Transcript Retirement . . . A New Beginning

Introduction
TCRS provides benefits to more than
220,000 active members, and over
110,000 retired members
 Currently there is over $30 Billion
Dollars held in trust for TCRS
 TCRS ranks number 88 in the top 100
global pension funds
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(www.pensionfundsonline.co.uk)
Membership

Group IV of the Tennessee Consolidated
Retirement System (TCRS) opened for
membership to state judges on September 1,
1990.
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A state judge is defined as any person employed
as a judge of a court of record whose salary is
paid wholly from the Treasury of the State or as
the Executive Secretary to the Supreme Court.
Membership (continued)
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Beginning July 1, 2005, any person who
becomes the attorney general and reporter
shall be a Group IV member provided the
attorney general served as a Group IV
state judge immediately prior to being
appointed the attorney general and
reporter.
Membership in the TCRS is optional to all
state judges and attorneys general;
however, once membership has been
elected, the election is irrevocable.
401 (a) Defined Benefit Plan
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Annuity at retirement is calculated on a set
formula
The employer bears the risk of investment
loss
Monthly benefits are paid to the member
for their lifetime.
Contributions are not available for loan or
withdrawal until termination of employment
Contributions
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The state assumed employee
contributions to the retirement system of
up to five percent (5%) of a Group IV
member’s earnable compensation on
September 1, 1990.
Every Group IV member must make the
necessary monthly contributions based on
his salary until he terminates his
employment or retires from the system
What Determines the Member’s
Benefit?

Years of Service – your total
number of years and months of
creditable service

Average Final Compensation
(AFC) – the average of your highest
five consecutive years of salaries
Retirement Requirements

Service Retirement
A
Group IV member is eligible to
apply for an unreduced service
retirement allowance upon attaining
age 55 with 24 years of service OR
age 60 with 8 years of service.
Benefit Formula
The formula for computing a full service
monthly retirement allowance is as
follows:
2.5% x Average Final Compensation
(AFC) x number of creditable service
years divided by 12
Election of Benefit Payment
Plans

Single Life Annuity Plans
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Regular Plan or Maximum Plan
Social Security Leveling*
Joint and Survivor Plans
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Option I - 100% Joint and Survivor
Option II - 50% Joint and Survivor
Option III - Modification of Option I
Option IV - Modification of Option II
Soc. Sec. Leveling Example
Reg./Max Amount
Soc. Sec. Est. @ Age 62
% of S.S. paid by TCRS
Based on Age 60 (82%)
Benefit Paid to Member
until 62 from TCRS
Benefit Paid to Member
after 62 From TCRS
1,000.00
1,000.00
820.00
Soc. Sec. Paid @ 62
1000.00
Total Paid from TCRS &
SS after 62
1,820.00
1,820.00
820.00
Selecting A Beneficiary
 Please
make sure your active
beneficiary is kept up to date.
 Check beneficiary designation
on TCRS annual statement.
 If adjustments are necessary
please fill out a “Change of
Beneficiary Form”.
Active Member Death Benefits

There are several death benefits payable
to the beneficiary of an active member
who dies prior to retirement:

Lump-Sum Death Benefit:

The member’s designated beneficiary (s),
may receive the member’s accumulated
contributions plus interest. Plus an additional
amount equal to the accumulated
contributions and interest.
Death Benefits (continued)
 100%
Joint & Survivor Annuity After 10
Years Service
 The
surviving spouse of a member who has
10 years or more of creditable service and
who dies in service is automatically eligible
for a 100% Joint and Survivor Monthly
Annuity, provided the spouse is the
member’s designated beneficiary.
Death Benefits (continued)

100% Joint & Survivor Annuity of Any
Beneficiary

If a member meets the requirements of
service or early retirement, a monthly
benefit under Option I is payable to any
beneficiary designated if the member
dies in service.
Disability Benefits

A Group IV member with eight
years of service who becomes
totally and permanently disabled
from engaging in any type of gainful
employment may apply for an
ordinary disability retirement
benefit.
Refunded Service

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Member must have one year of service
before reestablishing service.
Member will be required to redeposit the
amount withdrawn plus 7 ½ percent
interest compounded annually from the
date of refund.
Payment may be made in a lump sum or
in an installment plan.
Military Service

Retirement law allows a vested member (8
years) to establish up to 4 years of credit
for military service rendered under certain
conditions.
(Please refer to Application for Military Service
Credit for more details)
Cost-of-Living Adjustment
(COLA)

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Must be retired 12 full months prior to
the July 1 on which the adjustment is
made.
Increases are calculated on the June
30 benefit.
Increase is payable up to three percent
(3%) annually.
Based on the Consumer Price Index.
Internet Site
www.treasury.state.tn.us/tcrs
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Downloadable Forms
Publications
Contact Information