Section 49-1563 - Optional retirement programs for teachers employed in state supported institutions of higher education - University of Tennessee or its employees exceptedNotwithstanding 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. 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. 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. 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.
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) The nature and extent of the rights and benefits to be provided by such contracts for teachers and their beneficiaries;(2) The relation of such rights and benefits to the amount of contributions to be made;(3) The suitability of such rights and benefits to the needs of the teachers;(4) The efficacy of the contracts in the recruitment and retention of teachers; and(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.
Acts 1971, ch. 418, §§ 1, 2; modified.