8-36-101 - Adjustment of retirement allowances for social security benefits. - Tennessee Statutes

8-36-101. Adjustment of retirement allowances for social security benefits.

(a)  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 (42 U.S.C. §§ 401-425), the member will receive, so far as possible, approximately the same amount per year before and after the commencement of such benefit.

(b)  This section 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 (a) 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 (b) 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.

[Acts 1972, ch. 814, § 5; T.C.A., § 8-3916; Acts 1992, ch. 843, § 17.]