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State Of Tennessee Employee Retirement Benefits

Tennessee Consolidated Retirement System

TN Government Employees Retirement Benefits

The Hybrid Plan, also known as the Tennessee Consolidated Retirement System , is a combination of a defined benefit plan and a defined contribution plan. Both employee and employer contribute to this plan. There is a five-year vesting period for the amount contributed by the employer. Non-exempt employees are required to use this plan.

Retirement System Audits & Valuations

The Shelby County Retirement System is audited each fiscal year. The financial statements for the Countys Retirement System must fairly present the plan net assets and any changes to those net assets. Internal control is also tested for compliance with provisions of applicable laws, regulations, contracts, and pension plan documents.

In conjunction with the audit, an actuarial valuation of Shelby County Governments Retirement System is also conducted annual. Plan participation vs contributory. Shelby County Government makes required contributions to the Pension Fund each year based on the yearly actuarial valuation requirements.

What Do I Need To Do To Retire

It is advised that you start your retirement process at least 3 months prior to the date in which you want to retire

  • Determine in which retirement plan you’re enrolled – Log in to MyTSU and access Banner Services Choose Employee, Benefits and Deductions, Benefit Summary, Retirement Plans
  • Click on ‘Vendor Web Site’ to access your retirement vendor’s site. Make sure you create an online profile, if you haven’t already
  • For TCRS members, call TCRS M-F 8am – 7pm for information. Benefit Estimates are no longer mailed but are available online. Paper applications for TCRS retirement are no longer accepted you must apply for TCRS retirement online by clicking HERE
  • For the 401, ROTH 401 and 457 plans, visit Retire ReadyTN and create an online profile, if you haven’t already. Call 922-7772 M-F 8am – 7pm to discuss distribution options
  • For TIAA members, create your online profile, if you haven’t already. Contact our TIAA rep Austin Jefferson at / 783-2956 or 669-4392 to discuss distribution options
  • For Voya members, create your online profile, if you haven’t already. Contact our Voya rep Ed Stewart at / 627-5936 to discuss distribution options
  • For Valic/AIG members, create your online profile, if you haven’t already. Contact our Valic/AIG rep Lowell Warren at / 878-5129 to discuss distribution options

Continuing Insurance at Retirement – Age 64 or Younger*

Continuing Insurance at Retirement – Age 65+

Disaiblity Retirement

What you need to provide to TSU when retiring

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Higher Education Fee Waivers Discounts

A 25% discount on undergraduate tuition at any state operated institution of higher learning in Tennessee is available to children 23 years of age or under of full time state employees. In addition, full-time state employees with six months of continuous service are eligible to have tuition fees waived for one course per semester at a state institution.

Types Of Retirement Systems In Tennessee

TCRS Overview and Self

While there are four entries in the below table, the different plans in the Tennessee Retirement System are quite similar. For employees hired on or after July 1, 2014, the plans are practically identical, with the exception of the Optional Retirement Plan .

Tennessee Retirement Systems
Full-time state and local employees hired on or after July 1, 2014
Legacy Pension Plan Full-time state and local employees hired before July 1, 2014
Teacher Retirement Plan Full-time teachers hired on or after July 1, 2014
Teacher Legacy Pension Plan All full-time employees hired before July 1, 2014
Optional Retirement Plan Faculty and exempt employees of public colleges and universities

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Additional Optional State Retirement Plans

Tennessee Tech offers additional optional state retirement plans.

  • The 401k Plan is effective the 1st of the month 30 days from application receipt. Tennessee Tech will match up to $50 per month for either the Traditional or the Roth.

  • The 457 Plan is also effective the 1st of the month 30 days from application date but has no match from Tennessee Tech.

  • The 403 Plan is also effective the 1st of the month 30 days from application date but has no match from Tennessee Tech.

Shelby County Opeb Trust Meeting

Please note that there is no published agenda for these meetings.

Duties of the Retirement Office

The Shelby County Government offers its employees fully funded and defined benefit plans. It is the responsibility of the Retirement Office to oversee the administration of these plans, while the fiduciary responsibility is that of the Shelby County Board of Trustees. In addition to assisting retirees, the Retirement Office also deals with employees preparing to retire, refunds and rollovers of terminating employees, and those employees who become permanently disabled.The Retirement Office has the responsibility of processing the payment of all monthly pension benefits. The total pension payroll for current pensioners as of June 30,2020, is in excess of $8 million dollars per month. The Retirement Office also insures that pre and post 65 retirees enrolled in Shelby County Governments benefits program meet all eligibility requirements for health, life and voluntary insurance benefits. The accounting and investment functions for the Retirement System are overseen by the Pension Retirement Manager and Investment Manager for the System. As of June 30, 2020, the Systems Plan Fiduciary Net Position changed from $1,224,240,111.01 to $1,178,569,154.00.

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Health Insurance During Retirement

Insurance provided retirees and active employees are subject to change. Premiums rates are based on creditable service.

Members hired prior to July 1, 2015, who meet the eligibility rules may continue health insurance at retirement for themselves and covered dependents until eligible for Medicare. For service retirement a minimum of ten years employment is required. To continue coverage as a retiree, you must submit an application within one full calendar month of the date active coverage ends. A member cannot have retiree coverage and keep active coverage as an employee in the same plan. Information on the eligibility requirements can be found in the guide to continuing insurance at retirement available on the Benefits Administration website.

Employees whose first employment with the state commenced on or after July 1, 2015, will not be eligible to continue insurance coverage at retirement. Visit the state of Tennessee’s website for insurance during retirement.

Cash And Investment Holdings

NPERS State & County Retirement 101
See also: Pension data, U.S. Census

Investments are a crucial part of the pension process. The goal is that, by investing pension contributions, the pensioner will receive more money when he or she retires than he or she and the employer were able to contribute. These investments are made in cash, short-term investments, securities like equities and bonds, or other assets. Cash investments are usually low-risk, short-term investments that have a lower rate of return than other types of investments. Other short-term investments are riskier than cash investments, but have the potential for greater returns. Securities can refer to stocks, bonds, or other types of financial certificates that hold some sort of financial value. As the values of these securities change, they can be traded to make a profit. While there are other applications of securities investments, this represents one of the most common practices.

As of the fiscal year 2020, Tennessee’s state and local pension systems held $66.4 billion in total cash and investment holdings. The table below summarizes pension system cash and investment holdings for Tennessee. The columns labeled “Total cash and short-term investments” and “Total other investments” are subsets of the grand total. All dollar amounts displayed should be multiplied by 1,000 .

Total cash and investment holdings in Tennessee
United States Census Bureau

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Tnstars College Savings 529 Program

The TNStars® College Savings 529 Program was created to provide families with an affordable and accessible way to save and invest for the costs associated with higher education. Nationally ranked for investment performance, TNStars® is designed to give families high quality investment options at a low cost to help them put aside money for future college expenses. TNStars® offers one age-based option and 14 static investment options with annual asset-based fees ranging from 0-35 basis points.

For Employees Hired Prior To July 1 201:

Tennessee Consolidated Retirement System : Employees who are members of the TCRS are eligible to retire at age 60 or upon completion of 30 years of service, regardless of age. A member with 5 years of service may retire at age 55 with reduced benefits. There is also a disability benefit.

Optional Retirement Program : The ORP is authorized by the State’s statutes on retirement. The University contributes an amount equal to up to 10% of the employee’s monthly compensation up to the social security wage base and 11% of compensation above the social security wage base. The employee cannot make contributions to the ORP. Employees may choose from two companies, VOYA and TIAA, in which to invest these retirement contributions. Employees who participate in the ORP may direct employer contributions made on their behalf to one or more of the companies designated to provide annuity contracts under the State of Tennessee’s ORP. Once funds are on deposit with a designated company, the participant may move those funds among the different investment accounts offered under the company’s annuity contract, subject to the restrictions of the contract. The participant may authorize such internal transfers by telephone directly with the company.

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Mandatory Participation For Full

  • Employees are auto-enrolled at 2%, but they can opt out after first payroll.
  • Exempt Employees May Choose Between:

  • Employees are auto-enrolled at 2%, but they can opt out after first payroll.
  • Employees are auto-enrolled at 2%, but they can opt out after first payroll.
  • *Exempt employees who make no retirement plan election will be enrolled in TCRS Hybrid as a default.

  • TCRS/ORP Enrollment Forms
  • *Exempt employees must complete a Notice of Participation in TCRS or ORP Form regardless of which retirement plan is selected.

    Retiree Medical And Life Insurance Plans

    Current Employees
    • If you were hired prior to June 11, 2007, you may be eligible to receive Shelby County Government Retiree Medical and Life Insurance when you initiate your retirement benefit.
    • If you were hired on or after June 11, 2007, and have at least 15 years of service, you may be eligible for a County provided post-65 retiree medical plan benefit upon becoming eligible for Medicare. Life insurance benefits are not available after retirement.

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    Public Pensions In Tennessee

    Total cash and investment holdings: $66,396,086,000
    Number of state and local pension systems: 40
    Actuarial value of assets
    Unfunded actuarial accrued liability
    Annual required contribution
    Rate of return Active member
    Inactive member OPEB
    Hover over the aboveterms for definitions.
    Note: This page utilizes information from a variety of sources. The information presented on this page reflects the most recent data available as of March 2022.

    Tennessee public pensions are the state mechanism by which state and many local government employees in Tennessee receive retirement benefits.

    According to the United States Census Bureau, there were 40 public pension systems in Tennessee as of 2020. Of these, two were state-level programs while the remaining 38 were administered at the local level. As of fiscal year 2020, membership in Tennessee’s various pension systems totaled 719,607. Of these, 307,954 were active members.


  • In fiscal year 2020, total contributions of $1.9 billion were made to Tennessee’s state and local pension systems. Of this amount, $302.1 million came from employees.
  • In fiscal year 2020, Tennessee’s state and local pension systems made payments totaling $1.8 billion.
  • As of fiscal year 2020, Tennessee’s state and local pension systems held $66.4 billion in total cash and investment holdings.
  • See the sections below for specific information on pension systems in Tennessee:

    Tn Consolidated Retirement System

    The Tennessee Consolidated Retirement System is the retirement plan that covers employees of the State of Tennessee, public colleges and universities, and public elementary and secondary schools. TCRS retirement benefits are computed under a formula which uses the average of the member’s highest five consecutive years of salary and the years of service credited in TCRS. Employees participating in TCRS are vested after 5 years of service.

    TCRS Member Self-Service is now available! This new, online functionality will allow you to update your TCRS contact information, view your entire TCRS account history, retrieve your member annual statement, and maintain your TCRS beneficiary information by visiting TCRS Overview and Self-Service and clicking the Log-In to Self Service to Manage Your Account link.

    ORP members are not TCRS participants and will not be able to register for a TCRS Member Self-Service account.

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    Current Financial Health Of The Tennessee Retirement System

    The Tennessee Retirement System is in excellent financial condition. According to the most recent financial report, the sum of the funds current assets and prospective contributions is larger than the benefits the state is currently committed to paying out. In other words, the state is currently in excellent condition to pay every employee every cent owed to them. That status puts Tennessee in rare standing.

    Continuing Insurance At Retirement

    Expanded unemployment benefits end Saturday in Tennessee

    Eligible employees, who meet the qualifications, may continue insurance coverage at retirement for themselves and their covered eligible dependents. The qualifications are different for central state, higher education, local education and local government retirees, so be sure to review the information for your particular employer group.

    This page provides resources that explain benefits available to you as a retiree. It is important that you understand your benefits and make informed decisions as you prepare for retirement.

    If you are an active employee, your human resources director or agency benefits coordinator will be able to answer benefits-related questions and help you apply to continue insurance coverage. Once you leave employment, your primary point of contact will be the Benefits Administration service center.

    Benefits Administration

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    For Employees Hired On Or After July 1 201:

    Hybrid Tennessee Consolidated Retirement System : Hybrid TN Consolidated Retirement System is a combination of a defined benefit plan and a defined contribution plan. The defined benefit portion is managed by TCRS and benefits are defined according to length of service and salary. The defined contribution assets will be deposited into the State’s 401 plan. Contributions are both employee and employer paid.

    • Defined benefit contributions:
    • Employee contributes 5% of gross salary
    • Employer contributes 3.87% of gross salary
  • Defined contribution plan):
  • Employee contributes 2% of gross salary
  • Employer contributes 5% of gross salary
  • 5 year vesting for defined benefit portion
  • Defined benefit retirement benefit is based on years of service and average salary
  • Disability benefit available if vested
  • May apply additional service credit for sick leave accruals and military leave. Employees who are members of the TCRS are eligible to retire at age 60 or upon completion of 30 years of service, regardless of age. A member with 5 years of service may retire at age 55 with reduced benefits. There is also a disability benefit.
  • There is a maximum salary cap for the percentages of state contributions to TCRS/ORP. As of 2022, this cap is for salaries of $305,000 and above and may change in the future.


    What Happens To My Benefits When Employment With Utc Ends

    UT policies mandate what happens to your longevity pay, annual and sick leave, and employment with the state after retirement. Read more in the summary of UT policies associated with retirement.

    In addition to monetary and health insurance benefits associated with the State of Tennessee Retirement System, UTC retirees enjoy benefits . These benefits include Educational Assistance fee discount for spouses and dependents free membership to the ARC UTC Retirees’ Association library borrowing privileges University email access check cashing Fine Arts Center events discount discounts to Tennessee State Parks discount on dining services listing in UTC online directory.

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    Tips For A Less Stressful Retirement

    • Navigating the complexities of retirement accounts and what youll need to supplement your pension can be a lot to keep straight. Finding a financial advisor that can explain the ins and outs of each option can reduce a lot of the headache of planning for retirement. With SmartAssets SmartAdvisor tool, you can answers a series of questions about your financial needs and preferences, then the tool will pair you with three financial advisors in your area.
    • As your pension will likely need supplementing in order to maintain your lifestyle in retirement. Having a concrete set of financial goals will help you to determine what you need to save and the steps you can take to get there.

    Overview Of Tennessees Retirement Systems

    Retirement â Benefits

    Public Employee Retirement Plan Employees in this plan and their employers will contribute to TCRS, the defined benefit plan, as well as a 401 plan. While your contribution amount to TCRS is set by law, youre free to contribute as much or as little as you want to the 401. Once you reach the vesting requirement of five years, youll be entitled to a monthly benefit as well as survivor and disability coverage.

    Legacy Pension Plan Employees hired before July 1, 2014 are in the legacy plan, and a key difference from the Public Employee Retirement Plan is that they arent enrolled in a 401 plan by default. Enrolling is still an option made available, but you must elect to do so yourself. Another key feature is that you arent required to contribute any of your salary to TCRS, but youre still entitled to retirement benefits once you reach the five-year vesting requirement.

    Teacher Retirement Plan Features of this plan are the same as those of the Public Employee Retirement Plan, where employees and employers contribute to both TCRS and individual 401 plans. The vesting requirement is also five years, at which point you will be entitled to your monthly benefit along with disability and survivor coverage.

    Teacher Legacy Pension Plan For teachers hired before July 1, 2014, the Teacher Legacy plan wont automatically enroll you in a 401 plan, similar to the Legacy Pension Plan. However, this plan differs in that teachers are required to contribute 5% of their salary to TCRS.

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