8-36-206 - Formula for computing allowances. - Tennessee Statutes

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)  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:

          (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 (.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;

          (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 (.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 percent (.5%) of the average final compensation not in excess of the social security integration level, multiplied by four-tenths of one percent (.4%) for each month which the member's age is less than sixty-five (65) years of age, multiplied by years of service;

          (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 (.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 percent (.5%) of the average final compensation not in excess of the social security integration level, multiplied by four tenths of one percent (.4%) for each month which the member's age is less than sixty-five (65) years of age, multiplied by years of service;

          (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)  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. §§ 301-1396) to qualify for social security benefits at sixty-five (65) years of age, the member's annuity plus the state annuity shall equal:

          (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;

          (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

          (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.

[Acts 1972, ch. 814, § 5; T.C.A., § 8-3906(1); Acts 1980, ch. 654, § 3; 1986, ch. 554, § 14.]