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 8-35-253 - Additional plan options for political subdivisions to participate in the retirement system

(a)
For purposes of §§
8-35-253
- 8-35-256, "political subdivision" means any entity authorized to participate in the retirement system pursuant to this part.
(b)
Sections
8-35-253
- 8-35-256 are not applicable to:
(1)
State officials, including legislative officials elected by the general assembly, or who are employed in the service of, and whose compensation is payable in whole or in part by, the state, including employees under supervision of the state whose compensation is paid, in whole or in part, from federal or other funds;
(2)
Employees of state-supported institutions of higher education; or
(3)
Teachers as defined by §
8-34-101
.
(c)
Sections
8-35-253
- 8-35-256 are applicable only to those employees that political subdivisions hire on or after July 1, 2012.
(d)
It is the intent of the general assembly that there shall be multiple options for political subdivisions of the state to participate in the retirement system. It is further the intent of the general assembly that any political subdivision already participating in the retirement system on July 1, 2012, may continue to do so without making any changes to its existing plan. Accordingly, the following additional plans are established and available for adoption by political subdivisions of the state on or after July 1, 2012, in accordance with §
8-35-201
.
(e)
With respect to any of the plans adopted by a political subdivision on or after July 1, 2012, the following provisions are applicable:
(1)
A political subdivision may for employees hired on or after July 1, 2012, freeze, suspend or modify benefits, employee contributions, plan terms and design prospectively; provided, that these actions are authorized by an enactment of the general assembly;
(2)
Nothing under state law may confer to employees of a political subdivision who are hired on or after July 1, 2012, or after the date the political subdivision authorizes its employees to participate in the retirement system in accordance with this part, whichever is later, an implied right to future retirement benefit arrangements. For such employees, a political subdivision may adjust retirement benefit formulas, cost of living adjustments, if allowable, contribution rates, and retirement eligibility ages in accordance with this section, unless prohibited by federal law;
(3)
Employees hired on or after July 1, 2012, or after the date the political subdivision authorizes its employees to participate in the retirement system in accordance with this part, whichever occurs later, may not assert the indefinite continuation of the retirement formulas, contribution rates and eligibility ages in effect at the time of employment;
(4)
For all employees hired on or after July 1, 2012, or after the date the political subdivision authorizes its employees to participate in the retirement system in accordance with this part, whichever occurs later, the actuarial value of accrued benefits earned prior to any adjustment pursuant to subdivision (e)(2) above shall remain an enforceable right and may not be reduced without written consent of the employee unless the employee is subject to the forfeiture of the employee's retirement benefits in accordance with §
8-35-124
;
(5)
Benefits accrued under any of the plans adopted pursuant to §§
8-35-253
- 8-35-256 shall be in accordance with
26 U.S.C. § 411
.
(f)
Any political subdivision participating in any of the plans available to it shall be subject to the withdrawal provisions of §
8-35-211
and §
8-35-218
. Notwithstanding any other law to the contrary, a political subdivision, by resolution legally adopted and approved by a majority of the membership of the chief governing body of the political subdivision, may change the plan in which it participates, prospectively for employees hired on or after July 1, 2012. Any such resolution shall set forth the effective date of the change; provided, that the date shall be on the first day of any quarter following a minimum of six (6) months' notice to the retirement system.
(g)
A political subdivision may change its plan and cost of living election, if allowable by the respective plan, no more frequently than once every two (2) years, but only for those employees hired on or after July 1, 2012, or after the date the political subdivision authorizes its employees to participate in the retirement system in accordance with this part, whichever is later.
(h)
Notwithstanding any provision of §§
8-35-253
- 8-35-256 to the contrary and on or after July 1, 2012, a political subdivision may change its employee contribution rate within a plan as it applies to employees hired on or after July 1, 2012. A political subdivision may change its employee contribution rate no more frequently than once a year, or at such other intervals as the board may determine by rule.
(i)
A political subdivision that provided notice of withdrawal pursuant to §
8-35-218
but whose effective withdrawal date is July 1, 2012, is not subject to the above-referenced six (6) months' notice requirement in order to change plans; provided, that the resolution to select an alternate plan is adopted prior to July 1, 2012.
(j)
In the event a political subdivision participating in the retirement system changes to any other plan offered by the retirement system pursuant to chapters 34-37 of this title, a person hired by that political subdivision after the effective date of the change will not be eligible for the political subdivision's former plan unless the person participated in the former plan as an employee of that political subdivision before the effective date of the change to the new plan and has not otherwise lost membership in the retirement system. Any employee serving a temporary employment period pursuant to §
8-35-107
on the effective date of the change will be eligible for the plan in effect as of the date the employee becomes eligible to join the retirement system.
Amended by 2020 Tenn. Acts, ch. 686, s 1, eff. 6/11/2020.
Amended by 2013 Tenn. Acts, ch. 296, s 12, eff. 4/29/2013.
Acts 2012 , ch. 939, § 1.