Tennessee's Hybrid Retirement Plan combines elements of a pension plan and a defined contribution (DC) plan. New teachers hired after July 2014 are automatically enrolled in this plan. They contribute 5% of their salary to the defined benefit (DB) portion and 2% to the DC portion. The DB pension is determined by a formula based on years of experience and final salary, while the DC plan allows teachers to make investment choices. Teachers vest for the DB portion after 5 years of service, but vest immediately in the DC component.