Amends TCA Title 8, Chapter 34; Title 8, Chapter 35; Title 8, Chapter 36 and Title 8, Chapter 37.

This bill authorizes a member of the Tennessee consolidated retirement system (TCRS) to purchase, instead of obtain, retirement credit for all of the member's previous service rendered while a full-time employee and participating member of a political subdivision's defined benefit retirement plan.<br /> <br /> Under present law, a member of TCRS may obtain creditable service for prior service while a participating member of a city, metropolitan government, county, utility district, or other political subdivision retirement system by notifying the board of trustees of the Tennessee consolidated retirement system and the board of trustees of the city, metropolitan government, county, utility district, or other political subdivision retirement system. Upon receiving the notice, the board of trustees of the city, metropolitan government, county, utility district, or other political subdivision retirement system must transfer to the TCRS board all employer and employee contributions made by or on behalf of the member, together with regular interest thereon. Upon receipt of the funds, the member must be credited with the years of service, not to exceed the years of actual service, as the amount will warrant without creating any unfunded actuarially accrued liability. <br /> <br /> This bill rewrites the above provisions to instead provide the following:<br /> <br /> (1) A TCRS member may purchase retirement credit for all of the member's previous service rendered while a full-time employee and participating member of a political subdivision's defined benefit retirement plan;<br /> <br /> (2) A member may purchase service using funds from any source including, but not limited to, cash; a member's deferred compensation account or defined contribution employee account; or employee contributions to a defined benefit plan; provided, however, that the member is otherwise eligible to access the funds through withdrawal, transfer, or rollover;<br /> <br /> (3) These provisions do not require a retirement plan to disburse plan assets that are not otherwise eligible for disbursement in accordance with the terms of the plan; provided, however, that in accordance with federal law, employee contributions to a defined benefit plan are refundable upon termination of employment; <br /> <br /> (4) Upon the purchase of this retirement credit, the member forfeits all of the member's service in the political subdivision's plan, and must not receive a benefit from the political subdivision's retirement plan;<br /> <br /> (5) To purchase service, a member must make a lump sum payment equal to the actuarial cost as determined by the retirement system without creating unfunded accrued liability at the date the service is established. Service established under this bill must be under the terms of the retirement system plan as they exist at the time the service is established. Upon the member making the required payment and providing any forms or other documentation required by the retirement system, the member must be credited with the years of service from the other plan;<br /> <br /> (6) This bill does not permit the establishment of service that would have been considered prior service pursuant to present law provisions governing certain prior service, or service rendered to a withdrawn employer;<br /> <br /> (7) Salaries earned for service established pursuant to this bill must not be used in determining a member's average final compensation; and<br /> <br /> (8) This bill applies on such date as the retirement system's operating systems are able to accommodate the payment for service as provided in this bill. The state treasurer will make that determination.<br />