Tennessee § 8-25-205 - Employer contributions.

§ 8-25-205. Employer contributions.

The employer shall make employer contributions at the rate of ten percent (10%) of each eligible employee's earnable compensation, plus one percent (1%) of the part of the eligible employee's earnable compensation in excess of the employee's covered compensation. The amount of salary taken into account in determining such contributions shall not exceed the maximum dollar limitation imposed by Section 401(a)(17) of the Internal Revenue Code (26 U.S.C. § 401(a)(17)). For any person becoming a participant in an optional retirement program before July 1, 1996, the dollar limitation under Section 401(a)(17) of the Internal Revenue Code shall not apply to the extent the amount of compensation that is allowed to be taken into account under the plan would be reduced below the amount that was allowed to be taken into account under the plan as in effect on July 1, 1993. [Deleted by 2019 amendment.] [Deleted by 2018 amendment.] Acts 2015, ch. 118, § 1; 2018, ch. 576, §§ 11, 12; 2019, ch. 381, § 2. Code Commission Notes. Acts 2015, ch. 118, § 1 enacted this part as part 6 of Title 8, Chapter 25, but the part has been redesignated as part 2 by authority of the Code Commission. Amendments. The 2018 amendment, at the end of (b), deleted “or as provided in subsection (c)”; and deleted former (c) which read: “(c)(1) If a participant has separated from service and has an aggregate total of less than five thousand dollars ($5,000) credited to such participant's retirement accounts, the contributions shall be distributed to the participant, upon the participant's written request therefor, if permitted by the relevant optional retirement company. The distribution shall be made in any manner permitted by the companies holding the accounts. This aggregate total shall be increased by one thousand dollars ($1,000) on January 1, 2002, and on each January 1 thereafter until the aggregate total distribution equals fifteen thousand dollars ($15,000).“(2) (A) If a participant has separated from service and suffers from a total and permanent disability, the participant may file a written request with the participant's employer for a limited lump sum distribution from the participant's accounts each year if permitted by the relevant optional retirement company.“(B) To be eligible for the distribution described in this subdivision (c)(2), the request must be accompanied with evidence showing that the participant is receiving social security disability benefits from the social security administration on account of a total and permanent disability suffered by the participant, unless the participant has met the age requirement for receipt of old age and survivors benefits under Title II of the federal Social Security Act ( 42 U.S.C. § 401 et seq.). If the participant has met such age requirement, the request must be accompanied with a letter from two (2) physicians that conclusively states that the participant is totally and permanently disabled and that such disability is expected to last for a continuous period of not less than twelve (12) months.“(C) For the calendar year 2004, the aggregate total of each annual distribution from all of the participant's accounts shall not exceed eighteen thousand dollars ($18,000). This aggregate total shall be increased by one thousand dollars ($1,000) each calendar year thereafter until the aggregate total annual distribution equals twenty-five thousand dollars ($25,000). Each annual distribution shall be made in any manner permitted by the companies holding the accounts but only upon receipt by the employer of the applicable documentation described in subdivision (c)(2)(B) that confirms the participant's continued eligibility for the distribution.” The 2019 amendment deleted former (b) which read: “Employer contributions shall be credited to the optional retirement fund to provide retirement and death benefits for members and are not refundable in a lump sum for any reason, except death”. Effective Dates. Acts 2018, ch. 576, § 14. March 16, 2018. Acts 2019, ch. 381, § 14. May 10, 2019.