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Policies and Procedures Manual

06:11:00 Retirement Programs

Revision Responsibility: Executive Director of Human Resources
Responsible Executive Officer: Vice President for Business & Finance

Purpose

To describe retirement program options to available full-time and regular part-time employees.

Policy

I. Retirement Policy

  1. Except as otherwise provided herein, all regular full-time employees of the Tennessee Board of Regents and institutions governed by the Tennessee Board of Regents shall be members of a state supported retirement system, subject to the eligibility provisions of T.C.A. § 8-35-101 et seq.
     
  2. Regular part-time employees are eligible to become members of a state-supported retirement system, but such membership is not mandatory.
     
  3. Pursuant to T.C.A. § 8-35-403 et seq., any individual who is exempt from the Fair Labor Standards Act and who is employed in a state-sponsored institution of higher education may elect either membership in the retirement system or participation in the optional retirement program. All regular academic, executive, administrative, and professional employees of the Board and institutions shall have the option of becoming members of either the Tennessee Consolidated Retirement System (TCRS) or the Optional Retirement Program (ORP). Please see TBR Policy 5:01:03:03 for details regarding the specifics of each retirement plan.
     
    1. Employees who are members of the TCRS are eligible to retire upon attainment of appropriate age and years of creditable service, or a combination thereof.
       
    2. Employees who are members of the ORP may retire at any time after separation from service, subject to IRS regulations.
       
  4. Any person who has served as the president of an institution under the Board of Regents for a period of not less than ten (10) years and has attained the age of sixty (60) while being employed by the Board may, upon approval of the Board, be retired as President Emeritus of the institution where he/she may, upon approval of the Board, be retired as President Emeritus of the institution where he/she served a minimum of ten (10) years.
     
    1. For presidents hired after September 1, 2002, this will be an honorary title earned through service with no material benefit other than the honor associated with its granting.
       
    2. Only for presidents hired prior to September 2002, an annual salary of twenty percent (20%) of his/her last year’s salary, exclusive of perquisites, may be paid monthly from institution appropriations subject to the terms and conditions of T.C.A. § 8-36-714.
       
  5. For either retirement system (TCRS or ORP), the annual limit to employer contributions made on behalf of employees hired after July 1, 1996 will be subject to applicable federal and state limits.
     
    1. There is no contribution limit for employees employed before July 1, 1996. Additionally, for employees enrolled in the ORP, there is also an annual aggregate contribution limit for contributions to the ORP and 401K. This limit is defined on an annual basis.
       
  6. Temporary Employment. Any retired member of TCRS (except those receiving a disability retirement allowance) or ORP(except those who have never taken a withdrawal or distribution from his/her account) may return to service in a position covered by this system and continue to draw his/her retirement allowance under the following conditions:
     
    1. The retiree must have a break in service for a minimum of sixty (60) days, unless an exception has been applied for and approved.
       
    2. Retirees employed as teachers by an institution of higher education are limited to 24 quarter hours or 18 semester credit hours per year.
       
    3. The entire compensation payable to the retiree for such work should not be more than 60 percent of the annual full-time salary received by the member in the year immediately prior to retirement. This limit on salary may increase by 5 percent for each year since the member’s retirement. However, this does not mean the employee is entitle to a 5% increase per year; only the limit increases by that %.
       
  7. When a retiree begins temporary employment, he/she will be required to complete the appropriate form.
     
    1. TCRS retirees must complete the Temporary Employment form and the institution shall submit the form to the TCRS. The TCRS must be notified by letter when the retiree’s temporary employment reaches the 120-day limit and/or when employment is terminated to avoid possible overpayment or suspension of the monthly benefit.
       
    2. ORP retirees must complete the Optional Retirement Program (ORP) Part-time Reemployment Certification/Waiver form for the institution’s files.
       
    3. New forms for TCRS and ORP retirees must be completed for each 12-month period. 10/13; 01/15; 05/16