2014 Tennessee Code
Title 8 - Public Officers And Employees
Chapter 36 - Retirement Benefits
Part 9 - Hybrid Retirement Plan for State Employees and Teachers
§ 8-36-920 - Hybrid plan benefits trust account.

(a) There shall be established in the retirement system trust fund a hybrid plan benefits trust account into which contributions made to the defined benefit component of the plan shall be deposited.

(b) All interest and dividends earned on the funds of the defined benefit component of the hybrid plan shall be credited to the hybrid plan benefits trust account.

(c) Within the hybrid plan benefits trust account created pursuant to this section, there shall be established a reserve trust account, which shall consist of two (2) subaccounts as follows:

(1) (A) An employer reserve trust account into which shall be deposited:

(i) The employer contributions as determined by the actuary pursuant to § 8-36-922(b) and any payments made to establish service credit in the hybrid plan that result from employer contributions rolled over or otherwise transferred from another qualified plan;

(ii) All amounts transferred from the participants' reserve trust account pursuant to subdivision (c)(2)(B) below;

(iii) Transfers from the stabilization reserve trust account pursuant to subdivision (d)(2) below;

(iv) A pro rata share of the interest and dividends earned on the funds of the defined benefit component of the hybrid plan; and

(v) Any penalties assessed against an employer pursuant to § 8-37-504;

(B) All costs of administering the hybrid plan, and all retirement allowances and other benefits payable under the defined benefit component of the hybrid plan other than those payable from the participants' reserve trust account established in subdivision (c)(2) below shall be paid from the employer reserve trust account.

(2) (A) A participants' reserve trust account shall also be established within the reserve trust account into which shall be deposited:

(i) The contributions deducted from the compensation of participants to provide for their member annuities, together with any contributions of participants and interest thereon to establish service credit in the hybrid plan; and

(ii) All amounts transferred from the employer reserve trust account pursuant to subdivision (c)(2)(C).

(B) The accumulated contributions of a participant that are withdrawn by the participant, or paid to the participant's designated beneficiary or to the participant's estate pursuant to § 8-36-120, shall be paid from the participants' reserve trust account. Upon the retirement of a participant, or if a retirement allowance becomes payable on account of the participant's death prior to retirement, the participant's accumulated contributions shall be transferred from the participants' reserve trust account to the employer reserve trust account.

(C) The board of trustees shall annually show interest at such rate or rates as it shall determine from time to time on the individual accounts of participants in the participants' reserve trust account and shall transfer such amounts from the employer reserve trust account.

(d) (1) There shall be established within the hybrid plan benefits trust account a stabilization reserve trust account into which shall be deposited:

(A) All employer contributions made in excess of the actuarial rate determined pursuant to § 8-36-922(b); and

(B) A pro rata share of the interest and dividends earned on the funds of the defined benefit component of the hybrid plan.

(2) Notwithstanding subdivision (d)(1)(A), any employer contributions attributable to federal funds shall not be deposited into the stabilization reserve trust account if such deposits are prohibited by an agency of the federal government or contrary to the advice of competent legal counsel or government accounting professionals of the retirement system.

(3) If in any given year the total amount in the employer reserve account is not sufficient to meet the benefit liabilities of the defined benefit component of the plan as determined by the most recent actuarial study, then such amount as may be necessary to fund the benefits shall be transferred from the stabilization reserve trust account to the employer reserve trust account.

(e) (1) For accounting purposes only, the reserve trust account and the stabilization reserve trust account created by this section shall each consist of the following individual separate accounts for the purpose of accounting for:

(A) The benefits payable to state employees other than those described in subdivisions (e)(1)(B) and (C);

(B) The benefits payable to the attorney general and reporter, district attorneys general, district public defenders and state judges;

(C) The supplemental bridge benefits payable to state employees pursuant to § 8-36-211; and

(D) The benefits payable to teachers.

(2) In addition and for accounting purposes only, the reserve trust account and the stabilization reserve trust account shall each consist of individual separate accounts established in the name of each political subdivision participating under the provisions of this part. Each political subdivision shall have the following three (3) separate subaccounts for the purpose of accounting for:

(A) The benefits payable to employees of the political subdivision other than those described in subdivisions (e)(2)(B) and (C);

(B) The benefits payable to its county judges pursuant to § 8-36-919(e); and

(C) The supplemental bridge benefits payable to its employees pursuant to § 8-36-211.

(f) All monies deposited into the hybrid benefits plan trust account shall be used exclusively for the purposes set forth in this section.