2023 Tennessee Code › Title 8 - PUBLIC OFFICERS AND EMPLOYEES (§§ 8-1-101 — 65-168) › Chapter 35 - RETIREMENT-MEMBERSHIP (§§ 8-35-101 — 8-35-504) › Part 2 - LOCAL GOVERNMENTAL UNITS (§§ 8-35-201 — 8-35-256) › Section 8-35-201 - Political subdivisions of state

(a)
The chief legislative body of any political subdivision of the state, not participating under §§
8-35-212
- 8-35-214, may, by resolution legally adopted and approved by the chief legislative body, authorize all its employees in all of its departments or instrumentalities to become eligible to participate in the retirement system under the same terms and conditions, except as provided in subsection (e); provided, that:
(1)
Such participation shall be subject to the approval of the board of trustees and in conformity with such rules and regulations as may be prescribed by the board;
(2)
Any political subdivision maintaining a preexisting public employee retirement system shall transfer to the retirement system any excess employer assets remaining in such preexisting system after allocating the funds necessary to provide any unimpaired rights and benefits existing under such preexisting system;
(3)
The entire employer contribution for such public employees shall be provided and paid by the political subdivision and not by the state;
(4)
Such employees will not have a voice in the election of the board of trustees except as provided for in §
8-34-302
; and
(5)
After such election and approval to become members of the retirement system, such body shall thereafter, for the purposes of chapters 34-37 of this title, be an employer.
(b)
Acceptance of the employees of such political subdivision for membership in the retirement system shall be optional with the board of trustees, and if it shall approve their participation, then such employees may become members of the retirement system and participate therein as provided in chapters 34-37 of this title.
(c)
Except as provided in subsection (e), the chief legislative body of any political subdivision in which one (1) or more of its departments or instrumentalities is participating in the retirement system shall be required to extend retirement coverage to all nonparticipating departments, if additional retirement coverage is sought and the remaining uncovered departments shall participate under the same terms and conditions.
(d)
Notwithstanding anything to the contrary in this part, any governing body of any joint venture between one (1) or more political subdivisions of the state may by resolution authorize the employees of such joint venture to become members of the Tennessee consolidated retirement system under all the applicable provisions of this part; provided, that each political subdivision of the state which is represented in the joint venture shall by resolution prescribed by the board of trustees guarantee the payment of its prorated share of any outstanding liability so incurred by this action.
(e)
Notwithstanding any other law to the contrary, a political subdivision may participate in the retirement system without extending retirement coverage to its hospitals, nursing homes, transit authorities, utilities, or other instrumentalities which operate under the direction of their own governing board and which are not subject to the general control and administration of the chief legislative body of the political subdivision. If retirement coverage is extended to such instrumentalities, the instrumentalities shall participate under the same terms and conditions as other departments and instrumentalities of the political subdivision.
(f)
A local board of education may elect to participate in the retirement system separately from the political subdivision with which it is associated. If a local board of education elects to participate in the retirement system separately, the local board of education shall designate, by resolution, which city or the county shall accept financial responsibility for the liabilities associated with participation. The city or county that accepts the financial responsibility for the local board of education's participation in the retirement system, through its chief legislative body, governing body or authorizing body shall, by resolution, authorize and approve the local board of education's participation and shall demonstrate the city or county's acceptance of the liability associated with that participation. A political subdivision may elect to participate in the retirement system without extending coverage to the employees of the local board of education that is associated with the participating political subdivision. In the event that a political subdivision withdraws its participation from the retirement system, the political subdivision may allow the local board of education, which is a part of the political subdivision, to continue its participation in the retirement system separately.
(g)
All political subdivisions that participate in or desire to participate in the retirement system shall have a governing body and shall meet all applicable state and federal law requirements that are necessary for the retirement system to maintain its status as a qualified plan under the Internal Revenue Code (26 U.S.C).
Amended by 2013 Tenn. Acts, ch. 296, Secs.s 7, s 8 eff. 4/29/2013.
Acts 1972, ch. 814, § 10; 1973, ch. 46, § 1; 1978, ch. 740, § 7; 1979, ch. 320, § 5; T.C.A., § 8-3934(1)(a); Acts 1981, ch. 387, § 6; 1992, ch. 843, §§ 10-13; 2011 , ch. 140, § 8.