. Construction.

No provision of this part shall be construed to prohibit an employer from correcting or reprimanding an employee for making untrue allegations concerning any job-related matter to an elected public official.

Part 7 Contributions to Education Trust Fund

§ 8-50-701. State employees.

(a) Any state employee may authorize deductions for contributions to the volunteer public education trust fund, established by § 49-3-403, to be made from the employee's compensation. These deductions shall be in addition to those permitted by other sections of this title.
(b) To authorize deductions for contributions to the education trust fund, the state employee shall complete an authorization form which shall contain the employee's signature and the following information:
1. (1) Employee's name;
2. (2) Employee's social security number;
3. (3) State agency of employment;
4. (4) Facility or location of employment;
5. (5) The amount to be deducted each month for contribution to the education trust fund; and
6. (6) The following statement: “I, the undersigned, understand that this authorization is to become effective immediately. I understand that I may revoke, alter, or amend this authorization by written notification at any time.”
(c) The deductions for contributions to the education trust fund authorized pursuant to this section shall be made from the compensation of an employee on the first payday of each month.
(d) Any employee who authorizes deductions for contributions to the education trust fund as provided in this section may, at any time, revoke, alter or amend the authorization for payroll deduction.
(e) The state treasurer, in conjunction with the commissioner of finance and administration, shall promulgate rules and regulations governing the procedures for the deductions of contributions to the education trust fund and the acceptance of the contributions by the education trust fund.

§ 8-50-702. Part definitions — Teachers' contributions to the volunteer public education trust.

(a) As used in this part, unless the context otherwise requires:
1. (1) “Local education agency” or “LEA” has the same definition as used in § 49-3-104; and
2. (2) “Teacher” has the same definition as used in § 8-34-101.
(b)
1. (1) All LEAs may make available to any teacher the option of contributing to the volunteer public education trust fund by payroll deductions.
2. (2) The authorization form for deductions provided by an LEA shall conform to that required for state employees in § 8-50-701(b).
3. (3) The LEA shall allow any teacher to revoke, alter, or amend that teacher's authorization for deduction of contributions by written notification at any time.

Part 8 Leave for State Employees

§ 8-50-801. Annual leave.

(a) Each officer and employee of the several departments and agencies of the state government who is scheduled to work one thousand six hundred (1,600) hours or more in a fiscal year, whether compensated on hourly, daily, monthly or on a piecework basis, shall be granted absence from work with pay based upon that officer's or employee's accrued annual leave, the time and amount of absence to be approved at the discretion of the head of the department or agency and subject to audit by the commissioner of human resources.
(b) An eligible employee shall accrue annual leave based on the total creditable service as follows:
1. (1)
  1. (A) An officer or employee described in § 8-30-102(b)(1) who has less than five (5) years of full-time service and was not in the active employment of the state of Tennessee on July 1, 1969, accrues annual leave at the rate of one (1) day for each month of service or major fraction thereof, and may accumulate a maximum of thirty (30) work days; and
  2. (B) An officer or employee other than as described in § 8-30-102(b)(1) who has less than five (5) years of full-time service and was not in the active employment of the state of Tennessee on July 1, 1969, accrues annual leave at the rate of twelve (12) days per year on the date the employee is hired and on each service anniversary date for the employee, and may accumulate a maximum of thirty (30) work days;
2. (2) [Deleted by 2023 amendment.]
3. (3)
  1. (A) An officer or employee described in § 8-30-102(b)(1) who has five (5) years and less than ten (10) years of full-time service accrues annual leave at the rate of one and one-half (1½) days for each month of service or major fraction thereof, and may accumulate a maximum of thirty-six (36) work days; and
  2. (B) An officer or employee other than as described in § 8-30-102(b)(1), who has five (5) years and less than ten (10) years of full-time service accrues annual leave at the rate of eighteen (18) days per year on each service anniversary date for the employee, and may accumulate a maximum of thirty-six (36) days;
4. (4)
  1. (A) An officer or employee described in § 8-30-102(b)(1) who has ten (10) years and less than twenty (20) years of full-time service accrues annual leave at the rate of one and three-quarters (1¾) days for each month of service or major fraction thereof, and may accumulate a maximum of thirty-nine (39) work days; and
  2. (B) An officer or employee other than as described in § 8-30-102(b)(1) who has ten (10) years and less than twenty (20) years of full-time service accrues annual leave at the rate of twenty-one (21) days per year on each service anniversary date for the employee, and may accumulate a maximum of thirty-nine (39) work days; and
5. (5)
  1. (A) An officer or employee described in § 8-30-102(b)(1) who has twenty (20) years or more of full-time service accrues annual leave at the rate of two (2) days for each month of service or major fraction thereof, and may accumulate a maximum of forty-two (42) work days; and
  2. (B) An officer or employee other than as described in § 8-30-102(b)(1) who has twenty (20) years or more of full-time service accrues annual leave at the rate of twenty-four (24) days per year on each service anniversary date for the employee, and may accumulate a maximum of forty-two (42) work days.
(c)
1. (1) Annual leave requested by an employee is subject to supervisory approval.
2. (2) For purposes of subdivisions (b)(1)-(5), service anniversary dates must be adjusted to account for gaps in paid employment as a state employee, as applicable.
(d) For individuals holding full-time positions in the department of education that require three (3) years' experience as a certified professional employee in the Tennessee public school system, prior teaching or administrative experience in Tennessee public schools is creditable for purposes of subdivisions (b)(1)-(5), not to exceed three (3) years.
(e) Part-time employees, employees holding temporary positions for less than six (6) months, seasonal employees, and emergency employees in the state service are expressly excluded from the provisions hereof.
(f) An eligible employee who is compensated for overtime work by receiving compensatory time instead of overtime pay shall be entitled, at any time during the year, to use annual time before having to use compensatory time when the employee has accumulated annual time within two (2) days of the maximum annual time the employee is allowed to accumulate in such employee's service group code.

§ 8-50-802. Sick leave.

(a)
1. (1) Sick leave may be granted:
  1. (A) To each officer and employee described in § 8-30-102(b)(1) who is scheduled to work one thousand six hundred (1,600) hours or more in a fiscal year, whether compensated on an hourly, daily, monthly, or piecework basis, at the rate of one (1) day for each month of service or major fraction thereof, at the discretion of the head of the department or agency and with the approval of the commissioner of human resources; and
  2. (B) To each officer and employee other than as described in § 8-30-102(b)(1) who is scheduled to work one thousand six hundred (1,600) hours or more in a fiscal year, whether compensated on an hourly, daily, monthly, or piecework basis, at the rate of twelve (12) days per year on the date the employee is hired and on each service anniversary date for the employee, at the discretion of the head of the department or agency and with the approval of the commissioner of human resources. For purposes of this subdivision (a)(1)(B), service anniversary dates must be adjusted to account for gaps in paid employment as a state employee.
2. (2) Sick leave shall be cumulative for all earned days not used. Saturdays, Sundays, and official holidays falling within a leave period shall not be charged as leave, unless such days are considered as work days for the employee in the employee's particular assignment. Part-time employees, employees holding temporary positions for less than six (6) months, seasonal employees, and emergency employees in the preferred service are expressly excluded from this subsection (a).
3. (3) Sick leave may only be used for absence from duty because of illness or disability due to accident of employee, the employee's exposure to contagious diseases, or because of illness or death in the immediate family of the employee for such period as the attendance of the employee shall be necessary, except as hereinafter provided.
4. (4)
  1. (A) A state employee may use sick leave and annual leave, as described in § 8-50-801, for maternity or paternity leave for a period not to exceed the state employee's accumulated sick leave and annual leave balance, or twelve (12) weeks, whichever is less. In order to be eligible to use sick leave as maternity or paternity leave, the state employee must submit a written request therefor, together with a statement from the attending physician indicating the expected date of confinement, not later than the end of the fifth month of pregnancy.
  2. (B) As used in this subdivision (a)(4):
    1. (i) “Educator” has the same meaning as defined in § 49-5-204; and
    2. (ii) “State employee” means any person who is a state official, including members of the general assembly, the attorney general and reporter, district attorneys general, state judges, district public defenders, educators, any person who is employed in the service of and whose compensation is payable by the state, or any person who is employed by the state whose compensation is paid in whole or in part from federal or other funds. “State employee” also means any person who is employed in the service of and whose compensation is payable by a public institution of higher education, or any person who is employed by a public institution of higher education whose compensation is paid in whole or in part from federal or other funds.
5. (5) An employee may be required to present evidence in the form of personal affidavits, physicians' certificates, or other testimonials, at the request of the appointing authority or the commissioner of human resources, to support the reason for any absence during the time for which sick leave was taken. The appointing authority may not deny sick leave to any employee who furnishes a statement of a licensed physician or accredited Christian Science practitioner in support of the reason for the absence. However, the appointing authority may require additional documentation if, upon further investigation, there is substantial evidence of sick leave abuse by the employee.
(b) Each officer and employee who is employed full time and who has accumulated the maximum number of allowable annual leave days shall have any additional leave days accrued in excess of the maximum amount transferred annually to the officer's or employee's credit as sick leave.
(c)
1. (1) The commissioner of human resources shall develop policies and procedures which shall allow for the transfer of sick leave between employees who are covered by this part.
2. (2) Employees shall be members of the sick leave bank established in part 9 of this chapter to be eligible for a transfer of sick leave from another employee.
3. (3) The commissioner shall establish one (1) open enrollment period for the sick leave bank following April 12, 1994, which shall be in addition to the enrollment period established in § 8-50-905(c). Such open enrollment period shall not exceed sixty (60) days.

§ 8-50-803. Full-time service accrual for annual or sick leave purposes.

(a) In determining the amount of full-time service accrued by an employee of the state of Tennessee, all full-time service accumulated while employed in any agency, office, or department of the state or in any state college or university shall be credited for purposes of the leave computation set out in §§ 8-50-801 and 8-50-802. Any former member of the general assembly who, as of July 1, 1988, was eligible to accrue annual leave under § 8-50-801, shall be credited for each year of legislative service as twelve (12) months of full-time service for all time served in the general assembly when determining the annual leave computation in § 8-50-801.
(b) In addition, all earned leave accrued while employed in any agency, office or department of the state or in any state college or university shall be fully transferable between such agencies, offices, departments, colleges and universities.
(c) In addition, all earned sick leave provided for by §§ 49-5-701, 49-5-707, and 49-5-710, which is accrued by a teacher employed by a local school board in Tennessee who leaves the employ of that board and becomes an employee of any agency, office, department, or institution of the state or any state college or university, and participates in the sick leave program provided in this part, shall be considered accumulated state sick leave under § 8-50-802.
(d) Any person may waive such conversion by notice to the authority responsible for that person's appointment.
(e) The previous employer shall certify to the new employer that the sick leave for which credit is being sought actually is accrued and due and is substantiated by records of the agency compiled during the course of such employment and not from records compiled solely for purposes of establishing leave credit.
(f) The conversion of sick leave under this section shall be available to any employee who has transferred employment from a local school system to any herein named agency of state government.

§ 8-50-804. Employees returning to state service — Credit for prior employment.

(a) Whenever an employee who has worked on a full-time, continuous basis for the state of Tennessee for at least one (1) full year leaves state employment in good standing and returns to state service as a full-time state employee, the employee shall immediately be credited with all sick leave to which the employee was entitled at the time of the previous termination; provided, that any such employee having had at least one (1) full year of employment and returning to state service as a full-time state employee who has had any interim employment with the state of Tennessee for less than one (1) year shall not be disqualified from receiving such credited sick leave to which the employee was otherwise qualified to receive because of the employee's prior employment with the state.
(b) The personnel officer or appointing authority of the last employing department shall be responsible for certifying entitlement to such sick leave credit to the agency reemploying the employee so entitled.
(c) This section shall be effective as to eligible employees who have returned to state service.

§ 8-50-805. Previous local school board employees or teachers — Sick leave.

Sections 8-50-803 and 8-50-804 do not apply to state employees or teachers employed by a local school board in Tennessee who leave the employ of the state or of that board in good standing and become full-time state employees within six (6) months of the date of termination. Such employees shall immediately be credited with all sick leave to which they were entitled at the time of the previous termination.

§ 8-50-806. Leave for adoptive parents.

Special leave shall be granted for a period of twelve (12) weeks to adoptive parents. Employees may use sick leave and annual leave for all or a portion of that twelve (12) weeks, not to exceed the employee's leave balance if the child is one (1) year old or less; in the event both parents are state employees, the aggregate of sick leave used for such purpose is limited to twelve (12) weeks. In order to be eligible for adoptive leave, the employee shall submit to the appointing authority a statement from a state-licensed child-placing agency verifying the adoption. Additional special leave may be granted at the discretion of the appointing authority not to exceed one (1) year. In the event the adoption process is not completed, the approval of leave pursuant to this section is rescinded. This section shall not apply in case of stepchild or adult adoption.

§ 8-50-807. Termination compensation.

(a)
1. (1) Each officer and employee entitled to annual leave by this part must be compensated upon termination for the officer's or employee's unused accrued annual leave, based upon the number of months the employee worked beyond the officer's or employee's service anniversary date.
2. (2) If the termination date is prior to the service anniversary date, the officer or employee's final paycheck must be reduced to account for the number of annual days used that exceed the number of months in which the employee worked.
3. (3) If the separated employee is rehired by the state within one (1) year of the date of separation, the state shall reinstate any accrued, unused annual leave from the previous period of employment for which the employee was not compensated at separation.
(b) All persons entitled to terminal leave who are subject to retirement under the state retirement system or teachers' retirement system shall be compensated for their terminal leave prior to the effective date of their retirement.
(c) All persons entitled to terminal leave at death, the compensation covering the same shall be paid to their estate or to their designated beneficiary.
(d) Any employee who is dismissed or terminated from state service for gross misconduct, or who resigns from state service to avoid dismissal for gross misconduct, or who was guilty of gross misconduct prior to leaving state service, shall not be entitled to collect any of the benefits hereunder.

§ 8-50-808. Estates of deceased employees — Beneficiaries.

(a) The estate of any employee, on the employee's death, or the estate of any deceased employee which is being compensated for terminal leave on June 3, 1981, shall be compensated for the employee's unused and accrued sick leave in the same manner that the estates of deceased employees are compensated for terminal leave.
(b) An employee may designate a beneficiary to receive payment for accrued annual, sick leave and compensatory leave upon the employee's death. Unless an employee designates differently, the beneficiary shall be the same as designated for receipt of retirement benefits with the Tennessee consolidated retirement system.

§ 8-50-809. Applicability — Exemptions.

(a) These provisions for annual, sick leave and terminal leave do not apply to the members of the instructional staffs of the special schools administered by the department of education.
(b) This part, except for those provisions that relate to annual/sick leave transfer, sick leave reinstatement, or §§ 8-50-802(a)(4) and 8-50-806, shall not apply to officers or employees of the University of Tennessee system or the state university and community college system. The board of regents, the state university boards, and the board of trustees of the University of Tennessee shall prepare a leave policy to apply to their respective officers and employees which, in terms of total paid time off, would be substantially in accordance with this part for other state employees. Such policies shall be approved by the commissioner of finance and administration and filed with the comptroller of the treasury. Nothing in this part shall prohibit or modify the creation or approval of a sick leave bank pursuant to § 8-50-925 at institutions governed by the board of regents, the state university boards, or the board of trustees of the University of Tennessee.

§ 8-50-810. American Red Cross disaster leave.

A state employee who is a certified disaster service volunteer of the American Red Cross may be granted leave from work with pay for a period not to exceed fifteen (15) work days in each year to participate in specialized disaster relief services for the American Red Cross. The employee shall be released from work for this function upon request of the American Red Cross for the services of that employee, and upon the approval of that employee's appointing authority. The appointing authority shall compensate an employee granted extra leave under this section at the employee's regular rate of pay for those regular work hours during which the employee is absent from the employee's work. This leave shall not affect the employee's regular leave status.

§ 8-50-811. Employees of boards, commissions and agencies.

(a) An employee of any board, commission or agency created by the supreme court of Tennessee shall be eligible to accrue leave commencing July 1, 2002, pursuant to the provisions of this part that apply to state employees. Any years of service rendered by the employee to any such board, commission or agency prior to July 1, 2002, shall be used in determining accrual rates and maximum accrual limits.
(b) Any unused leave accrued prior to July 1, 2002, while employed by any board, commission or agency described in subsection (a) shall be considered accumulated leave for purposes of this part; provided, that:
1. (1) The administrative office of the courts certifies that the leave for which credit is being sought actually is accrued and due and is substantiated by records of the applicable board, commission or agency compiled during the course of employment for which the leave was earned and not from records compiled solely for purposes of establishing leave credit; and
2. (2) The amount of accrued leave shall not exceed the amount that would have been accumulated under this part had the employees been deemed state employees prior to July 1, 2002.

§ 8-50-812. Veteran sick leave.

In addition to the sick leave granted under § 8-50-802, a state employee who is a veteran with a service-connected disability of thirty percent (30%) or more receives thirty-six (36) hours of leave each year that can be used to attend appointments related to the service-connected disability. However, no unused leave remaining at the end of the year may be carried over to the subsequent year.

§ 8-50-813. Mandatory leave due to birth or adoption of child — Leave distinguished — FMLA — Eligible employees.

(a) In addition to leave granted under §§ 8-50-801, 8-50-802, and 8-50-806, an eligible employee must be granted absence from work with pay for a period of time equal to six (6) workweeks because of the birth of the employee's child or because of the placement of a child with the employee for adoption, and upon the employee giving thirty-days' notice to the appropriate appointing authority. If the eligible employee learns of the birth or adoption less than thirty (30) days in advance, the employee shall give the notice as soon as reasonably possible. For the purpose of calculating service anniversary dates, this absence from work is considered full-time employment.
(b) Leave used by an eligible employee pursuant to this section must not be charged to sick, annual, or other leave the employee may have accumulated.
(c) Leave granted pursuant to this section must count toward the eligible employee's use of leave required to be given by this state as an employer under the federal Family and Medical Leave Act (29 U.S.C. § 2601, et seq.) and § 4-21-408.
(d) An eligible employee must not be granted more than six (6) workweeks of paid leave under subsection (a) during a twelve-month period, but the workweeks do not need to be taken consecutively. An eligible employee may receive no more than six (6) workweeks of paid leave during a twelve-month period, even if there is more than one (1) qualifying birth or adoption under subsection (a). Leave granted pursuant to this section must be used within twelve (12) months of the qualifying birth or adoption.
(e) As used in this section, “eligible employee” means:
1. (1) An employee who has been employed full-time with the state for at least twelve (12) consecutive months with an entity described in §§ 8-30-102(a), 8-30-102(b)(2), 8-30-102(b)(6)-(7), and 8-30-102(b)(10)-(13); or
2. (2) An employee who has been employed full-time with the state for at least twelve (12) consecutive months with an entity described in § 8-30-102(b)(9), except for an employee of any administrative board or commission that is attached to an entity described in § 8-30-102(b)(1) or § 8-30-102(b)(3)-(5).
(f) The department of human resources shall establish policies for implementing this section with regard to executive branch agencies. With regard to nonexecutive branch agencies, the equivalent of the agency's human resources office shall establish policies for implementing this section.
(g) Paid leave under this section must be paid at one hundred percent (100%) of the employee's salary.
(h) If an eligible employee experienced a birth or adoption under subsection (a) prior to July 1, 2023 and has not used all of the federal Family and Medical Leave Act leave to which the employee was entitled as a result of the birth or adoption, then the employee is entitled to leave under this section beginning on July 1, 2023 for the remainder of the federal Family and Medical Leave Act leave that the employee uses on or after July 1, 2023 as a result of the event in subsection (a). The duration of paid leave must not exceed the paid leave available under subsection (d).

§ 8-50-814. Family leave for birth or placement of child — Period of leave — Payment during leave.

(a) As used in this section:
1. (1) “Birth” has the same meaning as “live birth” as defined in § 68-3-102;
2. (2) “Eligible employee” means a teacher, principal, supervisor, or other individual required by law to hold a valid license of qualification for employment in the public schools of this state and who has been employed full time with a local education agency or public charter school for at least twelve (12) consecutive months;
3. (3) “Local education agency” or “LEA” has the same definition as used in § 49-3-302;
4. (4) “Newly placed minor child” means the adoption of a minor child that results in a change of custody of that child;
5. (5) “Public charter school” has the same meaning as defined in § 49-13-104; and
6. (6) “Stillbirth” has the same meaning as defined in § 68-3-102.
(b) Except as otherwise provided in this section, an eligible employee must be granted absence from work with pay for a period of time equal to six (6) work weeks after the birth or stillbirth of the employee's child or the employee's adoption of a newly placed minor child upon the employee giving thirty-days' notice to the employee's LEA or public charter school; provided, however, that if an employee learns of the birth, stillbirth, or adoption of the employee's child less than thirty (30) days in advance of the birth, stillbirth, or adoption, then the employee must give notice of the birth, stillbirth, or adoption to the employee's LEA or public charter school as soon as reasonably possible to be eligible to receive pay granted pursuant to this subsection (b).
(c) An eligible employee who is granted leave pursuant to this section shall not be required to use the employee's sick, annual, or other leave for the leave taken pursuant to this section. The leave granted pursuant to this section counts toward the employee's use of leave required to be given by this state as an employer under the federal Family and Medical Leave Act (29 U.S.C. § 2601, et seq.) and § 4-21-408.
(d)
1. (1) An eligible employee may receive no more than six (6) work weeks of paid leave pursuant to subsection (b) within a twelve-month period.
2. (2) The six (6) work weeks of paid leave granted pursuant to this section do not need to be consecutively taken; provided, that the paid leave granted pursuant to this section is used within twelve (12) months of the birth or stillbirth of the employee's child or the employee's adoption of a newly placed minor child.
(e) Each LEA and public charter school shall establish policies for implementing this section.
(f) Paid leave under this section must be paid at one hundred percent (100%) of the employee's salary. For the purpose of calculating employment anniversary dates, absence from work pursuant to this section is considered full-time employment.
(g) The state shall reimburse an LEA or public charter school that provides paid leave pursuant to this section in an amount equal to the leave paid by the LEA or public charter school pursuant to this section.

Part 9 Sick Leave Banks

§ 8-50-901. Part definitions.

As used in this part, unless the context otherwise requires:
1. (1) “Employee organization” means any organization:
  1. (A) With membership open to all state employees;
  2. (B) Which has a payroll deduction established by § 8-23-204; and
  3. (C) Which has a membership of more than twenty percent (20%) of the total number of state employees;
2. (2) “Member” or “participant” means any state employee who has joined the bank by making the initial donation of the minimum number of days necessary and has donated subsequently assessed days;
3. (3) “Sick leave” means a designated amount of compensated leave accumulated pursuant to part 8 of this chapter that is granted to a member who through personal illness, injury, disability or quarantine, is unable to perform the duties of the member's state position. Sick leave may not be granted for the period of disability when moneys are paid to the member under the Workers' Compensation Law, compiled in title 50, chapter 6;
4. (4) “Sick leave bank” or “bank” means a system of accounting for voluntarily pooled and irrevocably donated accumulated personal sick leave which is collected for the purpose of providing sick leave to members of the program who have suffered a personal illness, surgery, disability or quarantine and whose sick leave is exhausted;
5. (5) “Sick leave bank trustees” or “trustees” means those persons appointed to govern the activities of the sick leave bank as provided by §§ 8-50-901 – 8-50-909; and
6. (6) “State employee” means all employees in state service, legislative branch, and constitutional officers who accrue sick leave pursuant to part 8 of this chapter and all employees and teachers of all state special schools.

§ 8-50-902. Establishment.

Establishment of the sick leave bank shall be in accordance with the following:
1. (1) Sick leave accumulated under part 8 of this chapter may be donated to the bank;
2. (2) Only one (1) sick leave bank will be established for all employees of the state of Tennessee; provided, that any sick leave banks for persons employed by the state which were authorized prior to July 1, 1988, shall continue in operation and shall continue to be effective in terms of their enacting legislation; and
3. (3) A minimum of one hundred (100) state employees must petition the commissioner of finance and administration in accordance with this part.

§ 8-50-903. Board of trustees.

When authorization to establish a sick leave bank has been granted by the commissioner of finance and administration, the sick leave bank trustees shall be established as follows:
1. (1) Not later than thirty (30) days following the commissioner's authorization, a board of trustees shall be established;
2. (2) The board of trustees will be comprised of the commissioners of human resources and of finance and administration, the state treasurer, the executive director of the fiscal review committee, or their designees, and three (3) members, one (1) from each grand division and each employed by a different department or agency, selected by the employee organization at their annual legislative convention;
3. (3) All appointments shall be for three-year staggered terms and can be replaced only because of death, retirement, resignation, and/or discontinuation of employment or the expiration of a term;
4. (4) Any vacancy shall be filled for the remainder of the term by the appointing authority in the same manner as original appointments were made;
5. (5) Trustees are eligible to succeed themselves; and
6. (6) The seven (7) trustees originally appointed shall draw lots for four (4) positions for three-year terms, and three (3) positions for two-year terms, to become effective August 1 next; thereafter all terms begin on August 1.

§ 8-50-904. Rules and regulations.

(a) The trustees shall provide for rules and regulations not inconsistent with §§ 8-50-901 – 8-50-909.
(b) These rules and regulations shall be established and adopted by the board of trustees, exclusive of the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, part 2.
(c) Rules shall be on file in the office of the commissioner of human resources and in the personnel office of each department and agency of the executive branch of government within sixty (60) days of the authorized establishment of a sick leave bank pursuant to § 8-50-902.
(d) Nothing in this section shall be construed in such a manner as to prevent the board of trustees from adopting rules more stringent, relative to membership and use of leave from the bank, than the general provisions of this part.
(e) The board may adopt rules which allow the payment of minor administrative costs from the sick leave bank.

§ 8-50-905. Eligibility — Notice — Election — Withdrawal.

(a) All employees and teachers of all state special schools and all persons employed by state government who are entitled to accrue sick leave pursuant to part 8 of this chapter, and who have been employed by state government or any state special school for twelve (12) full months immediately preceding application for participation, and who have a sick leave balance in an amount to be determined by the board of trustees, are eligible to participate in the sick leave bank.
(b) Upon the establishment of a sick leave bank and selection of the trustees therefor, the commissioner of human resources shall notify all state employees that they are eligible to participate in the sick leave bank. Following such notice, any state employee may indicate on forms prepared and approved by the trustees and distributed by the commissioner a desire to participate in the bank by submitting such forms to the office which handles records for sick leave for the state.
(c) Employees and teachers of all state special schools and state employees electing to participate shall do so during the months of August, September, or October of any year.
(d) By written notice to the trustees, a member may withdraw from the bank participation on any June 30. Membership withdrawal results in forfeiture of all days contributed.

§ 8-50-906. Donations — Assessments.

(a) The board of trustees shall determine the number of days of sick leave to be deducted from the sick leave balance of state employees who elect to participate in the bank. Any state employee who elects to participate in the bank shall initially have a minimum of three (3) days of sick leave deducted from that employee's personal accumulation and donated to the sick leave bank.
(b) Donations to the sick leave bank are nonrefundable and nontransferable.
(c) At any time the number of days in the sick leave bank is less than one hundred (100), or one (1) per member if there are more than one hundred (100) members, or at any time deemed advisable, the trustees shall assess each member one (1) or more days of accumulated sick leave. If a member has no accumulated sick leave at the time of assessment, the first earned days shall be donated as they are accrued by the employee.

§ 8-50-907. Criteria and procedure for distribution.

(a) The sick leave bank trustees shall establish the criteria for distributing sick leave from the bank, hear appeals of denials of request for sick leave, and prescribe the form and manner of participation in the bank.
(b) All actions of the trustees require four (4) affirmative votes.
(c) The appropriate division of the department of human resources shall determine whether or not to grant or deny all initial requests for sick leave to be distributed from the sick leave bank in accordance with the rules and regulations promulgated by the trustees within ten (10) business days of receipt of all necessary documentation.
(d) The trustees shall establish criteria and procedures for appeal of a rejected initial request. The trustees must decide every pending appeal within thirty (30) days of the receipt of the appeal.
(e) Members of the sick leave bank shall be eligible to make application to the bank for sick leave only after having been a member of the bank for thirty (30) calendar days.
(f) A participant shall not receive any sick leave from the bank until after having exhausted all accumulated sick and annual leave.
(g) The trustees may establish regulations restricting the number of days which may be withdrawn from the bank by one (1) member on account of one (1) illness, particularly any known illness existing at the time the employee elected to participate in the bank.
(h) Grants of sick leave from the bank shall not be made to any member on account of elective surgery, illness of a member of the participant's family except as provided in subsection (n), or during any period the member is receiving disability benefits from social security or the state retirement plan.
(i) Leave grants from the bank shall not be more than thirty (30) consecutive days for which the individual applicant would have otherwise lost pay. Applicants may submit requests for extensions of sick leave grants before or after their prior grants expire. The maximum number of days any participant may receive as a result of any one (1) illness, or recurring diagnosed illness, or accident is ninety (90) days.
(j) In the event that a member is physically or mentally unable to make a request to the sick leave bank for use of sick leave days, a family member or agent may file a request.
(k) If the trustees or their designees for administration determine it necessary, they may require a physician's certificate of condition from any member requesting additional leave. Refusal to comply will result in denial of the pending request for use of sick leave days from the bank.
(l) Sick leave granted a member from the bank need not be repaid by the individual member, except as all members are uniformly assessed.
(m) All records of the sick leave bank shall be kept in the office of the department of human resources whose responsibility it is to keep records of sick leave.
(n) Sick leave may be granted to a member on account of an illness of the member's minor child.

§ 8-50-908. Loss of right to benefits.

A member shall lose the right to obtain the benefits of the sick leave bank by:
1. (1) Resignation or termination of employment with the state of Tennessee;
2. (2) Cancellation of participation which is effective only on June 30 next;
3. (3) Refusal to honor such assessment as may be required from time to time by the trustees to maintain an adequate number of reserve days in the bank;
4. (4) Being on approved leave of absence with the exception of personal illness or disability leave; or
5. (5) Retirement.

§ 8-50-909. Dissolution.

In the event the sick leave bank is dissolved, the total number of days on deposit shall be returned to the then participating members and credited to their personal sick leave accumulation in proportion to the number of days each has contributed individually. Days returned under this section and credited to the individual participant's accumulation shall be rounded to the nearest one-half (½) day.

§ 8-50-910. Deduction of donation cost.

Any cost arising from a donation of sick leave by a participating employee to the sick leave bank shall be deducted from the budget of the department or agency employing the person who makes the donation.

§ 8-50-911 — 8-50-924. [Reserved]

§ 8-50-925. Institutions of higher education.

(a) As used in this section, unless the context otherwise requires:
1. (1) “Branch” refers to any one (1) of the campuses governed by the board of trustees of the University of Tennessee which is listed in § 49-9-202;
2. (2) “Faculty” means officers and members of the teaching staffs of the University of Tennessee and the state university and community college system of Tennessee; and
3. (3) “Institution” refers to any one (1) of the campuses governed by the board of regents of the state university and community college system which is listed in § 49-8-101.
(b) A sick leave bank may be established at any institution within the state university and community college system of Tennessee, or at any of the branches of the University of Tennessee. To form a sick leave bank at any such institution or branch, a minimum of twenty (20) faculty shall petition the chief executive officer at such institution or branch to authorize and direct the establishment of a sick leave bank.
(c) Within thirty (30) days after receipt of the petition, the chief executive officer shall appoint five (5) sick leave bank trustees. At least three (3) of the appointees shall be faculty who devote a majority of their time to classroom instruction. All appointments shall be for three-year terms after an initial appointment term of one (1) year for two (2) trustees, two (2) years for two (2) trustees and three (3) years for one (1) trustee. The sick leave bank trustees shall hold their first meeting and elect a chair within ten (10) days of their appointment. Trustees shall be eligible for reappointment and any vacancy resulting from expiration of a term, retirement, resignation, discontinuation of employment or death shall be filled immediately by the appointing authority.
(d)
1. (1) Preparation of the sick leave bank plan shall be the responsibility of the sick leave bank trustees. The plan shall provide for membership eligibility of all faculty at the institution or branch. The trustees shall administer the sick leave bank and approve or reject each request for additional sick leave. All actions by the trustees will require three (3) affirmative votes. It shall be the specific responsibility of the trustees to adopt reasonable rules for assessment or contribution of sick leave days to maintain an adequate reserve of usable days for bank members based upon total membership and projected potential need. The plan prepared by the trustees shall include, but not be limited to, rules on the following subjects:
  1. (A) A thirty-day membership requirement before an individual may apply for bank sick leave days;
  2. (B) A requirement that an individual exhaust all accumulated sick leave prior to receiving bank sick leave days;
  3. (C) A restriction on the number of days which may be withdrawn from the bank by one (1) member on account of one (1) illness, particularly any known illness at the time the individual elected to participate in the bank;
  4. (D) A restriction that bank sick leave shall not be used for elective surgery, or illness of a member of the individual's family except as provided in subsection (h), or during any period an individual is receiving disability benefits from social security or a retirement plan;
  5. (E) The procedure and forms to be used when individuals apply for sick leave days;
  6. (F) A restriction that initial grants of sick leave to individual applicants shall not exceed twenty (20) consecutive days for which the applicant would have otherwise lost pay, and the procedure for requesting additional sick leave days to a maximum of sixty (60) days in any fiscal year, or ninety (90) days for any one (1) illness, or recurring diagnosed illness, or accident;
  7. (G) A procedure for family members or agents making a request on behalf of an individual participant when that individual is physically or mentally unable to apply for sick leave;
  8. (H) Any circumstance that would require a physician's certification of illness or condition, the procedures to be followed by the individual applicant, and a clear statement that refusal to submit a physician's statement will result in denial of the application for bank sick leave days;
  9. (I) Loss of the right to apply for bank sick leave because of resignation or termination of employment, retirement, cancellation of membership, refusal to honor sick leave bank trustee assessments of sick leave from individuals, or being on leave of absence in a non-pay status for reasons other than illness, injury, or disability;
  10. (J) An annual enrollment period for new members; and
  11. (K) Conditions for withdrawal of membership with a clear provision that assessed or contributed days are nonrefundable and nontransferable.
2. (2) Grants of sick leave from the bank shall not be conditioned upon repayment of days used or waiver of other employment benefits or rights provided by the applicable institution or branch. The trustees shall act affirmatively or negatively on all applications within ten (10) calendar days of receipt of the application. All records of the sick leave bank and minutes of trustee meetings shall be kept by the personnel office of the institution or branch.
(e) Within sixty (60) days after appointment, the trustees shall submit the proposed sick leave plan rules to the chief executive officer to determine whether the plan as submitted by the trustees is consistent with this section. The chief executive officer may direct the trustees to make changes in the plan if such changes are necessary to the operation of the bank or are required by law. The chief executive officer shall establish the effective date of operation of the bank, such date to be not later than one hundred eighty (180) days after the date of receipt of the original petition by the faculty to create the bank.
(f) The sick leave bank trustees shall notify all faculty of their eligibility to participate in the bank and the enrollment period. Enrollment forms, notices, copies of the final plan and rules adopted by the trustees shall be made available to all faculty at least thirty (30) days prior to the established effective date for the plan. The initial enrollment period shall last for a minimum of forty-five (45) days from the date membership materials are available to faculty. Any eligible person electing to participate by filing the required enrollment forms shall donate a maximum of three (3) days of accumulated sick leave as the initial enrollment assessment. Such donation of sick leave shall be deducted from the person's personal accumulated sick leave and shall be nonrefundable.
(g) In the event that dissolution of the sick leave bank becomes necessary because the institution or branch is closed, or because membership in the bank falls below twenty (20) individuals, the total days on deposit shall be returned to the participating members at the time of the dissolution and credited to their personal sick leave accumulation in proportion to the number of days each has contributed individually. Days returned and credited to an individual shall be rounded to the nearest one-half (½) day.
(h) Sick leave may be granted to a member on account of an illness of the member's minor child.

§ 8-50-926. Non-faculty university and college employees to be included.

The University of Tennessee and the state university and community college system are directed to establish a sick leave bank for their non-faculty employees pursuant to the terms of § 8-50-925.

§ 8-50-927 — 8-50-934. [Reserved]

§ 8-50-935. Non-faculty positions in education department to be covered.

The department of education is directed to establish for its non-faculty positions at the Tennessee School for the Blind, Tennessee School for the Deaf, Alvin C. York Institute, and West Tennessee School for the Deaf, a sick leave bank pursuant to former title 49, chapter 50, part 11 and for all its employees not otherwise included in a sick leave bank.

§ 8-50-936 — 8-50-944. [Reserved]

§ 8-50-945. Legislative sick leave bank for catastrophic or acute illnesses.

(a) In addition to any other sick leave bank established for state employees, there is hereby established the sick leave bank for the employees of the legislative branch of the state government. Sick leave accumulated by such employees pursuant to part 8 of this chapter or otherwise may be donated to the bank. The legislative sick leave bank shall be for catastrophic or acute illnesses for full-time legislative employees, but participation in such sick leave bank shall not prohibit or restrict any legislative employee from participation in any other sick leave bank for state employees.
(b) The speaker of the senate and the speaker of the house of representatives may establish a sick leave bank upon petition of ten (10) legislative employees requesting the establishment of a sick leave bank and upon approval of a sick leave bank plan.
(c)
1. (1) The sick leave bank shall be administrated by an advisory group composed of the director of legislative administration or designee, the director of legal services or designee, the executive director of fiscal review or designee, a full-time senate employee appointed by the speaker of the senate, and a full-time house of representatives employee appointed by the speaker of the house of representatives. Any designee shall be approved by the speakers.
2. (2) The advisory group shall approve or reject each request for additional sick leave.
3. (3)
  1. (A) Such group shall prepare and submit to the speakers a sick leave bank plan for the operation of such bank within fifteen (15) days of the establishment of such bank. Such plan shall include, but not be limited to:
    1. (i) Eligibility and procedural requirements for application for and granting of bank sick leave days;
    2. (ii) A requirement that an individual exhaust all accumulated sick leave, annual leave and compensatory leave time before utilizing sick leave bank time;
    3. (iii) Procedures for an employee to make specific sick leave contributions for and designations of the recipients of such leave;
    4. (iv) Amount of time which may be withdrawn from the bank by one (1) employee on account of one (1) illness;
    5. (v) Procedures for returning donated sick leave to the donors; and
    6. (vi) Procedures and forms for the operation of the bank.
  2. (B) The group shall consider written suggestions of legislative employees in the development of the plan and in changes to the plan prior to submitting them to the speakers.
(d) All records of the sick leave bank and minutes of advisory group meetings shall be kept by the office of legislative administration.

Part 10 State Employee Associations

§ 8-50-1001. Access to state employees — Literature.

(a) Any member or authorized agent of an employee association meeting the requirements of § 8-23-204(a)(2) shall have access during, before and after regular working hours to state employees in nonwork areas and in areas open to the public in all state offices, facilities and grounds; provided, that there is no interruption in the routine operation of the workplace.
(b) All state offices and facilities shall be provided a bulletin board to which employees have access. The posting of literature on bulletin boards in state facilities and the distribution of literature in nonwork areas of state facilities, offices and grounds is permitted by members and authorized agents of any employee association meeting the requirements of subsection (a).

Part 11 Athletic Competition Leave

§ 8-50-1101. Part definitions.

As used in this part, unless the context otherwise requires:
1. (1) “Olympic competition” means the official Olympic games, sanctioned by the United States Olympic Committee, in which the United States competes as a national body;
2. (2) “Pan-American competition” means the official Pan-American games, sanctioned by the United States Olympic Committee, in which the United States competes as a national body;
3. (3) “Public employee” means any person holding a position by appointment or employment in the service of a public employer;
4. (4) “Public employer” means:
  1. (A) The state of Tennessee;
  2. (B) A county, city, town, municipality or any other political subdivision of the state;
  3. (C) A school district or any governmental entity operating a public school, vocational school, technical school, college, junior college or university;
  4. (D) A public improvement or special district;
  5. (E) A public authority, commission or public benefit corporation; or
  6. (F) Any other public corporation, agency or instrumentality or unit of government which exercises governmental powers under the laws of the state;
5. (5) “Team” means any group leader, coach, official or athlete who comprises the official delegation of the United States to world, Pan-American or Olympic competition; and
6. (6) “World level competition” means any amateur competition between any athlete or athletes representing the United States and any athlete or athletes representing any foreign country, where the competition is sanctioned by the national governing body of the United States for that sport in which the public employee seeking leave under this provision plans to compete.

§ 8-50-1102. Eligibility — Granting of leave.

(a) Eligibility for leave under this part shall be limited to those public employees who qualify as members of a United States team for athletic competition, on the world, Pan-American or Olympic level in a sport contested in either Pan-American or Olympic competitions.
(b) The granting of leave under this part shall be discretionary with the public employer.
(c) In order to qualify for leave under this part, a public employee must:
1. (1) Be actively working for the public employer from whom the leave is requested at the time the request is made;
2. (2) Request such leave of absence from the public employer a reasonable period which, whenever practicable, will be fifteen (15) days prior to the date the public employee wishes such leave to commence;
3. (3) At the time of the request for the leave of absence:
  1. (A) Provide the public employer with the actual or anticipated dates of the competition in which the public employee expects to compete or participate, together with the dates of any official training camp period required for preparation for competition;
  2. (B) Specify the total number of days of leave that will be necessary in order for the public employee to participate in and prepare for the athletic competition or competitions involved; and
  3. (C) Submit to the public employer satisfactory evidence of qualification and selection for participation in the athletic competitions covered by this part.

§ 8-50-1103. Purpose and duration of leave.

Leave shall be available only for the purpose of preparing for and engaging in the competitions set forth herein, and in no event shall the total of all such leave exceed the period of the official training camp and competition combined plus a reasonable amount of travel time or ninety (90) calendar days a year, whichever is less.

§ 8-50-1104. Inability to continue participation — Notice — Return.

A public employee who has been granted leave pursuant to this part, who thereafter is for any reason unable to further participate in the training period or competition covered by such leave, shall be required to immediately notify that employee's public employer of such inability, and such public employee may be required at the election of the public employer to return to and resume the duties of the employee's position forthwith, if such public employee is physically able to do so; provided, that any public employee who has traveled to locations of actual competition shall not be required to return prior to completion of such competition or until the scheduled departure date of the team of which the public employee is a member, whichever is later.

§ 8-50-1105. Compensation.

A public employee granted leave pursuant to this part may be paid at the discretion of the employer.

§ 8-50-1106. Extension of employment.

This part shall not be construed to authorize or require extension of any employment beyond the time at which it would otherwise terminate by operation of law, rule, or regulation.

Part 12 Other Post-Employment Benefit Investment Trust Act of 2006

§ 8-50-1201. Short title.

This part shall be known and may be cited as the “Other Post-Employment Benefit Investment Trust Act of 2006.”

§ 8-50-1202. Part definitions.

As used in this part, unless the context otherwise requires:
1. (1) “Other post-employment benefits” or “post-employment benefits” means nonpension benefits paid on behalf of former employees or the former employees' beneficiaries after separation from service. The benefits may include, but shall not be limited to, medical, prescription drugs, dental, vision, hearing, medicare part B or part D premiums, life insurance, long-term care, and long-term disability;
2. (2) “Political subdivision” means any Tennessee local governmental entity, including, but not limited to, any municipality, metropolitan government, county, utility district, school district, public building authority, and development district created and existing pursuant to the laws of Tennessee, or any instrumentality of government created by any one (1) or more of the named local governmental entities or by an act of the general assembly; and
3. (3) “State funding board” or “funding board” means the board created pursuant to § 9-9-101.

§ 8-50-1203. Establishment of trust.

A political subdivision may, by resolution legally adopted and approved by its chief governing body, establish an investment trust for the purpose of pre-funding other post-employment benefits accrued by employees of the political subdivision, to be paid as they come due in accordance with the arrangements between the employers, the plan members and their beneficiaries. This authorization shall be subject to the following conditions:
1. (1) The chief governing body must establish a written plan of the post- employment benefits provided;
2. (2)
  1. (A) The investment committee of the political subdivision must adopt, in writing, an investment policy authorizing how assets in the trust may be invested. The policy shall not authorize assets in the trust to be invested in any instrument, obligation, security, or property that would not constitute a legal investment for assets of Tennessee domestic life insurance companies;
  2. (B) Notwithstanding subdivision (2)(A), the investment committee of a political subdivision may adopt, in writing, an investment policy authorizing assets in the trust to be invested and managed in accordance with the investment policy the political subdivision utilizes to manage pension assets; provided, however, that the pension fund management must conform to the Tennessee Uniform Prudent Investor Act of 2002, compiled in title 35, chapter 14;
3. (3) The trust must conform to all applicable laws, rules and regulations of the internal revenue service, if any. Notwithstanding subdivision (4) to the contrary, it shall be the sole responsibility of the political subdivision to ensure that the trust conforms to the laws, rules and regulations of the internal revenue service; and
4. (4) The trust document must be submitted to the state funding board for approval.

§ 8-50-1204. Trust conditions.

(a) Any trust created under this part shall be irrevocable, and the assets thereof shall be preserved, invested and expended solely pursuant to and for the purposes of this part and shall not be loaned or otherwise transferred or used for any other purpose. The assets of the trust shall be expended solely to:
1. (1) Make payments for other post-employment benefits pursuant to and in accordance with terms of the political subdivision's respective post-employment benefit plan; and
2. (2) Pay the cost of administering the trust.
(b) Any investment trust so created shall have the powers, privileges and immunities of a corporation; and all of its business shall be transacted, all of its funds invested, and all of its cash and securities and other property held in trust for the purpose for which received.
(c) Notwithstanding any law to the contrary, all assets, income and distributions of the investment trust shall be protected against the claims of creditors of the political subdivisions, plan administrators, and plan participants, and shall not be subject to execution, attachment, garnishment, the operation of bankruptcy, the insolvency laws or other process whatsoever, nor shall any assignment thereof be enforceable in any court.

§ 8-50-1205. Powers and duties.

In addition to the powers granted by any other provisions of this part, the chief governing body of a political subdivision that establishes an investment trust under this part shall have the powers necessary or convenient to carry out the purposes and provisions of this part and the purposes and objectives of the investment trust, including, but not limited to, the following express powers:
1. (1) To invest any funds of the trust in any instrument, obligation, security, or property that constitutes legal investments, as provided in the investment policy adopted pursuant to § 8-50-1203(2);
2. (2) To contract for the provision of all or any part of the services necessary for the management and operation of the investment trust;
3. (3) To contract with financial consultants, auditors, and other consultants as necessary to carry out its responsibilities under this part;
4. (4) To contract with an actuary or actuaries in determining the level of funding necessary by that political subdivision to fund the other post-employment benefits offered by the subdivision;
5. (5) To prepare annual financial reports, including financial statements, following the close of each fiscal year relative to the activities of the trust. The statements and reports shall contain the information that is prescribed by the board and shall be prepared in accordance with the governmental accounting standards board; and
6. (6) Upon the request of the state funding board, to file the annual report and financial statements with the chair of the funding board. The report and statements shall be filed with the chair of the board within ninety (90) calendar days from the date of the request, unless the chair extends the time in writing.

§ 8-50-1206. Audit.

The annual report, including financial statements, all books, accounts and financial records of any trust created under this part shall be subject to audit by the comptroller of the treasury. Any political subdivision maintaining a trust under this part may, with the prior approval of the comptroller of the treasury, engage licensed independent public accountants to perform the audits. The audit contract between the political subdivision and the independent public accountant shall be on contract forms prescribed by the comptroller of the treasury. The political subdivision shall be responsible for reimbursement of the costs of audits prepared by the comptroller of the treasury and the payment of fees for audits prepared by licensed independent public accountants.

§ 8-50-1207. Scope of part.

Nothing in this part shall be construed to define or otherwise grant any rights or privileges to other post-employment benefits. The rights and privileges, if any, shall be governed by the terms of the political subdivisions' respective post-employment benefit plans.

Part 13 Child Care Services for State Employees

§ 8-50-1301. Child care services for state agency's officers and employees.

(a) A state agency may contract with a provider of child care services to offer child care services as an option for the agency's officers and employees. If a state agency offers child care services, then the child care provider must be licensed by the department of human services under title 71, chapter 3, part 5. Primary emphasis for child care services must be given to children who are not subject to compulsory school attendance pursuant to § 49-6-3001.
(b) Child care programs may be located in state-owned office buildings, educational facilities and institutions, and, with the consent of the speaker of the senate and the speaker of the house of representatives, in buildings and spaces used for legislative activities. The state may provide the space to a sponsoring agency, if it is available.
(c) The provider of proposed child care services must be selected by competitive contract. Requests for proposals must be developed with the assistance of the sponsoring state agency, and are subject to the approval of the sponsoring state agency and the department of human services. The department of general services shall coordinate with the sponsoring state agency and the department of human services to determine the total cost of the build out for each individual project. Once a cost is determined, the department of general services, in coordination with the sponsoring state agency, shall procure the child care services from a qualifying vendor, using the policy, procedures, and rules from the central procurement office. The vendor that is awarded the contract shall cover all costs of the build out under the contract.
(d) An operator selected to provide services must comply with all state and local standards for the licensure and operation of child care facilities, maintain adequate liability insurance coverage, and assume financial and legal responsibility for the operation of the program. Neither the operator nor any personnel employed by or at a child care facility are employees of the state.
(e) A state agency may enter into a partnership with local municipalities to jointly provide child care services to state and municipal employees.
(f) This part does not apply to an institution of higher education that provides or establishes child care services through the institution of higher education.

APPENDIX Superseded Retirement Systems

In this appendix are set out retirement laws which have been repealed or superseded but which remain effective to define and protect existing rights. For present retirement law see chapters 34-37 and 39 of title 8.
Each repealed law is set out, as it appeared at the time of repeal and under T.C.A. section reference numbers assigned at that time, in chronological order under the following headings:
1. Former Governors and Spouses
2. Attorneys General Retirement System
3. State Retirement System
4. Retirement — Creditable Service
5. Retirement — Incentive Plans
6. Operators of Contractor Owned School Buses
7. Transfers to and from University of Tennessee System
8. Retirement System for County Officials
9. Judges' Retirement System
10. Retirement System for County Paid Judges
11. State Teachers' Retirement System
12. University of Tennessee Retirement System
13. Public Service Commissioners' Retirement Fund

1. Former Governors and Spouses

§ 8-107. Retirement benefits — “Former governor” defined — Age, amount, how paid — Exceptions — Survival benefits to widow — Written application required.

Notwithstanding any provision in the Tennessee state employees retirement system to the contrary, this section shall apply only to a “former governor” which shall mean any person, who has been elected as governor of the state of Tennessee and has served as governor at least four (4) years. Benefits payable under this provision in respect of any former governor shall be in lieu of all other benefits to which said governor may otherwise be entitled under this retirement system.
Any former governor, upon reaching age sixty-five (65), shall be eligible to receive a pension. The amount of such pension shall be an amount per annum equal to fifty percent (50%) of the then current annual salary for the office of the governor, payable in twelve (12) equal monthly payments, to commence on the first day of the month following his sixty-fifth birthday and be payable monthly thereafter for life. Any pension payable in accordance with this provision shall not be due or payable, however, during any period of time that a former governor is holding any public office, elective or appointive, or is otherwise on the payroll of any federal, state or local government.
If a former governor dies after he has reached age sixty-five (65), one half (½) of the amount of his pension shall be payable thereafter to his widow during her unremarried lifetime. If a former governor dies before reaching age sixty-five (65), a survivor benefit shall be payable to his widow thereafter during her unremarried lifetime. The amount of such survivor benefit shall be determined actuarially so that it has the same value at her then age as a life annuity commencing at age sixty-five (65) providing a monthly benefit of one half (½) of the amount of the pension which the former governor would have received if he had lived to age sixty-five (65).
Any benefit payable pursuant to this provision shall be made only upon written application by the former governor or his widow, as the case may be, made to the Tennessee state retirement board.

2. Attorneys General Retirement System

§ 8-618. Retirement — Definition of terms.

As used in §§ 8-618 – 8-622 the following definitions shall apply:
1. 1. “Attorney general” shall mean the attorney general and reporter, any assistant thereof by whatever name known, district attorneys general and their assistants by whatever name called, and any officer or full-time employee of the general assembly or any committee thereof established by statute, who is duly licensed to practice law in Tennessee, whose duty it is to provide facilities for drafting bills or to assist individual legislators in drafting bills or who renders legal advice and services to the members of the general assembly or committees thereof and shall also include the secretary to the attorney general retirement system, who shall be named by the state treasurer.
2. 2. “Service” as herein used shall mean service in any of the above named capacities and also should such official have served as judge of a court of record, the compensation of which shall have been paid entirely from the state treasury, such service shall be included in that for which such person shall be given credit toward his retirement. In case any person eligible for retirement hereunder shall have served in the armed forces of the United States during the existence of a state of war or a period of national emergency, upon leave of absence from his position, such period of time as was spent in such military service shall be construed as a part of his service hereunder.
  1. The term “service” shall mean and include the period of time such person served as a member of the general assembly, and he shall receive credit toward his retirement hereunder for such period of time served as a member of the general assembly. Such person shall pay to the state treasurer in a lump sum a total contribution equal to six per cent (6%) of the compensation he received as a member of the general assembly, including interest at the rate of three per cent (3%) per annum. The contribution and interest shall be paid on or before June 30, 1969.
  2. The term “service” shall also mean and include the period of time any such person now has to his credit in the regular state employees' retirement system. Such person shall receive credit toward his retirement hereunder for such service, provided his accumulated contributions paid into such other retirement system shall be transferred to this system.
3. 3. “System,” “retirement system,” “attorney general retirement system” means the Attorneys General Retirement System of Tennessee, constituted by §§ 8-618 – 8-622.
4. 4. “Benefit base” means a sum equal to the annual salary the retired attorney general would have received had he continued in the position from which he retired. Provided further that if as much as five (5) years of the service of such retired attorney general was in the capacity of district attorney general, and his combined services as assistant and district attorney general together total as much as twenty (20) years, his benefit base shall be calculated as if he had retired from the position of district attorney general, regardless of whether his last service was as assistant district attorney or as district attorney general. In the case of retired member whose salary was not fixed by statute, the benefit base will be adjusted in direct proportion to any salary change made by statute for the office held by his employer, computed percentage wise on the effective date of such change.

§ 8-619. Service required for retirement.

Any attorney general as defined in § 8-618 may retire (a) at the age of seventy (70) upon twenty (20) years' service; (b) at the age of sixty-five (65) upon twenty-four (24) years of service; (c) at the age of sixty (60) upon thirty (30) years of service.
Provided that all persons who have served continuously in this state as assistant attorney general and attorney general for a period of time as much as twenty-one (21) years and who had reached the age of seventy-three (73) years on April 6, 1953, and who had been retired from said service prior to April 6, 1953, and was as much as seventy (70) years of age at the time of his retirement, and whose salary as such assistant attorney general and attorney general was paid entirely from the state treasury, shall be included as a person entitled to receive benefits from §§ 8-618 – 8-622 on same terms and conditions as those enumerated in said sections.
After September 1, 1958, if any attorney general as defined in § 8-618 should have a total of thirty (30) years service as such attorney general and/or as a member of either the state or teachers' retirement system, the last ten (10) years of which service shall have been as attorney general, such person shall be eligible to retirement, regardless of age, under §§ 8-618 – 8-622 and shall be given credit thereon for his services in such other retirement system: provided, that his reserve paid to such other retirement system shall be transferred to this retirement system.

§ 8-620. Membership — Contributions — Retirement fund — Benefits.

A. Membership optional. After September 1, 1958 membership in this retirement system shall be optional with each attorney general as the same is defined in § 8-618. Any attorney general desiring membership in this system shall within six (6) months next after September 1, 1958, signify his desire to become a member thereof by notifying the state treasurer. In case such notice be given to the treasurer subsequent to September 1, 1958, such attorney general shall be required to pay into the hands of the state treasurer the contributions to such retirement fund accruing subsequent to September 1, 1958. Any attorney general becoming such subsequent to September 1, 1958, shall have six (6) months within which to elect to join such system. Upon joinder, he shall contribute to such system from the date of such assumption of office.
1. Provided further, that beginning with the period July 1, 1968, any attorney general who is presently not a member of said retirement system and who desires to become a member thereof, may become eligible for membership and receive credit for such service toward his retirement in said system for which he may be eligible, or for any subsequent period he may have become attorney general. Upon electing to become a member, such person shall notify the state treasurer in writing of his intention to become a member, and he shall pay to the state treasurer in a lump sum the total amount of the contributions he would have paid into said retirement system plus interest at the rate of four per cent (4%) per annum, compounded annually, as though he had been a member of said retirement system since he first became eligible, or for any subsequent period he may have become attorney general. Upon joinder, he shall make the required monthly contribution.
2. From and after April 1, 1963, it shall be mandatory that each person appointed or elected as attorney general become a member of this retirement system, except, the mandatory requirement of this section shall not apply to any assistant attorney general or criminal investigator.
B. Contributions. Every member of said retirement system shall contribute monthly to such retirement system six per cent (6%) of his salary beginning as of September 1, 1958, and continuing through June 30, 1970, and three per cent (3%) of his salary beginning July 1, 1970 and continuing so long as he shall be a member of same. Retirement under §§ 8-618 – 8-622, shall discontinue the membership of the person so retiring. Such contribution shall be paid to the treasurer by withholding the amount thereof from the salary check or voucher of such member.
C. Retirement trust fund. For the purpose of paying the retirement sums provided in §§ 8-618 – 8-622, there is created a trust fund in the office of the state treasurer to be known as the attorney general's retirement fund. Into it, there shall be paid the contributions herein required for members of such retirement system, plus the fees levied by §§ 8-618 – 8-622 for such retirement. There shall also be paid into said fund such net amounts as are collected subsequent to July 1, 1955, for such retirement purposes. Each member of such system and each retired member shall have a vested interest in the trust fund herein created and no part of the same shall be diverted to any other purpose nor appropriated by the legislature to different uses. All retirement payments falling due under the terms of §§ 8-618 – 8-622 shall be made solely and exclusively from the trust fund herein created and no money shall be drawn from the general fund of this state or the treasury for the payment of such obligations. Any member of said retirement system who shall die, resign or otherwise cease to become a member of the system shall be entitled to have repaid him upon request all sums which he has paid into said system by way of such contributions. In lieu of such withdrawal of funds from this system, such member may elect to allow his funds to remain therein, in which case, when such member shall attain the age of fifty-four years with at least ten (10) years of service as attorney general, he shall be entitled to an annual retirement allowance of three and seventy-five hundredths per cent (3.75%) of his benefit base, multiplied by the number of his years of service, which allowance shall be payable in equal monthly instalments for the remainder of his life. Provided further, any person who has been a member of said retirement system for a period of at least five (5) years and such person shall die, resign, or cease to be a member of said retirement system, the contributions paid into said retirement system shall bear interest thereon at the rate of three per cent (3%) per annum.
D. Custody and maintenance of retirement fund. The state treasurer shall be the custodian of the fund herein set up and his official bond shall be liable for the handling thereof. He may invest any moneys in his hands from said fund in securities which at the time of making the investment are, by statute, permitted for the funds of the Tennessee state retirement system. A statement of the financial condition of such trust fund shall be published by the treasurer in connection with his annual report.
1. The treasurer shall employ an actuary who shall be the technicial adviser on matters regarding the operation of the fund created by this section and shall perform such other duties as are required by the state treasurer in connection therewith. The fee for his services shall be paid from income received on the investments of the fund.
2. The retirement system created by §§ 8-618 – 8-622 shall be maintained on an acutarially sound basis with the cost of contributions that would have been made had an acutarially sound contributory system been in effect prior to September 1, 1958, being liquidated by the state over a period of forty (40) years.
3. On or before the first day of January, next preceding each regular meeting of the general assembly beginning on or after January 1, 1959, the treasurer, on the advice of the actuary, shall certify to the state budget director the amount needed, over and above the amount contributed by the members and the amount received from the litigation tax levied by § 8-622, to make the system actuarially sound as of that date.
4. The state budget director shall include in the budget an appropriation equal to the amount certified to him by the treasurer to be paid into said retirement fund.
E. Retirement allowance and early retirement. The retirement allowance to any person retiring under the provisions of §§ 8-618 – 8-622, shall be three and seventy-five hundredths per cent (3.75%) of his benefit base multiplied by his number of years of service, subject to a maximum allowance of seventy-five per cent (75%) of his benefit base. Such retirement shall be payable monthly as salaries are now paid by law and shall be paid from the trust fund herein set up, and shall not be subject to execution or attachment but shall be wholly exempt from the claims of creditors. Where any person subject to §§ 8-618 – 8-622, shall be a member of the state retirement system, such time as may have been credited to him by such retirement system in any of the capacities above defined shall be prima facie correct. In computing the length of time of service fractions of a year of six (6) months or more shall be treated as a full year of service.
1. Any member of said retirement system who has reached the age of fifty-four (54) years with ten (10) years creditable service shall be eligible for early retirement. Each member retiring under the early retirement provisions of this section shall receive a monthly retirement benefit payable on the date of a member's retirement and on the first day of each month thereafter during his lifetime equal to the number of years of service multiplied by three and seventy-five hundredths per cent (3.75%) of his benefit base. The surviving spouse of any member of said retirement system who has met the early retirement provisions of this section and who dies before retirement, shall be entitled to a pre-retirement death benefit. The amount of the death benefit to said surviving spouse shall be a monthly income payable in the same amount as she would have received had the member retired on the day prior to his death and chosen option 2 as set out in subsection I of this section. Any member of said retirement system who has reached the age of seventy (70) years with five (5) years creditable service shall be eligible for retirement.
2. The surviving spouse of any member of said retirement system who had eighteen (18) years or more of creditable service but died in office subsequent to January 1, 1969, prior to attaining the age of fifty-four (54) years shall be entitled to the same benefit as if the deceased member had attained the age of fifty-four (54) years and had accepted early retirement.
3. The surviving spouse of any district attorney general who retired from service prior to the establishement of the attorney general retirement system, having served as many as thirty (30) years and who was at least fifty-four (54) years of age at the time of his retirement, shall be paid a benefit equal to one-half (½) the monthly retirement allowance that such district attorney general would have been entitled to if he had continued in service and retired under the provisions of this system.
F. Retirement for disability. After September 1, 1958 any member of this retirement system who shall become totally and permanently disabled after a service of at least ten (10) years with service as an attorney general as herein defined or not less than twenty (20) years of creditable service for that period of time shall be entitled to be retired for disability and shall receive a monthly retirement allowance equal to the number of years of service multiplied by three and seventy-five hundredths per cent (3.75%) of his benefit base. In case of a cessation of total and permanent disability, such allowance shall cease. Examinations and certifications for disability shall be made by the medical panel of the Tennessee state retirement system and their conclusions shall be binding. Reexaminations may be made periodically to determine continuity of such disability. Provided further, notwithstanding any other provision in §§ 8-618 – 8-622 to the contrary, any person as of June 30, 1965, who (a) is over age seventy (70), (b) is not covered for benefits in the attorney general retirement system, (c) is covered for benefits in the Tennessee state retirement system, and (d) had served for at least ten (10) years as an attorney general prior to the date of the establishment of the Tennessee state retirement system, shall be eligible to receive credit for service in the attorney general retirement system for that period of time prior to the date of the establishment of the Tennessee state retirement system during which he was an attorney general provided written application for such credit is made in accordance with § 8-621 prior to September 30, 1965. If said person so applies for credit for such service, he shall not be eligible to receive credit for that service in the Tennessee state retirement system. Also, if said person applies for credit for such service, he shall be eligible to receive a retirement benefit from the attorney general retirement system upon his retirement as an employee of the state of Tennessee. The amount of such benefit shall be determined and shall be payable in accordance with subsection F of this section, except that the amount of average compensation which shall be considered in determining his benefit shall be based on the salary of said person earned as attorney general in those years for which he has applied for credit in the attorney general system.
G. [Deleted by 1970 amendment.]
H. Effect of amendments; retirement prior to September 1, 1958. The provisions of §§ 8-619 – 8-621 as amended by chapter 154 of the Public Acts of 1955, shall take effect from and after September 1, 1958, but prior to such effective date, any member of this system, eligible for retirement, may retire under the provisions of chapter 81, Public Acts of 1953, or §§ 8-618 – 8-622 as enacted by chapter 6 of the Public Acts of 1955 prior to amendment and his retirement allowance shall be paid from the fees collected under § 8-622.
I. Optional benefits. With the provision that no optional election shall become effective within thirty (30) days after retirement or within thirty (30) days after electing an option, and that a retired member dying within such period shall be considered in active service at the time of death, until the first payment on account of any retirement allowance becomes normally due, he may elect to receive the actuarial equivalent of the retirement allowance otherwise payable to him at retirement in the form of a reduced retirement allowance, with the provisions that:
1. Option 1. Upon his death such reduced benefits shall be continued throughout the life of and paid to such person as he shall have nominated by written designation duly acknowledged and filed with the treasurer of the state at the time of his retirement; or
2. Option 2. Upon his death one-half (½) of such reduced benefits shall be continued throughout the life of and paid to such person as he shall have nominated by written designation duly acknowledged and filed with the treasurer of the state at the time of his retirement.
3. Option 3. A joint and survivor benefit in the amount of the normal retirement allowance shall be payable for the life of the retired attorney general and thereafter one-half (½) of such amount shall be payable to his widow for life or until her remarriage.
4. Any attorney general having retired under §§ 8-618 – 8-622, as amended, prior to September 1, 1958, may elect to receive the actuarial equivalent of the retirement allowance now payable to him in the form of a reduced allowance, under the provisions of Option 3, provided such election is made within ninety (90) days after April 24, 1972.
5. The election of an option shall be null and void if the contingent annuitant dies before benefits commence. If an attorney general has duly designated a contingent annuitant and is eligible to retire at the time of his death, a benefit will be payable to the contingent annuitant as though the attorney general had retired the day before his death.
6. If an attorney general has not duly designated a contingent annuitant and is eligible at the time of his death to have retired under this attorney general's retirement system, the benefit will be an amount payable monthly to his widow, if she is then living, for the remainder of her unremarried lifetime, determined in the same way as an Option 1 (joint and survivor) benefit, or the benefit may be a refund of his contributions to the attorney general's retirement system if the widow so elects.

§ 8-621. Application and certification for retirement.

Any attorney general desiring to retire shall file application with the governor of the state therefor which application shall state with substantial clearness his service as attorney general and benefit base, together with the date upon which he proposes to retire. Upon the receipt of such application, the governor shall examine the same and other pertinent records and shall, after the conclusion of his examination, certify to the director of accounts and/or treasurer of the state the amount of service of such attorney general and his benefit base, together with the date of his retirement. Thereupon such attorney general retiring shall be paid for the remainder of his natural life the sum so calculated and fixed by the governor, which payment shall be in equal monthly instalments.
After September 1, 1958, any member of this system eligible for retirement shall be entitled to make application therefor within sixty (60) days following his severance from the office of attorney general as defined in § 8-618.

§ 8-622. Judges and attorneys general retirement tax — Purpose — Levy and collection.

For the purpose of providing funds with which to defray the costs of the retirement provided for attorneys general and for judges, there is fixed upon every original suit in a court of record and upon every appeal from a justice of the peace or general sessions court, and upon each criminal case finally disposed of by any court of general sessions, a fee of two dollars and fifty cents ($2.50), which shall be known as the judges and attorneys general retirement tax, and which shall be collectible and payable under the same circumstances as state and county tax is now collected upon litigation, save that this fee shall be paid, secured, or worked out, in criminal cases. There shall also be levied upon each indictment or presentment in criminal court or courts having criminal jurisdiction a like amount. The tax as herein provided shall be in addition to such litigation taxes as are now levied by law upon such suits. It shall be a state tax only and no county or municipality shall levy a similar tax. All sums collected from the tax herein levied shall be paid over to the appropriate state official as other litigation tax is now paid. Two-fifths (⁄) of the amount collected hereunder shall be paid into the attorneys general retirement fund and three-fifths (⁄) of the amounts collected shall be paid into the judges' retirement fund.

3. State Retirement System

Administration of Retirement System

§ 8-3401. Definition of terms.

As used in chapters 34 to 36, inclusive, of this title, the following words and phrases, unless a different meaning is plainly required by the context, shall have the following meaning:
1. (a) “Retirement system” means the “Tennessee state retirement system,” created by this chapter.
2. (b) “Board” means “the Tennessee state retirement board,” as provided in this chapter.
3. (c) “State” means the “state of Tennessee and all departments, commissions, institutions, boards and agencies thereof.”
4. (d) “Medical panel” means the “panel of physicians” provided for in this chapter.
5. (e) “Employee” means any person who is or was a state official, including legislative officials elected by the general assembly, or who is or was employed in the service of, and whose compensation is or was payable, in whole or in part, by the state, including employees under supervision of the state whose compensation is paid, in whole or in part, from federal or other funds, but does not include any person performing services on a contractual or percentage basis. Whenever the masculine pronoun is used it shall also mean feminine. In all cases of doubt the board shall determine whether or not a person is an “employee” as defined herein.
6. (f) After the time mentioned in § 8-3452, “employer” shall mean the “state” or other employer participating hereunder by whom the member is paid.
7. (g) “Member” means any person included in the membership of the retirement system.
8. (h) “Current service” for any member as of June 30, 1963, means service as an employee from the date of establishment of the retirement system, and for any person becoming a member on or after July 1, 1963, means service as fulltime permanent employee after July 1, 1963, or as a member of the general assembly, or as an appointed official of the general assembly.
9. (i) “Prior service” means service as an employee prior to the date of establishment of the retirement system.
10. (j) After the time mentioned in § 8-3452, “creditable service” shall mean current service rendered since an employee last became a member and if the member has a prior service certificate in full force and effect it shall include the prior service certified therein.
11. (k) “Beneficiary” means any person entitled to receive a retirement allowance, or any benefit as provided by chapters 34 to 36, inclusive, of this title.
12. (l) After the time mentioned in § 8-3452, “accumulated contributions” shall mean the sum of all amounts deducted from the salary of, or paid by a member, and credited to his account, together with regular interest on such amounts.
13. (m) After the time mentioned in § 8-3452, “earned compensation” shall mean the full rate of compensation that would be payable to an employee if he worked the full normal working time for his position. The maximum rate of earned compensation to be considered for the purposes of the retirement system shall be four thousand two hundred dollars ($4,200) per annum. Such limit shall not apply to compensation earned subsequent to the effective date of this amendment by class A members or to any compensation earned by class C members. In all cases where a member's compensation includes maintenance or housing, the board may fix the value of the same in money and add it to the compensation paid in money when determining the member's earned compensation.
14. (n) “Average” means the arithmetic average determined for the five (5) years of service for which years the member received his greatest compensation; or shall mean the arithmetic average based on such lesser number of years of service actually completed by a member. “Average compensation” means average earned compensation. Provided, however, the retirement allowance for any member who retired on or after January 1, 1968, and before April 30, 1969, with at least thirty (30) years of creditable service, shall also be calculated on the basis of his average compensation as defined in this paragraph. Any increased cost to the state occasioned by the changes in retirement benefits made by the 1969 amendment of this paragraph shall be paid out of annual earnings on investments of the Tennessee state retirement system in excess of four per cent (4%).
15. (o) “Retirement allowance” means the payments for life made under this act to retired or disabled members. All retirement allowances shall be payable in equal instalments ceasing with the last instalment due prior to death.
16. (p) “Actuarial equivalent” means a benefit of equal value when computed on the basis of such mortality tables as shall be adopted by the board and regular interest.
17. (q) “Base earnings” means earned compensation subject to tax under the Federal Insurance Contributions Act on and after July 1, 1963 and means the part of earned compensation not in excess of four thousand two hundred dollars ($4,200) prior to July 1, 1963.
  1. For administrative convenience, the board may, in its discretion, determine that the maximum amount of base earnings for any payroll period may be a pro rata portion of the maximum annual amount applicable to such tax.
18. (r) “Excess earnings” means earned compensation not subject to tax under the Federal Insurance Contributions Act on and after July 1, 1963 and means the part of earned compensation in excess of four thousand two hundred dollars ($4,200) prior to July 1, 1963.
19. (s) “Covered compensation” shall mean the maximum amount of earnable compensation which may be included in the determination of the primary insurance amount under the Social Security Act.
Provided that until such time as subsections (f), (j), (l), (m) and (n) of this section become effective as provided in § 8-3452, subsections (f), (j), (l), (m) and (n) of § 8-3401 of the Tennessee Code as enacted by chapter 6 of the Public Acts of 1955, prior to amendment, shall remain in full force and effect.

§ 8-3402. Establishment of system.

There is created and established, as of July 1, 1947, a retirement system for state employees to be known as the “Tennessee state retirement system.” It shall transact all business as provided for in chapters 34 to 36, inclusive, of this title under said name, shall have all the powers and privileges of a corporation, and shall function as hereinafter provided.

§ 8-3403. Board — Composition.

Said retirement system shall be administered by a board to be known as “the Tennessee state retirement board.” Said board shall consist of the state treasurer and the budget director, who shall be ex officio members; some person, not a state employee, to be appointed by the governor to serve a two (2) year term beginning on the first day of July of each odd year; and two (2) state employees, not from the same department, commission, board, agency or institution, to be elected for two (2) year terms by a majority of the members voting in elections to be held by said board, such terms beginning on the first day of July of each even year.

§ 8-3404. Officers of board — Employees — Rules and regulations.

The state treasurer shall be chairman of the board. The board shall elect one of its members as vice-chairman. The board shall appoint an executive secretary, who shall be the secretary and administrative officer of the board; shall appoint such other employees as it deems necessary and, with the approval of the governor, fix the compensation of all employees; shall require such employees as it thinks proper to execute bonds for the faithful performance of their duties, paying the cost of such bonds from the expense funds under control of said board; and shall do all things, take all actions and make all rules and regulations, not inconsistent with the provisions of chapters 34 to 36, inclusive, of this title, that it deems necessary or proper in order to carry out the provisions of said chapters. All employees of said board shall serve during its will and pleasure. The state attorney general, or an assistant designated by him, shall act as legal adviser and attorney for the board.

§ 8-3405. Quorum — Vacancies.

A majority of the members of the board shall constitute a quorum, and all vacancies on said board shall be filled by appointment for unexpired terms by the governor.

§ 8-3406. Annual report — Records open to public.

The board shall prepare and publish, in pamphlet form, an annual financial report showing all receipts, disbursements, assets and liabilities. All of its proceedings and records shall be open for inspection by the public.

§ 8-3407. Compensation of board members.

Members of the board shall receive no salaries as such, but shall be reimbursed for the actual expenses incurred by them in the performance of their duties.

§ 8-3408. Appointment of medical panel.

The board shall appoint a medical panel of three (3) physicians not eligible to participate in the retirement system, and no two (2) of whom shall reside in the same grant division of the state. The initial terms of the service of the first three (3) physicians appointed shall be two (2), three (3) and four (4) years respectively, as designated by the board, and thereafter each such physician shall be appointed for a term of four (4) years, except that appointment to fill a vacancy shall be for the unexpired term. The board may remove any member of the medical panel at its pleasure. The members of the medical panel shall receive such compensation as may be fixed by the board.

§ 8-3409. Duties of medical panel.

The medical panel shall pass upon all medical examinations required by the board, shall investigate all health and medical statements and certificates by or on behalf of a member in connection with disability retirement, and shall report in writing to the board its conclusion and recommendations upon all matters referred to it.

§ 8-3410. Persons eligible for membership — Classes of members.

The following shall be eligible for membership in the retirement system: (1) all persons who become employees or who reenter service after the date of establishment of the retirement system; (2) all persons who are employees upon the date of establishment of the retirement system; (3) all persons on leave from the service of the state to enter service in the armed forces of the United States and return to employment of the state.
There are hereby created three (3) classes of members, to be known as class A, class B, and class C members and to be defined as follows:
1. (1) Class A members shall be those members who are covered by the provisions of Title II of the Federal Social Security Act and who contribute hereunder for benefits supplementary to the Social Security benefits. It shall consist of:
  1. (i) all employees who were members prior to the date coverage under the Social Security Act is extended to such class A members, and who prior to September 1, 1959 on a form approved by the board waive their rights to benefits accrued to them under this chapter as it existed prior to March 11, 1959, elect to be covered by said Social Security Act and the supplementary benefits provided by this chapter, as amended, and agree to the deduction of their accrued taxes, if any, under the Federal Insurance Contributions Act for the period from January 1, 1956, from the accumulated contributions held in their accounts in the employees' fund, and who make payment, prior to September 30, 1959, of any lump sum amount required under the provisions of § 8-3432 hereof; and
  2. (ii) all employees who were eligible to elect to become class A members and to be covered under the Social Security Act as provided in (i) above but did not so elect, and who, if a future amendment of the Social Security Act should so permit, elect to become class A members and to be covered under the Social Security Act in accordance with the terms of an agreement, if any, between the state of Tennessee and the social security administration; and
  3. (iii) all employees who enter the membership on or after the date coverage under the Social Security Act is extended to such class A members except employees in positions to which such coverage is not extended.
2. (2) Class B members shall consist of those employees who were members prior to the date coverage under the Social Security Act is extended to class A members and who have not elected to become class A members, and all employees in positions to which such coverage is not extended except commissioned members of the department of safety.
3. (3) Class C members shall consist of all commissioned members of the department of safety and shall also include any person having at least twenty-two (22) years of service as a class C member of the Tennessee state retirement system on January 1, 1965 and who becomes warden of a Tennessee state prison prior to July 1, 1965.

§ 8-3411. Seasonal employees.

No seasonal employee of any department of the state government shall be eligible to membership in the state retirement system until such employee shall have been in the employ of the state for at least six (6) consecutive months nor shall they be entitled to any benefits under such system until they shall have become members thereof. Each department upon hiring any new employee shall within twenty (20) days thereafter certify to the retirement system whether or not such employee is being employed on a seasonal or on a permanent basis.

§ 8-3412. Membership of employees with service prior to establishment of system.

Any person who is an employee of the state, having prior service upon the date of the establishment of the retirement system, within the period of thirty (30) days next succeeding such establishment, and any person having prior service on leave from the service of the state, within thirty (30) days next succeeding the termination of such leave, may file with the board, on forms prescribed by it, a notice of his election not to be included in the membership of the retirement system, and in such cases, the board shall exclude him from membership. Any employee so excluded, however, may thereafter become a member by making application for membership to the board, but no such employee shall receive any prior service credit.

§ 8-3413. New employees required to join.

Notwithstanding any provision in the Tennessee State Retirement Law to the contrary, any person, without prior service, who becomes a fulltime permanent employee on or after July 1, 1963, and is eligible for membership, shall become a member of the retirement system; provided, however, that this § 8-3413 shall not apply to any person, without prior service, who became an employee after July 1, 1949, and before July 1, 1963, and who became a member of the retirement system before July 1, 1963. It is further provided, however, that members and elected or appointed officials of the general assembly shall have the option of entering or not entering the retirement system. It is further provided that any person who has been a member of the county paid judges retirement system may elect to participate in the county paid judges retirement system if he meets the eligibility requirements set out in § 17-517, or shall have the option of not entering this retirement system by electing to participate or remain in the county paid judges retirement system.

§ 8-3414. Information to board and to employees.

The head of each department, institution, commission, board, or agency of the state, upon request from the board shall supply information, from time to time, as to employees of the same eligible for membership in the retirement system.
Upon employment of any employee to whom chapters 34 and 35 of this title shall apply he shall be informed, by his appointing authority, of his duties and obligations in connection with the retirement system as a condition of his employment. Every employee accepting employment after July 1, 1949, shall be deemed to consent and agree to any deductions from his compensation required by chapters 34 to 36, inclusive, of this title and to all other provisions thereof.

§ 8-3415. Rules as to prior service credit.

The board shall determine, by appropriate rules and regulations, how much service in any year is the equivalent of a year of service, but in no case shall it allow credit for more than one (1) year of service for all service rendered in any period of twelve (12) consecutive months. With respect to legislative officials elected by the general assembly or appointed by the speakers thereof and thereafter elected by the general assembly as elected officials, their years of service shall be deemed to be both years of the general assembly which elected them or for which they were appointed.

§ 8-3416. Employment security employees under federal control.

Any former employee of the United States employment service, or its sponsoring agencies, the social security board or the war manpower commission, who served with such federal agency between December 23, 1941 and November 15, 1946, and who later returned to employment with the state department of employment security, on or prior to the date of the return of the employment service to state control on November 15, 1946, and any such employee separated from said employment service who returned to the employ of the state within five (5) years from the date of separation, shall be credited with a consecutive year of state service for each year of such federal service on the same basis that he would have received credit for state service had he been fully in the employ of the state, and shall contribute for such service as for any other prior service.

§ 8-3417. Credit for military service.

Any person who was an employee in the services of the state of Tennessee, or of the educational system of the state, or any county, city, or special school district, receiving funds from the state of Tennessee, and who is or was granted military leave and who returns to state employment within six (6) months after date of separation and becomes a member of the state retirement system shall be allowed credit as to prior service for the period of military service rendered by him when this country was at war, provided that the member shall contribute for that prior service as if his earnings during military service had been equal to his first year's compensation after his reemployment by the state, such contributions to be made as in the case of other prior service contributions. Notwithstanding any provisions of the law to the contrary, any member who returns to state service within eighty (80) months after returning from military service provided the member was in service less than two (2) years and provided the member shall make back contributions as set out in § 8-3417 shall claim such services.

§ 8-3418. Statement of prior service filed.

Under such rules and regulations as may be adopted by the board each employee upon becoming a member, or someone in his behalf, shall file with the board, in such form as the board may prescribe, a statement of all prior service rendered and claimed, and such other information as the board may require. Until such statement is filed no member, or his beneficiary, shall be eligible to receive any benefits under chapters 34 to 36, inclusive, of this title.

§ 8-3419. Certificate of prior service.

Subject to the above restrictions, and to such other rules and regulations as may be prescribed by the board, the board shall ascertain, as soon as practicable after said statement is filed, the amount of prior service, if any, to which each member is entitled and shall issue to such member a prior service certificate certifying the length of service rendered by him. Any period or periods during which any such member has been on leave from service, without compensation for service, shall not be counted in his prior service credit.

§ 8-3420. Service credit lost by cessation of membership.

When membership ceases, such certificate shall become void. Should the employee again become a member, such employee shall enter the service as an employee not entitled to prior service credit.

§ 8-3421. Prior service credit by payment of back contributions.

Any employee of the state of Tennessee, or political subdivision thereof, or a former employee of a political subdivision, and who was an employee in the service of the state of Tennessee, or political subdivision thereof, or who held the elective office of county court clerk or general sessions judge, or of the educational system of the state or any county, city, or special school district receiving funds from the state of Tennessee, or that has been a member or is now a member of the state retirement system who has been separated from state service and who either did or did not withdraw their contributions and later returned to the state service, shall be eligible to receive credit toward retirement and retirement benefits in said state retirement system for such period of employment service, both before and after the establishment of said state retirement system, upon the following conditions:
1. (A) That applicants for such service qualifying under the provisions of the first paragraph hereof, shall present to the board of trustees of said state retirement system, a certified statement of such employment service from the responsible head of the state department, or departments, in which such employment accrued, or of the state, county, city or special school districts, educational system, or county from which credit for service is claimed, said statement to be in such form and content as required by said board of trustees; provided, that in the absence of original records pertaining to such employment service, the board of trustees may accept, in lieu of such certified statement, a sworn affidavit from a person or persons having actual knowledge of such employment service, said affidavit to be in such form and content as required by said board of trustees.
2. (B) That such applicant shall pay into the state treasury, for the use and benefit of said board of trustees, such sum or sums as would have been paid had this section been in effect and had such applicant been a member of the said state retirement system at the time of employment for which credit is claimed, provided that any member claiming prior service shall pay in cash with interest thereon at six per cent (6%) per annum such back contributions as shall be necessary to effect such claim.
Any employee who has been a member or is now a member of the state retirement system who has been separated from state service and withdrew his contributions and later returned to the state service shall be allowed to claim his prior service and pay back into the retirement system the amount withdrawn, such payments to be made in accordance with the provisions of subdivision (B) of this section.
Any member of the general assembly who is or who becomes a member of the Tennessee state retirement system shall be permitted to claim as creditable service his years of legislative service prior to membership, provided he pays into the retirement system the amount determined under the provisions of subdivision (B) of this section, as if such legislative service were prior service. The limitations contained in this section concerning the time within which to apply for such credit or to pay in such contributions shall not apply to this paragraph. Any person who has retired under the provisions of the Tennessee state retirement system and who is or becomes a member of the general assembly may rejoin the system as a member and claim credit for any uncredited time served as a member of the general assembly by paying into the system the amount of money he would have paid into the system if he had been a member during the time for which credit is claimed. Upon such members' rejoining the system, no benefits shall be payable to him while he continues as an active member.
Any other provision to the contrary notwithstanding, any former employee of a political subdivision may be eligible for retirement benefits of this system if the political subdivision has elected to allow a class of employees to participate in this system and the former employee is within the class so participating, and the former employee and the local political subdivision in its sole discretion, make the prior service contribution provided in § 8-3604.
Any member of the Tennessee state retirement system shall be entitled to credit for time served as sheriff in any county in the state of Tennessee. Any person claiming credit for prior service under the provisions of this section shall make application with the secretary of the Tennessee retirement system within ninety (90) days after the passage of this section and shall pay into the state retirement system an amount to be determined by the retirement board, based upon the salary for the time served as sheriff.

§ 8-3422. Prior service provisions unavailable to persons eligible for transfer.

The provisions of § 8-3421 shall not apply to any person who is eligible for transfer of membership to said state retirement system under the provisions of chapter 37 of this title.

§ 8-3423. Teachers' retirement law unaffected.

Nothing contained in §§ 8-3421 and 8-3422 shall be construed to change or in any manner affect the present requirements for prior service credit in the Tennessee teachers' retirement system established by chapter 15 of title 49.

§ 8-3424. Cessation of membership.

The membership of an employee in the retirement system shall cease if he has less than ten (10) years of creditable service and is continuously unemployed as a state employee for a period of seven (7) years at any time after establishment of the retirement system, or upon the withdrawal by the member of his accumulated contributions, or upon retirement, or upon death.

§ 8-3425. Refund upon cessation of membership.

Should a member cease to be an employee before being eligible for retirement as set out in §§ 8-3501 – 8-3505 on a retirement allowance exceeding one hundred twenty dollars ($120) per annum, otherwise than by death or by retirement under the provisions of chapters 34 to 36, inclusive, of this title, he shall be paid upon filing an application for refund, as soon as practicable within ninety (90) days thereafter, the amount of his contributions together with such proportion of the regular interest credited thereon as the board may allow; provided, however, that no interest shall be payable if separation occurs within five (5) years from the date the employee became a member of the system.

§ 8-3426. Refund on death of member — Beneficiary — Death in line of duty.

Should a member die at any time before retirement, the amount of his accumulated contributions, plus interest as provided in § 8-3425, shall be paid to such beneficiary, if any, as he shall have nominated by written designation, signed and acknowledged by such member before some person authorized to take acknowledgments, and filed with the board; otherwise to his executor or administrator. Any beneficiary so designated may be changed by written designation, signed, acknowledged and filed as aforesaid. In the event of marriage, divorce or remarriage of a member the designated beneficiary is automatically canceled. Thereafter, the member may rename a beneficiary. Provided, that if the amount payable shall be two hundred fifty dollars ($250) or less, it may within the discretion of the board be paid to the next of kin in the absence of a beneficiary, executor or administrator. In addition, should the board find, in the case of a commissioned member of the department of safety that the member's death was the natural and proximate result of an accident or was occasioned as the direct result of physical violence against his person occurring while the member was in the actual performance of his duty, a pension equal to one-half (½) of his average compensation shall be paid to his widow to continue during her widowhood; or, if there be no widow or if she dies or remarries, then to his unmarried child or children under age eighteen (18) until the youngest of such children attains said age; or, if there be no such widow or children upon his death, to his father or to his mother, payable until remarriage or death. In addition, should the board find in the case of a commissioned member of the department of safety that the member has become permanently and totally disabled from an injury which was the natural and proximate result of an accident or which was occasioned as the direct result of physical violence against his person occurring while the member was in the actual performance of his duties, regardless of the time of the injury, he shall receive, in addition to any other pensions or disability allowances he may receive, a pension of one-half (½) of his average compensation for so long as he is permanently and totally disabled. Provided, however, that the disability allowance established by this section shall be reduced in an amount equal to the amount, if any, by which the total of state payments to the disabled person exceeds eighty-five per cent (85%) of the compensation which he received for his services to the state at the time the disability occurred.

§ 8-3427. Adoption of experience tables.

The board shall cause an investigation to be made of the mortality, service and salary experience of state employees on the basis of which it shall adopt such mortality and service tables for state employees as are necessary for the administration and carrying on of the retirement system. On the basis of such tables the board shall prescribe the rates of contributions payable by employers pursuant to the provisions of this chapter and chapter 35 of this title.

§ 8-3428. Revision of experience tables and rates.

At least once in each two (2) year period, after the establishment of the retirement system, the board shall cause an actuarial investigation to be made of the mortality, service and salary experience of the members of the retirement system and an evaluation of the funds under its control. Pursuant to such investigations and evaluations the board shall, from time to time, revise the mortality and service tables and the rates of contributions prescribed pursuant thereto.

§ 8-3429. Employees' fund.

After the time mentioned in § 8-3452, the employees' fund shall be a fund to which shall be credited all contributions made by members and from which shall be paid the members' contributions with interest upon separation from service prior to retirement. Upon retirement the amount of the member's accumulated contributions plus interest shall be transferred to the accumulation fund.

§ 8-3430. Commencement of deductions.

Any employee who qualifies for membership in the retirement system under §§ 8-3410, 8-3412, and 8-3413 may elect, on or after July 1, 1947, to become a member of the system, at which time payroll deductions shall begin, such contributions to be credited to such member's account. Anything in §§ 8-3429 – 8-3437, to the contrary notwithstanding, on or after July 1, 1961, the rate of contribution of any member who is a commissioned member of the department of safety shall be eleven and seventy-three hundredths per cent (11.73%) of such member's compensation.

§ 8-3431. Determination of percentage of pay to be paid by employees.

After the time mentioned in § 8-3452, the percentage rate of contributions payable by a member shall depend on his membership class and shall be as follows:
1. (1) Class A: three per cent (3%) of his base earnings per annum plus five per cent (5%) of his excess earnings per annum.
2. (2) Class B: seven per cent (7%) of earned compensation, provided, that on July 1, 1967, or within four (4) months thereafter any class B member may elect to make additional contributions at the rate of seven per cent (7%) on that part of his earned compensation in excess of the maximum rate thereof, such contributions to be made on such compensation earned subsequent to July 1, 1967; and provided, further, that any member who has made such election or any member retiring between June 1, 1967 and June 30, 1967, may also elect to make an additional payment in a lump sum equal to the total of the contributions at seven per cent (7%) of that part of his earned compensation in the period from October 1, 1957 to June 30, 1967, which was in excess of the maximum rate thereof, plus interest from the date such compensation was received to the date such additional payment is made at the regular rate per annum compounded annually, such election and payment to be made on or before October 31, 1967.
3. (3) Class C: eleven and seventy-three hundredths per cent (11.73%).
However, any fireman or policeman employed by political subdivisions covered under the Tennessee state retirement system and any commissioned members of the enforcement and field service division of the game and fish commission shall contribute at a rate of his earned compensation to be determined by the retirement board after actuarial investigation, and such rate shall be set at a percentage which is based directly upon the actuarial investigation and recommendation.
Notwithstanding the foregoing, any class A member on the effective date of this section who received compensation in excess of three thousand, six hundred dollars (3,600) per annum for the period July 1, 1955 to said effective date may within one (1) year thereafter make additional contributions on the part of such earned compensation in excess of three thousand, six hundred dollars ($3,600) for such period. Furthermore, any class A member who has made the contributions provided for in the preceding sentence, may, upon his service retirement make additional contributions on the part of his compensation in excess of three thousand, six hundred dollars ($3,600) per annum received prior to July 1, 1955, not in excess of three (3) years less the period elapsing after the effective date, or his attainment age of sixty-five (65), if later and before his retirement date. Such additional contributions shall be computed at the rate of seven per cent (7%) of the part of compensation in excess of three thousand, six hundred dollars ($3,600) per annum accumulated at regular interest from the beginning of the period for which made to the date of payment. The earned compensation for the period for which such additional contributions are made shall include the compensation in excess of three thousand, six hundred dollars ($3,600) per annum upon which such contributions were made.
Until such time as this section becomes effective as provided in § 8-3452, § 8-3431 of the Tennessee Code as enacted by chapter 6 of the Public Acts of 1955, prior to amendment, shall remain in full force and effect.

§ 8-3432. Deductions from pay authorized.

The deduction provided for herein shall be made notwithstanding that the minimum compensation provided by law for any member shall be reduced thereby. Every member shall be deemed to consent and agree to the deductions made as provided herein; and payment of salary or compensation, less said deductions, shall be a full and complete discharge of all claims for service rendered by such person during the period covered by such payments, except as to benefits provided by chapters 34 to 36, inclusive of this title.
An amount equal to the taxes under the Federal Insurance Contributions Act payable by a class A member for the period beginning January 1, 1956, and ending on the date coverage under the Social Security Act is extended to such members shall be deducted from amounts credited to such member in the employee's fund, but should the account of a member, who became a class A member after September 30, 1957, but who occupied a position on said date to which Social Security coverage was extended, be reduced thereby to an amount which is less than the amount which would have been standing to his credit had he become a class A member on said date, such difference shall be paid by the member in a lump sum prior to September 30, 1959.

§ 8-3433. Maximum pay on which contributions based.

The maximum rate of compensation to be considered for the purposes of chapters 34 to 36, inclusive, of this title, shall be four thousand two hundred dollars ($4,200), and no deductions nor allowances shall be computed on any compensation in excess of four thousand two hundred dollars ($4,200) per annum. The provisions of this section shall not apply to commissioned members of the department of safety, to firemen and policemen employed by political subdivisions that are covered under the Tennessee state retirement system, or to the commissioned members of the enforcement and field services division of the game and fish commission.

§ 8-3434. Computation of amounts deductible.

After the time mentioned in § 8-3452, in determining the amount earned by a member in a payroll period the board may consider the rate of compensation payable to such member on the first day of the payroll period as continuing throughout such payroll period and it may omit deduction from compensation for any period less than a full payroll period if an employee was not a member on the first day of the payroll period.
Until such time as this section becomes effective as provided in § 8-3452, § 8-3434 of the Tennessee Code as enacted by chapter 6 of the Public Acts of 1955, prior to amendment, shall remain in full force and effect.

§ 8-3435. Deductions for prior service contributions.

Any member who has a prior service certificate in full force and effect, in addition to the deduction in § 8-3431, shall have deducted from his payroll compensation such portion or percentage as the board may designate, of his compensation for the next preceding payroll period of equal length of time as the current payroll period. Preceding payroll period for prior service shall begin with the last period a member was employed immediately before the member began to contribute to the retirement system, and shall proceed backward until all contributions for prior service have been made, or until withdrawal from the service, or until retirement, or until death of such member. Upon retirement of a member with prior service, where all contributions have not been made, there shall be deducted from each monthly retirement allowance of said member such portion or percentage as the board may designate of the compensation for the next preceding month for which contribution has not been made and such deductions shall continue until all contributions for prior service have been made, or until death; or in case of settlement by some other method as may be determined by the board, then the board shall determine the time of payment of any unpaid contributions. A member may elect to pay contributions for prior service in one (1) lump sum, or in more than one monthly payment.

§ 8-3436. Certification and deduction of employees' contributions.

After the time mentioned in § 8-3452, the board shall certify to the commissioner of finance and administration and state treasurer in the case of any state employee paid by warrants on the state treasurer, or to the department, institution, commission, board or agency by which the salary of any state employee is paid, the proportion or per centum to be deducted from the compensation of each member and the commissioner of finance and administration, state treasurer, department, institution, board, agency of employer, as the case may be, shall cause to be deducted from the salary of each member on each and every payroll for each and every payroll period the proportion of the members' compensation so certified, but in no case shall any deduction be made from the compensation of a class B member or class C member who has attained his minimum service retirement age or period, if such member elected not to contribute. All sums deducted shall be transmitted to the state treasurer, and the state treasurer shall furnish the comptroller, the commissioner of finance and administration, and the board with a record of all such moneys. Provided further, that with the approval of the board, that persons who work under the supervision of the state, but whose compensation is paid from sources other than state funds by persons or organizations not a part of the state government may be granted membership in this system. Monthly contributions from members so accepted shall be paid directly to the system through the state treasurer.
Until such time as this section becomes effective as provided in § 8-3452, § 8-3436 of the Tennessee Code as enacted by chapter 6 of the Public Acts of 1957, prior to amendment, shall remain in full force and effect.

§ 8-3437. Credit for contributions.

After the time mentioned in § 8-3452, each deduction provided for in §§ 8-3429 – 8-3436 shall be credited, together with regular interest thereon, to the individual account of the member from whose compensation the deduction was made. The total of all amounts deducted with interest shall be known as such member's accumulated contributions.
Until such time as this section becomes effective as provided in § 8-3452, § 8-3437 of the Tennessee Code as enacted by chapter 6 of the Public Acts of 1955, prior to amendment, shall remain in full force and effect.

§ 8-3438. Computation of employer's contribution.

Effective July 1, 1949, there shall be paid into the accumulation fund, by the employer, on account of each member for each payroll period, an amount equal to such percentage of the compensation for current service of all members as may be determined on the basis of the actuarial evaluation set forth in §§ 8-3427, 8-3428, to be known as the employer's “current service” contribution and an additional amount equal to a percentage as may be determined, of the compensation for prior services of those members having prior service credits to be known as the employer's “prior service” contribution. In addition, each employer other than the state shall pay a pro rata share of the cost of the administration of the retirement system, based upon the payroll of the employees. Such payments shall be made by the employer at the same time as the employee's contribution is forwarded to the state treasurer. The rate per cent of such contribution shall be fixed by the board on the basis of the liabilities of the retirement system as shown by actuarial valuation. During the period over which the prior service contribution is payable the current service contribution rate shall be the uniform and constant percentage of the earned compensation of the average new entrant which if contributed on the basis of his compensation throughout his entire period of active service would be sufficient to provide for the payment of any benefit payable from the employers' contributions on his account. After the prior service contribution has ceased to be payable, the current service contribution rate shall be the rate per centum of the earned compensation of all members obtained by deducting from the present value of benefits payable from employers' contributions the amount of the funds in hand in the accumulation fund and dividing the remainder by one per cent (1%) of the present value of the prospective future salaries of all members. Until changed by the board the prior service contributions rate shall be four and eight one-hundredths per cent (4.08%).

§ 8-3439. Payment of contributions by public agencies other than the state.

In the event that the compensation received by an employee is reimbursed to the state by a federal or other public agency, the employer's contribution may be paid by said federal or public agency.

§ 8-3440. Transfer of accumulated contributions — Accumulation fund.

The “accumulation fund” shall be the fund in which the contributions of the employers shall be accumulated, to which shall be credited all amounts transferred from the employees' fund upon a member's retirement, and against which shall be charged all benefits paid on account of retired members. If a retired member is restored to service as an employee prior to his normal retirement date, the actuarial equivalent of the benefit provided by his accumulated contributions shall be transferred to the employees' fund.

§ 8-3441. Expense fund.

The expense fund shall be the fund from which shall be paid all costs of administering chapters 34 to 36, inclusive, of this title, and shall be paid by the departments, institutions, commissions, boards, or agencies participating in the retirement system, and on a pro rata basis of the number of employees from said departments, institutions, commissions, boards or agencies participating in the retirement system. The board shall notify the head of each department, institution, commission, board, or agency, prior to July 1st for each year of the amount required for carrying out the administration of chapters 34 to 36, inclusive, of this title and said department, institution, commission, board or agency shall be authorized and shall make available to the board for the expense fund such funds as may be necessary for the administration of the retirement system.

§ 8-3442. Investment of funds.

The board shall be the trustee of the several funds created by this chapter and shall have full power to invest and reinvest all funds, except the expense funds, subject to the limitation that no investment shall be made except, upon the exercise of bona fide discretion, in securities which at the time of making the investment are, by statute, permitted for the investment of reserves of any domestic life insurance companies, provided that the total sum invested in common and preferred stocks cannot exceed fifty per cent (50%) of the total of the several trust funds of the state retirement system. Subject to such limitations, the board shall have full power to hold, purchase, sell, assign, transfer, or dispose of any of the securities or investments in which any of the funds created herein have been invested, as well as of the proceeds, of such investments and any moneys belonging to said funds.

§ 8-3443. Interest credited to funds.

The board shall allow to each fund of the retirement system regular interest on the average amount credited for the preceding year to each fund, with the exception of the expense fund, from the interest and dividends earned from investments. The regular interest shall be at such rate, compounded annually, as shall be determined by the board on the basis of the interest earnings of the retirement system for the preceding year and of the probable earnings to be made in the judgment of the board, during the immediate future. Until changed by the board the regular rate of interest shall be three per cent (3%) per annum.

§ 8-3444. Disbursements from funds.

The state treasurer shall be the custodian of the several trust funds of the retirement system. All payments from said funds shall be made by him on warrants or vouchers issued and signed by such person as is designated by the board. A duly attested copy of a resolution of the board designating such person and bearing on its face the specimen signature of such person shall be filed with the director of accounts as his authority for issuing warrants upon such vouchers. No voucher shall be drawn unless it has previously been authorized by resolution of the board.

§ 8-3445. Funds deposited in banks.

For the purpose of meeting disbursements for retirement allowances and other payments there may be kept available sufficient cash on deposit to the credit of the state treasurer in one or more banks or trust companies located in Tennessee, organized under the laws of Tennessee or of the United States, and qualified as state depositories.

§ 8-3446. Personal interest of board members and employees prohibited.

No member of the board and no employee of the board shall have an interest, direct or indirect, in the gains or profits of any investment made by the board, save insofar as any such member may be a member or beneficiary of the retirement system, and no member of the board shall receive, directly or indirectly, any pay or emolument for his services except as expressly provided in this chapter. No member of the board or employee thereof shall, directly or indirectly, for himself or as an agent, in any manner use the funds or deposits of the retirement system, except to make such payments therefrom as are authorized by the board, nor shall any member or employee of the board become an indorser or surety or in any manner an obligor for moneys loaned by or borrowed from the board.

§ 8-3447. Amendment of provisions.

Every provision of chapters 34 to 36, inclusive, of this title, shall be subject to amendment or repeal by any future session of the general assembly, provided that no such amendment or repeal shall diminish or annul, in any respect, any right acquired by a member or beneficiary under the provisions of chapters 34 to 36, inclusive, of this title or with respect to any fund derived from contributions made by members of the retirement system from its date of establishment.

§ 8-3448. Estimate of appropriations required.

At least thirty (30) days prior to each regular session of the general assembly the board shall certify to the governor the estimated amounts each department, institution, commission, board or agency will have to make available in order to meet the provisions of this chapter during the biennium next following. The amounts so ascertained shall be included in the appropriation bill for the various departments, institutions, commissions, boards and agencies belonging to the retirement system, and the state treasurer shall make said funds available to the board as set out in §§ 8-3429 – 8-3437.

§ 8-3449. Availability of funds.

Each department, institution, commission, board or agency of the state is authorized to make available, for each biennium, such funds as are necessary to meet the provisions of this chapter.

§ 8-3450. Penalty for frauds.

Any person who shall knowingly make any false statement, or shall falsify or permit to be falsified any record or records of the retirement system, in any attempt to defraud such system, shall be guilty of a misdemeanor and upon conviction thereof shall be punished accordingly.

§ 8-3451. Enrolment of employees not previously eligible or who have withdrawn.

Any other provision of law to the contrary notwithstanding, from March 29, 1957 to December 31, 1957, opportunity to enroll or reenroll in the retirement system with credit for prior service together with service from July 1, 1947, to date of entrance shall be afforded each employee who did not enroll in the system, or who enrolled and has withdrawn his membership or who at the time of the establishment of the system was ineligible, but under provisions of chapters 34 to 36, inclusive, of this title is now eligible, by making application to the board and paying contributions in the amount of that made by a member receiving equal compensation who began contributing when the system was established together with compound interest thereon at the rate of five per cent (5%) per annum. Such contributions may be paid in a lump sum or prorated over a period of time not to exceed two (2) years. Any employee desiring to make such deferred contributions may have the same deducted in equal monthly instalments from his or her salary, in addition to deductions for current instalments. Provided that no person given credit after January 1, 1950, for prior service shall be entitled to retirement hereunder until all unpaid contributions due from such member shall have been paid in full and until the amount due therefor from the employer has been appropriated and paid in to the retirement system. Such appropriation shall be determined on the basis of the first actuarial valuation of the retirement system to be performed after December 31, 1957, and shall be an addition to the regular contribution for current service and prior service for the biennium beginning July 1, 1959, as provided by law.

§ 8-3452. Certain provisions of the 1957 amendment not effective until approval by referendum and specification of date by governor.

The provisions of subsections (f), (j), (l), (m) and (n) of § 8-3401 and §§ 8-3425, 8-3426, 8-3429, 8-3431, 8-3432, 8-3434, 8-3436, 8-3437, 8-3501 – 8-3503, 8-3506, 8-3507, 8-3510, and 8-3513 as amended by chapter 373 of the Public Acts of 1957 shall not become effective until a date specified by the governor after he shall have certified that a majority of the members who have elected class A membership shall have voted in a referendum as required by § 218(d) of the Social Security Act, to be covered by the terms of that act, provided that the provisions of § 8-3503 shall not become effective with respect to class A members until such date.
Whenever eligibility for federal social security coverage is extended to new classes of persons in the employ of the state or political subdivisions thereof, the governor is empowered to order and have conducted any supplemental referendum which may be necessary to comply with § 218(d) of the Social Security Act to effectuate coverage of such persons as class A members hereunder.

§ 8-3453. Actuarial soundness of retirement systems for state employees — Definitions.

As used in §§ 8-3453 – 8-3457, the following words and phrases, unless a different meaning is plainly required by the context, shall have the following meaning:
1. (A) “Retirement system” or “system” means any retirement system established by an employer, which is the state of Tennessee or any of its political subdivisions, for the benefit of its employees, or, as the context requires, the written provisions of such system.
2. (B) “Normal contribution” means the actuarially determined amount which would be required to be paid by the employer to the retirement system at the end of the system's fiscal year to maintain the system if it had been in effect from the beginning of service of each person then included in the system and if such costs for prior years had been paid and all relevant actuarial assumptions, such as interest, mortality, and time of payment, had been fulfilled, reduced by any amount attributable to overfunding the system in prior years, whether such overfunding is on account of any actual experience more favorable than that assumed in prior years or otherwise, taking proper account of employee contributions.
3. (C) “Unfunded past service liability” means the actuarially determined amount which would be required to be paid by the employer to the retirement system at the end of the system's fiscal year to meet all the future benefits provided under the system which would not be met by the sum of future normal contributions, future employee contributions and funds actually in the system as of such date.
4. (D) “Minimum actuarial level” means that the contributions to a retirement system are equal to the sum of normal contribution and five per cent (5%) of unfunded past service liability.
5. (E) “Contributions” means the total amount paid to the retirement system by the employer and its employees. Whenever a report of contributions is required by this act, the portions of the amount attributable to employers and employees shall be separately stated.
6. (F) “Retirement board” means the person or persons charged with the administration of a retirement system.

§ 8-3454. Biennial reports to state comptroller.

Each retirement board shall, biennially, within six (6) months after the close of the system's most recent fiscal year make one of the following reports to the state comptroller; either (A) or (B) as follows:
1. (A) A report in such manner, detail, and form as prescribed by the state comptroller containing:
  1. (1) Sufficient data to enable an actuary retained by the comptroller to determine the system's minimum actuarial level for said fiscal year and the two (2) succeeding fiscal years;
  2. (2) Contributions for said fiscal year; and
  3. (3) Contributions to be made in each of the two (2) succeeding fiscal years, or sufficient data to enable such contributions to be actuarially computed.
2. (B) A report which includes the following:
  1. (1) An actuarial valuation report, certified to by an accredited consulting actuary as to normal cost, past service liabilities and the reasonableness and soundness of actuarial assumptions and principles used by said actuary;
  2. (2) Contributions for said fiscal year; and
  3. (3) Contributions to be made in each of the two (2) succeeding fiscal years, or sufficient data to enable such contributions to be actuarially computed.
Each report shall include a copy of that retirement system as amended if not previously furnished to the state comptroller under this or a predecessor act, and any amendments since the last report.

§ 8-3455. Employer contributions — Minimum actuarial level — Annual rate increase to maintain — State comptroller reports.

(A) Employer contributions to a retirement system which is at least at the minimum actuarial level shall be maintained at least at that level. Employer contributions to a retirement system which is not at least at minimum actuarial level shall be increased from year to year by increasing the rate at which annual employer contributions are determined by at least five per cent (5%) each year until the system reaches minimum actuarial level.
(B) The state comptroller shall, on the basis of the reports submitted in accordance with § 8-3454 and assisted by an accredited consulting actuary, as deemed necessary, determine whether a retirement system is in compliance with this section.
(C) The state comptroller shall make a report of the status, as to compliance with §§ 8-3453 – 8-3455, of retirement systems to the governor and to the general assembly before June 30, 1967, and such reports thereafter as he deems necessary or desirable.

§ 8-3456, 8-3457. [Repealed]

Retirement of Political Subdivision Employees

§ 8-3601. Participation in state system by political subdivision or Tennessee Counties Services Association.

The chief legislative body of any political subdivision of the state of Tennessee may, by resolution legally adopted and approved by said chief legislative body, elect to authorize all its employees, or former employees, in any of such of its departments or instrumentalities as it may desire to become eligible to participate in the “Tennessee state retirement system,” provided that such participation shall be subject to the approval of the board and in conformity with such rules and regulations as may be prescribed by the board and shall in no case become effective before July 1, 1949; provided, further, however, that the entire employer contribution for such public employees, or former employees, shall be provided and paid by the political subdivision and not by the state, and provided, that said employees, or former employees, will not have a voice in the election of the board. After such election and approval to become members of the retirement system, such body shall thereafter be known for the purposes of chapters 34 and 35 of this title as an employer. Acceptance of the employees, or former employees, of such political subdivision for membership in the retirement system shall be optional with the board, and if it shall approve their participation, then such employees, or former employees, may become members of the retirement system and participate therein as provided in the provisions of this chapter.
Notwithstanding anything to the contrary in chapters 34 and 35 of this title, the chief legislative body of any political subdivision electing after June 30, 1971, to authorize its firemen and policemen to participate in the Tennessee state retirement system, may, in its resolution adopted pursuant to this section, elect to have firemen and policemen treated as regular Class A employees.
Should the Tennessee Counties Services Association request that its administrative employees be permitted to become members of this retirement system and should the association agree to make in behalf of its employees the employer's contributions required under this chapter, such employees shall be considered as employees for the purpose of this retirement system and shall be eligible for membership herein. They shall make the same contributions and shall be eligible to the same benefits as state employees who are members. They shall be allowed such credit for service as shall be certified and paid for by the association. The association shall make current service contributions and special accrued liability contributions corresponding to the contributions payable by the state. The special accrued liability contributions shall be determined by an actuarial valuation of the accrued liability on account of the employees of the association who become members in the same way as the accrued liability contributions for employees of political subdivisions participating in the retirement system are determined; provided, however, that the accrued liability valuation shall include the total creditable service rendered by any such employee, less the value of the benefit heretofore accrued to such member on account of any service as a state employee. The contributions of the association shall be paid by the association at the same time and in the same manner as contributions are paid by participating political subdivisions, and all benefits payable to employees of the association shall be contingent upon the payment of the necessary contributions by the association and its employees.
Any regional library board may, by resolution duly adopted, elect to authorize its employees to participate in the Tennessee state retirement system, subject to the approval of the board of trustees of the retirement system and subject to and in conformity with such rules and regulations as may be prescribed by the board of trustees. The entire employer contribution for such employees shall be paid by the regional library board as employer out of whatever funds are available to the board for that purpose. Such employees shall not have a voice in the election of the board of trustees. After the adoption of such a resolution by a regional library board and approval by the board of trustees of the system, the library board shall thereafter, for the purposes of chapters 34 and 35 of this title, be an employer, and employees of the board shall be employees for the purposes of such chapters and shall be eligible for participation in the retirement system. They shall make the same contributions and shall be eligible for the same benefits as state employees who are members. They shall be allowed such credit for service as shall be certified and paid for by the library board. The library board shall make current service contributions and special accrued liability contributions corresponding to the contributions payable by the state. The special accrued liability contributions shall be determined by an actuarial valuation of the accrued liability on account of the employees of the library board who become members in the same way as the accrued liability contributions for employees of political subdivisions participating in the retirement system are determined. The accrued liability valuation shall include the total creditable service rendered by any such employee, less the value of the benefit heretofore accrued to such member on account of any service as a state employee. The contributions of the library board shall be paid by the board at the same time and in the same manner as contributions are paid by participating political subdivisions of the state. All benefits payable to employees of the association shall be contingent upon the payment of the necessary contributions by the library board and its employees.
The Tennessee state retirement system may include therein under authority of this chapter the employees of the University of Tennessee who are not included in the University of Tennessee retirement system but who otherwise meet eligibility requirements under this chapter, and the University of Tennessee is authorized to establish for retirement classification purposes such department or departments as it deems necessary to classify such employees for eligibility to participate in the Tennessee state retirement system. For the purposes of this chapter only, the University of Tennessee shall be considered as a political subdivision.

§ 8-3602. Membership of employees.

Membership in the retirement system for employees who are admitted as provided in § 8-3601 shall be optional with such employees in the service of the political subdivision on the date the approval is given, and any such employee who elects to join the retirement system within thirty (30) days thereafter shall be entitled to a prior service certificate covering such periods of previous service as shall be certified as creditable service by such political subdivision for service rendered to such political subdivision, or its predecessor, or in any other capacity approved by the political subdivision and the board, for which the political subdivision is willing to make accrued liability contributions. Thereafter service for such political subdivision on account of which the political subdivision pays contributions, shall be considered also as creditable service. Membership shall be compulsory for all employees entering the service of such political subdivision thereafter. Membership shall be compulsory for employees of the University of Tennessee entering service after the date approval is given by the board, except those employees who are to be included in the University of Tennessee retirement system.

§ 8-3603. Information furnished by subdivisions.

The chief fiscal officer of the political subdivision, and the heads of its departments, shall submit to the board such information and shall cause to be performed in respect to the employees of said political subdivision such duties as shall be prescribed by the board in order to carry out the provisions of chapters 34 to 36, inclusive, of this title.

§ 8-3604. Contributions.

The actuary of the retirement system shall compute the rates of contribution payable by employers in behalf of their employees who become members under the provisions of this chapter by an actuarial evaluation similar to that established by §§ 8-3427 and 8-3428. Each political subdivision employing members participating in the system as provided in this chapter, shall make a special accrued liability contribution on account of the participation of its employees in the retirement system, which shall be determined by an actuarial valuation of the employer's share of the accrued liability on account of the employees of such political subdivision who elected to become members. This special accrued liability contribution shall be subject to such adjustments as may be necessary on account of any additional prior service credits awarded to employees of such political subdivision or changes in provisions relating to such employees. The expense of making such initial valuation shall be assessed against and paid by the political subdivision on whose account it is necessary. The contributions so computed together with a pro rata share of the cost of the administration of the retirement system, based upon the payroll of the employees, shall be certified by the board to the chief fiscal officer of the political subdivision. The amounts so certified shall be a charge against the political subdivision. The chief fiscal officer of each such political subdivision shall pay to the state treasurer the amount certified by the board as payable under the provisions of this section, and the state treasurer shall credit such amounts, when paid, to the appropriate funds of the retirement system.

§ 8-3605. Benefits payable.

Employees who become members under this chapter and on behalf of whom contributions are paid as provided in this chapter shall be entitled to benefits under the retirement system as though they were state employees.

§ 8-3606. Reserve required for benefits.

Notwithstanding anything to the contrary, the retirement system shall not be liable for the payment of any retirement allowances or other benefits on account of the employees or beneficiaries of any political subdivision under this chapter, for which reserves have not been previously created from funds contributed by such political subdivision or its employees for such benefits.

§ 8-3607. Withdrawal of subdivision from system.

The agreement of any political subdivision to contribute on account of its employees shall be irrevocable, but should a political subdivision for any reason become financially unable to make the normal and accrued liability contributions payable on account of its employees, then such political subdivision shall be deemed to be in default, or in the event such political subdivision shall find the making of the normal and accrued liabilities burdensome to itself and its employees, it may file with the state retirement board a resolution legally adopted by its legislative body to the effect that further participation will impose a hardship upon the said political subdivision and thereafter, with the consent of the individual employees affected, such employees will no longer be deemed to be members of this retirement system. Upon the adoption by any political subdivision of a hardship resolution, such political subdivision shall at once notify all employees thereof who are members of the retirement system of such adoption. Thereupon any member of said retirement system who is an employee of such political subdivision may within ninety (90) days thereafter withdraw from such system. In case of withdrawal of any such employee member, there shall be repaid to him all sums paid into the system by such employee member. After it has been determined the sum or sums necessary to pay all retirement benefits accrued or to accrue in the future to present or retired employees of the said political subdivison plus the cost of administering the retirement program in behalf of the employees of the said political subdivision said sum or sums shall be deducted from the contributions made by said political subdivision and the remainder of the sums paid to the retirement system by the said political subdivision on account of its employees shall be paid to the said political subdivision, all such repayments to be made as promptly as reasonably possible. Such repayments shall operate as a full acquittance and release of all rights of such withdrawing employee against the retirement system. In case any employee of a political subdivision which has adopted a hardship resolution does not withdraw from such system within the time prescribed herein, the actuary of the retirement system shall determine by actuarial valuation the amount of the reserves held on account of each remaining active member and beneficiary of such political subdivision and shall credit to each such member and beneficiary the amount of reserve so held. The reserve so credited together with the amount of the accumulated contributions of each such member, shall be used to provide for him a paid up deferred annuity beginning at the age sixty-five (65), and the reserve of each beneficiary shall be used in providing such part of his existing retirement allowance as the reserve so held will provide, which allowance, together with his annuity, shall thereafter be payable to him. The rights and privileges of both active members and beneficiaries of such political subdivision shall thereupon terminate, except as to the payment of the deferred annuities so provided and the annuities and the retirement allowances, or parts thereof, provided for the beneficiaries.

Retirement of State Employees

§ 8-3501. Service retirement on application by employee.

After July 1, 1949 and before the time specified in § 8-3452, any member of the retirement system in the employ of the state or whose employment has ceased within the sixty (60) days immediately past, may begin participation in benefits hereunder, upon giving the board thirty (30) days' written notice, provided he has attained sixty (60) years of age, has rendered an aggregate of twenty (20) years of current service and certified prior services to the state of Tennessee, or, if he is a commissioned member of the department of safety, provided he has attained fifty (50) years of age and has rendered an aggregate of twenty-five (25) years of service, or, if he is a fireman or policeman employed by a political subdivision covered under the Tennessee state retirement system, provided he has attained fifty-five (55) years of age and has rendered an aggregate of twenty-five (25) years of creditable service, or, if he is a commissioned member of the enforcement and field services division of the game and fish commission, provided he has attained fifty-five (55) years of age and has rendered an aggregate of twenty-five (25) years of creditable service, and has complied with all other requirements for participation in benefits of this retirement system; or, after July 1, 1949 and before the time specified in § 8-3452, any member in the employ of the state, or whose employment has ceased within the sixty (60) days immediate past, may begin participation in the benefits of the system, upon giving the board thirty (30) days' written notice of his desire to participate, provided such member has a total of thirty (30) years of current service and certified prior service to the state of Tennessee, and has complied with all other requirements for participation in benefits of the system.
Any member may retire on a service retirement allowance, upon giving the board not less than thirty (30) nor more than ninety (90) days' written notice thereof, provided the member shall have attained the minimum retirement age for his class as provided below:
1. (1) A class A member shall have attained sixty-five (65) years of age;
2. (2) A class B member shall have attained sixty (60) years of age, and have twenty (20) years of creditable service, or shall have thirty (30) years of creditable service without regard to age;
3. (3) A class C member shall have attained fifty (50) years of age and shall have twenty-five (25) years of creditable service, or shall have thirty (30) years of creditable service without regard to age.
However, any fireman or policeman employed by a political subdivision covered under the Tennessee state retirement system and any commissioned members of the enforcement and field services division of the game and fish commission shall have attained fifty-five (55) years of age and have an aggregate of twenty-five (25) years of creditable service.

§ 8-3502. Service retirement on request of department head.

After the time mentioned in § 8-3452, upon the request of the head of the department, institution, commission, board, or agency by whom the member is employed, any member in service who has attained the required age and completed the service requirements of his class of membership, as specified in § 8-3501 shall be retired.
Upon service retirement a member shall receive during the remainder of his life a service retirement allowance, not in excess of three-fourths (¾) of his average compensation, and in the case of class A membership, such allowance shall not exceed three-fourths (¾) of the average compensation received in the five (5) years in which such compensation was highest during the fifteen (15) years of service immediately preceding his retirement or his minimum service retirement age, if earlier. Such service retirement allowance shall be in an amount depending on his membership class as computed as follows:
1. (1) Class A: (i) one and one-eighth per cent (1⅛%) of his average compensation multiplied by the total number of years of his creditable service, plus an additional five-eighths of one per cent (⅝%) of the part of such compensation in excess of four thousand two hundred dollars ($4,200) multiplied by the number of years of his creditable service rendered prior to July 1, 1963, plus an additional five-eighths of one per cent (⅝%) of the part of such compensation in excess of four thousand eight hundred dollars ($4,800) multiplied by the number of years of his creditable service rendered after July 1, 1963, and prior to January 1, 1966, plus an additional allowance for each year of creditable service rendered after January 1, 1966, equal to five-eighths of one per cent (⅝%) 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 (4/10) of one per cent (1%) for each full month the member retires prior to his attaining age sixty-five (65).
  1. 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.
2. (2) Class B: (a) one and three-quarters per cent (1¾%) of his average compensation multiplied by the total number of years of his creditable service plus (b) for a member who elects, pursuant to § 8-3431(2), to make additional contributions, after July 1, 1967, an additional allowance equal to one and three-quarters per cent (1¾%) of his average excess compensation multiplied by the number of years of his creditable service rendered after July 1, 1967, plus the number of years of creditable service rendered prior to July 1, 1967, provided the member made additional contributions on the part of earned compensation in excess of the maximum rate thereof. “Average excess compensation,” as used herein, means the excess of the arithmetic average of the member's earned compensation, without limit as to a maximum rate of earned compensation, over his average compensation as computed in accordance with § 8-3401(n).
3. (3) Class C: two and one-fourth per cent (2¼%) of his average compensation multiplied by the total number of years of his creditable service.
  1. However, any fireman or policeman employed by a political subdivision covered under the Tennessee state retirement system shall receive a service retirement allowance of two and one-fourth per cent (2¼%) of his average compensation multiplied by the total number of years of his creditable service.
  2. However, any commissioned member of the enforcement and field services division of the game and fish commission shall receive a service retirement allowance of two and one-eighth per cent (2⅛%) of his average compensation multiplied by the total number of years of his creditable service.
  3. Until such time as this section becomes effective as provided in § 8-3452, § 8-3502 of the Tennessee Code as enacted by chapter 6 of the Public Acts of 1955, prior to amendment, shall remain in full force and effect.
  4. Any class A employee whose (a) “total benefit” determined as of the date his retirement allowance is to commence, would be less than (b) any “total benefit” determined as of any date prior thereto, shall be eligible to have added to his retirement allowance a supplemental monthly benefit which shall be the difference by which (b) exceeds (a). “Total benefit” determined as of any date, shall be based on the employee's creditable service and his age as of the date his retirement allowance is to commence and on his earnings as of the date from which “total benefit” is being calculated, and shall be the sum of (c) and (d), as follows:
    1. (c) Retirement allowance, determined in accordance with this section;
    2. (d) Primary social security, determined in accordance with the social security law as of the date for which total benefit is being determined and shall be exclusive of benefits on account of a spouse or of any other member of the family.
The minimum monthly retirement allowance payable to a member of the Tennessee state retirement system who is or who has been a member of the general assembly shall be equal to ten dollars ($10.00) for each year of legislative service which is included as creditable service under the system.

§ 8-3503. Compulsory retirement age.

After July 1, 1949, subject to conditions and qualifications hereinafter specified, any member who attains seventy (70) years of age on or after the date of the establishment of the retirement system shall be retired;
provided, however, that at the request of his appointing authority he may remain in service until the last day of the fiscal year during which he attains seventy (70) years of age;
or, if he is a state officer or employee appointed by the governor he may, in the discretion of the governor, be retained in service during such periods as he may be appointed by the governor, but his contributions to the retirement system shall cease, and time employed subsequent to compulsory retirement age shall not be counted in computing benefits. No benefits will be paid during such employment.
Officials elected by popular vote and employees or appointees thereof, and those officials who obtain office in any manner other than by appointment or employment at the hands of the governor or those holding office under him, or those elected by the legislature, and their appointees and employees, upon attaining the age of seventy (70) may continue to hold such office or employment but except for members of the general assembly their membership in the system shall terminate subject to their accrued rights, and no benefits shall be payable to them so long as they continue to hold the office or employment held by them when they reached the age of seventy (70). Benefits shall begin upon the termination of such term of office so held and shall be based upon such as had been attained upon the date on which they became seventy (70) years of age. Members of the general assembly may join or continue as active members of the system regardless of age by making the required contributions while they continue in the general assembly, and upon termination of their service, shall be entitled to receive retirement benefits based on all their years of creditable service. Any increased cost to the state occasioned by the changes in retirement benefits made by the preceding sentence shall be paid out of annual earnings on investments of the Tennessee state retirement system in excess of four per cent (4%).
Anything in this section to the contrary notwithstanding, a commissioned member of the department of safety shall be retired upon his attainment of fifty-five (55) years of age or, at the request of the commissioner of safety, upon the last day of the fiscal year during which he attains said age; provided, however, that if the commissioner of safety shall request, and the governor shall approve, his service may be extended, year-by-year, until his attainment of sixty-five (65) years of age, but his contributions to the retirement system shall cease, and time employed during such extension of service shall not be counted in computing benefits. It is further provided that his membership in the system shall terminate subject to his accrued rights computed as of the beginning of the first fiscal year during which he shall have been discretionarily retained in service, no retirement benefits being payable during such period of retention in service. Provided further however, that any presently employed commissioned member of the Tennessee department of safety, who was employed prior to his 35th birthday shall be allowed to remain in the service of the department and to participate under the provisions of chapter 35, title 8, of this Code, until he obtains twenty-five (25) years creditable service or reaches age sixty (60). Provided further, that those members of the Tennessee department of safety complying with this condition shall be allowed to remit a lump sum to the state retirement fund in an amount which would have been required had this provision been in effect heretofore, in order to maintain their retirement benefits.
Anything in this section to the contrary notwithstanding, any commissioned member of the enforcement and field services division of the game and fish commission shall be retired upon the last day of the fiscal year during which he has attained fifty-five (55) years of age and twenty-five (25) years of service. However, any commissioned member of the enforcement and field services division may continue in service to age sixty (60) upon application to and approval by the game and fish commission.
Anything in this section to the contrary notwithstanding, any fireman or policeman employed by a political subdivision covered under the Tennessee state retirement system shall be retired upon the last day of the fiscal year during which he has attained fifty-five (55) years of age and twenty-five (25) years of service. However, any fireman or policeman employed by a political subdivision covered under the Tennessee state retirement system may continue in service to age sixty-five (65) upon application to and approval by the political subdivision. Any political subdivision which participates in this system and which has elected to have the provisions of this paragraph apply to its firemen or policemen, may further elect, by ordinance or resolution, to provide that a fireman or policeman may be retired upon attaining the age of fifty-five (55) with twenty (20) years service or having an aggregate of twenty-five (25) years of creditable service without regard to age; provided, however, that any political subdivision which so elects shall make a special accrued liability contribution in an amount as determined by an actuarial valuation in the manner and form as provided for initial contributions in § 8-3604.
Any provision in this section to the contrary notwithstanding any former employee who has attained the age of seventy (70) and who would have been eligible by virtue of his former employment to participate in the retirement system, is eligible for such benefits as he would have been entitled to had he participated in the retirement system, by making the prior service contribution as provided in § 8-3604.

§ 8-3504. Amount of retirement allowance.

After entering upon participation in benefits established under the retirement system as provided in §§ 8-3501 – 8-3503, a member shall receive during the remainder of his life an annual retirement allowance, payable monthly in equal instalments ceasing with the last instalment due prior to death, in an amount equal to such per cent of his average compensation as shall be determined by the board on the basis of the last actuarial evaluation made as set forth in §§ 8-3427 and 8-3428, multiplied by the total number of years of his current and certified prior service, except that in the case of any member who is a commissioned member of the department of safety, such per cent shall be not less than two per cent (2%). In all cases where any member's compensation has included maintenance or housing the board may fix the value of the same in money and add it to the compensation paid in money when determining such member's average compensation.
No member shall be granted retirement allowance in excess of three-fourths (¾) of his average compensation.
The minimum monthly retirement allowance payable to any class A member or any class B member presently retired, or who shall hereafter retire, shall be four dollars and thirty-four cents ($4.34) for the class A member and five dollars ($5.00) for the class B member, multiplied by the total number of years of his creditable service in either instance.
Any political subdivision which participates in this system may elect, by ordinance or resolution, to provide that the amount of retirement allowance for its firemen and policemen shall be not less than two and one-half per cent (2½%) of their average compensation multiplied by the total number of years of their current and certified prior service. Any political subdivision making such an election shall make a special accrued liability contribution in an amount as determined by an actuarial valuation in the same manner and form as prescribed for initial contributions in § 8-3604.

§ 8-3505. Allowance on compulsory retirement.

Any person who is a member of the retirement system, who is retired under § 8-3503, shall participate in benefits of the system, regardless of aggregate number of years of service. Retirement allowances shall be computed as is set forth in § 8-3504.

§ 8-3506. Disability retirement.

After the time mentioned in § 8-3452, any class B or class C member who has five (5) or more years of creditable service, and any class A member who has ten (10) or more years of creditable service of which at least five (5) years are consecutive years of service immediately preceding termination of service on account of disability, upon the application of the head of the department, institution, commission, board or agency in which said employee is employed, or upon his own application, with the approval of the head of such department, institution, commission, board or agency, within not less than thirty (30) nor more than ninety (90) days next following the date of filing such application, may retire on a disability retirement allowance, provided that the medical panel, after a medical examination of such member, shall certify that such member is mentally or physically incapacitated for further performance of duty, and that such incapacity is likely to be permanent, and that such member should be retired.
Any political subdivision which participates in this system may elect, by ordinance or resolution, to provide that the number of years of creditable service required for disability retirement of its firemen and policemen may be reduced from ten (10) to five (5) and that the required number of years of consecutive service immediately preceding termination of service on account of disability may be reduced from five (5) to two (2). Any political subdivision making such an election shall make a special accrued liability contribution in an amount as determined by an actuarial valuation in the same manner and form as prescribed for initial contributions in § 8-3604.
Until such time as this section becomes effective as provided in § 8-3452, § 8-3506 of the Tennessee Code as enacted by chapter 6 of Public Acts of 1955, prior to amendment, shall remain in full force and effect.

§ 8-3507. Amount of disability allowance.

Until the time specified in § 8-3452, upon retirement on account of disability a member shall receive an annual disability retirement allowance, payable monthly in equal instalments, in an amount equal to such per cent of his average compensation as may be determined on the basis of the actuarial evaluation set forth in §§ 8-3427 and 8-3428, multiplied by the total years of his current service plus certified prior service, except that in the case of any member who is a commissioned member of the department of safety or of the enforcement and field services division of the game and fish commission such per cent shall be nine-tenths (⁄) of two per cent (2%); however, no member shall be paid a disability retirement allowance less than one-fourth (¼) of his average compensation.
After the time mentioned in § 8-3452, upon retirement on account of disability, a member shall receive a service retirement allowance if he is then eligible, otherwise, a disability retirement allowance, in an amount depending on his class of membership and computed as follows:
1. (1) Class A: nine-tenths (⁄) of an allowance computed as a service retirement allowance on the basis of his average compensation and creditable service at the time of disability retirement, provided, however, that if his creditable service is less than twenty (20) years, a part or all of his additional years he would have had, had he continued in service to age sixty-five (65), may be added to his creditable service in order to determine his minimum retirement allowance, but in this event the total cannot exceed twenty (20) years, and for purposes of such determination, covered compensation at the time of disability retirement shall be deemed to have continued in effect during such additional years.
2. (2) Class B: nine-tenths (⁄) of an allowance computed as a service retirement allowance on the basis of his average compensation and average excess compensation and creditable service at the time of disability retirement, provided, however, that the disability allowance so computed shall not be less than twenty-five per cent (25%) of average compensation and average excess compensation.
3. (3) Class C: nine-tenths (⁄) of an allowance computed as a service retirement allowance on the basis of his average compensation and creditable service at the time of disability retirement but not less than twenty-five per cent (25%) of average compensation.
However, any commissioned member of the enforcement and field services division of the game and fish commission shall receive a disability retirement allowance in an amount equal to nine-tenths (⁄) of two and one-eighth per cent (2⅛%) of his average compensation multiplied by the total number of years of his creditable service, except that the minimum retirement allowance shall be based on twenty (20) years of creditable service or, if less, on the total service that the member would have had if he had continued in service to age fifty-five (55).
However, any fireman or policeman employed by a political subdivision covered under the Tennessee state retirement system shall receive a disability retirement allowance in an amount equal to nine-tenths (⁄) of two and one-fourth per cent (2¼%) of his average compensation multiplied by the total number of years of his creditable service, except that the minimum retirement allowance shall be based on twenty (20) years of creditable service or, if less, on the total service that the member would have had if he had continued in service to age fifty-five (55).

§ 8-3508. Periodical medical examinations — Income statements after disability retirement.

All persons granted a disability retirement allowance shall undergo such examination, from time to time, as the board or medical panel may designate and any disability beneficiary who has not yet attained his minimum service retirement age and time, who refuses to submit to such examination, shall forfeit his right to draw any retirement allowance and the same shall be discontinued. A member retired on a disability retirement allowance shall submit to the board, for such period as the board may require, sworn statements of all income for labor, services or employment performed by such member during the time of said member's disability retirement.

§ 8-3509. Adjustment of disability allowance for earnings.

Whenever the board shall find that any disability beneficiary is engaged in or is able to engage in gainful occupation or work paying more than the difference between his disability retirement allowance and his average compensation, the board shall reduce his disability retirement allowance so that such allowance plus the amount earned by him, equals the amount of his average compensation. Should the earning capacity of any beneficiary be changed the board may further modify the amount of his disability retirement allowance so as to prevent such allowance plus the amount earned by the beneficiary from exceeding the amount of his average compensation.

§ 8-3510. Restoration of disability beneficiary to active service.

After the time mentioned in § 8-3452, a disability beneficiary restored to active service, at a salary less than the average compensation upon the basis of which he was retired, shall not become a member of the retirement system unless and until such salary is increased to an amount equal to or greater than the average compensation upon the basis of which he was retired on a disability allowance.
Should any disability beneficiary under his minimum service retirement age be restored to service at a salary equal to or greater than his average compensation upon the basis of which he was retired, his retirement allowance shall cease, he shall again become a member of the retirement system and may elect either class A or class B membership unless he previously was a class A member in which case he shall become a class A member. Any prior service certificate on the basis of which his service was computed at the time of his retirement shall be restored to full force and effect, and in addition upon his subsequent retirement he shall be credited with all of his service as a member, but his retirement allowance payable prior to his minimum retirement age shall not be less than the retirement allowance payable prior to his restoration to service and if he is restored to active service on or after the attainment of the age of fifty (50) years, his retirement allowance upon subsequent retirement shall not exceed the sum of the retirement allowance which he was receiving immediately prior to his last restoration and the retirement allowance that he would have received on account of his service since his last restoration had he entered service at the time as a new entrant.
Until such time as this section becomes effective as provided in § 8-3452, § 8-3510 of the Tennessee Code as enacted by chapter 6 of the Public Acts of 1955, prior to amendment, shall remain in full force and effect.

§ 8-3511. Election between disability and retirement allowance.

No person shall be eligible for both disability and retirement allowance, but persons who may be qualified for both shall be entitled to elect between them.

§ 8-3512. Reduction of allowance for contributions in default.

In the case any member whose compensation is not paid exclusively out of state funds if any contribution, or contributions, which should be made are not made, then the service or disability retirement allowance to which such employee would have been entitled, in case there had been no default, shall be reduced by that portion which the amount of defaulted contribution bears to the total amount of contributions which should have been paid.

§ 8-3513. Allowances as to members separated after 15 years' service — Involuntary separation — Optional election.

Any member having ten (10) or more years of creditable service who is separated from state service may, in lieu of receiving the payment under § 8-3425, leave such payment in the employees' fund until his minimum service retirement age, at which time he shall be entitled to a retirement allowance calculated in the same manner as provided in § 8-3502, or in lieu thereof he may apply to the board within ninety (90) days after such severance to retire and receive a retirement allowance commencing immediately having a value equal to the present value of such deferred retirement allowance on the basis of the actuarial tables provided for in §§ 8-3427 and 8-3428 and regular interest, except that in the case of class A members who have not attained age fifty-five (55), such allowance shall not commence prior to the attainment of age fifty-five (55).
Anything in this chapter to the contrary notwithstanding, in the case of a class A member who is removed or otherwise involuntarily separated from the state service after ten (10) or more years of creditable service, the minimum amount of benefit payable, including the amount of any disability or old-age insurance benefit under Title II of the Social Security Act to which he is entitled or would be entitled if he made application therefor, shall be the amount of the service retirement benefit which would have accrued to him as a class B member on September 30, 1957.
Until the first payment on account of any benefit becomes normally due, any member may elect to receive the actuarial equivalent of the retirement allowance otherwise payable to him in the form of a reduced allowance, with the provisions that:
1. Option 1. Upon his death his reduced allowance shall be continued throughout the life of and paid to such person as he shall have nominated by written designation duly acknowledged and filed with the board at the time of his retirement; or
2. Option 2. Upon his death, one-half (½) of his reduced retirement allowance shall be continued throughout the life of, and paid to, such person as he shall have nominated by written designation duly acknowledged and filed with the board at the time of his retirement.
The election of an option shall become effective on the first date the member becomes eligible for service retirement or thirty (30) days after his date of retirement, if earlier, except that no such election shall become effective until thirty (30) days after written application therefor has been filed with the board. Should a beneficiary die before any such election has become effective, he shall be considered as an active member on the date of his death. Should a member die after any such election has become effective, he shall be considered as having been retired on the date of his death. The election of the option may not be changed or revoked by the member after it has become effective, but if the person designated under the option dies prior to the date of retirement of the member, the option shall thereby be revoked.
Notwithstanding anything to the contrary in this section, if a member eligible for service retirement shall file an irrevocable application for retirement setting a date for retirement not less than thirty (30) days and not more than ninety (90) days thereafter, retirement shall become effective as of the date so set and any optional benefit selected shall become effective as of such date.
Until the first payment on account of any retirement allowance becomes normally due, any class A member may elect to convert the allowance otherwise payable on his account after retirement into a retirement allowance of equivalent actuarial value of such amount that, with his benefit under Title II of the Federal Social Security Act, he will receive, so far as possible, approximately the same amount per year before and after the commencement of such benefit.
Until such time as this section becomes effective as provided in § 8-3452, § 8-3513 of the Tennessee Code as enacted by chapter 6 of the Public Acts of 1955, prior to amendment, shall remain in full force and effect.
Should a member retire who was employed subsequent to March 11, 1959 as a commissioned member of the department of safety whose period of creditable service includes service while otherwise employed, anything to the contrary under this chapter notwithstanding, his retirement allowance shall be such proportion of the retirement allowance he would have received had all of his creditable service been as a commissioned member of the department of safety as his years of such service bear to his total period of creditable service plus the proportion of the retirement allowances he would have received had all of his creditable service been as an employee other than a commissioned member of the department of safety as his years of such service bear to his total period of creditable service; provided, however, in no case shall his total retirement allowance be less than the retirement allowance he would have received had all of his creditable service been as an employee other than a commissioned member of the department of safety.

§ 8-3514. Death of member after retirement.

Upon the death of a member after retirement, any balance of his accumulated contributions, at the time of his retirement, remaining after deductions of the total retirement benefits received by him shall be paid to his designated beneficiary, or, if no beneficiary is specified, to the executor or administrator of his estate. Provided, however, that if the amount payable shall be two hundred fifty dollars ($250) or less, it may be paid to the next of kin in the absence of designation of a beneficiary.
Provided further, however, should the board find in the case of a member who retired due to disability prior to October 1, 1957, and who died before September 30, 1964, the amount of his pension payable to him prior to his death shall be payable thereafter to his widow during her unremarried lifetime, provided the widow is not receiving widow's benefits payable under the Social Security Act.

§ 8-3515. Adjustments to correct errors.

Should any change or errors in records result in any member or beneficiary receiving from the retirement system more or less than he would have been entitled to receive had the records been correct, then on discovery of any such error the board shall correct the same and, as far as practicable, shall adjust the payments in such a manner that the benefits to which such member or beneficiary was correctly entitled shall be paid.

§ 8-3516. Exemption of funds from taxation, execution, and assignment.

All retirement allowances and other benefits accrued or accruing to any person under the provisions of chapters 34 to 36, inclusive, of this title, and the accumulated contributions and cash securities in the funds created under said chapters, are exempted from any state, county or municipal tax, and shall not be subject to execution, attachment, garnishment, or any other process whatsoever, nor shall any assignment thereof be enforceable in any court.

§ 8-3517. Adjustment of allowances.

Effective July 1, 1969, and each succeeding July 1, the initial service retirement allowance paid on retirement to any member retired prior to July 1, 1969 who, at the date of his retirement, had attained age fifty-five (55) and completed at least twenty (20) years of credited service, shall be increased by one and one-half per cent (1 ½%) of such initial allowance for each year that the member has been retired after his attainment of age sixty-five (65), but the aggregate of such annual increments to any retired member's allowance shall not exceed thirty per cent (30%) of his initial service retirement allowance. The provisions of this section shall not be effective in any case where the application thereof results in a lesser allowance to any retired member than the application of the provisions of § 8-3502.

§ 8-3518. Suspension of allowances.

A retired member or beneficiary may, for personal reasons and without disclosure thereof, apply to the board of trustees in writing to suspend for any period payment of all or any part of the allowance otherwise payable to him under the provisions of the Tennessee state retirement system. The board, on receipt of such application, shall provide the applicant with a form to be completed and returned to the board and upon receipt thereof, the board shall authorize such suspension, in which event the retired member or beneficiary shall be considered to have forfeited all rights to the amount of allowance so suspended but shall retain the right to have the full allowance otherwise payable to him reinstated as to future monthly payments upon written notice to the board of his desire to revoke his prior request for a suspension under this section.

Transfers Between Retirement Systems

§ 8-3701. Definition of terms.

As used in this chapter the words “retirement system” shall mean and include:
1. (1) The Tennessee state retirement system as established by chapter 34 of this title.
2. (2) The Tennessee teachers' retirement system as established by chapter 15 of title 49.
3. (3) The Tennessee judges' retirement system as established by chapter 3 of title 17.
4. (4) The Tennessee attorneys-general retirement system as established by chapter 6 of title 8.
5. (5) The University of Tennessee retirement system as authorized by chapter 33 of title 49.
6. (6) The retirement system for county paid judges as established by chapter 5 of title 17.
7. (7) The Tennessee retirement system for county officials as established by chapter 40 of title 8.

§ 8-3702. Right to transfer membership.

Any person who is a member of any retirement system, as defined in § 8-3701, may transfer his membership to any other retirement system upon accepting office or employment which makes it possible or mandatory for him to participate in such other retirement system.
The provisions of this chapter shall apply with respect to a transfer from one retirement system to another retirement system, anything contained in one or more of the retirement systems to the contrary notwithstanding, except that such provisions shall not apply with respect to a transfer from the Tennessee teachers' retirement system to the University of Tennessee retirement system or from the University of Tennessee retirement system to the Tennessee teachers' retirement system, provided, however, the provisions of this chapter shall not apply nor affect any person holding membership in or under the judges' retirement system of this state on March 4, 1961, and provided further that any person who becomes eligible for maximum benefits under any retirement system as defined in § 8-3701, shall not be entitled to supplemental benefits under any other retirement system, as defined in said section.

§ 8-3703. Procedure.

Any such person so transferring his membership shall notify the administrative head of the retirement system of which he is a member prior to or at the time of his withdrawal therefrom of his intention to enter the other retirement system. Such person shall retain all benefits earned in the system from which he is transferring and contributions made by a member to a retirement system as defined in § 8-3701, for retirement benefits shall not be refundable during any period such person is eligible for membership by transfer in any other system as set forth in this chapter.

§ 8-3704. Benefits after transfer.

Upon becoming a member of the retirement system to which he has transferred, such person shall thereafter be eligible for such benefits or annuities as is provided by law in such retirement system; provided, however, anything to the contrary notwithstanding, that upon service retirement his retirement allowance shall be calculated and paid by each separate retirement system of which he has been a member in the same manner as if such person were a member of such systems upon becoming eligible and making application for a retirement allowance. For the purpose of determining whether a person has been a member of a retirement system for a sufficient period of years to become eligible for any benefit or right, the aggregate number of years of service in any of the systems under § 8-3701 shall be counted.

§ 8-3705. Rules and regulations.

The respective boards of trustees of the retirement system are authorized to make such rules and regulations as may be necessary to carry the provisions of this chapter into effect.

§ 8-3706. Reinstatement of teacher joining department of education.

Notwithstanding any provision or provisions of any other section of chapter 37 of title 8 or any other law, to the contrary, any “teacher” who has been a member of the Tennessee teachers' retirement system, and who later became employed as a member of the professional staff of the Tennessee state department of education and who became a member of the Tennessee state retirement system, shall, upon giving due notice, in writing, to the Tennessee state retirement system, and to the Tennessee teachers' retirement system, with the approval of the state commissioner of education, be reinstated as a member of the Tennessee teachers' retirement system, provided that when such “teacher” retires his retirement benefits and allowances shall be calculated as though the time which he served in the Tennessee state department of education while he was a member of the Tennessee state retirement system shall be counted as though he had been a member of the Tennessee teachers' retirement system during such period of time; provided that such “teacher's” contributions to the Tennessee state retirement system for such period of time, plus the accrued interest thereon, shall be transferred, upon such due notice in writing and approved by the state commissioner of education, to the Tennessee teachers' retirement system, and, provided further, said “teacher” shall pay to the Tennessee teachers' retirement system any additional amount, above the amount so transferred from the Tennessee state retirement system, which amount may be required to equal the amount of the total contributions which said “teacher” would have made to the Tennessee teachers' retirement system during his service in the Tennessee state department of education while he was a member of the Tennessee state retirement system; provided, further, that the employer's contribution for such “teacher” for such period of time shall, likewise, be transferred by the Tennessee state retirement system to the Tennessee teachers' retirement system.
It is hereby declared that the purpose of this section shall be to provide to such “teacher” the full benefits of the Tennessee teachers' retirement system, based upon his employment by the state department of education, the same as if such “teacher” had remained in the Tennessee teachers' retirement system, when he entered upon his services in the Tennessee state department of education, instead of having become, at that time, a member of the Tennessee state retirement system.

4. Retirement — Creditable Service

5. Retirement — Incentive Plans

§ 8-34-207. Retirement incentive plan — State general employees.

(a) A retirement incentive plan shall operate to benefit state general employees, including general employees employed by institutions of higher education, teachers employed by the department of education, state policemen and state wildlife officers as such classifications are defined by this chapter.
(b) Employees eligible to participate in the plan shall be current employees who have been employed full time by the state for the past five (5) years and who satisfy one (1) of the following criteria during the time the plan is in effect:
1. (1) Thirty (30) years or more of retirement service credit in the Tennessee consolidated retirement system, the last ten (10) of which shall be state service;
2. (2) Age sixty (60) or over with ten (10) or more years of retirement service credit in the Tennessee consolidated retirement system, the last ten (10) of which shall be state service;
3. (3) Age fifty-five (55) or over with twenty-five (25) or more years of retirement service credit in the Tennessee consolidated retirement system, the last ten (10) of which shall be state service;
4. (4) If employed as state policemen or state wildlife officers, age fifty-five (55) or over with ten (10) or more years of retirement service credit in the Tennessee consolidated retirement system, the last ten (10) of which shall be state service; or
5. (5) If employed as state policemen or wildlife officers classified as either prior Class C members or participating in Group 2 under the provisions of § 8-36-201(b)(2) if such members have twenty-five (25) years of retirement service credit in the Tennessee consolidated retirement system, the last ten (10) of which shall be state service.
(c) The plan shall operate for a period of one hundred twenty (120) days beginning on or after May 1, 1990 as determined by executive order.
(d) The purpose of the plan shall be to reward employees who choose to retire during the period the plan is in effect with a cash bonus. To be eligible to receive the bonus, the employee must terminate active state employment during the one hundred twenty-day period and file an application for retirement during the one hundred twenty-day period. In addition, the employee may not later be reemployed by the state except under the provisions of § 8-36-805.
(e) This bonus shall be equal to five thousand dollars ($5,000) plus the longevity pay the employee would receive during the 1990-1991 fiscal year if he had continued to work for the state. Payment to the employee shall be made after July 1, 1990. The bonus shall not be included in determining the employee's average final compensation for retirement purposes, nor shall it be subject to retirement contributions.
(f) The commissioner of finance and administration shall develop a plan for operation of the retirement incentive program to ensure that sufficient payroll savings will be generated to fund all cash bonuses provided for herein and all additional retirement liability created hereby. The plan shall provide for the lump sum payment of any additional retirement liability created by implementation of this section and § 8-34-208. The plan must be approved by the comptroller of the treasury and the state treasurer.
(g) Any local school system is authorized, at its option, to make available to its employees a retirement incentive plan. Any such incentive shall not be included in determining the employee's average final compensation for retirement purposes, nor shall it be subject to retirement contributions. The state shall not be liable for the payment of any incentive on account of local school system employees. All costs associated with the payments provided by a retirement incentive plan established by a local school system shall be the responsibility of such school system.

6. Operators of Contractor-Owned School Buses

§ 8-3950. Operators of contractor-owned school buses — Funding.

Notwithstanding any provision of the law to the contrary, operators of contractor owned pupil transportation equipment in any county school system are authorized to participate in the state consolidated retirement system under such conditions as may be jointly agreed upon by the duly authorized officials within the state consolidated retirement system and the board of education in said county school system. Accruing retirement benefits shall be determined on the basis of employer contractor contributions based on a sum allowed for salary purposes that is not to exceed forty per cent (40%) of the monthly contract remuneration received by the contractor from said board of education.
Any county board of education who authorizes operators of contractor owned pupil transportation equipment to participate in the retirement system under the provisions of this chapter shall be required to have the chief legislative body of the political subdivision to approve and appropriate all expenditures required including the cost of the actuarial study, the current and prior service cost, the administrative cost and the school boards pro rata share of the cost-of-living. Prior to any action by the legislative body, the cost and all other pertinent information shall be obtained from the division of retirement which shall be made available to all membership of the legislative body. It is further provided that no funds received by the local board of education or the political subdivision including funds from the minimum foundation program nor the revenue sharing program shall be used in funding the cost required in bringing these independent contractors into the consolidated retirement system.

7. Transfers to and from University of Tennessee System

§ 8-3952. Definitions.

As used in §§ 8-3952 – 8-3958 the words “retirement system” shall mean and include:
1. (1) The Tennessee consolidated retirement system as defined in this chapter.
2. (2) The University of Tennessee joint contributory retirement system as authorized by chapter 33 of title 49.

§ 8-3953. Transfers from and to University of Tennessee system authorized.

Any person who is a member of either retirement system as defined in § 8-3952 may transfer membership to the other retirement system as defined in § 8-3952 upon accepting office or employment which makes it possible or mandatory for such person to participate in such other retirement system, anything contained in one (1) or both of the retirement systems to the contrary notwithstanding.

§ 8-3954. Transfers — Notice — Contributions nonrefundable.

Any such person so transferring membership shall notify the administrative head of the retirement system of which he or she is a member prior to or at the time of transfer therefrom of his or her intention to enter the other system. Contributions made by a member to a retirement system for retirement benefits shall not be refundable during any period such person is eligible for membership by transfer to the other retirement system.

§ 8-3955. Benefits — Computation of obligations between systems.

Upon becoming a member of the retirement system to which a person has transferred, such member shall thereafter be entitled to the rights, benefits, and annuities as are provided in such retirement system; provided, however, anything to the contrary notwithstanding, that upon retirement the allowances and benefits shall be calculated as though the time which was served and credited while such person was a member of the retirement system from which he or she transferred shall be counted and credited as though such person had been a member of the retirement system to which he or she transferred during such period of time; provided, further, that the retirement system from which a transfer was made shall pay monthly to the other retirement system that portion of the monthly benefits attributed to the retired member's creditable service in the retirement system from which the member transferred, less any annuities or other benefits calculated at retirement and applicable to Teachers Insurance and Annuity Association or the federal civil service retirement system and less the state annuity and death benefits payable for prior service under §§ 8-3933 and 8-3937 for those members transferring from the University of Tennessee retirement system. In computing the respective obligations of the two (2) retirement systems, the member's creditable service in both retirement systems shall be combined, and the “average final compensation” shall be determined by the highest average earned in either or both retirement systems. Each retirement system's obligation for monthly benefits shall be the same percentage of the total monthly benefits as the percentage of creditable service in that particular retirement system is to the total combined creditable service of the member in both retirement systems.

§ 8-3956. Benefit options available.

The provisions of § 8-3955 shall apply to all persons who transfer hereafter and to those who transferred from one retirement system to the other during the period from July 1, 1972, to June 4, 1975. Persons who transferred membership between retirement systems prior to July 1, 1972, shall have the option to retain all rights, benefits, and privileges under chapter 37 of this title as preserved under § 8-3935(4); or the option to have his or her rights, benefits, and privileges credited, calculated, and paid in accordance with the provisions, methods, and procedures provided in § 8-3955.

§ 8-3957. Transfers between retirement systems — Application of law.

The provisions of §§ 8-3952 – 8-3958 shall apply with respect to a transfer from one retirement system to the other retirement system, anything contained in one (1) or both of the retirement systems to the contrary notwithstanding. The respective boards of trustees of the retirement systems shall make such rules and regulations as may be necessary to carry the provisions of §§ 8-3952 – 8-3958 into effect.

8. Retirement System for County Officials

§ 8-4001. Definitions.

As used in this chapter, the following words and phrases shall have the meaning indicated unless otherwise defined or required by the context:
1. (a) “Retirement system” or “systems” means the “Tennessee retirement system for county officials” created by this chapter.
2. (b) “County officials” means the clerk of the circuit courts, criminal courts, probate courts, clerk and master of the chancery courts, clerks of the general sessions courts where such general sessions courts have an independent clerk who serves such courts only, county court clerks, register of deeds, county trustees, sheriffs, county school superintendents elected by the people, county road superintendents elected by the quarterly county courts, by the county road commissions or commissioners, or by popular vote, and assessors of property, or such persons who were serving as any such official July 1, 1968, the effective date of the original act. In the event a consolidation or reorganization of any or all of said courts is provided by constitutional amendments or by act of the general assembly or both the clerks of such consolidated or reorganized courts shall also be covered by this chapter.
3. (c) “Retirement board” or “board” means the board created by this chapter which shall administer the system.
4. (d) “Employer” or “county” means any county of the state of Tennessee.
5. (e) “Average compensation” means the average annual compensation paid to said county officials as salaries from the fees earned by their offices and/or by supplemental salaries from the general funds of the several counties to such persons in their official capacity as county officials for the five year period in which such person receives his or her greatest compensation from said fees and/or from the general fund of said counties.
6. (f) “Service” means time served in any of the above named capacities and also, should any such official have served as deputy of any of the above defined county officials, or as a member of the Tennessee general assembly, or as a general sessions judge for as many as sixteen (16) years, the time so served as deputy or member of the Tennessee general assembly or as a general sessions judge shall also be considered as service and such service shall be included in that for which such person shall be given credit towards his or her retirement, provided the person to be credited with such service comply with the provisions of this chapter by paying the back service contribution herein provided. In the event any person eligible for retirement hereunder shall have served in the armed forces of the United States since January 1, 1940, upon leave of absence from his position, as county official or deputy, such period of time as was spent in such military service shall be construed as part of his or her service hereunder.
7. (g) “County officials' retirement fund” means the county officials' retirement fund created by and administered pursuant to this chapter.
8. (h) “Minimum period” means that the minimum period for retirement benefits under this chapter shall be ten (10) years.
9. (i) “Deputy” means any person duly appointed as provided by law in §§ 8-2001 – 8-2008.
10. (j) “Social security” shall not be construed as meaning “any other public employee's retirement system” as used in this chapter or in the case of county superintendents of schools salaries paid from the county school funds, and in the case of county superintendents of roads salaries paid from the county road funds.

§ 8-4002. County officials' retirement fund created.

There is created and established as of July 1, 1968, a retirement fund for county officials as herein defined to be known as the “Tennessee County Officials' Retirement Fund.” All transactions of the system shall be in the name of the system and the system shall have all the powers and privileges of a corporation and shall function as hereinafter provided.

§ 8-4003. Retirement board — Members — Chairman — Quorum — Personnel.

The general administration and responsibility for the proper operation of the retirement system and for making effective the provisions of this law are hereby vested in a retirement board, which shall consist of the state treasurer, the commissioner of finance and administration, the comptroller of the treasury, and three (3) members appointed by the governor, only two (2) of whom may be members of the retirement system. The state treasurer shall be chairman of the board. The board shall elect one (1) of its members as vice-chairman. A majority of the members of the board shall constitute a quorum, and all action taken by the board shall be by affirmative vote of a majority of all members of the board. The personnel required by the board in the administration of the plan shall be provided by the division of retirement of the state of Tennessee and all administrative duties shall be performed by and all administration of the plan shall be provided by the division of retirement. The state attorney-general or an assistant designated by him shall act as legal advisor and attorney for the board.

§ 8-4004. Rights, powers and duties of board.

Subject to the administrative duties reserved by state law to the state treasurer with respect to all state retirement systems, the retirement board shall have complete control of the administration of the system, subject to the provisions of this chapter, with all powers necessary to enable it to carry out properly its duties in that respect. Specifically, the rights, powers and duties of the board shall include, but shall not be limited to the following:
1. (a) The board shall determine all questions that arise hereunder including the eligibility of county officials to become members and the amount of benefit to which any member may become entitled hereunder.
2. (b) The board shall establish rules, forms and procedures to be followed in filing applications for benefits, in furnishing and verifying proofs necessary to establish earnings or any other matters required to administer the system.
3. (c) The board shall prepare and publish an annual, audited, financial report showing all receipts, disbursements, and assets and liabilities of the system. The board shall keep accurate minutes of all its proceedings. All proceedings, minutes, and records of the board shall be open at all reasonable times for inspection by the public.
4. (d) The board shall be empowered to employ the service of investment consultants, actuarial consultants, and the service of others which may be necessary to maintain a soundly designed, administered and financed pension system. Expenses incurred by or on behalf of the board in the administration of this system shall be paid from the fund upon written authorization by the board.

§ 8-4005. Compensation of board — Restriction on liability.

Members of the board shall serve without compensation as board members, but shall be reimbursed for the actual expenses incurred by them in the performance of their duties.
The board shall be fully protected with respect to any action taken or suffered by the board in good faith in reliance upon the advice or opinion of any of the foregoing, and all actions so taken or suffered shall be conclusive upon each of them and upon all members or the persons interested in the system.
The board shall not be liable for the making, retention, or sale of any investment or reinvestment made by it nor for any loss to or diminution of the fund, except due to its own gross negligence, willful misconduct, or bad faith.

§ 8-4006. Financial interest of board members — Restriction on use of funds.

No member of the board shall have an interest, direct or indirect, in the gains or profits of any investment made by the board, save insofar as any such member may be a member of the retirement system, and no member of the board shall receive directly or indirectly, any payment or emolument for his services except as expressly provided in this chapter. No member of the board shall, directly or indirectly, for himself or as an agent, in any manner use the funds or deposits of the retirement system, except to make such payments therefrom as are authorized by the board, nor shall any member become an indorser or surety or in any manner an obligor for moneys loaned by or borrowed from the board.

§ 8-4007. Retirement fund established — Purpose.

There is hereby established the Tennessee retirement fund for county officials to effectuate the purpose of this chapter. The fund shall be administered and utilized as a trust fund and shall be used for the purpose of providing benefits in accordance with provisions of the chapter and shall be a means of financing benefits and financing expenses of administering the fund by the board in accordance with this chapter.

§ 8-4008. Board as trustee of fund — Management of fund — Treasurer — Disbursements.

The retirement board shall be the trustee of the fund created by this chapter and shall have full power to invest and reinvest all funds to the extent the board deems appropriate, subject to the limitation that no investment shall be made except, on the exercise of bona fide discretion, in securities which at the time of making the investment are, by a statute, permitted for the investment of reserves of any domestic life insurance companies, provided the total sum invested in common and preferred stocks cannot exceed twenty per cent (20%) of the total of the fund. Subject to such limitations, the board shall have full power to hold, purchase, sell, assign, transfer, or dispose of any of the securities or investment in which the fund created herein have been invested, as well as of the proceeds of such investment and the moneys belonging to the fund.
The state treasurer shall be the custodian of the fund. All payments from the fund shall be authorized by the state treasurer on vouchers duly issued by the state treasurer.

§ 8-4009. Funds deposited in banks.

For the purpose of meeting disbursements for retirement allowances and other payments, sufficient cash may be held on deposit to the credit of the state treasurer in one or more banks or trust companies, located in Tennessee, organized under the laws of Tennessee or of the United States, and qualified as state depositories.

§ 8-4010. County officials' tax — Sources of additional funds.

For the purpose of providing funds with which to aid the defraying of costs of the retirement herein provided, there shall be fixed upon every suit filed in the circuit courts, the criminal courts, the probate courts in counties where separate probate courts have been created, the chancery courts and the general sessions courts of the state of Tennessee, a fee of one dollar ($1.00), beginning July 1, 1968, except for the fee of one dollar ($1.00) fixed herein on probate courts in counties where separate probate courts exist, which shall commence on July 1, 1969, which shall be known as the county officials' tax and shall be collectible and payable under the same circumtances as state and county tax is now collected upon litigation. The tax as herein provided shall be in addition to such litigation taxes as are now levied by law upon such suits.
It shall be a state tax only and no county or municipality shall levy a similar tax. All sums collected from the tax herein levied shall be paid over to the appropriate state official as other litigation tax is now paid and shall be placed in the state treasury, for use in making the payments herein provided.
For the further purpose of providing funds with which to aid the defraying of costs for the purpose of retirement herein provided, beginning July 1, 1968, ten cents (10¢) of the one dollar ($1.00) fee provided for county court clerks under the terms of § 59-604 shall be remitted to the appropriate state official for use in making payments herein provided; and for the further purpose of defraying costs of the retirement herein provided, beginning July 1, 1968, the allowance to county registers of the two and one-half per cent (2 ½%) contained in § 67-4102, Item S, subsection (c) which will be collected and paid over to the appropriate state official for use in making the payments herein provided.

§ 8-4011. Membership in other retirement systems prohibited — Exceptions.

Persons electing membership in the retirement system created by this chapter shall not hold membership in any other public employees' retirement system, except that coverage by social security and membership in the Tennessee teachers' retirement system are specifically permitted; provided, however, that such persons shall be entitled to enjoy, unimpaired, any vested benefit existing under such other system, but in such case, no periods of time on account of which such vested benefits exist shall be considered credited service under this chapter.
Any member of the Tennessee retirement system for county officials who also holds membership in any other public employees' retirement system may elect to withdraw his membership in full and his contributions in full from such other system without impairing his right to hold office in the county concerned and receive credited service under this chapter in the Tennessee retirement system for county officials for such credited service as he held in such other system upon applying for membership in accordance with § 8-4012.

§ 8-4012. Membership in system — Requirements.

All county officials, as herein defined, in office as of June 30, 1968, and thereafter, shall be eligible to participate as members of this retirement system, provided, however, in order to qualify as a member of this system, a county official shall be required to give notice in writing of his or her intentions to participate to the chairman of the retirement board within ninety (90) days from July 1, 1968 or July 1, 1972, if said county official is in office on that date, or within ninety (90) days from the date said county official is sworn into office, or becomes eligible to participate in the system. In the event the county official desires to be credited with the service as set forth in § 8-4001(f) hereof, said written notice of intention to the chairman of the retirement board shall be accompanied by a back-service contribution, which back-service contribution shall be an amount equal to three and one-half per cent (3 ½%) of the salary received by the county official who desires to qualify as a member of this system during the time of his service as set forth in § 8-4001(f) hereof and shall be accompanied by the appropriate contribution as hereinafter provided in § 8-4013, covering the period from July 1, 1968, to the date of said written notice, or the period from the date said county official is sworn into office to the date of said notice; provided further that any county official not making the back-service contribution set forth herein shall not be credited with the service as set forth in § 8-4001(f) hereof.
A county sheriff may file the written notice required by this section on or before July 1, 1971 or within ninety (90) days after he is sworn into office. Claim for credit in the retirement system for prior service for time served as sheriff must be made with the county officials' retirement board or secretary within ninety (90) days from May 26, 1971.
Any person who served continuously as a circuit court clerk for not less than twenty (20) years prior to the establishment of the Tennessee retirement system for county officials and whose service in such capacity ended not earlier than August 31, 1966, shall be entitled to the benefits provided by this chapter, upon written application to the retirement board on or before July 1, 1970, accompanied by such evidence of such prior service as may be satisfactory to the board, and by a lump sum payment of the back-service contributions as required by this section.
Any person who, on July 1, 1968, was a member of the Tennessee state retirement system as a member of the general assembly and who served not less than sixteen (16) years as a county court clerk is entitled to the benefits provided by this chapter and shall receive retirement credit in the system provided by this chapter for such time served as a county court clerk and as a member of the general assembly. Such funds as may be to his credit in the Tennessee state retirement system shall be transferred to the Tennessee retirement system for county officials upon application in writing to the retirement board established by this chapter, which shall in turn certify to the Tennessee state retirement board the request for transfer. The Tennessee state retirement board shall then cause such funds as are credited to the account of such person in the Tennessee state retirement system to be transferred to the retirement board established by this chapter. Such person shall accompany his request by such evidence of prior service as may be satisfactory to the board. If the amount of money such person would have contributed to the retirement system if it had been in effect for the number of years such person served as a county court clerk and as a member of the general assembly and if he had been a member of such system is more than the amount of money credited to his account in the Tennessee state retirement system's employees' fund, he shall be required to make a lump sum payment of the difference between such amounts to the board in order to complete the transfer. If the amount he would have contributed to the retirement system for such number of years is less than the amount credited to his account in the Tennessee state retirement system's employees' fund, he shall be reimbursed for the difference between such amounts by the board upon completion of the transfer.
Any county official who served as county chairman or delegate to a constitutional convention prior to becoming a member of this retirement system shall be entitled to credit for such service; provided that prior to July 1, 1971 he makes a written request to the retirement board for such credit, furnishes satisfactory evidence thereof, and pays into the retirement fund a back-service contribution in an amount equal to three and one-half per cent (3½%) of the salary received for such service.

§ 8-4013. Monthly contributions by members.

For the purpose of providing further funds with which to aid the defraying of costs of the retirement herein provided, all county officials participating in the retirement system shall contribute each month, from his or her total monthly compensation realized from serving as such county official, four per cent (4%) commencing July 1, 1968, if in office on that date, or from the date he became a county official, if subsequent to that date. This contribution shall be paid to the chairman of the retirement board or other official designated by him and shall be placed in the state treasury for use in making the payments herein provided and shall become a part of the retirement fund.
Any participating county official who fails to make the required monthly contribution and becomes delinquent for more than sixty (60) days, will be subject to the action of the retirement board with respect to continued participation in the system.

§ 8-4014. Qualification for full retirement benefits.

Any county official as herein defined may, after July 1, 1968, retire from office and be paid full retirement benefits provided said county official has attained the age of fifty-five (55) years and presents satisfactory evidence of not less than twenty-four (24) years service.

§ 8-4015. Partial retirement benefits.

Any county official as herein defined may after July 1, 1968, retire from office and be paid retirement benefits provided said county official has attained the age of fifty-five (55) years and presents satisfactory evidence of at least twelve (12) years service but less than twenty-four (24) years service, said retirement benefits to be paid as follows:
1. 12 years service — 1/2 of full retirement benefits
2. 13 years service — 13/24 of full retirement benefits
3. 14 years service — 7/12 of full retirement benefits
4. 15 years service — 5/8 of full retirement benefits
5. 16 years service — 2/3 of full retirement benefits
6. 17 years service — 17/24 of full retirement benefits
7. 18 years service — 3/4 of full retirement benefits
8. 19 years service — 19/24 of full retirement benefits
9. 20 years service — 5/6 of full retirement benefits
10. 21 years service — 7/8 of full retirement benefits
11. 22 years service — 11/12 of full retirement benefits
12. 23 years service — 23/24 of full retirement benefits.

§ 8-4016. Amount of benefits.

The retirement benefit per annum to any person retiring under the provisions of this chapter shall be two and one-half per cent (2 ½%) of the average compensation for each year of service (but in computing, not to exceed twenty-four (24) years service) provided said benefit shall not exceed sixty per cent (60%) of said average compensation. In computing length of time of service, fractions of a year equaling six (6) months or more shall be treated as a full year of service.

§ 8-4017. Benefits not subject to assignment or encumbrance — Payment of benefits for incompetent members.

The retirement benefits provided for by this retirement system shall not be subject in any manner to anticipation, alienation, sale transfer, assignment, pledge, encumbrance or charge, nor shall any such benefit be in any manner liable for or subject to the debts, contracts or liabilities of the person entitled thereto. If any member or retired member has been adjudged legally incapable of personally receiving any payment due him hereunder, the board may make such payment to a duly appointed guardian or conservator of such person or to some relative of such person whom the board deems to be a proper person to receive such payment for the use and benefit of such retired member.

§ 8-4018. Application for benefits — Fixing amount — Payment.

Any county official desiring to retire shall notify the comptroller of the state of his intentions which notice shall state the term of his service as a county official and average compensation as herein defined together with the date on which he proposes to retire from office. The county official desiring retirement shall obtain from the county judge of the county in which said county official is serving at the time of his retirement a sworn statement from said county judge to the effect that the county judge has examined pertinent records pertaining to the term of service of said county official and salaries or other compensation realized by said county official during his term of service and said affidavit shall contain the average compensation of the county official and the dates of service. Upon receipt of such affidavit, application and military record, if applicable, the comptroller shall examine the same and other pertinent records and certify to said board the facts with regard to said county official and his average compensation as calculated upon the basis set out in this chapter together with the date of his retirement. Said board shall thereupon fix the retirement benefit and certify the amount thereof due to such retiring member; and, said retiring benefit shall be paid monthly by the treasurer of the state of Tennessee out of said retirement fund to the retired member during his or her lifetime, and after the death of the retired member to the named beneficiary or beneficiaries for the minimum period or remainder of the minimum period established under this chapter, if applicable.

§ 8-4019. Designation of beneficiary to receive payments on death of member.

Any county official who participates in the retirement system may designate in writing a beneficiary or beneficiaries to receive after said county official's death the retirement benefits he or she would have received for the minimum period or the remainder of the minimum period. Said designation shall be filed with the retirement board. If a county official dies during a term he is serving and at the time of death has sufficient service to qualify for retirement benefits, his beneficiary or beneficiaries, if named, shall be entitled to the same retirement benefits that the deceased county official would have received, for the minimum period only, had he or she retired on the date of death. In the event no beneficiary or beneficiaries are named, or in the event the named beneficiary or beneficiaries predeceased the county official, the system actuary shall determine the actuarial equivalent of the minimum retirement period of ten (10) years and the same shall be paid to the county official's estate in a lump sum. In the event a county official has completed twelve (12) years of service and becomes deceased before reaching the age of fifty-five (55) years, the ten (10) year minimum retirement benefits shall be paid in accordance with the provisions of this section in the same manner as they would have been paid had the county official been fifty-five (55) years of age on or before becoming deceased, provided further, that in the event a county official under the age of fifty-five (55) years is not reelected to his or her office, then upon reaching the age of fifty-five (55) years, said person shall be entitled to receive benefits as provided by this act if said county official has met all other requirements as to years of service and personal contributions herein provided, and this section shall have effect notwithstanding the provisions of §§ 8-4014, 8-4015 and 8-4018.

§ 8-4020. Repayment of contributions when member fails to qualify.

Any participating county official who fails to qualify for retirement benefits under the provisions of this chapter, or the named beneficiary if county official is deceased, will be paid by the retirement board through the state treasurer, all of the total three and one-half per cent (3 ½%) and/or four per cent (4%) contributions made to the system by the county officials as a member and also such interest as may be established by the Tennessee county officials retirement board.

§ 8-4021. Violation a misdemeanor — Penalty.

Any person who knowingly makes any false statement or falsifies or permits to be falsified any record or records of this retirement system in an attempt to defraud such system, is guilty of a misdemeanor, and upon conviction thereof, shall be punished by a fine not to exceed five hundred dollars ($500), or by imprisonment in the county jail for not more than twelve (12) months, or both such fine and imprisonment, in the discretion of the court.

9. Judges' Retirement System

§ 17-301. Normal retirement benefit.

Any judge who has reached normal retirement age shall, upon retirement, be entitled to receive a normal retirement benefit, commencing on the first day of the month following his retirement as a judge and payable thereafter for life, subject to all the terms and conditions of the judges' retirement system.

§ 17-302 — 17-309. [Repealed]

§ 17-310. [Repealed]

§ 17-311, 17-312. [Repealed]

§ 17-313. Definitions.

For the purposes and whenever used in this chapter, the following definitions shall have the meanings indicated, unless otherwise required by the context:
1. (a) “Judges' Retirement System” means the Tennessee Judges' Retirement System, constituted by the provisions of chapter 3 of title 17 of this Code.
2. (b) “Judge” means any person in office as a judge of a court of record in this state whose salary for his judicial position has been paid during the period of his service wholly from the treasury of the state and includes the executive secretary to the Supreme Court.
3. (c) “Service” means service as a judge, which shall also include the following: (1) Time while on leave of absence during the term of judicial office; (2) service rendered by a judge in the armed forces or in any department of the government of the United States during the existence of a state of war or a period of national emergency which interrupts his term of office; (3) time served as attorney-general or assistant attorney-general, or district attorney-general or assistant district attorney-general, all of which are referred to in this chapter as attorney-general; and (4) time served as a member of the general assembly, subject to a maximum of eight (8) years' credit for service in the general assembly and subject to the further provision that the judge has paid into the judges' retirement system three per cent (3%) of the compensation he received as a member of the general assembly during such years of service, plus interest at the rate of three percent (3%) per year prior to December 30, 1970. Service shall be rounded to the nearest number of years based on full calendar months of service; and (5) services rendered as a sessions judge within the state of Tennessee.
  1. When a judge is entitled to include for retirement under the judges' retirement system service as attorney-general or an attorney-general is entitled to include for retirement under the attorneys-general retirement system service as a judge, there shall be transferred from the system the member leaves to the system he enters (1) the whole amount of the member's contributions remaining to his credit, and (2) the members's proportionate share of all other funds paid into the state treasury and held in trust for the retirement system from which he is being transferred during the period he was a member of that system. The sum transferred shall thereafter be a part of the system to which it is transferred and shall be held and dealt with in the same manner as if the member had made his contributions to that system as a member and as if the other contributions had been credited to the system during the time he was a member.
  2. Any judge who becomes a member of the judges' retirement system after April 15, 1970, shall not be entitled to include for retirement as a judge any service as attorney-general rendered after September 1, 1958, unless he was a member of the attorneys-general retirement system for the period of service to be included and has left his contributions in that system until he becomes a member of the judges' retirement system.
  3. Any judge who is a member of this retirement system on April 15, 1970, who does not have twenty (20) years of service when he attains age sixty-five (65) shall be entitled to a credit for service not exceeding four (4) years if he retires on or before his seventieth (70th) birthday; or if he is past seventy (70) years old on April 15, 1970, and retires on or before December 1, 1970, he shall be entitled to a like credit.
  4. Any judge who becomes a member of this system after April 15, 1970, shall not be entitled to full credit for any service rendered after his seventieth (70th) birthday but shall be subject to the provisions for late retirement.
4. (d) “Normal Retirement Age” means sixty-five (65) for a judge whose length of service is less than eight (8) years and fifty-four (54) for a judge whose length of service is eight (8) or more years.
5. (e) “Benefit Base” means a sum equal to the annual salary the retired judge would receive if he continued in the office from which he retired.
6. (f) “Normal Retirement Benefit” means a sum equal to seventy-five per cent (75%) of a judge's benefit base if he has completed at least twenty (20) years of service. Otherwise, the normal retirement benefit shall be three and seventy-five hundredths per cent (3.75%) of his benefit base multiplied by the number of years service if he has had twenty (20) years or less of service. A normal retirement benefit shall not exceed seventy-five per cent (75%) of the benefit base.
7. (g) “Late Retirement” means retirement after a judge passes his seventieth (70th) birthday and shall apply only to a judge who becomes a member of this system after this chapter is adopted. On late retirement such a judge shall forfeit for himself and all others who may become entitled to benefits because of his service fifty per cent (50%) of such benefits.

§ 17-314. Disability retirement.

Any judge who has ten (10) or more years of service and becomes disabled may, upon complying with other applicable requirements set out in this judges' retirement system apply for disability retirement and be retired under the provisions of this section and shall thereupon be entitled to receive, during the remainder of his life, a disability pension. The amount of any disability pension shall be determined in the same manner as a normal retirement benefit in accordance with § 17-313. Any judge who receives any benefits under the provisions of this section shall not thereafter be eligible to resume or continue in the same term of office as a judge. For purposes of this judges' retirement system, “disabled” or “disability” shall mean a permanent physical or mental disablement occurring during the term of office of a judge, which, in the sole discretion of the governor of the state of Tennessee, prevents such judge from performing his judicial duties.

§ 17-315. Application and certification of retirement — Effective date.

Any judge who elects to retire under the provisions of §§ 17-313 – 17-323 either during or at the expiration of the term of office then held by him, and who has complied with the other retirement requisites of said sections shall certify to the governor of the state at least sixty (60) days prior to the date upon which he desires to relinquish his office his intention to retire, and shall at the same time forward to the governor his application for retirement, stating the time at which he wishes to retire. Provided, however, that any judge defeated for re-election, shall file with the governor of the state within sixty (60) days after his successor has been duly qualified and assumed the duties of the office, an application for retirement under the provisions of §§ 17-313 – 17-323. Upon the approval of the governor of the application for retirement, the governor shall forward to the board of trustees the application of the judge and shall request the board to process the retirement application in accordance with § 17-316.

§ 17-316. Form of application — Verification and indorsement — Payment.

The certificate of intention of a judge to retire and the application therefor shall be in writing, addressed to the governor and shall set out the facts pertaining to the court or courts served by such judge, the period of time embraced by such service, and his age. The board of trustees of this judges' retirement system shall verify the facts and determine if all applicable requirements pertaining to the application for retirement are met and the board of trustees shall indorse the application accordingly and file the application in the office of the division of retirement. The board of trustees shall thereafter authorize payment of benefits to which the retired judge is entitled under the provisions of this judges' retirement system.

§ 17-317. [Repealed]

§ 17-318. Administration of retirement system — Board of trustees — Fund.

A board of trustees shall be responsible for the proper administration and operation of the judges' retirement system.
(a) Such board of trustees shall have as members the chief justice of the Supreme Court, or a member of that court designated by the chief justice, the state treasurer, the comptroller of the treasury, commissioner of finance and administration, and one member appointed by the governor. The state treasurer shall be chairman of the board. The board shall elect one of its members vice-chairman. A majority of the members of the board shall constitute a quorum, and all action taken by the board shall be by affirmative vote of a majority of all members of the board.
(b) All personnel required by the board in the administration of the plan shall be provided by the division of retirement in the office of treasurer of the state of Tennessee and all administrative duties shall be performed by and all administrative records shall be maintained by the division of retirement. The state attorney-general or an assistant designated by him shall act as legal advisor and attorney for the board.
(c) Subject to the administrative duties reserved by state law to the state treasurer with respect to all state retirement systems, the board of trustees shall have complete control of the administration of the system, subject to the provisions of this judges' retirement system, with all powers necessary to enable it to carry out properly its duties in that respect. The members of the board shall serve without compensation as board members but shall be reimbursed for actual expenses incurred by them in the performance of their duties. The board shall be fully protected with respect to any action taken or suffered by the board in good faith and reliance upon any table, valuation, certificate, report, advice or opinion furnished by any consultant or actuary, opinions given by the state attorney-general or an assistant thereof or the advice of any qualified investment consultant, and all actions so taken or suffered by the board shall be conclusive upon each member of the board and upon all judges or persons interested in the judges' retirement system.
(d) The board shall not be liable for the making, retention, or sale of any investment or reinvestment made by it nor for the loss to or diminution of the fund, except due to its own gross negligence, willfull misconduct, or bad faith.
(e) No member of the board shall have an interest, direct or indirect, in the gains or profits of any investment made by the board, save insofar as any member may be a judge participating in the judges' retirement system, and no member of the board shall receive, directly or indirectly, any payment or emolument for his services except as expressly provided in this judges' retirement system. No member of the board shall, directly or indirectly, for himself or an agent, in any manner use the funds or deposits of the judges' retirement system, except to make such payments therefrom as are authorized by the board, nor shall any member become an indorser or surety or in any manner an obligor for moneys loaned by or borrowed from the board.
(f) For the purpose of providing funds necessary under the judges' retirement system, there is hereby created and established a judges' retirement fund. The fund shall be administered and utilized as a trust fund and shall be used for the purpose of providing benefits in accordance with provisions of this judges' retirement system and shall be the means of financing benefits and financing expenses of administering the fund by the board in accordance with this chapter.
(g) The board of trustees shall be the trustee of the fund created by this chapter and shall have the full power to invest and reinvest all funds to the extent the board deems appropriate, subject to the limitation that no investment shall be made except, in the exercise of bona fide discretion, in securities which at the time of making the investment are, by statute, permitted for the investment of funds in the “Tennessee state retirement system.” Subject to such limitations, the board shall have the full power to hold, purchase, sell, assign, transfer, or dispose of any of the securities or investements in which the fund created herein has been invested, as well as of the proceeds of such investments and the moneys belonging to the fund. The state treasurer shall be the custodian of the fund. All payments from the fund shall be authorized by the state treasurer on vouchers requested by the board of trustees and duly issued by the state treasurer.
(h) For the purpose of providing sufficient funds to aid in meeting the cost of benefits provided by this chapter, all unexpended funds, not in excess of the actuarial requirements of this judges' retirement system, now accrued in the treasury of the state from litigation privilege taxes imposed and designed by law for the payment of compensation to retired judges, are hereby made and constituted a part of said judges' retirement fund and are allocated thereto. And all moneys not in excess of the actuarial requirement of this judges' retirement system hereafter accruing from any litigation privilege tax specifically imposed and designated by law for payment of compensation to retired judges, shall be credited to the judges' retirement fund and used and accounted for as such.
(i) Actuarial Requirements: The board of trustees shall consult an actuary at least each biennium who shall be the technical advisor to the board on matters regarding the operation of the judges' retirement fund and shall perform such other duties as are required by the board in connection with this judges' retirement system. The fee for his services shall be paid from income received on investments of the fund. The actuarial requirements of the judges' retirement system shall be determined so that contributions to the fund will meet current actuarial liabilities and amortize all unfunded accrued actuarial liabilities by 1998.
(j) On or before the first day of January, next preceding each regular meeting of the general assembly, beginning on or after January 1, 1967, the board of trustees shall advise the state treasurer of the actuarial requirements of the judges' retirement system and the treasurer shall certify to the state budget director the amount needed, if any, over and above the amount contributed by judges and the amount received from the litigation tax levied by this chapter, to make the system actuarially sound as of that date. The state budget director shall include in the budget an appropriation equal to the amount certified to him by the treasurer to be paid into the judges' retirement fund. A statement of the financial condition of the trust fund of the judges' retirement fund shall be published by the board of trustees in an annual report to the treasurer.

§ 17-319. Membership optional — Contributions — Election.

Membership in the retirement system herein provided shall be optional with each judge. For the purpose of providing further funds with which to pay the retirement or disability compensation provided for in §§ 17-313 – 17-323, every judge who desires to avail himself of the benefits of said sections shall contribute to the judges' retirement fund an amount annually equal to three per cent (3%) of his gross annual salary as judge, such contributions to begin on or after April 26, 1955, or upon the appointment or election of such judge thereafter. This contribution shall be made in equal monthly instalments, which the commissioner of finance and administration shall deduct from the monthly compensation of such judge and credit the same to the judges' retirement fund. Every judge in office on April 26, 1955, who desires to come under the provisions hereof, shall notify the director of accounts, by registered return-receipt mail on or before September 1, 1958. All judges elected or appointed after April 26, 1955, shall elect whether or not to come under the provisions of §§ 17-313 – 17-323 within sixty (60) days after such appointment or election. Every judge electing to come under the provisions of said sections shall continue his contributions to the judges' retirement fund, as herein provided, as long as he remains in office.
Any judge in office on April 15, 1970, who did not comply with the provisions of this section by giving the notice above required and who, as the result, has lost service credit, may, on or before December 1, 1970, notify the commissioner of finance and administration of his desire for such credit, reciting in his notice the period for which he seeks credit, and shall remit to the treasurer of the state the amounts that would have been deducted from his salary for such period had he given the notice as provided above, together with interest thereon at the rate of six per cent (6%) per annum. Thereupon the judge shall be entitled to service credit for such period. Such a judge shall be considered to be a member of the system on April 15, 1970, and entitled to the credit for service provided for in Section 17-313(c) and he shall not be subject to the provision for late retirement.
Any person who serves as executive secretary of the Supreme Court and who was a participant in the judges' retirement system prior to his appointment as executive secretary shall continue as a member of the judges' retirement system and required to contribute to the judges' retirement fund in respect of every year, past and future, that he receives credit for service under this chapter during the time he is executive secretary in the same amount and manner as though he were a member of this judges' retirement system for all such service, and he shall not, by reason of participating in this judges' retirement system be eligible to receive benefits from any other retirement plan of the state of Tennessee. Provided further, any contributions made by such person to any other state retirement system shall be transferred from the other retirement system and paid into the judges' retirement system. Such person shall receive credit in the judges' retirement system for the service and period of time which such person had in the other retirement system.

§ 17-320. Source and time of payments.

All payments hereunder to retired judges shall be made out of the judges' retirement fund. Payments to retired judges shall be in equal monthly instalments and shall be made at the same time and in the same manner as judges in office are paid.

§ 17-321. Repayment or withdrawal of contributions.

Any judge whose service is terminated for any reason shall, in lieu of all other benefits provided by this judges' retirement system, be entitled to a refund of his contributions without interest if his service at the time of termination is less than five (5) years, or be entitled to a refund of his contributions accumulated at three per cent (3%) interest, or at another rate of interest as the board of trustees may from time to time declare, if at the time of such termination he has completed at least five (5) years of service. Any judge who fails of reelection or who voluntarily retires or terminates his service before becoming eligible for any of the benefits otherwise provided in the judges' retirement system may be permitted to allow his contributions to remain until he reaches normal retirement age at which time he shall be eligible for a retirement benefit based on his actual service at time of termination, computed in the same manner as a normal retirement benefit in accordance with § 17-313 of this judges' retirement system. If any judge who terminates service and leaves his contributions in the system, and likewise any judge in office dies before he reaches normal retirement age his contingent annuitant or beneficiary under options 1, 2, or 3 of § 17-326 shall be entitled to have the judge's contributions left in the system until the judge would have reached normal retirement age if he had lived and at that time commenced to receive an optional benefit in the same amount as if the judge had lived until, retired on, and then died on, the day he reached normal retirement age. If a contingent annuitant or beneficiary dies or becomes disqualified by remarriage to receive the benefit after the death of the judge and before the benefit commences his contributions shall be refunded.

§ 17-322. Powers upon retirement.

Any judge who has heretofore retired, or who may hereafter retire under the provisions of this chapter, shall be empowered to conclude the hearing or trial of all cases and all matters subsequent thereto in any proceeding pending before him where the trial or hearing has been begun by him prior to his retirement, including the entry of judgments and orders in connection with said trial or hearing, the hearing of motions for new trial, petitions to rehear, and the like, signing bills of exceptions, and otherwise finally disposing of any and all matters connected with or arising out of such trials or hearings. However, nothing herein shall be construed as restricting the power that the successor to a retired judge might otherwise have, and such successor shall try the case upon any new trial or rehearing granted by the retired judge, except where final judgment is entered concurrently with the granting of the new trial or rehearing by the retired judge.

§ 17-323. Assignment of retired judges.

The chief justice of the Supreme Court of Tennessee is empowered to assign judges who are now retired or who may be retired hereafter, (1) to hold any court in the state whenever in his judgment it is necessary to do so in order to relieve congested dockets, or (2) to sit for judges who may be incapacitated or who may be absent because of illness or otherwise. A retired judge holding court hereunder shall be paid, in addition to his retirement benefits for the period during which he sits as judge, the difference between his retirement benefits for the period and the amount he would receive for that period if he were an active judge of the same court. The chief justice shall certify to the judicial cost accountant in the office of the comptroller of the treasury the date on which such service commences and the date on which such service terminates.
Provided however, the chief justice of the Supreme Court of Tennessee shall likewise be empowered to assign and designate any attorney-general as defined under § 8-618 who has or may be retired as such attorney-general to sit as judge and hold any court in the same manner, for the same purpose and he shall have the same authority, duty and jurisdiction as any retired judge is now authorized to perform or exercise under the provisions of this section.
Provided further, when the retired attorney-general is designated and assigned hereunder by the chief justice to sit as judge, his jurisdiction shall be limited and restricted to habeas corpus cases and such cases as may arise under any post-conviction procedure act.
Provided further, the retired attorney-general assigned and designated to sit and perform the duties and functions of a judge shall have served at least twenty-four (24) years as such attorney-general prior to his retirement. His compensation hereunder shall include his regular retirement benefit as attorney-general, plus the difference between his retirement benefit and the amount he would receive if he were an active or regular judge of the same court. The chief justice shall certify to the executive secretary of the Supreme Court the date on which such service commences, and the date on which such service terminates.

§ 17-324. [Repealed]

§ 17-325. [Repealed]

§ 17-326. Optional benefits.

A judge entitled to a retirement benefit may elect, subject to written notice of his election filed prior to retirement with the state treasurer and duly acknowledged by him to have a benefit payable under one of the options hereinafter set forth in lieu of all other benefits he is otherwise entitled to receive, and shall file a written designation of a contingent annuitant to receive benefits under an option to be payable after his death. The optional benefit payable shall be in accordance with the terms of the election of option last received and acknowledged by the state treasurer and the contingent annuitant entitled to benefits under said option shall be the person in the written designation of contingent annuitant last received by the state treasurer prior to the retirement of the judge. The amount of optional benefits 1 and 2 shall be based on option rates adopted from time to time by the state treasurer and shall be actuarially equivalent in value to the benefits that would otherwise be payable, except that an optional benefit commencing after age sixty-five (65) shall not be less than if based on an option rate that would have been applicable had retirement occurred at age sixty-five (65). The amount of optional benefit 3 shall be the normal retirement benefit payable for the life of the retired judge and at his death an amount equal to one-half (½) thereof payable for the life of or until the remarriage of his contingent annuitant who shall be his widow and no other. The election of an option shall be null and void if the contingent annuitant dies before benefits commence. If a judge has duly designated a contingent annuitant and is eligible to retire at the time of his death, a benefit will be payable to the contingent annuitant as though the judge had retired the day before his death. If a judge has not duly designated a contingent annuitant and is eligible at the time of death to have retired under this judges' retirement system, the benefit will be an amount payable monthly to his widow, if she is then living, for the remainder of her unremarried lifetime, determined in the same way as an option 1 (joint and survivor) benefit, or the benefit may be a refund of his contributions to the judges' retirement system if the widow so elects.
Option 1. The joint and survivor benefit shall be payable for the life of the retired judge and thereafter to the contingent annuitant for life.
Option 2. The modified joint and survivor benefit shall be payable for the life of the retired judge and thereafter one-half (½) of such amount shall be payable to the contingent annuitant for life.
Option 3. A joint and survivor benefit in the amount of the normal retirement benefit shall be payable for the life of the judge and thereafter one-half (½) of such amount shall be payable to the contingent annuitant who shall be his widow and no other, for her life or until remarriage.
Provided, the widow of a judge who was a member of the judicial retirement system and entitled to retire under any of its provisions but died in office prior to the enactment of this law shall be conclusively presumed to be the optionee of said judge and entitled to the benefits of option no. 2 above.

§ 17-327. Retirement under prior laws.

Any judge who retired under prior laws and who elected no optional benefit prior to retirement shall receive a normal retirement benefit. Any such judge who elected an optional benefit prior to retirement and his contingent annuitant shall receive an optional benefit based on a normal retirement benefit. The benefits shall commence when this chapter is adopted. Ages at termination of service shall be used in computing benefits.
No retired judge or contingent annuitant shall have any right impaired or benefit diminished by this section but shall be entitled to the right and benefit enjoyed under prior laws instead of the benefit provided for in this section if elected by notice to the board. This section shall not extend any benefits to others than a retired judge and his contingent annuitant receiving a benefit from this retirement system when this chapter is adopted.

§ 17-328. Right to pension — Amount under prior laws not diminished.

Any judge who complies with the foregoing applicable requirements for retirement shall thereupon be entitled to receive, during the remainder of his life, a pension in an amount determined according to the provisions of this judges' retirement system, but in no event shall he receive a pension smaller in amount than he would have received under the retirement laws in effect on January 1, 1970, had they been in effect at the time of his retirement.

§ 17-329. Widows of appellate judges — Right to pension — Amount — “Appellate judge” defined.

Any widow of a Tennessee appellate judge who, during his lifetime, served a total of at least twenty (20) years as an appellate judge, shall be entitled to a pension from the state of Tennessee, provided, however, that such right shall not accrue until said widow has attained seventy-five (75) years of age. Provided, however, that no such widow who is now receiving, or who may later receive, a pension from the state of Tennessee under any retirement or pension plan of the state in effect now or in the future shall be eligible to receive the pension herein provided.
Said pension shall be in the amount of one hundred and fifty dollars ($150) per month and shall be payable for the remainder of the widow's lifetime.
Whenever used in this section, the phrase “appellate judge” shall mean any judge who has served as a member of the Tennessee Supreme Court, the Tennessee Court of Appeals, or the Tennessee Court of Criminal Appeals.
Said pensions shall be paid out of the general appropriations fund.

10. Retirement System for County Paid Judges

§ 17-501. Definitions.

As used in this chapter the following words and phrases shall have the meaning indicated unless otherwise defined or required by the context:
1. (a) “Retirement system,” “system,” or “retirement system for county paid judges” means the “retirement system for county paid judges of Tennessee” created by this chapter.
2. (b) “Retirement board” or “board” means the board created by this chapter which shall administer the system.
3. (c) “Employer” or “county” means any county of the state of Tennessee.
4. (d) “Judge” means any person who is a judge of a general sessions court, county chairman, county judge, probate judge, or judge of a juvenile and/or domestic relations court, and whose compensation for such judicial service is paid wholly by the county and shall also include the executive secretary of the retirement system for county paid judges of Tennessee and county attorneys who receive regular monthly or quarterly compensation from the county.
5. (e) “Member” means any person included in the membership of the retirement system.
6. (f) “Prior service” means all service as a judge, county court clerk, circuit court clerk, sessions court clerk, trustee, register of deeds, sheriff, clerk and master, criminal court clerk, county attorney or assessor of property, superintendent of schools, or city or municipal judge, whether elected by the people or appointed, whether continuous or not, prior to the time of becoming a member of the system. Credit shall also be allowed for as many as four (4) years of service as a member of the general assembly. However, credit shall be allowed for as many as ten (10) years of service as a trial justice of the peace who kept dockets, whether such person was a judge prior to July 1, 1963, or first became a judge after July 1, 1963.
7. (g) “Current service” means all uninterrupted service as judge after July 1, 1963 and prior to the date as of which current service is being determined; provided, however, that while current service shall not be deemed to be interrupted by the following, it shall not include:
  1. (1) extended sick leave approved by the board;
  2. (2) leave of absence granted by the county and approved by the board;
  3. (3) any service, voluntary or involuntary, in the armed forces of the United States; or
  4. (4) the period of time, not greater than ten (10) years following his termination of employment as judge pursuant to § 17-514.
8. (h) “Credited service” means the sum of prior service, if any, and current service. Credited service shall be expressed in years and a decimal fraction of a year based on completed calendar months.
9. (i) “Benefit base” means a sum equal to the annual salary the retired judge would have received had he continued in the office from which he retired.
10. (j) “Normal retirement date” means the first day of the month next following the fifty-fifth birthday of a member.
11. (k) “Beneficiary” means the person last designated in writing by a member in accordance with the provisions of § 17-518, to receive benefits payable on the death of such member.
12. (l) “Fund” or “retirement fund for county paid judges” means the “retirement fund for county paid judges of the state of Tennessee” created by and administered pursuant to this chapter.
13. (m) “Other systems” means any retirement program created by an act of the general assembly or otherwise, applicable to employees of a city, county or the state of Tennessee, or any political subdivision of any of them.

§ 17-502. Establishment of system.

There is created and established, as of July 1, 1963, a retirement system for county paid judges to be known as the “retirement system for county paid judges of Tennessee.” All transactions of the system shall be in the name of the system. The system shall have all the powers and privileges of a corporation, and shall function as hereinafter provided.

§ 17-503. Retirement board — Composition — Officers — Quorum — Personnel.

The general administration and responsibility for the proper operation of the retirement system and for making effective the provisions of this law are hereby vested in a retirement board, which shall consist of the state treasurer, the commissioner of finance and administration, the comptroller of the treasury, and three (3) members appointed by the governor, all of whom shall be members of the retirement system. The state treasurer shall be chairman of the board. The board shall elect one of its members as vice-chairman. A majority of the members of the board shall constitute a quorum, and all action taken by the board shall be by affirmative vote of a majority of all members of the board. The personnel required by the board in the administration of the plan shall be provided by the division of retirement of the state of Tennessee and all administrative duties shall be performed by and all administrative records shall be maintained by the division of retirement. The state attorney general or an assistant designated by him shall act as legal advisor and attorney for the board.

§ 17-504. Rights, powers and duties of board.

Subject to the administrative duties reserved by state law to the state treasurer with respect to all state retirement systems, the retirement board shall have complete control of the administration of the system, subject to the provisions of this chapter, with all powers necessary to enable it to carry out properly its duties in that respect.
Specifically, the rights, powers and duties of the board shall include, but shall not be limited to the following:
1. (a) The board shall, not inconsistent with the provisions of this chapter, construe this chapter, and determine all questions that arise hereunder, including questions relating to whether or not a person is a “judge,” within the meaning of this chapter, the eligibility of judges to become members, and the amount of benefit to which any member, beneficiary, or survivor, may become entitled to hereunder.
2. (b) The board shall establish rules, forms and procedures to be followed in filing applications for benefits, in furnishing and verifying proofs necessary to establish age, earnings, or any other matters required to administer the system.
3. (c) The board shall receive all applications for benefits. Upon receipt by the board of such an application it shall determine all facts which are necessary to establish the right of the judge to benefits and the amount thereof, as provided in this chapter. The decisions of the board upon all matters within the scope of its authority shall be final. Upon request, the board will afford any applicant the right of a hearing with respect to any findings of fact or determination.
4. (d) The board, as it sees fit, shall prepare from time to time information concerning the system and distribute such information to judges, members, and other interested persons.
5. (e) The board shall prepare and publish an annual, audited, financial report showing all receipts, disbursements, and assets and liabilities of the system. The board shall keep accurate minutes of all its proceedings. All proceedings, minutes, and records of the board shall be open at all reasonable times for inspection by the public.
6. (f) The board shall be empowered to employ the services of investment consultants, actuarial consultants, and the services of others which may be necessary to maintain a soundly designed, administered and financed pension system. Expenses incurred by or on behalf of the board in the administration of this system shall be paid from the fund upon written authorization by the board.
7. (g) As soon as practicable after JuIy 1, 1963, the board shall adopt such actuarial and other tables as are deemed necessary for the administration of the system, and from time to time may change such tables and adopt new tables.
8. (h) The board shall have the right to rely upon all tables, valuations, certificates, and reports furnished by any consultant or actuary, all opinions given by the state attorney-general or an assistant thereof, and any advice of a qualified investment consultant.

§ 17-505. Compensation of board — Nonliability of members.

Members of the board shall serve without compensation as board members, but shall be reimbursed for the actual expenses incurred by them in the performance of their duties.
The board shall be fully protected with respect to any action taken or suffered by the board in good faith in reliance upon the advice or opinion of any of the foregoing, and all actions so taken or suffered shall be conclusive upon each of them and upon all members or the persons interested in the system.
The board shall not be liable for the making, retention, or sale of any investment or reinvestment made by it nor for any loss to or diminution of the fund, except due to its own gross negligence, willful misconduct, or bad faith.

§ 17-506. Personal interest of board prohibited.

No member of the board shall have an interest, direct or indirect, in the gains or profits of any investment made by the board, save insofar as any such member may be a member or beneficiary of the retirement system, and no member of the board shall receive, directly or indirectly, any payment or emolument for his services except as expressly provided in this chapter. No member of the board shall, directly or indirectly, for himself or as an agent, in any manner use the funds or deposits of the retirement system, except to make such payments therefrom as are authorized by the board, nor shall any member become an indorser or surety or in any manner an obligor for moneys loaned by or borrowed from the board.

§ 17-507. Duties of counties — Information — Payroll deductions.

To enable the board to perform its functions, each county shall supply full and timely information to the board on all matters relating to the earnings of any members employed by the county, their length of service, their retirement or other causes of termination of employment, contributions to the fund by members, and such other pertinent facts as the board may require. Each county that has been notified that a judge of that county shall participate in this retirement system shall cause to be deducted from the pay check of the judge each payroll period the amounts required by this chapter pursuant to written directions by the board, and shall remit promptly such amounts to the state treasurer.

§ 17-508. Retirement fund established — Purpose.

There is hereby established the retirement fund for county paid judges to effectuate the purposes of this chapter. The fund shall be administered and utilized as a trust fund and shall be used for the purpose of providing benefits in accordance with provisions of this chapter and shall be the means of financing benefits and financing expenses of administering the fund by the board in accordance with this chapter.

§ 17-509. Board as trustee of fund — Management of fund — Treasurer as custodian — Disbursements.

The retirement board shall be the trustee of the fund created by this chapter and shall have full power to invest and reinvest all funds to the extent the board deems appropriate, subject to the limitation that no investment shall be made except, on the exercise of bona fide discretion, in securities which at the time of making the investment are, by a statute, permitted for the investment of reserves of any domestic life insurance companies, provided the total sum invested in common and preferred stocks cannot exceed twenty per cent (20%) of the total of the fund. Subject to such limitations, the board shall have full power to hold, purchase, sell, assign, transfer, or dispose of any of the securities or investments in which the fund created herein have been invested, as well as of the proceeds of such investments and the moneys belonging to the fund.
The state treasurer shall be the custodian of the fund. All payments from the fund shall be authorized by the state treasurer on vouchers duly issued by the state treasurer.

§ 17-510. Funds deposited in banks.

For the purpose of meeting disbursements for retirement allowances and other payments, sufficient cash may be held on deposit to the credit of the state treasurer in one or more banks or trust companies, located in Tennessee, organized under the laws of Tennessee or of the United States, and qualified as state depositories.

§ 17-511. Members' contributions — Payroll deductions deemed authorized.

Each judge who is a member shall contribute to the fund from the date he becomes a member, four per cent (4%) of earnings.
Every member shall be deemed to consent and agree to the payroll deductions made as provided in this chapter; and the payment of salaries and the payment of compensation, less such deductions shall be full and complete discharge of all claims for services as judge rendered by such members to the county during the period covered by such payment.
Any member who is entitled to prior service as defined in § 17-501(f) may claim same by applying to the board, showing the periods of service claimed and furnishing evidence thereof satisfactory to the board, and upon paying to the state treasurer in a lump sum a total contribution equal to four per cent (4%) of the compensation he received for any such service plus common interest at the rate of five per cent (5%) per annum from the date or dates of such prior service.
Upon actual retirement no further contributions on the part of a retired judge or his beneficiary shall be required.

§ 17-512. Tax on litigation — State tax only.

For the purpose of providing sufficient funds to aid in meeting the cost of benefits provided by this chapter, there shall be fixed upon every original civil and criminal case before each court of general sessions in the state of Tennessee, a fee of one dollar and twenty-five cents ($1.25) which shall be known as “general sessions retirement tax” and which shall be collectible and payable under the same circumstances as state and county taxes now collected upon litigation, save that this fee shall be paid, secured, or worked out in criminal cases. The tax as herein provided shall be in addition to such litigation taxes as are now levied by law upon such suits. It shall be a state tax only and no county or municipality shall levy a similar tax. All sums collected from the tax herein levied shall be paid to the state treasurer and shall be placed in the fund pursuant to this chapter.

§ 17-513. Litigation tax under private acts.

Any litigation tax pursuant to any private act of the general assembly shall be suspended during such time and from time to time, on the basis of actuarial standards certified by the actuary retained by the board, as any retirement plan for judges funded in part by such litigation tax is determined by the state treasurer to be actuarially overfunded; thereafter, such litigation tax may be resumed upon determination by the state treasurer that the plan is not overfunded. During any period of time that such local tax is not suspended, the general sessions tax provided in § 17-512 applicable to cases taxed pursuant to any such private act shall be reduced to thirty cents (30¢).

§ 17-514. Members' contribution account.

The members' contribution account shall be the account to which all members' contributions, as provided in this chapter, shall be credited. From this account shall be paid any refund of contributions to a member terminating his service other than by retirement or death; and at the time a member retires or dies, his account balance shall be transferred to the retirement allowance account as defined in § 17-515. Contributions by a member shall be deducted by the county from his earnings for each payroll period subsequent to becoming a member; and the amount so deducted shall be remitted by the county to the state treasurer and deposited in the fund and credited to the member's individual account of the members' contribution account. The agency of a member who is entitled by virtue of § 17-517 to elect to participate in this retirement system and does elect, shall withhold from the member's pay his required contribution and pay the same to the fund in the same manner as payments are received from a county.

§ 17-515. Retirement allowance account.

The retirement allowance account shall be the account in which all litigation taxes, all amounts transferred from the members' contribution account, and all income from invested assets of the fund shall be credited. From this account shall be paid the expenses of administering the system, death benefits, retirement benefits, and any other benefits payable after a member's retirement or death.

§ 17-516. Actuarial valuations and experience investigations.

On the basis of such actuarial assumptions as the board may adopt, the actuary appointed by the board shall make at least biennially a valuation of the assets and liabilities of this retirement system. Based on the results of such valuations, the board shall make recommendations to the general assembly for such changes in this chapter as the board deems desirable for the purpose of assuring that the retirement system will continue to be properly designed and actuarially sound.
In 1967 and each five (5) years thereafter the board shall direct the actuary to investigate actual experience underlying the actuarial assumptions and recommend to the board for adoption new sets of assumptions in line with the results of his investigation.

§ 17-517. Conditions of eligibility and participation.

Any person other than a county chairman becoming a judge after July 1, 1963, shall become a member of this retirement system as a condition of holding office as judge and shall file with the board within thirty (30) days of his date of employment written notice in such form and manner as the board shall require that he has become a judge covered by this retirement system. Any person becoming a county chairman after July 1, 1963, must file with the board within thirty (30) days of the date of his employment, or before July 1, 1972, written notice electing to become a member in such form and manner as the board shall require and any county chairman who does not apply for membership within said thirty (30) days, or before July 1, 1972, shall be deemed to have elected not to become a member and he shall not thereafter have any right to elect to become a member of this retirement system.
Any person who is a judge on July 1, 1963, may elect to participate or not participate in this retirement system, provided, however, that a judge who does not apply for membership before October 1, 1971, shall be deemed to have elected not to become a member as of July 1, 1963. Any judge on July 1, 1963, who elects to become a member as of that date shall, as a condition of becoming a member, contribute to the fund the monthly employee contributions for the period July 1, 1963, to the date of receipt by the board of his application to become a member; provided, however, that any judge on July 1, 1963, who applies for membership after October 1, 1965, shall pay to the fund interest on such monthly employee contributions from July 1, 1963, at the rate of five per cent (5%) per annum; and provided, further, that any judge on July 1, 1963, claiming prior service shall pay to the fund interest on such back contributions from July 1, 1963, at the rate of five per cent (5%) per annum; and provided, further, that any person who was a judge or chairman on November 1, 1965 and who elects to become a member before July 1, 1972, may claim and receive prior service credits by contributing to the fund an amount equal to the amount he would have contributed had he been a member, plus interest on such back contributions at the rate of five per cent (5%) per annum from the date the contribution would have been paid had he been a member. After the date of receipt by the board of his application to become a member, he shall not thereafter be eligible to continue membership or participation in any other system, except that he shall be entitled to enjoy, unimpaired, any vested benefit existing under such other system, but in such case, no periods of time on account of which such vested benefits exist shall be considered credited service under this chapter. Any judge on July 1, 1963, who elects not to become a member and is not covered then or thereafter by any other system, may apply to become a member in like manner at a subsequent date; such judge shall become a member as of the first day of the month next following the date of receipt of his application by the board.
Any judge on July 1, 1963, who as of that date had been a member of any retirement system of the state of Tennessee and who prior to that date had withdrawn his contributions from said system or did not otherwise retain any vested interest in said system shall be eligible to make “supplemental contributions” to this retirement system in respect of each of the years for which he had been entitled to receive credit and for which as of July 1, 1963, he did not have any right to any benefits whether or not on account of such years. The amount of “supplemental contributions” for each year for which supplemental contributions are made shall be determined as the sum of (a) three per cent (3%) of that part of his earnings per year, based on his monthly rate of earnings on July 1, 1963, not in excess of four thousand eight hundred dollars ($4,800) and (b) five per cent (5%) of that part of his earnings per year, based on his monthly rate of earnings on July 1, 1963, that is in excess of four thousand eight hundred dollars ($4,800); provided, however, that such member shall pay to the fund interest on all such supplemental contributions at the rate of five per cent (5%) per annum. Each such year for which supplemental contributions are paid shall be considered credited service, notwithstanding any provisions in this system to the contrary. No judge shall be entitled to pay to this system supplemental contributions in accordance with this § 17-517 after October 1, 1971.
Any county judge or chairman who ceases to hold such office, for reasons other than ouster or impeachment, may elect to participate in this retirement system if he (a) is a member in this retirement system at the time he ceases to hold office, (b) has at least ten (10) years credited service in this retirement system, (c) is at least forty-five (45) years of age, (d) enters into full-time employment within these three (3) months after ceasing to hold such office with an agency entitling him to participate in a state employee's retirement system, and (e) elects to participate in this system and contributes to this system from his salary in the agency in the same manner as other members of this retirement system.
All other provisions of this title notwithstanding, any county-paid judge having sixteen (16) or more years' service on January 1, 1969, and who has reached the age of seventy (70), shall be entitled to the benefits under this retirement system.
All other provisions of this title notwithstanding any person on March 1, 1972, who as of that date is a member of any retirement system of the state of Tennessee and who prior to that date had served as county judge for ten (10) years or more and had withdrawn his contributions from the retirement system for county paid judges shall be eligible to become a member of this retirement system and shall be entitled to the amount of credited service for which he was eligible at the time of termination of membership in such system upon the repayment of his withdrawn contributions together with a payment to the state treasurer equal to four per cent (4%) of the compensation he received during the time of any prior service. Common interest shall be paid on withdrawn contributions at the rate of five per cent (5%) per annum from the time of his withdrawal of such contributions to the time of repayment of his withdrawn contributions. Common interest at the rate of five per cent (5%) per annum shall also be paid to the state treasurer on all compensation received during the time of any prior service from the dates of such service.

§ 17-518. Beneficiary designation.

A member may designate any person as beneficiary to receive benefits as provided in this chapter payable upon the death of the member. A change in designation may be made at any time by the member but such designation or change in designation shall be submitted in writing to the retirement board in such form and manner as the board may prescribe. No designation of beneficiary shall be effective unless and until it has been received by the retirement board prior to the date of death of the member. Upon any change in designation of beneficiary, the rights of all previously designated beneficiaries to receive any benefits provided by this chapter shall cease.
In the absence of a valid designation of beneficiary at the death of a member, the member's estate shall be beneficiary, except in those instances where the beneficiary is entitled to a benefit in accordance with Option B or Option C. In the absence of a valid designation of beneficiary and where the beneficiary is entitled to a benefit in accordance with Option B or Option C, the benefit shall be payable to the surviving spouse, if one exists, and in the event no surviving spouse exists no benefit will be payable unless otherwise determined by the retirement board.

§ 17-519. Termination of membership.

If a member terminates his membership, he shall thereafter forfeit all rights to any benefit or benefits provided under this chapter for service completed prior to the date his membership is terminated. The membership of any member shall terminate upon:
1. (a) Withdrawal of his contributions at termination of employment or anytime thereafter, regardless of his length of credited service;
2. (b) Termination of employment, unless at such termination of employment he has completed eight (8) years of credited service and he does not withdraw his contributions;
3. (c) Termination of employment, unless he has terminated his employment pursuant to § 17-529 and provided that he becomes reemployed as a judge within ten (10) years of such date of termination of employment;
4. (d) Retirement, except disability retirement followed by reemployment as a judge subject to § 17-525, and except early retirement, if a monthly deferred early retirement benefit was elected, followed by reemployment as a judge subject to § 17-524(a);
5. (e) Death;
6. (f) Termination of employment at any time because of impeachment or other removal from office;
7. (g) Should a member cease to be a judge before being eligible for retirement, he shall be paid, upon application as soon as practicable within ninety (90) days thereafter, the amount of his contributions together with three per cent (3%) interest, compounded annually, or with such proportion of the regular interest credited thereon as the board may allow beginning as of July 1, 1965; provided, however, that no interest shall be payable if separation occurs within five (5) years from the date the judge became a member of the system;
8. (h) Should a member die at any time before retirement, the amount of his accumulated contributions plus interest as provided in § 17-519(g) shall be paid to his beneficiary in accordance with § 17-518;
9. (i) Termination of employment unless he is eligible for participation in accordance with § 17-517.

§ 17-520. Prior service certificates.

As soon as practicable after July 1, 1963, the retirement board shall determine the prior service of each judge who became a member as of July 1, 1963 and shall issue to such member a certificate of his prior service. If the board discovers that the prior service recorded on a certificate is incorrect, it shall issue promptly a corrected certificate which shall supersede all certificates previously issued. Copies of such certificates shall become a part of the permanent records maintained by the board in the office of the division of retirement for the purpose of determining benefits payable to members or their beneficiaries. In establishing such records, the board may require, in its discretion, members, beneficiaries, and other persons to submit affidavits as to any information and data which affect benefits payable to members or beneficiaries. When a member terminates his membership as provided in § 17-519, his certificate of prior service shall become void.
Anything in chapter 5 of title 17 or in §§ 8-3701 — 8-3705 to the contrary notwithstanding, the salary contributions of any member of any other system shall be transferred from such other system to the Tennessee retirement system for county paid judges and the member shall be given service for the time that he was a member of such other system on the date that he becomes a member of the Tennessee retirement system for county paid judges.

§ 17-521. Application for benefits.

Before any benefit provided for herein can be paid, all conditions applicable to the payment of the benefit must be met, application for the benefit must be presented to the retirement board in such form and manner as the board shall determine, and the payment of benefit must be approved by the board. If any retirement benefit provided for herein is less than twenty dollars ($20.00) per month, the board in its discretion may pay the actuarially equivalent value of such benefit in one lump sum, or in such other manner as the board may determine. Notwithstanding any provision of this chapter to the contrary, no benefit shall be due or payable before July 1, 1964, and no benefit shall be payable to a retired judge during any time he is employed by any city, county or the state of Tennessee or any political subdivision or instrumentality thereof.

§ 17-522. Normal retirement — Conditions — Benefit.

Each member shall be eligible upon retirement on his normal retirement date to receive a benefit as provided in this section. The benefits provided in this section shall also be paid to all members of the retirement system for county paid judges who retired prior to May 17, 1967. The monthly normal retirement benefit shall be payable on a member's normal retirement date and on the first day of each month thereafter during his lifetime and shall be computed as of his normal retirement date as one-twelfth (⁄) of the product of (a) and (b):
1. (a) Credited service.
2. (b) Three per cent (3%) of his benefit base.
In no event, however, shall a member receive upon retirement a benefit from a retirement system greater than seventy-five per cent (75%) of average earnings.
Notwithstanding any other provisions in this chapter, whenever a member retires on his normal retirement date having twenty-four (24) years of credited service, he shall be entitled to receive a monthly retirement benefit equal to one-twelfth (⁄) of seventy-five per cent (75%) of his average earnings.

§ 17-523. Delayed retirement — Conditions — Benefit.

A member who remains in his judicial office beyond his normal retirement date shall be eligible upon retirement on his delayed retirement date, which shall be the first day of any month following the effective date and his normal retirement date, to receive a benefit as provided in this section. The monthly delayed retirement benefit, which shall be payable on a member's delayed retirement date and on the first day of each month thereafter during his lifetime shall be computed in the same manner set forth in § 17-522 except that such computation shall be made as of his delayed retirement date.

§ 17-524. Early retirement — Conditions — Benefit.

A member who has reached his fifty-fifth birthday or has completed eight (8) years of credited service shall be eligible, upon retirement on his early retirement date, which shall be the first day of any month thereafter but prior to his normal retirement date, to receive a benefit as provided in this section. A member may, upon retirement on his early retirement date, elect to receive either (a) or (b) as follows:
1. (a) a monthly deferred early retirement benefit, which shall be payable on his normal retirement date, provided he is then living, and on the first day of each month thereafter during his lifetime, computed in the same manner set forth in § 17-522 except that such computation shall be made as of his early retirement date; provided, however, that if the date of death of such member occurs after his termination of employment and prior to his normal retirement date, his beneficiary shall receive a refund of the contributions standing to the credit of such deceased member; or
2. (b) an immediate monthly early retirement benefit, which shall be payable on his early retirement date and on the first day of each month thereafter during his lifetime, the amount of which shall be the amount of benefit provided in subparagraph (a) of this section, but reduced by five-twelfths per cent (⁄%) thereof for each full month in the period of time between his early retirement date and his normal retirement date.

§ 17-525. Disability — Definition — Requirements.

Disability means a physical or mental condition of a member which has persisted for six (6) months, which is likely to be permanent, and which has rendered him incapable of further performance of his duties; provided, however, that the event or illness which is deemed by the board to have resulted in the disability had its origin during the time the member was an actively employed judge. Loss of both hands by severance at or above the wrists, or both feet at or above the ankles, or the complete irrecoverable loss of the sight of both eyes, shall conclusively determine disability. Notwithstanding any provision of this section to the contrary, disability as defined in this section shall not include a physical or mental condition which results directly or indirectly from:
1. (a) injury intentionally self-inflicted; or
2. (b) injury or disease resulting from military service.
The retirement board shall have exclusive authority to determine the existence of disability. The board, in its sole discretion, may secure such medical and other evidence as it deems necessary and appropriate. Once each calendar year, the board may require any retired member who is receiving a disability benefit and who has not reached his normal retirement date to undergo a medical examination by a physician or physicians designated by the board, and such examination shall be made at the place of residence of such retired member or at any other place the retirement board designates. If a retired member refuses to submit to such medical examination, his disability benefit shall be discontinued until he shall actually undergo such medical examination; and if he fails to undergo such medical examination for one (1) year from the date the retirement board requests such medical examination, his disability benefit shall be discontinued permanently. If the board determines that he is no longer disabled, his disability benefit shall be discontinued as of the date of such determination; provided, however, that if the retired member reapplies for disability benefits and the board determines that disability exists, payment of his disability benefit shall resume as of the date of such determination that disability exists. If the disability benefit of a retired member is discontinued permanently prior to his normal retirement date and he is reemployed as a judge by the employer within six (6) months following the date his disability ceases, his credited service shall not be deemed to have been interrupted, but shall not include any time during which he was not an employee.

§ 17-526. Disability — Conditions — Benefit.

A member who is an employee, who has completed eight (8) years of credited service, and who has become disabled as defined in § 17-525 shall be eligible, upon retirement from the active employment of the employer on his disability retirement date, which shall be the first day of the month following the determination by the board that he is disabled, to receive a disability benefit as provided in this section. The monthly disability retirement benefit payable on a member's disability retirement date, as defined in this section, and on the first day of each month thereafter during the period of his disability, as defined in § 17-525, and during his lifetime, shall be computed in the same manner set forth in § 17-522 except that such computation shall be made as of his disability retirement date and the amount of such benefit shall not be less than one-fourth (¼) of his average earnings per month. A member shall also receive, upon retirement on his disability retirement date, as defined in this section, a lump sum benefit equal to six (6) months of his monthly disability retirement benefits.

§ 17-527. Death benefits before retirement — After retirement.

If the date of death of a member occurs prior to the commencement of any benefits provided by this chapter and prior to the first day of the month following his fifty-fifth birthday or his completion of eight (8) years of credited service or at a time that the member is under age fifty-five (55) and is not a judge, his beneficiary shall receive a lump sum payment of the member's contributions credited to the deceased member. If the date of death of a member, who was in the active employment of the employer on such date, occurs prior to the commencement of any benefits provided by this chapter, but subsequent to the first day of the month following his fifty-fifth birthday or his completion of eight (8) years of credited service, a monthly survivor benefit shall be payable commencing on the first day of the month following the date of death of the member. Such monthly survivor benefit, if any, shall be the amount payable in accordance with the option elected by the member as though the member has retired on the day before his date of death; provided, however, that if no beneficiary is living on the date of death of the member, a refund of his contributions shall be payable to his estate; and provided further, in lieu of all other benefits payable to a beneficiary upon the death of a member, the beneficiary may elect to receive a lump sum payment of the member's contributions credited to the deceased member. No death benefits shall be payable in the case of a retired member whose date of death occurs after retirement, unless the deceased retired member elected an optional form of benefit which specifically provides for a death benefit.
Notwithstanding any provisions of this chapter to the contrary, if a member is eligible for retirement or disability benefits, but dies without having elected an option, the beneficiary shall be entitled to receive a monthly survivor benefit in the same amount as the beneficiary would have been entitled had the member elected Option C of § 17-532, and retired on the day before his date of death.

§ 17-528. Termination of employment before four years of credited service.

If a member has completed less than four (4) years of credited service at the time of his termination of employment as judge, he shall receive, in lieu of all other benefits he is eligible to receive, a refund of the member's contributions standing to his credit, when he attains the age of sixty-two (62).

§ 17-529. Termination of employment after four years but before eight years of credited service.

If a member has completed at least four (4) years but less than eight (8) years of credited service at the time of his termination of employment as judge he shall have a right to withdraw or leave his contributions in the fund. If he is not reemployed as a judge at the end of ten (10) years from his date of termination of employment as judge, he shall receive a refund of his contributions and thereafter shall have no rights under the system unless he is eligible for participation in accordance with § 17-517.
All other provisions of this title notwithstanding any person on February 1, 1970, who as of that date is a member of any retirement system of the state of Tennessee and who prior to that date had served as county judge for eight (8) years and had withdrawn his contributions from the retirement system for county paid judges shall be eligible to the amount of credited service which he had at the time of termination of membership in such system upon the repayment of his withdrawn contribution with interest at six per cent (6%) per annum from the time of his withdrawal of such contributions to the time of repayment of his withdrawn contributions.

§ 17-530. Termination of employment after eight years of credited service.

If a member has completed at least eight (8) years of credited service at the time of his termination of employment he may elect to receive, in lieu of all other benefits he is eligible to receive, either (a) or (b) as follows:
1. (a) a refund of the contributions made by the member; or
2. (b) a monthly deferred vested retirement benefit, which shall be payable on his normal retirement date; provided he is then living, and on the first day of each month thereafter during his lifetime, computed in the same manner set forth in § 17-522, except that such computation shall be made as of his date of termination of employment; provided, however, that if the date of death of such member occurs prior to his normal retirement date, his beneficiary shall receive a refund of the member's contributions credited to such deceased member.
Notwithstanding anything in § 17-529 or in this section to the contrary, if the termination of employment of a member is by impeachment or other removal from office, he shall not be entitled to any benefit under this system except a refund of contributions made by the member. If a member whose contributions have not been refunded under § 17-529 or this section is reemployed as a judge, his credited service shall not be deemed to have been interrupted, but shall not include any time during which he was not a judge. This section shall not apply if a member terminates employment and elects to participate in accordance with § 17-517.

§ 17-531. Election of optional retirement benefits.

A member entitled to a retirement benefit may elect at any time prior to his retirement date to have a retirement benefit payable under one of the options set forth in § 17-532 in lieu of all the benefits he may otherwise be entitled to receive. The benefit shall be paid in accordance with the terms of the option elected. A member may revoke his election of an option, and he may make a new election at any time prior to retirement. Any election of an option by a member which is not received by the board during the lifetime of the member and in such form and manner which the board may prescribe, or which is not approved by the board, shall be null and void. The board may disapprove any election of an option if the election of said option is deemed to be inconsistent with the pruposes of this chapter. The beneficiary last designated by the member as of the date he delivers written application for an option to the board shall be the beneficiary to receive any benefits payable after his death. The election of an option by a member shall be null and void if the designated beneficiary dies before benefits commence.

§ 17-532. Description of options.

The amount of any optional retirement benefit set forth in this section shall be according to option rates or actuarial bases adopted from time to time by the board.
Option A: 120 payments certain and life option: An option A benefit is a decreased retirement benefit payable for life with the first 120 payments guaranteed. Any guaranteed payments due after the death of the retired member shall be payable to his beneficiary.
Option B: joint and survivor option: An option B benefit is a decreased retirement benefit payable to the retired member for life which shall continue after his death to the surviving beneficiary for life in the same amount as that payable to the retired member.
Option C: modified joint and survivor option: An option C benefit is a decreased retirement benefit payable to the retired member for life which shall continue after his death to the surviving beneficiary for life in the amount of fifty per cent (50%) of the amount that was payable to the retired member.
Option D: social security option: An option D benefit is an increased retirement benefit payable to the retired member during his lifetime until his normal retirement date and a reduced retirement benefit payable thereafter for life in order to have a more level retirement income when such reduced retirement benefit is added to his primary insurance amount payable under the Social Security Act. The optional benefit shall be based on the retired members' estimated primary insurance amount payable under the Social Security Act as such act exists on his early retirement date.
The amount of any optional retirement benefit set forth in this section shall be determined on the basis of the actuarial assumptions that have been adopted by the board and are in use at the time of determination.
If the member is over age fifty-five (55) at date of determination, the optional factors used will be those which would have been applicable when the member was age fifty-five (55) but based on the actuarial assumptions in use at the time of determination.

§ 17-533. Changes in system.

An amendment or repeal of any provision of this chapter shall be made only following an actuarial determination of its effect on the soundness of the system's design as well as its effect on the cost of the system, and disclosure of such information to all interested persons. No amendment or repeal of a provision of this chapter shall affect in any way the benefits then being paid to members, retired members, or beneficiaries or benefits based on service completed prior to the date of such amendment or repeal, except as provided in § 17-534. Provided, however, that in determining such accrued benefits, average base earnings and average earnings shall be determined as of the date of the amendment or repeal, as the case may be.

§ 17-534. Termination of system.

In the event this chapter is repealed in its entirety, including amendatory acts thereto, the retirement board shall prepare a list of all members, retired members, and beneficiaries, showing for each, as of the date of such repeal, the following:
1. (1) For each retired member or beneficiary receiving benefits, the amount and terms of payment of such benefits.
2. (2) For each member entitled to a deferred benefit as provided in § 17-524(a) or § 17-530(b), the amount and terms of payment of such benefit.
The benefits shown on the above list will then be separated into “priority classes” as follows:
1. Priority Class A: Benefits for members who have reached their fifty-fifth birthdays, benefits for retired members who have reached their fifty-fifth birthdays, and benefits for survivors and beneficiaries of all deceased members or retired members.
2. Priority Class B: Benefits for members, retired members who are receiving benefits and terminated members entitled to a deferred benefit as provided in § 17-524(a) or § 17-530(b); provided however, that they have reached their fiftieth but not their fifty-fifth birthdays and have completed eight (8) years of credited service.
3. Priority Class C: Benefits for all other members and retired members.
The board will then arrange for the liquidation of all assets held in the fund maintained in connection with the system and prepare a statement of the liquidated value of such assets. The board will then arrange for the application of the assets of the fund to purchase annuities from an insurance company or companies, to provide in full, if such assets are sufficient to do so, the benefits in priority class A. If such assets are not sufficient to purchase one hundred per cent (100%) of benefits in priority class A, they shall be applied in full to purchase such uniform percentage as can be purchased. If the assets of the fund are more than sufficient to purchase one hundred per cent (100%) of the benefits in priority class A, the remainder shall be applied in the same manner to purchase all or a uniform percentage of benefits in priority class B. If the remaining assets are more than sufficient to purchase one hundred per cent (100%) of the benefits in priority class B, the remainder shall be applied in the same manner to purchase all or a uniform percentage of benefits in priority class C. If the remaining assets are more than sufficient to purchase one hundred per cent (100%) of the benefits in priority class C, the remainder shall revert to the state. Upon completion of the steps specified above, this chapter shall be considered repealed, and no member, retired member or beneficiary shall have any further right or claim to benefits under this chapter.

§ 17-535. Spendthrift clause.

Except for obligations which may be owed to the employer, as to which obligations benefits may be applied by the board, no benefit under this retirement system shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or charge, and any attempt so to anticipate, alienate, sell, transfer, assign, pledge, encumber or charge shall be void, nor shall any such benefit be in any manner liable for or subject to the debts, contracts, liabilities, engagements or torts of the person entitled to such benefit except as specifically provided in the retirement system; and in the event the employer or the board shall find that any member, retired member or beneficiary has become bankrupt or has attempted to anticipate, alienate, sell, transfer, assign, pledge, encumber or charge any benefit under the retirement system, except as specifically provided herein, then such benefit shall cease and determine, and in such event the board, in its sole discretion, shall hold or apply the same to or for the benefit of such member, retired member, beneficiary, his spouse, children or other dependents, or any of them.

§ 17-536. Claims.

Any payment to a member or beneficiary, or to their legal representatives, in accordance with the provisions of this chapter, shall to the extent of the method of computation as well as the amount thereof constitute full satisfaction of all claims hereunder against the trustees and the state of Tennessee, who may require such member, retired member, beneficiary, or legal representative, as a condition precedent to such payment, to execute a receipt and release therefor in such form and manner determined by the board.

§ 17-537. Payments for legally incompetent persons.

If any member, retired member or beneficiary, is a minor, or has been adjudicated legally incapable of personally receiving and giving a valid receipt for any payment due him hereunder, the board may, unless and until claim shall have been made by a duly appointed guardian or conservator of such person, direct that such payment or any part thereof be made to such person or to such person's spouse, child, parent, brother or sister, or other person deemed by the board to be a proper person to receive such payment. Any payment so made shall be a complete discharge of any liability under the retirement system for such payment.

§ 17-538. Correction of errors.

If any change in records or error results in any person receiving from the fund more or less than he would have been entitled to receive had the records been correct, or had the error not been made, the board, upon discovery of such error shall correct the error by adjusting, as far as practicable, the payments in such a manner that the benefits to which such person was correctly entitled shall be paid.

§ 17-539. Violation a misdemeanor — Penalty.

Any person who knowingly makes any false statement or falsifies or permits to be falsified any record or records of this retirement system in an attempt to defraud such system, is guilty of a misdemeanor, and upon conviction thereof, shall be punished by a fine not to exceed five hundred dollars ($500), or by imprisonment in the county jail for not more than twelve (12) months, or both such fine and imprisonment, in the discretion of the court.

11. State Teachers' Retirement System

§ 49-1501. Definition of terms.

The following words and phrases as used in this chapter, unless a different meaning is plainly required by the context, shall have the following meanings:
1. (1) “Retirement system” shall mean the Tennessee teachers' retirement system as defined in § 49-1502.
2. (2) “Public school” shall mean any day school conducted within the state under the authority and supervision of a duly elected or appointed city or county school board, and any educational institution supported by and under the control of the state.
3. (3) “Teacher” shall mean any person employed in a public school as a teacher, helping teacher, librarian, principal, or supervisor, and shall include any superintendent of public schools, or administrative officer of a department of education, or of any educational institution supported in whole or in part by and under the control of the state. In all cases of doubt, the board of trustees hereinafter defined shall determine whether any person is a teacher as defined in this chapter.
4. (4) “Employer” shall mean the state of Tennessee, the county board of education, the city board of education, the state board of education, the board of trustees of the University of Tennessee, the board of trustees of other educational institutions and agencies supported and under the control of the state, or any other agency of and within the state by which a teacher is paid.
5. (5) “Member” shall mean any teacher included in the membership of the system as provided in §§ 49-1508 – 49-1512.
6. (6) “Board of trustees” shall mean the board provided for in § 49-1503 to administer the retirement system.
7. (7) “Medical board” shall mean the board of physicians provided for in § 49-1505.
8. (8) “Service” shall mean service as a teacher as described in subsection (3) of this section.
9. (9) “Prior service” shall mean service rendered prior to the date of establishment of the retirement system for which credit is allowable under §§ 49-1513 – 49-1518.
10. (10) “Membership service” shall mean service as a teacher rendered while a member of the retirement system.
11. (11) “Creditable service” shall mean “prior service” plus “membership service” for which credit is allowable as provided in §§ 49-1513 – 49-1518.
12. (12) “Beneficiary” shall mean any person in receipt of a state annuity, a teacher annuity, a retirement allowance, or other benefits as provided by this chapter.
13. (13) “Regular interest” shall mean interest compounded annually at such a rate as shall be determined by the board of trustees in accordance with § 49-1537.
14. (14) “Accumulated contributions” shall mean the sum of all the amounts deducted from the compensation of a member and credited to his individual account in the members' contributions account, together with regular interest thereon as provided in § 49-1538.
15. (15) “Earnable compensation,” as applied to pay for teaching service rendered before July 1, 1955, shall mean the full rate of the compensation excluding any part of compensation in excess of three thousand six hundred dollars ($3,600) per annum that would be payable to a teacher if he worked the full normal working time, with the exception of the period between July 1, 1945 and July 1, 1949, when the earnable compensation excluded any part of the compensation in excess of two thousand five hundred dollars ($2,500) per annum. As applied to pay for teaching service rendered on or after July 1, 1955, “earnable compensation” shall mean the full rate of the compensation that would be payable to a teacher if he worked the full normal working time.
16. (16) “Average final compensation” means the average annual earnable compensation of a teacher during the five (5) years of his service producing the highest such average, except that for the purpose of § 49-1548, it shall mean the average annual earnable compensation during the last five (5) years of service. If a teacher had less than five (5) years of service, it shall mean the average annual earnable compensation for all such years of service. Any increased cost to the state occasioned by the changes in retirement benefits made by the 1969 amendment of this item shall be paid out of annual earnings on investments of the Tennessee teachers' retirement system in excess of four per cent (4%).
17. (17) “Teacher annuity” shall mean payment for life derived from the accumulated contributions of a member. All teacher annuities shall be payable in equal monthly installments.
18. (18) “State annuity” shall mean payments for life derived from money provided by the state of Tennessee. All state annuities shall be payable in equal monthly installments.
19. (19) “Retirement allowance” shall mean the sum of the “teacher annuity and the state annuity” or any optional benefit payable in lieu thereof.
20. (20) “Retirement” shall mean the withdrawal from active service with a retirement allowance granted under the provisions of this chapter.
21. (21) “Teacher annuity reserve” shall mean the present value of all payments to be made on account of any teacher annuity or benefit in lieu of any teacher annuity, computed on the basis of such mortality tables as shall be adopted by the board of trustees, and regular interest.
22. (22) “State annuity reserve” shall mean the present value of all payments to be made on account of any state annuity or benefit in lieu of any state annuity computed upon the basis of such mortality tables as shall be adopted by the board of trustees, and regular interest.
23. (23) “Actuarial equivalent” shall mean a benefit of equal value when computed upon the basis of such mortality tables as shall be adopted by the board of trustees, and regular interest.
24. (24) “Local retirement fund” shall mean any teachers' retirement fund or other arrangement for payment of retirement benefits to teachers, except this retirement system, in force on the date of establishment of this retirement system and supported wholly or in part by contributions made by an employer as defined by this chapter.
25. (25) The masculine pronoun wherever used shall include the feminine.
26. (26) “Prior service annuity” shall mean a state annuity equal to the teacher annuity which would have been provided at age sixty (60) or at the member's retirement age if prior to age sixty (60) by twice the contributions which the member would have made during his prior service had the system been in operation and he contributed thereunder, except that in the case of any member who had attained age sixty (60) on the date of establishment such additional state annuity shall be equal to the teacher annuity which would have been provided at his age on the date of establishment by twice the contributions which he would have made during such prior service had the system been in operation and he contributed thereunder.
27. (27) “Covered compensation” shall mean the maximum amount of earnable compensation which may be included in the determination of the primary insurance amount under the Social Security Act.

§ 49-1502. Establishment of system — Management.

A retirement system is established and placed under the management of the board of trustees for the purpose of providing retirement allowances and other benefits under the provisions of this chapter for teachers of the state. The retirement system so created shall be established as of July 1, 1945.
It shall have the power and privilege of a corporation and shall be known as the “Tennessee Teachers' Retirement System,” and by such name all of its business shall be transacted, all of its funds invested, and all of its cash and securities and other property held in trust for the purpose for which received.

§ 49-1503. Board of trustees.

(1) The general administration and responsibility for the proper operation of the retirement system and for making effective the provisions of this law are hereby vested in a board of trustees.
(2) The board shall consist of eight (8) members, as follows:
1. (a) The state commissioner of education, ex officio;
2. (b) The state treasurer, ex officio;
3. (c) Six (6) members to be appointed by the governor. Three (3) of the appointed members shall be members of the teaching profession of the state and three (3) who are neither members of the teaching profession nor state employees, one (1) from each grand division of the state. The term of office of members so appointed shall be three (3) years.
  1. The three (3) appointed members who are teachers shall be appointed from a list of teachers, nominated by the representative assembly of the Tennessee education association, who are teachers in service in schools or institutions supported in whole or in part by state appropriations. One shall be appointed from a list of three (3) nominated from each of the three (3) grand divisions of the state.
4. If a vacancy occurs in the office of a trustee, the vacancy shall be filled for the unexpired term in the same manner as the office was previously filled.
(3) The trustees shall be paid ten dollars ($10.00) per day during sessions of the board and shall be reimbursed from the expense fund for all necessary expenses that they may incur through service to the board. The board of trustees shall meet quarterly on Friday after the first Monday in January, April, July, and October. Special meetings of the board for the transaction of business may be called by the chairman by giving written notice to all members at least ten (10) days prior to the date of the meeting.
(4) Each trustee, other than the ex officio members, shall take an oath of office, that, so far as it devolves upon him, he will diligently and honestly administer the affairs of the said board, and that he will not knowingly violate or willingly permit to be violated any of the provisions of law applicable to the retirement system. Such oath shall be subscribed by the member taking it, and certified by the officer before whom it is taken, and immediately filed in the office of the secretary of state.
(5) Each trustee shall be entitled to one (1) vote on the board. Five (5) affirmative votes shall be necessary for a decision by the trustees at any meeting of the said board. Five (5) members of the board of trustees shall constitute a quorum.
(6) Subject to the limitations of this chapter, the board of trustees shall, from time to time, adopt and publish rules and regulations for the administration of the funds created by this chapter and for the transaction of its business.
(7) The state commissioner of education shall be ex officio chairman of the board of trustees. The board of trustees shall, by a majority vote of all the members, elect a secretary, who may be, but need not be, one (1) of its members. The board of trustees shall engage such actuarial and other service as shall be required to transact the business of the retirement system. The compensation of all persons engaged by the board of trustees, and all other expenses of the board necessary for the operation of the retirement system, shall be paid at such rates and in such amounts as the board of trustees shall approve.
(8) The board of trustees shall keep in convenient form such data as shall be necessary for actuarial valuation of the various funds of the retirement system and for checking the expenses of the system.
(9) The board of trustees shall keep a record of all of its proceedings which shall be open to public inspection. It shall publish annually a report showing the fiscal transactions of the retirement system, including assets and liabilities, receipts and expenditures, for the preceding year, the amount of the accumulated cash and securities of the system, and the last balance sheet showing the financial condition of the system by means of an actuarial valuation of the assets and liabilities of the retirement system.
(10) The board of trustees shall provide for an annual audit to be made by a reliable independent auditor. A complete audit by the office of the comptroller of the state shall be deemed a sufficient compliance with this requirement.

§ 49-1504. Legal adviser to board.

The state attorney general or an assistant designated by him shall be the legal adviser of the board of trustees.

§ 49-1505. Medical board.

The board of trustees shall designate a medical board to be composed of three (3) physicians not eligible to participate in the retirement system. If required, other physicians may be employed to report on special cases. The medical board shall arrange for and pass upon all medical examinations required under the provisions of this chapter, and shall investigate all essential statements and certificates by or on behalf of a member in connection with an application for disability retirement, and shall report in writing to the board of trustees its conclusion and recommendations upon all the matters referred to it. Compensation for services of the members of the medical board shall be determined by the board of trustees.

§ 49-1506. Actuary — Duties.

(1) The board of trustees shall designate an actuary who shall be the technical adviser of the board of trustees on matters regarding the operation of the funds created by the provisions of this chapter and shall perform such other duties as are required in connection therewith.
(2) The actuary shall make such investigation of the mortality, service, and compensation experience of the members of the system, as he shall recommend and the board of trustees shall authorize, and on the basis of such investigation he shall recommend for adoption by the board of trustees such tables and such rates as are required in subsection (3) of this section. The board of trustees shall adopt tables, and certify the rates of contribution required under this chapter.
(3) At least once in each six (6) year period, the actuary shall make an actuarial investigation into the mortality, service, and compensation experience of the members and beneficiaries of the retirement system, and taking into account the result of such investigation and valuation, the board of trustees shall adopt for the retirement system such mortality, service and other tables as shall be deemed necessary.
(4) On the basis of such tables as the board of trustees shall adopt, the actuary shall make a valuation at least once in each two (2) year period of the assets and liabilities of the accounts of the system created by this chapter.

§ 49-1507. Pecuniary interest of trustees and employees prohibited.

Except as otherwise herein provided, no trustee and no employee of the board of trustees shall have any direct interest in the gains or profits of any investment made by the board of trustees, nor as such receive any pay or emolument for his service. No trustee or employee of the board shall directly or indirectly for himself or as an agent in any manner use the same, except to make such current and necessary payments as are authorized by the board of trustees upon proper vouchers to the state treasurer, nor shall any trustee or employee of the board of trustees become an indorser or surety or in any manner an obligor for moneys loaned to or borrowed from the board of trustees.

§ 49-1508. Membership of teachers beginning after 1945.

Except as provided in § 49-1510, any person who shall become a teacher after the date as of which the retirement system is established shall become a member of the retirement system as a condition of his employment.

§ 49-1509. Membership of teachers.

(1) There are hereby created two (2) classes of members in the Tennessee teachers' retirement system, to be known as class A members and class B members and to be defined as follows:
1. (a) Class A members shall be those members who are covered by the provisions of Title II of the Federal Social Security Act and who contribute hereunder for benefits supplementary to the social security benefits. It shall consist of: (i) all teachers who were members prior to the date coverage under the Social Security Act is extended to such class A members, and who prior to June 30, 1959 file on a form approved by the board of trustees, a waiver of their rights to benefits accrued to them under this chapter as it heretofore existed, an election to be covered by said Social Security Act and the supplementary benefits provided by this chapter, as amended, and an agreement to the deduction of their accrued taxes, if any, under the Federal Insurance Contributions Act for the period from January 1, 1956, from the accumulated contributions held in his account in the members' contribution account; and (ii) all teachers who were eligible to elect to become class A members and to be covered under the Social Security Act as provided in (i) above but did not so elect, and who, if a future amendment of the Federal Social Security Act should so permit, elect to become class A members and to be covered under the Social Security Act in accordance with the terms of an agreement, if any, made between the state of Tennessee and the social security administration; and (iii) all teachers who enter the membership on or after the date coverage under the Social Security Act is extended to such class A members.
2. (b) Except as provided in clause (iii) of paragraph (a) of this subsection, class B members shall consist of those members who have not elected to become class A members.
(2) Except as provided under § 49-1510, any person who was a teacher on February 15, 1945 or who may have become a teacher on or before July 1, 1945, became a member of the retirement system unless he notified the board of trustees in writing on a form provided by the board on or before July 1, 1946, that he did not choose to become a member of this retirement system, and executed a waiver of all present and prospective benefits which would otherwise accrue to him by participating in the system. Any teacher who elected not to become a member may thereafter apply for and be admitted to membership, but without credit for service rendered after July 1, 1945, and prior to the time he becomes a member, except as provided in §§ 49-1518, 49-1542 and 49-1552.

§ 49-1510. Exclusion of teachers under local retirement systems.

Teachers in the service of an employer operating a local retirement fund or plan or arrangement containing provisions for the retirement of teachers on a joint contributory basis who are eligible for membership therein shall not be members of the retirement system established under this chapter, and such teachers shall make no contributions to this retirement system nor be eligible for benefits under this retirement system except as provided in § 49-1542. Members of this system who are eligible to belong to the county officials' retirement system may elect to join such system and withdraw the membership and contributions from this system; any person making such an election shall make no further contributions to this system nor be eligible for retirement benefits under the provisions of this system.

§ 49-1511. Education association and other employees.

Should the Tennessee education association request that its administrative employees be permitted to become members of this retirement system or should the Tennessee school boards association or the Tennessee secondary schools athletic association so request and should the association so requesting agree to make in behalf of its employees the employer's contributions required under this chapter, such employees shall be considered as teachers for the purpose of this retirement system and shall be eligible for membership herein. They shall make the same contributions and shall be eligible to the same benefits as teacher members. They shall be allowed such credit for service as shall be certified and paid for by their association. The association shall make normal contributions and special accrued liability contributions corresponding to the contributions payable by the state. The special accrued liability contributions shall be determined by an actuarial valuation of the accrued liability on account of the employees of the association who become members, in the same way as the accrued liability contributions for teacher members were determined. The contributions of the association shall be paid by the association to the board of trustees of this retirement system at the same time the state's contributions on account of teacher members are due and payable, and all benefits payable to employees of the association shall be contingent upon the payment of the necessary contributions by the association and its employees.
The administrative employees as of March 1, 1959, of said associations shall be divided into two (2) groups, the first to contribute to the Tennessee teachers' retirement system as though they were class A members, and the second group to contribute as though they were class B members. Each such employee shall have the right to choose the group in which he will be placed. This division shall be effective as of January 1, 1956. Administrative employees of said associations employed after March 1, 1959, who enroll in the Tennessee teachers' retirement system shall contribute to the retirement system as though they were class A members. Administrative employees of said associations who transfer to positions covered by the Tennessee teachers' retirement system shall become class A members and contribute thereafter as such.

§ 49-1512. Cessation of membership.

Should any member having less than ten (10) years of creditable service, or four (4) years of creditable service for any member in an institution of higher learning, be absent from service more than seven (7) years in any period of nine (9) consecutive years after becoming a member or should he be employed by an employer operating a local retirement fund or plan or arrangement containing provisions for the retirement of teachers on a joint contributory basis or should he withdraw his accumulated contributions or should he become a beneficiary or die, he shall thereupon cease to be a member.
With reference to the above provision as to absence from service, on and after July 1, 1956, teaching service totaling at least eighteen (18) months during any period of nine (9) consecutive years after becoming a member shall be an absolute requirement to retain membership during any such period ending on any date on or after July 1, 1956. Provided that should such member with less than fifteen (15) years of teaching service in the public schools of Tennessee reenter the teaching profession, and become a member of the Tennessee teachers' retirement system prior to his sixtieth birthday and shall remain in the teaching service continuously for at least five (5) years prior to his sixtieth birthday and should such member repay any and all of his withdrawn contributions with interest at six per cent (6%) per annum from the time of his withdrawal of such contributions to the time of repayment of his withdrawn contributions, he shall be entitled to reclaim all his creditable teaching service in the Tennessee teachers' retirement system.

§ 49-1513. Filing statement of prior service.

Under such rules and regulations as the board of trustees shall adopt, each member, who was a teacher at any time during the five (5) years immediately preceding the establishment of the system and who became a member before July 1, 1950, may file before July 1, 1959 a detailed statement of all service as a teacher rendered by him prior to the date of establishment for which he claims credit.

§ 49-1514. Determination of prior service credit.

The board of trustees shall fix and determine by appropriate rules and regulations how much service in any year is equivalent to one (1) year of service, but in no case shall more than one (1) year of service be creditable for all service in one (1) year. Service rendered for the regular school year in any district shall be equivalent to one (1) year's service.

§ 49-1515. Verification of prior service — Computation of compensation.

Subject to the above restrictions and to such other rules and restrictions as the board of trustees may adopt, the board of trustees shall verify, as soon as practicable after the filing of such statements of service, the prior service therein claimed. In no case shall such prior service become creditable unless evidence thereof satisfactory to the board of trustees has been submitted to it prior to July 1, 1959, except as provided in §§ 49-1518, 49-1542 and 49-1552.
In lieu of determination of the actual compensation of the members that was received during such periods of prior service, where such actual compensation is not otherwise reasonably ascertainable, the board of trustees may use for the purpose of this chapter the compensation rates which will be determined by the average salary of the members for five (5) years immediately preceding the date this system became operative as the records show the members actually received.

§ 49-1516. Prior service certificates.

Upon verification of the statements of service, the board of trustees shall issue prior service certificates certifying to each member the period of service rendered in Tennessee prior to the establishment of the retirement system, with which the member is credited on the basis of his statement of service. So long as membership continues a prior service certificate shall be final and conclusive for retirement purposes as to such service; provided, however, that any member may, prior to July 1, 1959, request the board of trustees to modify or correct his prior service certificate based upon evidence filed prior to July 1, 1959.
When membership ceases, such prior service certificate shall become void. Should the teacher again become a member, such teacher shall enter the system as a teacher not entitled to prior service credit except as provided in § 49-1549 and § 49-1518.

§ 49-1517. Credit for military service.

Any teacher who was a member of the armed forces of the United States, including any person absent from the place of his residence and serving in the armed forces of the United States, or in the merchant marine of the United States, or in the American Red Cross, the United Service Organization, or any other organization attached to and serving with the armed forces of the United States during the period of any war in which the United States has been or may be engaged, or any teacher who has served at the call of the president during the period of any peace time emergency any mobilization of a military reserve unit (or individual member of such unit) including, but not limited to, the United States coast guard or the national guard shall be entitled to service credit for the period of such military service provided he returns to or begins the service of teaching within the meaning of this chapter within a period of two (2) years after he has received his honorable discharge, except that such two (2) year period may be extended to not more than seven (7) years if the board of trustees shall find that the member was regularly attending college in preparation for entering or returning to the teaching profession during the entire period of time in excess of two (2) years following his honorable discharge. Any teacher with credit for such military service who continues as a member until retirement shall at the time of retirement be entitled to have his accumulated contributions increased by the contributions he would have made for the period of such military service on the basis of the salary received by him during his first year of teaching service after such period, together with regular interest thereon to the date of his retirement, and such service shall be included in his creditable service for the purpose of determining his state annuity.
Any other provision of law to the contrary notwithstanding any person called into military service by the president, in time of war or national emergency, or any mobilization of a military reserve unit (or individual member of such unit) including, but not limited to, the United States coast guard or the national guard within ninety (90) days after leaving service as a teacher, as defined in this chapter, shall be entitled to retirement credit for the period of his military service upon condition he returned to teaching service, as defined in this chapter, within seven (7) years from the date of his honorable discharge.
The provisions of this section shall not apply to any period of military service arising from voluntary enlistment or reenlistment during any peace time period.

§ 49-1518. Creditable service at retirement.

Creditable service at retirement on which the retirement allowance of a member shall be based shall consist of the membership service rendered by him since he last became a member and also if he has a prior service certificate which is in full force and effect, the amount of service certified on his prior service certificate. The member may elect to have included as membership service after January 1, 1961, the time served during a legislative session as a member of the general assembly.
Notwithstanding any other provisions to the contrary in this chapter, any member who retires on or after July 1, 1967, and who establishes evidence to the satisfaction of the board of trustees that he taught a total of ten (10) or more years in the public schools of Tennessee, some of which service was rendered prior to July 1, 1945, shall be entitled to have such service rendered prior to July 1, 1945, included as creditable service; provided further, that creditable service shall also include teaching service in the public schools of Tennessee after July 1, 1945, under any of the following conditions: (1) When a teacher's contributions are withdrawn but repaid to the retirement system with interest at six per cent (6%) per annum from the date of withdrawal of such contributions to the date of repayment, (2) when a member whose retirement account has become inactive because of too much absence from teaching service and his accumulated contributions have not been withdrawn but who pays to the retirement system six per cent (6%) interest per annum on his accumulated account from the date his account became inactive to the date of the reactivation of his account, or (3) when a teacher who failed to become a member of the retirement system by officially electing to be a nonmember, as provided in subsection 2 of § 49-1509, pays to the retirement system the total amount of all the contributions he otherwise would have contributed to the retirement system during said period of nonmembership, plus six per cent (6%) interest per annum for each year that funds normally would have been on deposit with the retirement system.

§ 49-1519. Accounts established.

All of the assets of the retirement system shall be credited according to the purposes for which they are held to one (1) of two (2) accounts, namely, the members' contributions account and the accumulation account.

§ 49-1520. Members' contributions account — Source.

The members' contributions account shall be the account in which shall be accumulated contributions from the compensation of members to provide for their teacher annuities. Contributions to and payments from the members' contributions account shall be made as set forth in §§ 49-1521 – 49-1526.

§ 49-1521. Deductions from teachers' pay and fund.

(a) Each employer shall cause to be deducted from the salary of each member on each and every payroll of such employer for each and every payroll period a per centum of his earnable compensation which in the case of a class A member shall be three per cent (3%) of his covered compensation and five per cent (5%) of the part of his earnable compensation in excess of his covered compensation, and which in the case of a class B member shall be five per cent (5%) of his earnable compensation for the period of his membership prior to July 1, 1967, and for each such period on and after July 1, 1967, shall be seven per centum (7%) of his earnable compensation. The employer shall transmit same to the state treasurer monthly, but the employer shall not have any deduction made for teacher annuity purposes from the compensation of a class B member who elects not to contribute if he has attained the age of sixty (60) years and has completed thirty-five (35) years of service. Each employer shall also cause to be deducted from the salary of each class A member the proper amount required for social security and transmit the same to the old age and survivors insurance agency, state of Tennessee, quarterly together with a prescribed report.
(b) The deductions provided for herein shall be made notwithstanding that the minimum compensation provided for by law for any members shall be reduced thereby. Every member shall be deemed to consent and agree to the deductions made and provided for herein and shall receipt for his full salary and compensation, and payments of salary or compensation, less said deduction, shall be a full and complete discharge and acquittance of all claims and demands whatsoever for services rendered by such person during the period covered by such payment, except as to the benefits, provided under this chapter. The employer shall certify to the board of trustees on each and every payroll, or in such other manner as the board of trustees may prescribe, the amounts to be deducted, and each of said amounts shall be deducted and when deducted, shall be paid into said members' contributions account, and shall be credited together with regular interest thereon to the individual accounts of the member from whose compensation said deduction was made.
1. Notwithstanding anything to the contrary in this chapter, no employer shall make any deduction during any year for which the state contribution to the accumulation account is not made.
(c) An amount equal to the taxes under the Federal Insurance Contributions Act payable by a class A member for the period beginning January 1, 1956 and ending on July 1, 1957 shall be deducted from amounts credited to such member in the teacher annuity savings fund. Any member may elect to deposit in said fund by a single payment an amount equal to the taxes so deducted.

§ 49-1522. Collection of members' contributions.

The collection of members' contributions shall be as follows:
Each employer shall cause to be deducted on each and every payroll of a member the contributions payable by such member as provided in this chapter, and the employer shall draw his warrant for the amount so deducted, payable to the Tennessee teachers' retirement system, and shall transmit the same, together with schedule of the contributions, on such forms as may be prescribed.

§ 49-1523. Contributions during leave of absence.

Subject to the approval of the board of trustees, any member who is on leave of absence on account of military service or for any other purpose which might tend to increase the efficiency of the service of the member to his or her employer, may make monthly contributions to the retirement system on the basis of the salary or wage such member was receiving at the time such leave of absence was granted.

§ 49-1524. Return of contributions on cessation of membership.

Should a member cease to be a teacher, except by death or retirement under the provisions of this chapter, he shall be paid upon application made not less than four (4) months following his cessation of service the amount of the accumulated contributions standing to the credit of his individual account in the members' contributions account. Should a member die before retirement, the amount of his accumulated contributions standing to the credit of his individual account shall be paid to his estate or to such person as he shall have nominated by written designation, duly executed and filed with the board of trustees; provided, that such member has not made an optional election which has become effective.

§ 49-1525. Redeposit of withdrawn contributions.

In addition to the contributions deducted from compensation as hereinbefore provided, subject to the approval of the board of trustees, any member may redeposit in the members' contributions account by a single payment an amount equal to the total amount which he previously withdrew therefrom as provided in this chapter. Such amounts so deposited shall become a part of his accumulated contributions in the same manner as if said contributions had not been withdrawn.

§ 49-1526. Transfers from members' contributions account to accumulation account.

Upon the retirement of a member, the amount of his accumulated contributions standing to the credit of his individual account in the members' contributions account shall be transferred to the accumulation account.

§ 49-1527. Accumulation account.

The accumulation account shall be the account in which shall be accumulated the reserves for the payment of that part of all retirement allowances and other benefits not provided by the members' accumulated contributions, to which upon retirement a members' accumulated contributions shall be transferred and from which shall be paid all retirement allowances and other benefits. Contributions to the accumulation account shall be made as set forth in sections 49-1528 – 49-1531. Should a beneficiary retired on account of disability or service retirement be restored to active service prior to age sixty (60) with a compensation not less than his average final compensation at the time of his last retirement his teacher annuity reserve shall be transferred from the accumulation account to the members' contributions account and credited to his individual account therein.

§ 49-1528. Annual payment of state contributions.

On account of each member there shall be paid annually in the accumulation account by the state treasurer for the preceding fiscal year an amount equal to a certain percentage of the earnable compensation of each member to be known as “normal contribution,” and an additional amount equal to a percentage of his earnable compensation to be known as the “accrued liability contribution.” The rate per centum of such contributions shall be fixed on the basis of the liabilities of the retirement system as shown by actuarial valuation.

§ 49-1529. Normal rate of state contributions.

On the basis of regular interest and of such mortality and other tables as shall be adopted by the board of trustees, the actuary engaged by the board to make each valuation required by this chapter during the period over which the accrued liability contribution is payable, immediately after making such valuation, shall determine the uniform and constant percentage of the earnable compensation of the average new entrant throughout his entire period of active service which would be sufficient to provide for the payment of any state annuity on his account. The rate per centum so determined shall be known as the “normal contribution rate.” After the accrued liability contribution has ceased to be payable, the normal contribution rate shall be the rate per centum of the earnable compensation of all members obtained by deducting from the total liabilities of the accumulation account the amount of the funds in hand to the credit of that account and dividing the remainder by one per cent (1%) of the present value of the prospective future earnable compensation of all members as computed on the basis of the mortality and service tables adopted by the board of trustees and regular interest. The normal rate of contribution shall be determined by the actuary after each valuation.

§ 49-1530. Accrued liability contribution rate.

Immediately succeeding the next valuation the actuary engaged by the board of trustees shall compute the rate per cent of the total annual earnable compensation of all members which is equivalent to four per cent (4%) of the amount of the total state annuity liability on account of all members and beneficiaries which is not dischargeable by the funds in hand standing to the credit of the accumulation account and the aforesaid normal contributions to be made on account of such members during the remainder of their active service. The rate per cent originally so determined, or as thereafter determined on the basis of actuarial valuation and certified by the board of trustees as a rate of contribution sufficient to discharge said amount prior to July 1, 1995, shall be known as the “accrued liability contribution” rate.

§ 49-1531. Amount payable annually by state.

The total amount payable in each year to the accumulation account shall be not less than the sum of the rate per cent known as the normal contribution rate and the accrued liability contribution rate of the total compensation earnable by all members during the preceding year.
The accrued liability contribution shall be discontinued as soon as the accumulated reserve in the accumulation account shall equal to the present value, as actuarily computed and approved by the board of trustees, of the total liability of such fund less the present value, computed on the basis of the normal contribution rate then in force, of the prospective normal contributions to be received on account of all persons who are at the time members.

§ 49-1532. [Repealed]

§ 49-1533. [Repealed]

§ 49-1534. Payment of state's contribution.

The state's contribution shall be made as follows:
On or before the first day of January, next preceding each regular meeting of the general assembly of Tennessee, the board of trustees shall certify the percentage of normal contributions, the percentage of the accrued liability contribution, and the expense account contribution to the state budget director. The state budget director shall include in the budget an appropriation for the retirement system in an amount equal to such percentage of the part of earnable compensation of its teachers who are members of the retirement system, the amount of the accrued liability and the expense account contribution, and such amounts shall be appropriated and when appropriated paid to the board of trustees annually. The state commissioner of education in his estimate submitted to the governor and general assembly of the funds necessary for the operation of the school system shall include a request for an appropriation for the retirement system in amount equal to such amounts. The general assembly shall make appropriations to the board of trustees sufficient to provide such amounts. The commissioner of finance and administration shall issue his warrant to the state treasurer, directing the state treasurer to pay the amounts appropriated to the board of trustees for the retirement system.
Notwithstanding any other provisions of this chapter or any other statute, amounts equal to the taxes under the Federal Insurance Contributions Act payable by the state in behalf of class A members for the period beginning January 1, 1956 and ending June 30, 1959, shall be paid from funds heretofore or hereafter appropriated for the Tennessee teachers' retirement system for such period. This provision shall not be extended or otherwise deemed effective with respect to such appropriations for any period subsequent to June 30, 1959, except such amount as is necessary to pay the employers' share of the social security cost for those who transfer from class B to class A subsequent to June 28, 1957 and prior to June 30, 1959, in accordance with § 49-1509 shall be paid from the teacher retirement appropriation for the biennium ending June 30, 1961, but not thereafter.

§ 49-1535. Payment of allotted funds into accumulation account.

Notwithstanding any other provisions of this or any other law, until the accrued liability of the retirement system has been funded in its entirety, any portion of the funds heretofore or hereafter appropriated to the retirement system for any fiscal year, unallotted to any of the accounts above enumerated or any excess funds contained in any such appropriation arising from any cause whatsoever, shall be allotted by the accounts section of the department of finance and administration into the accumulation account for the funding of said accrued liability.

§ 49-1536. Management and investment of funds.

The board of trustees shall be the trustee of the several funds created by this chapter as provided in § 49-1519, and shall have full power to invest and reinvest such funds, provided that such funds shall be invested only in general obligations of the United States government, in general obligations of the state of Tennessee, or in general direct obligations of Tennessee counties and municipalities that have not been in default on either principal or interest on their obligations within five (5) full years next preceding the date of the investment; provided, further, that, subject to like limitations, said trustees shall have full power to hold, purchase, sell, transfer, and dispose of any of the securities and investments in which any of the funds created herein shall have been invested, as well as the proceeds of said investments and any moneys belonging to said funds. Provided, however, that the board of trustees is hereby authorized to delegate the herein mentioned powers to purchase, sell, transfer or dispose of any of the securities and investments to the state treasurer.
The board may also invest its funds in revenue bonds of municipalities, where the aggregate earnings of the utility against which such revenue bonds be issued, available for debt service, for the twelve (12) months immediately preceding such purchase, have been at least one and one-third (1⅓) times the maximum annual requirement for such debt service.
The board may also invest its funds in corporate bonds and debentures rated “A” or higher by two (2) nationally recognized statistical services approved by the board of trustees, or in corporate bonds and debentures approved by the Tennessee department of insurance and banking.
The board may also invest its funds in common and preferred stocks rated “A” or higher by a nationally recognized statistical service approved by the board of trustees, provided that the new investments in such stocks in any fiscal year shall be not more than four per cent (4%) of the total value of all investments at the beginning of that fiscal year, and further provided that when the total book value of the investment in stock shall have reached twenty per cent (20%) of the total value of all investments, no further investment in such stocks shall be made until the ratio of the value of stocks to the total value of all investments shall fall below twenty per cent (20%). The board may also invest funds in securities which at the time of making the investment are, by statute, permitted for the investment of reserves of any domestic life insurance companies.

§ 49-1537. Interest rate used in calculations.

The board of trustees shall determine from time to time the rate of regular interest for use in all calculations. Such rate shall be limited to a minimum of three per cent (3%) and a maximum of six per cent (6%), with the former rate applicable until changed by the board. Increases in the regular rate of interest shall be made by the board only when justified by corresponding increases in earnings of interest and dividends.

§ 49-1538. Crediting of interest and dividends.

All interest and dividends earned on the funds of the retirement system shall be credited to the accumulation account. Once each year the board of trustees shall transfer from the accumulation account to the members' contributions account an amount sufficient to allow regular interest on the balance of the individual accounts of teachers.

§ 49-1539. Treasurer as custodian of accounts — Cash on hand.

The state treasurer shall be the custodian of the several accounts. He shall furnish the board a bond, the amount to be fixed by the board and approved by the governor. All payments from the said accounts shall be made by him only upon vouchers signed by two (2) persons designated by the board of trustees.
For the purpose of meeting disbursements for state annuities, teacher annuities, and other payments there may be kept available cash, not exceeding ten per cent (10%) of the total amount in the several accounts of the retirement system on deposit with the state treasurer.

§ 49-1540, 49-1541. [Repealed]

§ 49-1542. Members of local retirement funds.

(a) Any teacher in the service of an employer operating a local retirement fund, who is eligible for membership therein, shall not be a member of the retirement system established by this chapter, and shall make no contributions to this retirement system, and shall be eligible for benefits under this retirement system only as provided in this section, but any teacher employed by an employer operating a local retirement system who is not eligible for membership in the local retirement system, shall be eligible for membership in the system established by this chapter, shall contribute to and participate in the benefits of this chapter. Any teacher entering the service of an employer operating a local retirement fund after February 15, 1945 may elect to become a member of the local retirement fund, provided that the application is approved by the governing board of the local retirement fund. If a teacher in the service of an employer operating a local fund who is eligible for membership therein shall cease to be a teacher, and if at such time he would have been eligible for service or disability retirement under the provisions of this retirement system had he been a member, the board of trustees shall pay from the accumulation account of this system to the managing board of the local retirement fund a state annuity equal to the state annuity for membership service which would have been payable under this system if such member had been classified as a class B member of this system to the time of his retirement; and, if, as hereafter provided, he has a prior service certificate in full force and effect, the board shall also pay the state annuity that would have been payable to a class B member on account of the prior service accumulations certified thereon; provided that 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; provided, however, that in case any local retirement fund shall provide for service retirement at an age lower than the minimum prescribed under the provisions of this system, no state annuity shall be paid on account of any member so retired at such lower age until he has attained the minimum service retirement age prescribed by this system, at which time the state annuity shall be payable computed at the age of actual retirement. Notwithstanding the foregoing, should the teacher have been a class A member in the retirement system for a period of five (5) or more years the amount of state annuity payable hereunder shall be determined on the basis of such classification. The payment of the state annuities under the provisions of this section shall be subject to all the conditions governing the payment of state annuities to members retired under this retirement system. It shall be the duty of the employers operating local retirement funds to report to the board of trustees annually or at such other intervals as shall be set by the board, the earnable compensation of each teacher in their employ and such other information as may be needed for establishing the prospective benefit of the member and for administering the provisions hereunder. Notwithstanding the provisions of this section to the contrary the board of trustees of the Tennessee teachers' retirement system shall, upon request of the managing board of a local retirement fund, henceforth pay the entire amount of the state annuity directly to the members of said local retirement fund.
(b) Each employer having a local retirement fund, who has not already done so, shall report to the board of trustees a complete list of all teachers in his employ on December 31, 1945, giving for each such teacher the date of birth, years of service, and salary, and such other information as shall be needed by the board of trustees in order to establish for each teacher a prior service credit as provided in §§ 49-1513 – 49-1518, and the board of trustees shall then issue to such teacher a prior service certificate which shall continue in force so long as such teacher remains in the employ of such employer or in the service of an employer not having a local retirement fund, without a break in service which would have resulted in the canceling of such certificate had the teacher been a member of the state retirement system established by this chapter. Should a member of the state retirement system enter the employ of an employer operating a local retirement fund, he shall cease to contribute to the state retirement system and become subject to the provisions of the local retirement fund, and he shall not lose his previous accrued credits in the state retirement system so long as he continues in the service of such employer.
(c) Should a teacher in the service of an employer operating a local retirement fund become a member of this retirement system by entrance into the service of an employer without a local retirement fund, he shall contribute to the state retirement system while so employed and continue with the previous service credits in the state retirement system which he had at the time of becoming a member, as if he had been a member during such period of service and elected class A membership.
(d) Notwithstanding any other provisions of this chapter, the actuary in determining the normal and accrued liability contributions and the board in setting such contributions and the amount of the appropriation to be paid by the state to the accumulation account, shall include the liability on account of teachers in the employ of employers having local retirement funds, and the state annuity payable from the retirement reserve account shall include those payable on account of teachers in the service of employers having local funds as provided in this section.
(e) Notwithstanding any other provisions to the contrary in this chapter, if a local teacher retirement plan does not allow a member, who retires after July 1, 1967, retirement credit for all years creditable under the Tennessee teachers' retirement law, the state annuity shall be computed on all years of credit under the Tennessee teachers' retirement law as prescribed herein and then divided into two (2) parts and paid as follows: (1) The payment to the local retirement system shall be limited to the number of years of local system credit, and (2) the payment based upon the additional years of credit in the Tennessee teachers' retirement system, shall be paid directly to the retired local member.
(f) Notwithstanding any other provision to the contrary in this chapter, any member of a local retirement fund whose retirement becomes effective on or after July 1, 1967, and to whom or on whose account a state service or disability retirement allowance or minimum benefit supplement under § 49-1552 becomes payable, there shall be deducted from such amount the teacher annuity that would have been payable to him had he been a member of the Tennessee teachers' retirement system.
(g) Notwithstanding any other provisions to the contrary, whenever a local board of education which is a part of a consolidated county-city form of government which was established prior to February 18, 1970, administers a local teacher retirement fund, the retirement payments due on and after July 1, 1967, by the Tennessee teachers' retirement system on account of the retired members of such fund shall include the increases resulting from any minimum benefit amendments to § 49-1552 which have become effective on or after July 1, 1963, and such increases shall be paid directly to the retired members of such local fund.
(h) Notwithstanding the foregoing, wherever the managing board of the local retirement fund includes municipal employees who are not elected by the people and who are not members of the board of education, nor employed or appointed by the board of education, said managing board shall pay monthly to each retired teacher in addition to whatever retirement income he was otherwise entitled to receive from the local retirement fund an amount not less than his proportionate part of the excess of the total of the state annuities received by said managing board for all retired teachers for that month over that for the corresponding month of 1961.
(i) Notwithstanding any other provisions to the contrary in this chapter, any teacher who is a member of any local teacher retirement plan shall be eligible to transfer membership into the Tennessee teachers' retirement system as a class A member whenever a local board of education administering such plan provides in such plan for such a transfer; provided, however, that any such transfer must be made within five (5) years after the teacher electing to transfer has become eligible. If a teacher transfers from such local retirement plan to this retirement system, he shall contribute to this retirement system as a class A member as if he had been a member of this system during such period of service and elected class A membership, however, social security coverage through this system shall begin as of the date of transfer. He shall be given credit for his teacher annuity for the same number of years that he was a member of said local retirement plan, provided that said local retirement plan shall transfer to this retirement system a sum of money equal to the accumulated contributions he would have had, had he been a contributing member of this system the entire period of his membership in the local retirement plan, which period of time shall begin no earlier than the time of establishment of this system. The contributions for any period of service after July 1, 1957, shall be calculated for the teacher as a class A member.
(j) Notwithstanding any other provision to the contrary, the board of trustees shall pay directly to retired local members whatever state annuity is provided for them whenever the managing board of the local fund is not permitted by municipal charter or other to receive.
(k) Notwithstanding any other provision to the contrary, the board of trustees shall pay directly to the retired members of a local fund whatever annuities are provided for them whenever the managing board of said local fund is a pension board created by the charter of a municipality which has adopted or hereafter shall adopt home rule by the affirmative vote of a majority of the qualified voters voting thereon, or as the said charter may be amended from time to time, provided that the said pension board is not the board of education or does not include any member of the board of education of the said municipality.
(l) Notwithstanding any provision of the law or municipal charter provisions to the contrary, the governing body of any political subdivision having a local retirement fund from which retired members receive benefits may by ordinance or resolution authorize the board of trustees to pay directly to the retired member of such local retirement fund whatever state annuities are provided for them. The adoption of such ordinance or resolution shall be permanent and such action may not be repealed to the detriment of any retired member.
(m) Notwithstanding any other provision to the contrary optional retirement allowances may be selected in accordance with the provisions of § 49-1553.

§ 49-1543. Service retirement.

(a) Any member who files an executed written application to the board of trustees shall be entitled to receive a service retirement allowance to commence on his effective date of retirement, provided that as of such date:
1. (1) He shall have been in service upon or after attaining age sixty (60), or
2. (2) He shall have reached age sixty (60) and completed at least ten (10) years of creditable service, or four (4) years of creditable service for any member in an institution of higher learning, or
3. (3) He shall have completed at least thirty (30) years of creditable service. Such member shall designate his effective date of retirement in his application to the board. His effective date of retirement can be any date within ninety (90) days before or after the date his application is filed with the board, provided such effective date of retirement follows the date of his separation from service.
(b) Any member who has attained the age of sixty-five (65) years shall be retired at the end of the school year unless the employer requests such person to remain in the service, and notice of this request is given in writing to the board of trustees within thirty (30) days prior to the end of the year.
(c) Any member who has attained the age of seventy (70) years shall be retired forthwith; provided, that with the approval of his employer he may remain in service until the end of the school year following the date on which he attains the age of seventy (70) years.

§ 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. (1) Upon service retirement, a class A member shall receive a service retirement allowance which shall consist of:
  1. (a) A teacher annuity which shall be the actuarial equivalent of his accumulated contributions at the time of his retirement; and
  2. (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:
    1. One and one-eighth per cent (1⅛%) of his average final compensation multiplied by the total number of years of his creditable service, plus
    2. 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
    3. 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).
    4. 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.
    5. 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. (2) Upon service retirement, a class B member shall receive a service retirement allowance which shall consist of:
  1. (a) A teacher annuity which shall be the actuarial equivalent of his accumulated contributions at the time of his retirement, and
  2. (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).
    1. 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. (1) Upon service retirement a class A member shall receive a service retirement allowance which shall consist of:
  1. (a) A teacher annuity which shall be the actuarial equivalent of his accumulated contributions at the time of his retirement; and
  2. (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
  3. (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.
  4. (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. (2) Upon service retirement a class B member shall receive a service retirement allowance which shall consist of:
  1. (a) A teacher annuity which shall be the actuarial equivalent of his accumulated contributions at the time of his retirement; and
  2. (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.

§ 49-1545. Disability retirement.

Upon the application of a member in service or of his employer, any member who has had ten (10) or more years of creditable service may be retired by the board of trustees, not less than thirty (30) and not more than ninety (90) days next following the date of filing such application, on a disability retirement allowance. Provided, that the medical board, after a medicial examination of such member, shall certify that such member is mentally or physically incapacitated for the further performance of duty, that such incapacity is likely to be permanent, and that such member should be retired.

§ 49-1546. Disability retirement allowance.

Upon retirement for disability, a member shall receive a service retirement allowance if he has attained the age of sixty (60) years or has completed at least thirty (30) years of creditable service, otherwise he shall receive a disability retirement allowance.
A member who last became a member prior to July 1, 1967, and who retires on a disability retirement allowance on or after July 1, 1967, shall receive an allowance which shall be the largest of the amounts computed under the provisions of subsection A of this § 49-1546, subsection B of this § 49-1546 or § 49-1552.
A member who last became a member on or after July 1, 1967, and who retires on a disability retirement allowance shall receive an allowance which shall be the larger of the amounts computed under the provisions of subsection A of this § 49-1546 or § 49-1552.
A.
1. (1) Upon retirement for disability, a class A member shall receive a disability retirement allowance which shall consist of:
  1. (a) A teacher annuity which shall be the actuarial equivalent of his accumulated contributions at the time of retirement; and
  2. (b) A state annuity which, together with the teacher annuity, shall be equal to nine-tenths (⁄) of an allowance computed as a service retirement allowance under § 49-1544 A(1)(b)(i) on the basis of his average final compensation and creditable service at the time of disability retirement, provided, however, that if his creditable service is less than twenty (20) years, a part or all of his additional years he would have had had he continued in service to age sixty-five (65), may be added to his creditable service in order to determine his minimum retirement allowance, but in this event the total cannot exceed twenty (20) years, and for purposes of such determination, covered compensation at the time of disability retirement shall be deemed to have continued in effect during such additional years.
2. (2) Upon retirement for disability, a class B member shall receive a disability retirement allowance which shall consist of:
  1. (a) A teacher annuity which shall be the actuarial equivalent of his accumulated contributions at the time of retirement; and
  2. (b) A state annuity which, together with the teacher annuity, shall be equal to nine-tenths (9/10) of an allowance computed as a service retirement allowance under § 49-1544 A(2)(b)(i) on the basis of his average final compensation and creditable service at the time of disability retirement, but not less than twenty-five per cent (25%) of his average final compensation.
B. Upon retirement for disability, a member shall receive a service retirement allowance determined in accordance with § 49-1544 B if he has attained the age of sixty (60) years or has completed at least thirty (30) years of creditable service, otherwise he shall receive a disability retirement allowance which shall consist of:
1. (a) A teacher annuity which shall be the actuarial equivalent of his accumulated contributions at the time of retirement; and
2. (b) A state annuity equal to seventy-five per cent (75%) of the state annuity determined in accordance with § 49-1544 B that would have been payable upon service retirement at the age of sixty (60) years had the member continued in service to age sixty (60) years without further change in compensation, except that in the case of a class A member who last became a member prior to July 1, 1957, the state annuity payable until the attainment of age sixty-five (65) shall equal seventy-five per cent (75%) of the state annuity that would have been payable upon service retirement at the age of sixty (60) years had the member continued in service to age sixty (60) years without further change in compensation and contributed at the rate of five per cent (5%) throughout his membership service; and after the attainment of age sixty-five (65) the part of the state annuity based on covered compensation shall be equal to sixty per cent (60%) of such part of the state annuity payable prior thereto.

§ 49-1547. Reexamination after disability retirement.

Once each year following retirement of a member on a disability retirement allowance, the board of trustees may, and upon his application shall, require any disability beneficiary who has not yet attained the age of sixty (60) years to undergo a medical examination, such examination to be made at the place of residence of said beneficiary or other place mutually agreed upon, by a physician or physicians designated by the board of trustees. Should any disability beneficiary who has not yet attained the age of sixty (60) years refuse to submit to at least one (1) medical examination in any such year by a physician or physicians designated by the board of trustees, his state annuity may be discontinued until his withdrawal of such refusal, and should his refusal continue for one (1) year, all his right in and to his state annuity may be revoked by the board of trustees.

§ 49-1548. Reduction of disability allowance because of ability to engage in gainful occupation.

Should the medical board report and certify to the board of trustees that such disability beneficiary is engaged in or is able to engage in a gainful occupation, paying more than the difference between his retirement allowance and his average final compensation, and should the board of trustees concur in such report, then the amount of his state annuity shall be reduced to an amount which, together with his teacher annuity and the amount earnable by him, shall equal the amount of his average final compensation. Should his earning capacity be later changed, the amount of his state annuity may be further modified; provided, that the new state annuity shall not exceed the amount of the state annuity originally granted nor an amount which, when added to the amount earnable by the beneficiary together with his teacher annuity, equals the amount of his average final compensation. A beneficiary restored to active service at a salary less than the average final compensation shall not become a member of the retirement system.

§ 49-1549. Cessation of disability allowance upon restoration to full service — Service as substitute teacher by persons receiving service allowance.

(1) Should any beneficiary under the age of sixty (60) years be restored to active service at a compensation not less than his average final compensation, his retirement allowance shall cease, he shall again become a member of the retirement system and may elect either class A or class B membership unless he previously was a class A member in which case he shall become a class A member. Any prior service certificate on the basis of which his service was computed at the time of his retirement shall be restored to full force and effect, and in addition upon his subsequent retirement, his state annuity upon subsequent retirement shall not be restored, his state annuity payable prior to age sixty-five (65) shall not be less than the state annuity payable prior to his restoration to service and if he is restored to active service on or after the attainment of the age of fifty (50) years, and does not complete three (3) years of service after his restoration to service and prior to his subsequent retirement, his state annuity upon subsequent retirement shall not exceed the sum of the state annuity which he was receiving immediately prior to his last restoration and the state annuity that he would have received on account of his service since his last restoration had he entered service at the time as a new entrant; provided, however, the state annuity payable to a beneficiary who retired as a class B member shall be no less after age sixty-five (65) than before age sixty-five (65).
(2) Notwithstanding any provision of law to the contrary, a retired member who is receiving a service retirement allowance may accept employment as a substitute teacher prior to the end of the school year in which he attains age seventy (70) for a total time not in excess of ninety (90) school days per school year without loss or suspension of his retirement allowance, provided he immediately notifies the board of trustees of his intention to render such service; provided that notwithstanding any provision of law to the contrary, a retired member who is receiving a service retirement allowance may accept employment as a substitute teacher after he attains age seventy (70) for a total time not in excess of ninety (90) school days per school year without loss or suspension of his retirement allowance, provided that he obtains from a reputable physician a certificate stating that said retired teacher is physically and mentally able to render service as a substitute teacher, and provided further that said teacher files said physician's certificate with the board of trustees of the Tennessee teachers' retirement system; provided further that said physician's certificate shall be valid for only one (1) year at a time but shall be subject to renewal upon the proper certification of a reputable physician. Provided further that the provisions of this section with respect to employment as a substitute teacher shall apply also to retirement allowances received from local retirement funds by members of local retirement systems, and subject to the approval of two thirds (⅔) of the membership of the local board of education, notwithstanding any municipal charter provisions to the contrary.
(3) Notwithstanding any provision of law to the contrary, a retired member who is receiving a service retirement allowance may accept employment as an adult education teacher prior to the end of the school year in which he attains age seventy (70) for a total time not in excess of four hundred and twenty (420) hours per school year without loss or suspension of his retirement allowance, provided he immediately notifies the board of trustees of his intention to render such service; provided that notwithstanding any provision of law to the contrary, a retired member who is receiving a service retirement allowance may accept employment as a teacher in an adult education program after he attains age seventy (70) for a total time not in excess of four hundred and twenty (420) hours per school year without loss or suspension of his retirement allowance, provided that he obtains from a reputable physician a certificate stating that said retired teacher is physically and mentally able to render service as a teacher in an adult education program; and provided further that said teacher files said physician's certificate with the board of trustees of the Tennessee teachers' retirement system; provided further that said physician's certificate shall be valid for only one (1) year at a time but shall be subject to renewal upon the proper certification of a reputable physician.

§ 49-1550. [Repealed]

§ 49-1551. Benefits allowable on military service.

Any teacher who on or after July 1, 1945, was a member of the armed forces or other organization designated in § 49-1517, during a period of national emergency mentioned therein, shall, at the time of retirement, be entitled to have his accumulated contributions increased by the contributions he would have made, on the basis of the salary received by him during his first year of teaching service after his return thereto, for the period ensuing until the date of his honorable discharge, together with regular interest to the date of his retirement, and he shall be entitled to a state annuity equal to the additional teacher annuity thereby provided. The cost of such additional annuities shall be provided by an increase in the accrued liability contribution otherwise required under the provisions of §§ 49-1527 – 49-1531.

§ 49-1552. Minimum monthly allowance — Supplemental payments — Minimum benefit fund.

(1) The minimum monthly retirement allowance before modification under any optional provision payable to any member who retired prior to July 1, 1967, or who shall retire thereafter, shall be, for a class A member, four dollars and thirty-four cents ($4.34) multiplied by the total number of years of his creditable service; and, shall be, for a class B member, five dollars ($5.00) multiplied by the total number of years of his creditable service.
(2) In determining the minimum allowance payable in accordance with subsection (1) of this § 49-1552 in the case of any teacher who is a member of a local retirement fund whose retirement becomes effective on or after July 1, 1967, and to whom or on whose account a state annuity is payable there shall be deducted the teacher annuity that would have been payable to him had he been a member of the Tennessee teachers' retirement system, provided that the state annuity payable to or on account of any local member who retired prior to July 1, 1967, shall not be less than was paid prior to that date; provided, however, that any increases under any amendment effective on or after July 1, 1967, in the minimum benefit provision payable on behalf of members of local retirement systems shall be paid directly to said local member as a supplement from the Tennessee teachers' retirement system.
(3) Notwithstanding any provisions of the law to the contrary, any member retired prior to July 1, 1967, or any other person who taught in the public schools of Tennessee after July 1, 1945, and has not or is not now receiving benefits under the provisions of § 49-1311, and who establishes evidence to the satisfaction of the board of trustees of at least ten (10) years of teaching service in the public schools of Tennessee shall be entitled to receive benefits for said years limited to the provisions of § 49-1552; provided, however, that benefits based upon teaching after July 1, 1945, shall be allowed only under any of the following conditions: (1) when a person's contributions are withdrawn but repaid to the retirement system with interest at six per cent (6%) per annum from the date of withdrawal of such contributions to date of repayment, (2) when a member whose retirement account has become inactive because of too much absence from teaching service and his accumulated contributions have not been withdrawn but who pays to the retirement system six per cent (6%) interest per annum on his accumulated account from the date his account became inactive to the date such interest is paid, or (3) when a teacher who failed to become a member of the retirement system by officially electing to be a nonmember as provided in subsection (2) of § 49-1509, pays to the retirement system the total amount of all the contributions he otherwise would have contributed to the retirement system during said period of nonmembership, plus interest at six per cent (6%) per annum for each year that his funds normally would have been on deposit with the retirement system.
(4) Notwithstanding any other provisions to the contrary in this chapter, in the event of the death of a member retired prior to June 1, 1971, under either option 2 or option 3 of § 49-1553, who was receiving a supplement under § 49-1552, the designated beneficiary of said retired member shall after June 1, 1971, receive fifty per cent (50%) of said supplement and this shall be in addition to the amount said beneficiary is otherwise eligible to receive.

§ 49-1553. Optional retirement allowances.

Until the first payment on account of any benefit becomes normally due, any member of this retirement system, or any local retirement system, may elect to convert the retirement allowance otherwise payable to him to a reduced retirement allowance of equivalent actuarial value with the provisions that:
1. Option 1. [Repealed, Acts 1971, ch. 152, § 18.]
2. Option 2. Upon his death his reduced retirement allowance shall be continued throughout the life of, and paid to, such person as he shall nominate by written designation duly acknowledged and filed with the board of trustees at the time of his retirement; or
3. Option 3. Upon his death, one half (½) of his reduced retirement allowance shall be continued throughout the life of, and paid to, such person as he shall nominate by written designation duly acknowledged and filed with the board of trustees at the time of his retirement.
The election of an option shall become effective on the first date the member becomes eligible for service retirement or thirty (30) days after his date of retirement on disability, if earlier, except that no such election shall become effective until thirty (30) days after written application therefor has been filed with the board of trustees. Should a beneficiary die before any such election has become effective he shall be considered as an active member on the date of his death. Should a member die after any such election has become effective he shall be considered as having been retired on the date of his death. The election of the option may not be changed or revoked by the member after it has become effective, but if the person designated under the option dies prior to the date of retirement of the member, the option shall thereby be revoked. Notwithstanding the previous sentence if a member who has become eligible for service retirement has elected an option which has become effective, and continues in service, he may change or revoke such election prior to retirement, but such change or revocation shall not become effective until thirty (30) days after written notice has been filed with the board of trustees.
The above provisions of this section or of any section of §§ 49-1501 through 49-1562 to the contrary notwithstanding, the spouse of any member, who after July 1, 1968, became deceased without having elected an option, and who was eligible to have done so thirty (30) days or more before becoming deceased, shall receive a monthly retirement benefit in the same manner and amount that he or she would have received had the member elected option 2; provided, however, that if a lump-sum payment has been made to the beneficiary under the provisions of § 49-1524, the monthly retirement benefit payments shall not begin until such time as the beneficiary would have received payments that totaled the lump-sum payment already received had the deceased member elected option 2, and further provided that all claims for retirement benefits filed under the provisions of this act shall be filed before July 1, 1970.

§ 49-1554. Final payment where options not selected — Adjustment of retirement allowances for social security benefits.

(1) Upon the death of a member retiring under the provisions of §§ 49-1543 through 49-1549, who did not select any of the options enumerated in § 49-1553, any balance of his accumulated contributions, at the time of his retirement, remaining after deductions of the total retirement benefits received by him shall be paid to his designated beneficiary, or if no beneficiary is specified, to the executor or administrator of his estate; provided, however, that if the amount payable shall be two hundred and fifty dollars ($250) or less, it may be paid to the next of kin in the absence of designation of a beneficiary. Upon the death of the survivor of a member retiring under the provisions of §§ 49-1543 through 49-1549, and the person nominated by him under either option two or option three, any excess of the member's accumulated contributions, at the time of his retirement, over the sum of the retirement benefits received by him and such designated person, shall be paid to the designated beneficiary of the last to survive of such member and designated person, or if no beneficiary is specified, to the executor or administrator of the estate of the last to survive; provided, however, that if the amount payable shall be two hundred fifty dollars ($250) or less, it may be paid to the next of kin of the last to survive in the absence of the designation of a beneficiary. Upon the death of a retired member or the person nominated by him under one (1) of the options enumerated in § 49-1553, the full monthly amount shall be paid for the month in which death occurred.
(2) Until the first payment on account of any retirement allowance becomes normally due, any class A member may elect to convert the allowance otherwise payable on his account after retirement into a retirement allowance of equivalent actuarial value of such amount that, with his benefit under title II of the federal Social Security Act, he will receive, so far as possible, approximately the same amount per year before and after the commencement of such benefit.
(3) Until the first payment on account of any retirement allowance becomes normally due, any transfer class A member who retires prior to the attainment of age sixty-five (65) may elect to convert the allowance otherwise payable on his account after retirement into a level retirement allowance before and after age sixty-five (65) of equivalent actuarial value.

§ 49-1555. Separation from service after ten years of service — Leaving contributions in account.

Any member having ten (10) or more years of creditable service, or four (4) or more years of creditable service for any member in an institution of higher learning who is separated from service may, in lieu of receiving the payment under § 49-1524 leave such payment in the members' contributions account until he has attained age sixty (60), at which time he shall be entitled to receive a retirement allowance calculated in the same manner as provided in § 49-1544.

§ 49-1556. [Repealed]

§ 49-1557. Annual appropriation.

There is appropriated from the state treasury the sum of one million, nine hundred seventy-five thousand dollars ($1,975,000) annually for the purpose of carrying out the provisions of this chapter.

§ 49-1558. Benefits exempt from taxation and execution — Unassignable.

The right of a person to a state annuity, or teacher annuity, or a retirement allowance, to the return of contributions, the state annuity, the teacher annuity or retirement allowance itself, any optional benefit or any other right accrued or accruing to any person under the provisions of this chapter, and the moneys in the various funds created by this chapter, are hereby exempt from any state or municipal tax and exempt from levy and sale, garnishment, attachment, or any other process whatsoever, and shall be unassignable except as in this chapter specifically otherwise provided.

§ 49-1559. Penalty for fraud — Correction of errors.

Any person who shall knowingly make any false statement or shall falsify or permit to be falsified any record or records of this retirement system in an attempt to defraud such system as a result of such act shall be guilty of a misdemeanor, and on conviction thereof by any court of competent jurisdiction, shall be punished by a fine not exceeding five hundred dollars ($500), or imprisonment in the county jail not exceeding twelve (12) months, or both such fine and imprisonment, at the discretion of the court. Should any change or error in the records result in any member or beneficiary receiving from the retirement system more or less than he would have been entitled to receive had the records been correct, the board of trustees shall correct such error and, as far as practicable, shall adjust the payment in such a manner that the actuarial equivalent of the benefit to which such member was correctly entitled shall be paid.

§ 49-1560. Other retirement laws inapplicable.

No other provision of law in any other statute which provides wholly or partly at the expense of the state of Tennessee for pensions, or retirement benefits for teachers of said state, their widows or other dependents, shall apply to members or beneficiaries of the retirement system established by this chapter, their widows, or other dependents, except such benefits as shall be provided by Title II of the Federal Social Security Act.

§ 49-1561. Adjustment of allowance.

Effective July 1, 1970, and each succeeding July 1, the total monthly service or disability retirement allowance rate paid for the month of June, 1969, to any member retired prior to July 1, 1969, shall be increased by one and one-half per cent (1 ½%) of such monthly allowance rate for each year that the member has been retired, but the aggregate of such monthly increments to any retired member's allowance shall not exceed thirty per cent (30%) of his June, 1969, monthly service retirement allowance rate if he retired prior to July 1, 1969.

§ 49-1562. Suspension of allowance.

A retired member or beneficiary may, for personal reasons and without disclosure thereof, apply to the board of trustees to suspend for any period payment of all or any part of the allowance otherwise payable to him under the provisions of the Tennessee state teachers' retirement system. The board, on receipt of such application, shall provide the applicant with a form to be completed and returned to the board and upon receipt thereof, the board shall authorize such suspension, in which event the retired member or beneficiary shall be considered to have forfeited all rights to the amount of allowance so suspended but shall retain the right to have the full allowance otherwise payable to him reinstated as to future monthly payments upon written notice to the board of his desire to revoke his prior request for a suspension under this section.

§ 49-1563. Optional retirement programs for teachers employed in state supported institutions of higher education — University of Tennessee or its employees excepted.

Notwithstanding any other provisions to the contrary, any teacher, as defined in this chapter, who is employed in a state supported institution of higher education hereafter establishing an optional retirement program hereunder may choose between membership in the Tennessee teachers' retirement system as provided in this chapter or he may participate in the optional retirement program under the conditions provided herein.
(a) Any such teacher whose duties begin on or after July 1, 1972 who is not a member of the Tennessee teachers' retirement system may make this election prior to the preparation of his first salary payment or thereafter as described in subsection (b) herein.
1. Each teacher who elects to make contributions to and accumulate time credit in an optional retirement program rather than the Tennessee teachers' retirement system shall so designate on election forms approved by the board of trustees of the Tennessee teachers' retirement system and filed with it and the institution where employed.
(b) Any active member of the Tennessee teachers' retirement system, or any active local member having rights thereunder, may elect to participate in such an optional retirement program in lieu of making or continuing contributions to and accumulating time credit in the Tennessee teachers' retirement system while employed in such an institution having an optional retirement program.
1. While participating in an optional retirement program said members accumulated contributions and time credit remain unchanged as of the date of election of an optional retirement program under the provisions of this section; provided, however, interest shall continue to be accrued as provided in this chapter.
(c) A teacher who elects to participate in an optional retirement program established under the provisions of this section will be ineligible to make contributions to or accumulate time credit in the Tennessee teachers' retirement system during such period of time as he is employed by an institution where an optional retirement program is available; provided, however, in the event such an optional retirement program participant referred to in (a) or (b) above assumes or returns to a position in a public school where an optional retirement program or a local teachers' retirement plan is not available, he shall at that time begin or resume contributing to and accumulating time credit in the Tennessee teachers' retirement system.
1. Each teacher who elects to make contributions to and accumulate time credit in an optional retirement program rather than the Tennessee teachers' retirement system shall so designate on election forms approved by the board of trustees of the Tennessee teachers' retirement system and filed with it and the institution where employed.
2. Any member under (b) above who elects to participate in an optional retirement program as of July 1, 1972 or as of July 1 of any subsequent year must, at least six months prior thereto, file forms approved by the board of trustees of the Tennessee teachers' retirement system with the institution where employed and with the Tennessee teachers' retirement system.
(d) The employee contributions to an optional retirement program and Title II of the Federal Social Security Act shall be the same each payroll period as if such teacher were an active member of the Tennessee teachers' retirement system and shall be matched with an equal amount by the institution of which the teacher is an employee.
(e) When any teacher in an optional retirement program retires with retirement credit in the Tennessee teachers' retirement system, his retirement allowance from the Tennessee teachers' retirement system shall be computed and paid in accordance with the provisions contained in this chapter.
(f) The state board of education on the request of the president of any state supported institution of higher education may establish for that institution an optional retirement program under this section. In establishing such an optional retirement program, the state board of education shall make such rules and regulations as it deems necessary and proper for the effective functioning of the system. The state board of education shall further designate the company from which contracts are to be purchased under such optional retirement program, which company shall hold a certificate of authority or a certificate of exemption from the commissioner of insurance of this state. In making the designation of such company and giving its approval to the contracts to be purchased, the state board of education shall consider:
1. (1) The nature and extent of the rights and benefits to be provided by such contracts for teachers and their beneficiaries;
2. (2) The relation of such rights and benefits to the amount of contributions to be made;
3. (3) The suitability of such rights and benefits to the needs of the teachers;
4. (4) The efficacy of the contracts in the recruitment and retention of teachers; and
5. (5) The ability of the designated company to provide such suitable rights and benefits under such contracts.
(g) Each institution for which an optional retirement program is established is hereby authorized to provide for the administration of such optional retirement program and to perform or authorize the performance of such functions as may be necessary for such purposes in accordance with this section.
This section shall not apply to the University of Tennessee or any of its employees.

12. University of Tennessee Retirement System

§ 49-3333. Retirement of employees.

(A) Definitions. The following words and phrases as used in this section, unless a different meaning is plainly required by the context, shall have the following meaning:
1. (1) “Employee” shall mean any person employed by the University of Tennessee as professor, associate professor, assistant professor, instructor, teacher, librarian, administrative officers or any other person the board of trustees of the University of Tennessee determines to be an employee.
2. (2) “Employer” shall mean the University of Tennessee.
3. (3) “Member employee” shall mean any employee included in the membership of the University of Tennessee joint contributory system.
4. (4) “Creditable service” shall mean the period during which time the employee was employed by the University of Tennessee or the state of Tennessee for which credit is allowable under regulations of the board of trustees.
5. (5) “Board of trustees” shall mean the board of trustees of the University of Tennessee.
6. (6) “Average final compensation” shall mean the average annual earnable compensation of an employee during the five (5) years of his service producing the highest such average, and if an employee had less than five (5) years of service, it shall mean the average annual earnable compensation for all such years of service.
7. (7) “Retirement” shall mean the withdrawal from active service with a retirement allowance granted under the provisions of this section.
8. (8) “Covered compensation” shall mean the maximum amount of earnable compensation which may be included in the determination of the primary insurance amount under the Social Security Act.
9. (9) “Joint contributory retirement system” shall mean the University of Tennessee retirement system as established by the board of trustees.
(B) Employer's contributions. In order to provide for the retirement on an annuity, or otherwise, of employees of the University of Tennessee, the board of trustees of the University of Tennessee is authorized to use funds under its control as employer contributions to a retirement system to be established by the board.
(C) Deductions from salaries and wages of employees. The board of trustees of the University of Tennessee shall cause to be deducted from the salaries and wages of those employees that the said board shall determine to be eligible for membership in its retirement system a per centum of such salaries or wages and credit such deductions to the respective personal account of each individual employee, in the retirement trust fund. Said board of trustees shall adopt a joint contributory retirement system to provide for future retirement benefits effective on and after September 1, 1955, make necessary rules and regulations, fix the basis or amounts of the annuities and other benefits, including prior years' service credits, and the contributions to be made by employees, and prescribe all other necessary provisions for the operation of such retirement system, including at the election of said board and the employees, participation in the federal old-age and survivors insurance social security program, if permissible under state and federal laws now or hereafter enacted. Provided, however, that prior years' service credit for employee service before September 1, 1955 shall be computed at the rate of one and one-half per cent (1 ½%) of the average annual compensation, as measured by the pay rates in August of each year of service during the five (5) years, 1951 to 1955 inclusive, multiplied by the number of years of service prior to September 1, 1955, with the maximum credit for such prior service being determined by regulations of the board of trustees in effect on August 31, 1955; and provided, further, that contributions from employer funds applicable to current and future service from and after September 1, 1955 shall not exceed five percent (5%) of such salaries and wages until the effective date when the employees shall be covered under the provisions of the Federal Social Security Program. From and after the effective date of employee coverage under the Federal Social Security Program, employer funds shall be used to pay the employer's obligations under the Federal Insurance Contributions Act, and, with reference to employee members of the joint contributory retirement system, employer contributions to such system shall not exceed an additional three percent (3%) of such salaries and wages covered under the Federal Social Security Program, and five percent (5%) of such salaries and wages in excess of covered compensation under the Federal Social Security Program. Contributions of employees for such service shall not be less than that of the employer. Any eligible employee of the University of Tennessee may elect to have his salary reduced by the amount of his contributions to the joint contributory retirement system and have the university make the contributions for him. No eligible employee may elect such reduction until a favorable advance letter of ruling concerning the option of the employee shall have been received from the United States internal revenue service.
(D) Service retirement allowances. Upon service retirement on or after July 1, 1967, a member employee who last became a member prior to September 1, 1955, shall receive a service retirement allowance which shall be the largest of the amounts computed under the provisions of paragraph (1) of this subsection (D), paragraph (2) of this subsection (D), or paragraph (3) of this subsection (D). A member employee who last became a member on or after September 1, 1955 shall receive a service retirement allowance which shall be the largest of the amounts computed under the provisions of paragraph (1) of this subsection (D) or paragraph (2) of this subsection (D).
1. (1) Upon service retirement a member employee shall receive a service retirement allowance which shall consist of: (1) An employee annuity which shall be the amount due at the time of his retirement on the base annuity and the amount due on the variable annuity at the time of his retirement purchased on his behalf through the joint contributory system; and (2) an employer annuity which, together with the employee's annuity, shall provide,
  1. (a) If the member employee's service retirement date occurs on or after his sixty-fifth birthday, an allowance equal to: one and one-eighth percent (1 ⅛%) of his average final compensation multiplied by the total number of years of his creditable service, plus an additional three quarters of one percent (.75%) of the part of such compensation in excess of six thousand and six hundred dollars ($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 percent (.75%) of the part of such compensation in excess of covered compensation applicable to such year, or
  2. (b) If the member employee's service retirement date occurs before his sixty-fifth birthday, his retirement allowance as computed in (a) above shall be permanently reduced by four tenths of one percent (.4%) for each full month the member retires prior to his attaining age sixty-five (65).
  3. In order that the employee may bear all risks and receive all benefits from a variable annuity which he may elect, his retirement allowance as computed above shall be permanently reduced or increased by the amount the variable annuity is less than or more than the base annuity had the employee contributed solely to the base annuity. 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. Provided however, this guarantee shall not apply to any person employed by the University of Tennessee after July 1, 1977.
2. (2) Upon service retirement a member employee shall receive a service retirement consisting of an employee annuity which shall be the amount due at the time of his retirement on the annuity purchased in his behalf through the joint retirement system.
3. (3) Upon service retirement a member employee shall receive a service retirement allowance which shall be computed in accordance with the provisions of subsection (C) of this section.
(E) Disability retirement allowances. Upon retirement for disability a member employee shall receive a service retirement allowance if he has attained the age of sixty (60) years or has completed at least thirty (30) years of creditable service, otherwise he shall receive a disability retirement allowance. A member employee who last became a member employee prior to July 1, 1967, and who retires on a disability retirement allowance on or after July 1, 1967, shall receive an allowance which shall be the largest of the amounts computed under the provisions of paragraph 1 of this subsection (E), paragraph 2 of this subsection (E), or paragraph 3 of this subsection (E).
1. (1) Upon retirement for disability a member employee shall receive a disability retirement allowance which shall consist of: (1) An employee annuity which shall be the amount due at the time of his retirement on the base annuity and the amount due on the variable annuity at the time of his retirement purchased on his behalf through the joint contributory system; and (2) an employer annunity which, together with the employee annuity, shall be equal to nine tenths (⁄) of an allowance computed as a service retirement under clause (2)(a) of paragraph (1) of subsection (D) on the basis of his average final compensation and creditable service at the time of disability retirement, provided, however, that if his creditable service is less than twenty (20) years, a part or all of his additional years he would have had, had he continued in service to age sixty-five (65), may be added to his creditable service in order to determine his minimum retirement allowance, but in this event the total cannot exceed twenty (20) years, and for purposes of such determination, covered compensation at the time of disability retirement shall be deemed to have continued in effect during such additional years.
  1. In order that the employee may bear all risks and receive all benefits from a variable annuity which he may elect, his disability retirement allowance as computed above shall be permanently reduced or increased by the amount the variable annuity is less than or more than the base annuity had the employee contributed solely to the base annuity.
2. (2) Upon disability retirement a member employee shall receive a disability retirement consisting of an employee annuity which shall be the amount due at time of his disability retirement on the annuity purchased in his behalf through the joint retirement system.
3. (3) Upon disability retirement a member employee shall receive a disability retirement allowance which shall be nine tenths (9/10) of the retirement allowance as computed in accordance with the provisions of subsection (C).
(F) Claims against allowances. Whenever an employee of the University of Tennessee retires under the provisions of its local retirement system, the University of Tennessee shall claim that part of the state annuity payable from the Tennessee teachers' retirement system applicable to, and resulting from, the employee's service as an employee of the University of Tennessee, and that part of the state annuity resulting from service of the annuitant in the Tennessee public school system other than the University of Tennessee shall shall be paid to the annuitant; provided that in no case shall the part of the state annuity claimed by the university exceed the employer provided annuity under this section.
1. Notwithstanding any provisions of the law to the contrary, whenever an employee of the University of Tennessee retires under the provisions of its local retirement system, the University of Tennessee shall claim the retirement allowance resulting from employment of the employee by the state of Tennessee; provided the University of Tennessee includes the employee's period of employment by the state of Tennessee as creditable service for retirement under the University of Tennessee local retirement system; and provided that in no case shall the employee's retirement allowance exceed the employer provided annuity under this section.
(G) Adjustment of allowance. Effective July 1, 1970, the total monthly service retirement allowance rate paid for the month of June, 1969, to any member retired prior to July 1, 1969, shall be increased by one and one-half per cent (1 ½%) of such monthly allowance rate for each year that the member has been retired, but the aggregate of such monthly increments to any retired member's allowance shall not exceed thirty per cent (30%) of his June, 1969, monthly service retirement allowance rate if he retired prior to July 1, 1969.
(H) Adoption of the provisions of the Tennessee Teachers' Retirement System. The board of trustees shall be and hereby are authorized to adopt any of the provisions of the Tennessee teachers' retirement system law now in effect and as hereafter amended or modified as a part of the provisions and regulations of the University of Tennessee joint contributory retirement system.

13. Public Service Commissioners' Retirement Fund

§ 65-151. Public Service Commissioners' Retirement Act — Short title.

Sections 65-151 – 65-168 shall be known and cited as the “Public Service Commissioners' Retirement Act of 1969.”

§ 65-152. Definitions.

As used in §§ 65-151 – 65-168 the following definitions shall apply, unless otherwise required by the context:
1. (a) “Commissioner” shall mean any person in office as a member of the Tennessee public service commission, as prescribed by §§ 65-101 – 65-120, on May 7, 1969, or subsequently appointed or elected to such office.
2. (b) “Service” shall mean service as a commissioner and shall include time while on leave of absence during the term of such office, and shall include service rendered during his term of office by a commissioner in any department of the government of the United States during the existence of a state of war or a period of national emergency, and shall further include the period of time that any commissioner may have served as a member of the general assembly and/or as a member of the governor's cabinet as the head of any of the administrative departments of state government enumerated and set forth in § 4-302; provided, however, that service in either of the capacities next above set forth shall be subject to a maximum of six (6) years served as a member of the general assembly and to a maximum of four (4) years served by appointment of the governor as head of an administrative department of state government, only if the commissioner has: (1) paid to the public service commissioners' retirement fund (as hereinafter defined) four per cent (4%) of the compensation he received as a member of the general assembly and/or as the head of an administrative department of state government in respect of such years plus interest at the rate of six per cent (6%) per annum prior to May 7, 1969 or (2) if, in the alternative, such commissioner has heretofore paid contributions with respect to any or all such service, and which contributions shall have been transferred from such other retirement system to this public service commissioners' retirement system in the manner hereinafter prescribed in §§ 65-151 – 65-168, in an amount which equals or exceeds the amount of contributions with respect to service as a member of the general assembly or as the head of an administrative department of state government which such commissioner otherwise would be required by the provisions of clause (1) this subsection to pay to the public service commissioners' retirement fund in order to qualify such service.
3. (c) “Public service commissioners' retirement system” shall mean the system established by §§ 65-151 – 65-168.
4. (d) “Public service commissioners' retirement fund” shall mean the fund hereinafter established and created by said sections.
5. (e) “Normal retirement age” shall mean age sixty-five (65) and shall refer to the earliest age at which a commissioner has a right to retire and receive a benefit regardless of his length of service.
6. (f) “Benefit base” means a sum equal to the annual salary provided by law as of the date a commissioner terminates his office as commissioner for any reason, including retirement, disability or death.
7. (g) “Normal retirement benefit” shall equal seventy-five per cent (75%) of a commissioner's benefit base if he has completed at least twenty (20) years of service and has attained the “normal retirement age.” Otherwise the normal retirement benefit shall be 3.75% of his benefit base multiplied by the number of years of service if he has less than twenty (20) years of service and has attained the age of sixty-five (65) years, and who thereupon elects to retire under the provisions of §§ 65-151 – 65-168 prior to completion of twenty (20) years of service.

§ 65-153. Disability retirement.

Any commissioner having ten (10) or more years of service and becoming disabled may, upon complying with other applicable requirements set out in §§ 65-151 – 65-168, apply for disability retirement and be retired under the provisions of this section and shall thereupon be entitled to receive, during the remainder of his life, a disability pension. The amount of any disability pension shall be determined in the same manner as a “normal retirement benefit” in accordance with § 65-152(g). Any commissioner who receives any disability retirement benefits under the provisions of this section shall not thereafter be eligible to continue in the same term of office as a commissioner. For the purposes of §§ 65-151 – 65-168 “disabled” or “disability” shall mean a permanent physical or mental disablement occurring during the term of office of a commissioner which, in the sole discretion of the governor of the state of Tennessee, prevents such commissioner from performing his duties as a commissioner.

§ 65-154. Certification of intention to retire — Application for retirement.

Any commissioner who elects to retire under the provisions of §§ 65-151 – 65-168 either during or at the expiration of the term of office then held by him, and who has complied with the other retirement requisites of said sections shall certify to the governor of the state at least sixty (60) days prior to the date upon which he desires to relinquish his office his intention to retire, and shall at the same time forward to the governor his application for retirement, stating the time at which he wishes to retire. Provided, however, that any commissioner defeated for reelection shall file with the governor of the state within sixty (60) days after his successor has been duly qualified and assumed the duties of the office an application for retirement under the provisions of said sections. Upon approval by the governor of the application for retirement, the governor shall forward to the board of trustees of the public service commissioners' retirement system, as hereinafter established, the application of the commissioner and shall request the board to process the retirement application in accordance with the provisions of § 65-155.

§ 65-155. Contents of application for retirement — Verification of facts by trustees — Authorization of payment of benefits.

The certificate of intention of a commissioner to retire and the application therefor shall be in writing, addressed to the governor and shall set out the facts pertaining to the service by such commissioner as a member of the Tennessee public service commission, together with any other service as defined by § 65-152(b), the period or periods of time embraced by all such service, and his age. The board of trustees of the public service commissioners' retirement system, as hereinafter established, shall verify the facts and determine if all applicable requirements pertaining to the application for retirement are met and the board of trustees shall indorse the application accordingly and file the application in the division of retirement. The board of trustees shall thereafter authorize payment of benefits to which the retired commissioner is entitled under the provisions of §§ 65-151 – 65-168.

§ 65-156. Board of trustees — Ex officio members — Officers — Quorum.

A board of trustees is hereby established which shall be responsible for the proper administration and operation of the public service commissioners' retirement system provided by §§ 65-151 – 65-168.
Such board of trustees shall have as members the chairman of the public service commission or any member of the public service commission designated by him, the state treasurer, the comptroller of the treasury, the commissioner of finance and administration and one (1) member appointed by the governor. The state treasurer shall be chairman of the board. The board shall elect one of its members as vice chairman. A majority of the members of the board shall constitute a quorum, and all action taken by the board shall be by affirmative vote of a majority of all members of the board.

§ 65-157. Assistance of division of retirement — Legal advisor.

All personnel required by the board in the administration of the public service commissioners' retirement system shall be provided by the division of retirement in the office of the treasurer of the state of Tennessee and all administrative duties shall be performed by and all administrative records shall be maintained by the said division of retirement. The attorney general of the state of Tennessee or an assistant designated by him shall act as legal advisor and attorney for the board.

§ 65-158. Powers of board — Service without compensation — Reimbursement for expenses — Immunity for good faith actions.

Subject to the administrative duties reserved by state law to the state treasurer with respect to all state retirement systems, the board of trustees shall have complete control of the administration of the public service commissioners' retirement system, subject to the provisions of §§ 65-151 – 65-168, with all powers necessary to enable it to carry out properly its duties in that respect. The members of the board shall serve without compensation as board members but shall be reimbursed for actual expenses incurred by them in the performance of their duties. The board shall be fully protected with respect to any action taken or suffered by the board in good faith and reliance upon any table, valuation, certificate, report, advice or opinion furnished by any consultant or actuary, opinions given by the state attorney general or an assistant thereof, or the advice of any qualified investment consultant, and all action so taken or suffered by the board shall be conclusive upon each member of the board and upon all commissioners or persons interested in the public service commissioners' retirement system.

§ 65-159. No liability for good faith investments.

The board shall not be liable for the making, retention, or sale of any investment or reinvestment made by it nor for the loss to or diminution of the fund, except due to its own gross negligence, willfull misconduct, or bad faith.

§ 65-160. Interest of trustees in investments prohibited — Unauthorized emoluments prohibited — Improper use of funds.

No member of the board shall have an interest, direct or indirect, in the gains or profits of any investment made by the board, save insofar as any member may be a commissioner participating in the public service commissioners' retirement system, and no member of the board shall receive, directly or indirectly, any payment or emolument for his services except as expressly provided in §§ 65-151 – 65-168. No member of the board shall, directly or indirectly, for himself or an agent, in any manner use the funds or deposits of the public service commissioners' retirement system, except to make such payments therefrom as are authorized by the board, nor shall any member become an indorser or surety or in any manner an obligor for moneys loaned by or borrowed from the board.

§ 65-161. Public service commissioners' retirement fund — Sources — Transfers of funds — Administration and use of funds.

For the purpose of providing funds necessary under the public service commissioners' retirement system and in order to make such system actuarially sound and solvent there is hereby created and established a public service commissioners' retirement fund, to be composed of: (1) contributions paid by any commissioner with respect to prior service, or transferred from any other retirement system in the manner prescribed by § 65-152(b) and/or § 65-166; (2) paid by the commissioners with respect to future service as prescribed by § 65-166; (3) an amount equal to the sum of the employer's contribution made by the state of Tennessee to the state retirement fund as an incident to the contributions made to such fund by any commissioner who elects to come within the provisions of §§ 65-151 – 65-168, which moneys are hereby transferred and made a part of the public service commissioners' retirement system, any provisions of this Code to the contrary notwithstanding; (4) any and all moneys appropriated to the public service commissioners' retirement system by the provisions of § 65-163 or by any further act making such appropriations, and (5) the income from the investment or reinvestment of said fund in the manner prescribed by § 65-163. The fund shall be administered and utilized as a trust fund and shall be used for the purpose of providing benefits in accordance with the provisions of the public service commissioners' retirement system as established by §§ 65-151 – 65-168, and shall be the means of financing benefits and financing expenses of administering the fund by the board in accordance with the provisions of said sections.

§ 65-162. Board as trustee of fund — Investment powers — Custodian of fund — Payments.

The board of trustees shall be the trustee of the public service commissioners' retirement fund created by § 65-161 and shall have the full power to invest and reinvest all moneys comprising the fund to the extent that the board deems appropriate, subject to the limitation that no investment shall be made except on the exercise of bona fide discretion, in securities which, at the time of making the investment are, by statute, permitted for the investment of funds of the Tennessee state retirement system, as established by §§ 8-3401 – 8-3516. Subject to such limitations, the board shall have the full power to hold, purchase, sell, assign, transfer, or dispose of any of the securities or investment in which the public service commissioners' retirement fund created by § 65-161 has been invested, as well as the proceeds of such investments and the moneys belonging to the said fund. The state treasurer shall be the custodian of the fund. All payments from the fund shall be authorized by the state treasurer on vouchers requested by the board of trustees and duly issued by the state treasurer.

§ 65-163. Annual appropriations to fund — Limitation.

For the purpose of further providing sufficient funds to aid in meeting the cost of benefits provided by §§ 65-151 – 65-168 and to further meet the actuarial requirements of the public service commissioners' retirement fund, there is appropriated to the public service commissioners' retirement fund, in addition to the funds set forth in § 65-161, a sum in an amount to satisfactorily secure the actuarial soundness of the fund annually, commencing with the fiscal year which begins July 1, 1969, such appropriation to be paid out of the unexpended balance standing to the credit of the public service commission in the “motor vehicle account” prescribed by § 65-1518, which account is comprised of the motor carrier inspection, supervision and control fees set forth in said section and of all fines, fees and penalties collected by virtue of the provisions of §§ 65-1501 – 65-1525; and/or out of the unexpended balance standing to the credit of the public service commission in the “public utilities account” prescribed by § 65-431, which account is comprised of the inspection, control and supervision fees and penalties therein required to be paid to the public service commission by public utilities subject to its control and jurisdiction, as prescribed by §§ 65-423 – 65-434. Provided, however, that the funds appropriated by this section shall not exceed four per cent (4%) annually of the balance in the “motor vehicle account” and the “public utilities account” as of the first day of the preceding fiscal year together with a like percentage of all moneys paid into said accounts during such preceding fiscal year. No part of the foregoing appropriation shall be paid from the general funds or revenue of the state of Tennessee but same shall be paid solely out of the aforesaid “motor vehicle account” and/or the aforesaid “public utilities account.”

§ 65-164. Actuary as technical advisor — Biennial consultation — Fee — Determination of actuarial requirements.

The board of trustees shall consult an actuary at least each biennium who shall be the technical advisor to the board on matters regarding the operation of the public service commissioners' retirement fund and shall perform such other duties as are required by the board in connection with the public service commissioners' retirement system as established by §§ 65-151 – 65-168. The fee for his services shall be paid from income received on investments of the fund. The actuarial requirements of the public service commissioners' retirement system shall be determined so that contributions and/or appropriations to the fund will meet current actuarial liabilities and amortize all unfunded accrued actuarial liabilities by 1999.

§ 65-165. Supplemental appropriations to fund — Advice to state treasurer of need — Publication of financial condition of fund.

On or before the first day of January, next preceding each regular meeting of the general assembly, beginning on or after January 1, 1971, the board of trustees shall advise the state treasurer of the actuarial requirements of the public service commissioners' retirement system and the treasurer shall certify to the commissioner of finance and administration the amount needed, if any, over and above the amount contributed by commissioners and the amounts of the continuing annual appropriation as set forth in § 65-163, to make the system actuarially sound as of that date. The commissioner of finance and administration shall include in the budget an amount equal to the amount certified to him by the treasurer, if any, in excess of the amount of the continuing annual appropriation as set forth in § 65-163, to be paid into the public service commissioners' retirement fund. Any such further appropriations shall be paid out of the “motor vehicle account” and/or the “public utilities account” referred to in § 65-163, and no part of any such appropriation shall be paid out of the general funds or revenues of the state of Tennessee. A statement of the financial condition of the trust fund of the public service commissioners' retirement fund shall be published by the board of trustees in an annual report to the treasurer.

§ 65-166. Membership optional — Time to elect — Contributions by commissioners — Credit for prior service — Transfer from other state retirement systems — Payment of deficiency in contributions transferred — Retention of excess.

Membership in the public service commissioners' retirement system provided by §§ 65-151 – 65-168 shall be optional with each commissioner. For the purpose of providing further funds with which to pay the retirement or disability compensation provided for in §§ 65-151 – 65-168, every commissioner who desires to avail himself of the benefits of said sections shall contribute to the public service commissioners' retirement fund an amount annually equal to four per cent (4%) of his gross annual salary as commissioner, such contributions to begin on or after May 7, 1969 or upon the appointment or election and qualification of such commissioner thereafter. This contribution shall be made in equal monthly instalments, which the commissioner of finance and administration shall deduct from the monthly compensation of such commissioner and credit the same to the public service commissioners' retirement fund. Every commissioner in office, on May 7, 1969, who desires to come under the provisions hereof, shall notify the commissioner of finance and administration, by registered or certified return-receipt mail, on or before June 30, 1969. All commissioners elected or appointed after May 7, 1969 shall, within sixty (60) days after such appointment or election and their qualification by virtue of such election or appointment, elect whether or not to come under the provisions of §§ 65-151 – 65-168. Every commissioner electing to come under the provisions of said sections shall continue his contributions to the public service commissioners' retirement fund, as herein provided, as long as he remains in office. Any commissioner in office on May 7, 1969 and who has had prior service, as “service” is defined by § 65-152(b) may, at the time that he notifies the commissioner of finance and administration of his desire to come under the provisions of §§ 65-151 – 65-168, further notify him, in the manner hereinabove prescribed, of his desire to receive credit for such prior service for the purpose of said sections, reciting in his notice the period for which he seeks credit and the nature of his service, i.e., whether as a commissioner, a member of the general assembly or the head of an administrative department of state government, or a combination of any or all of such categories of service, subject to the limitations set forth in § 65-152(b) as to service in the general assembly and/or as the head of an administrative department of state government, and shall remit to the treasurer of the state contributions at the rate of four per cent (4%) of his gross salary or compensation for all such service compensated for prior to May 7, 1969, together with interest thereon at the rate of six per cent (6%) per annum. Thereupon such commissioner shall be entitled to service credit for such period of prior service.
Provided, however, that any commissioner who is presently a member of any other state retirement system and who elects to come under the provisions of §§ 65-151 – 65-168, shall, as of the date that he notifies the commissioner of finance and administration of such election, cease to be a member of any such other state retirement system and any contributions made by such commissioner to such other state retirement system, with respect to any service performed as an official or employee of the state of Tennessee, whether the same comes within the definition of “service” contained in § 65-152(b) or not, shall, any other provision of this Code to the contrary notwithstanding, be transferred from such other state retirement system to the public service commissioners' retirement system as of the date that the commissioner ceases to become a member of such other system.
Provided, further, that in the event that the sum so transferred from any other state retirement system to the public service commissioners' retirement system, as hereinabove prescribed, with respect to any commissioner electing to come under the provisions of §§ 65-151 – 65-168 shall be equal to or in excess of the amount which such commissioner would be otherwise required to remit to the treasurer of the state in order to establish credit for prior service, as “service” is defined in § 65-152(b), that no further or other payment shall be made by such commissioner in order to establish credit for prior service under the terms of §§ 65-151 – 65-168. In the event that the contributions transferred from any other state retirement system to the public service commissioners' retirement system with respect to any commissioner electing to come within the provisions of said sections and to obtain for prior service, as “service” is defined in § 65-152(b) should not equal the amount which such commissioner would otherwise under the provisions of this section be required to remit to the treasurer of the state in order to establish credit for such prior service then in order to receive credit for such prior service for the purposes of §§ 65-151 – 65-168 such commissioner shall remit to the treasurer of the state an amount equal to the difference between the sum he would otherwise be required to remit had his contributions to any other state retirement system not been transferred to the public service commissioners' retirement system and the amount of his contributions so transferred to the public service commissioners' retirement system.
In the event that contributions transferred from any other state retirement system to the public service commissioners' retirement system with respect to any commissioner who elects to come within the provisions of §§ 65-151 – 65-168 and who seeks to obtain credit for prior service as defined by § 65-152(b) shall exceed the amount which such commissioner shall be required to remit to the treasurer of the state in order to obtain such credit, shall exceed the amount required to be remitted, the excess of the contributions so transferred shall be retained in the public service commissioners' retirement fund for the purposes of §§ 65-151 – 65-168.

§ 65-167. Termination of service — Refund of contribution — Election to let contributions accumulate to age 65 — Earlier retirement.

Any commissioner whose service is terminated for any reason shall, in lieu of all other benefits provided by the public service commissioners' retirement system established by §§ 65-151 – 65-168, be entitled to a refund of his contributions without interest if his service at the time of termination is less than five (5) years, or be entitled to a refund of his contributions accumulated at three per cent (3%) interest, or at another rate of interest as the board of trustees may from time to time declare, if at the time of such termination he has completed at least five (5) years of service. Any commissioner who fails to win reelection or who voluntarily retires or terminates his service before becoming eligible for any of the benefits otherwise provided in the public service commissioners' retirement system may be permitted to allow his contributions to remain until he reaches the age of sixty-five (65) at which time he shall be eligible for a retirement benefit based on his actual service at the time of termination, computed in the same manner as a normal retirement benefit in accordance with the provisions of § 65-152(g). Provided, further, that any commissioner who has completed twelve (12) years at the time of his termination of service and who elects to leave his contributions in the public service commissioners' retirement system may, in lieu of receiving a benefit commencing at age sixty-five (65), elect to receive a benefit starting at an earlier age, but after age fifty-four (54), determined actuarially to have the same value as the benefit that would otherwise commence at age sixty-five (65).

§ 65-168. Optional benefits — Contingent annuitants — Benefit rates.

A commissioner entitled to a retirement benefit may elect, subject to written notice of his election filed prior to retirement with the state treasurer and duly acknowledged by him to have a benefit payable under one of the options hereinafter set forth in lieu of all other benefits he is otherwise entitled to receive, and shall file a written designation of a contingent annuitant to receive benefits under an option to be payable after his death. The optional benefits payable shall be in accordance with the terms of the election of option last received and acknowledged by the state treasurer and the contingent annuitant entitled to benefits under said option shall be the person in the written designation of contingent annuitant last received by the state treasurer prior to the retirement of the commissioner. The amount of any optional benefit shall be based on option rates adopted from time to time by the state treasurer and shall be actuarially equivalent in value to the benefit that would otherwise be payable, except that an option commencing after age sixty-five (65) shall not be less than if based on an option rate that would have been applicable had retirement occurred at age sixty-five (65). The election of an option shall be null and void if the contingent annuitant dies before benefits commence. If a commissioner has duly designated a contingent annuitant and is eligible to retire at the time of his death a benefit will be payable to the contingent annuitant as though the commissioner had retired the day before his death. If a commissioner has not duly designated a contingent annuitant and is eligible at the time of his death to have retired under the public service commissioners' retirement system provided by §§ 65-151 – 65-168, the benefit will be an amount payable monthly to his widow, if she is then living, for the remainder of her unremarried life, determined in the same way as an option 1 (joint and survivor) benefit, or the benefit may be a refund of his contributions to the public service commissioners' retirement system (including any contributions made by such commissioner to any other state retirement system and subsequently transferred to the public service commissioners' retirement system in the manner prescribed by §§ 65-151 – 65-168) if the widow so elects.
Option 1. The joint and survivor benefit shall be payable for the life of the retired commissioner and thereafter to the contingent annuitant for life.
Option 2. The modified joint and survivor benefit shall be payable for the life of the retired commissioner and thereafter one half (½) of such amount shall be payable to the contingent annuitant for life.