(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)"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)"Employer" shall mean the University of Tennessee.
(3)"Member employee" shall mean any employee included in the membership of the University of Tennessee joint contributory system.
(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
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(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) "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) "Employer" shall mean the University of Tennessee. (3) "Member employee" shall mean any employee included in the membership of the University of Tennessee joint contributory system. (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) "Board of trustees" shall mean the board of trustees of the University of Tennessee. (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) "Retirement" shall mean the withdrawal from active service with a retirement allowance granted under the provisions of this section. (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) "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) 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, (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 1/8%) 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 (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). 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) 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) 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) 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 ( 9 / 10 ) 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. 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) 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) 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. 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.