Tennessee § 49-1521 - Deductions from teachers' pay and fund.

§ 49-1521. Deductions from teachers' pay and fund.

Each employer shall cause to be deducted from the salary of each member on each and every payroll of such employer for each and every payroll period a per centum of his earnable compensation which in the case of a class A member shall be three per cent (3%) of his covered compensation and five per cent (5%) of the part of his earnable compensation in excess of his covered compensation, and which in the case of a class B member shall be five per cent (5%) of his earnable compensation for the period of his membership prior to July 1, 1967, and for each such period on and after July 1, 1967, shall be seven per centum (7%) of his earnable compensation. The employer shall transmit same to the state treasurer monthly, but the employer shall not have any deduction made for teacher annuity purposes from the compensation of a class B member who elects not to contribute if he has attained the age of sixty (60) years and has completed thirty-five (35) years of service. Each employer shall also cause to be deducted from the salary of each class A member the proper amount required for social security and transmit the same to the old age and survivors insurance agency, state of Tennessee, quarterly together with a prescribed report. The deductions provided for herein shall be made notwithstanding that the minimum compensation provided for by law for any members shall be reduced thereby. Every member shall be deemed to consent and agree to the deductions made and provided for herein and shall receipt for his full salary and compensation, and payments of salary or compensation, less said deduction, shall be a full and complete discharge and acquittance of all claims and demands whatsoever for services rendered by such person during the period covered by such payment, except as to the benefits, provided under this chapter. The employer shall certify to the board of trustees on each and every payroll, or in such other manner as the board of trustees may prescribe, the amounts to be deducted, and each of said amounts shall be deducted and when deducted, shall be paid into said members' contributions account, and shall be credited together with regular interest thereon to the individual accounts of the member from whose compensation said deduction was made. Notwithstanding anything to the contrary in this chapter, no employer shall make any deduction during any year for which the state contribution to the accumulation account is not made. An amount equal to the taxes under the Federal Insurance Contributions Act payable by a class A member for the period beginning January 1, 1956 and ending on July 1, 1957 shall be deducted from amounts credited to such member in the teacher annuity savings fund. Any member may elect to deposit in said fund by a single payment an amount equal to the taxes so deducted. Acts 1945, ch. 29, § 8; C. Supp. 1950, § 2540.8 (Williams, § 2524.8); Acts 1957, ch. 87, §§ 8, 9; 1961, ch. 62, § 6; 1967, ch. 251, § 9; 1971, ch. 152, §§ 2, 3.