Tennessee § 8-34-207 - Retirement incentive plan — State general employees.

§ 8-34-207. Retirement incentive plan — State general employees.

A retirement incentive plan shall operate to benefit state general employees, including general employees employed by institutions of higher education, teachers employed by the department of education, state policemen and state wildlife officers as such classifications are defined by this chapter. Employees eligible to participate in the plan shall be current employees who have been employed full time by the state for the past five (5) years and who satisfy one (1) of the following criteria during the time the plan is in effect: Thirty (30) years or more of retirement service credit in the Tennessee consolidated retirement system, the last ten (10) of which shall be state service; Age sixty (60) or over with ten (10) or more years of retirement service credit in the Tennessee consolidated retirement system, the last ten (10) of which shall be state service; Age fifty-five (55) or over with twenty-five (25) or more years of retirement service credit in the Tennessee consolidated retirement system, the last ten (10) of which shall be state service; If employed as state policemen or state wildlife officers, age fifty-five (55) or over with ten (10) or more years of retirement service credit in the Tennessee consolidated retirement system, the last ten (10) of which shall be state service; or If employed as state policemen or wildlife officers classified as either prior Class C members or participating in Group 2 under the provisions of § 8-36-201(b)(2) if such members have twenty-five (25) years of retirement service credit in the Tennessee consolidated retirement system, the last ten (10) of which shall be state service. The plan shall operate for a period of one hundred twenty (120) days beginning on or after May 1, 1990 as determined by executive order. The purpose of the plan shall be to reward employees who choose to retire during the period the plan is in effect with a cash bonus. To be eligible to receive the bonus, the employee must terminate active state employment during the one hundred twenty-day period and file an application for retirement during the one hundred twenty-day period. In addition, the employee may not later be reemployed by the state except under the provisions of § 8-36-805. This bonus shall be equal to five thousand dollars ($5,000) plus the longevity pay the employee would receive during the 1990-1991 fiscal year if he had continued to work for the state. Payment to the employee shall be made after July 1, 1990. The bonus shall not be included in determining the employee's average final compensation for retirement purposes, nor shall it be subject to retirement contributions. The commissioner of finance and administration shall develop a plan for operation of the retirement incentive program to ensure that sufficient payroll savings will be generated to fund all cash bonuses provided for herein and all additional retirement liability created hereby. The plan shall provide for the lump sum payment of any additional retirement liability created by implementation of this section and § 8-34-208. The plan must be approved by the comptroller of the treasury and the state treasurer. Any local school system is authorized, at its option, to make available to its employees a retirement incentive plan. Any such incentive shall not be included in determining the employee's average final compensation for retirement purposes, nor shall it be subject to retirement contributions. The state shall not be liable for the payment of any incentive on account of local school system employees. All costs associated with the payments provided by a retirement incentive plan established by a local school system shall be the responsibility of such school system. Acts 1990, ch. 961, § 1. Code Commission Notes. Section 8-34-207 (Acts 1990, ch. 961, § 1), concerning the retirement incentive plan in effect for state employees during 1990, is deemed obsolete by the code commission.