Tennessee § 8-3453 - Actuarial soundness of retirement systems for state employees — Definitions.

§ 8-3453. Actuarial soundness of retirement systems for state employees — Definitions.

As used in §§ 8-3453 — 8-3457, the following words and phrases, unless a different meaning is plainly required by the context, shall have the following meaning: “Retirement system” or “system” means any retirement system established by an employer, which is the state of Tennessee or any of its political subdivisions, for the benefit of its employees, or, as the context requires, the written provisions of such system. “Normal contribution” means the actuarially determined amount which would be required to be paid by the employer to the retirement system at the end of the system's fiscal year to maintain the system if it had been in effect from the beginning of service of each person then included in the system and if such costs for prior years had been paid and all relevant actuarial assumptions, such as interest, mortality, and time of payment, had been fulfilled, reduced by any amount attributable to overfunding the system in prior years, whether such overfunding is on account of any actual experience more favorable than that assumed in prior years or otherwise, taking proper account of employee contributions. “Unfunded past service liability” means the actuarially determined amount which would be required to be paid by the employer to the retirement system at the end of the system's fiscal year to meet all the future benefits provided under the system which would not be met by the sum of future normal contributions, future employee contributions and funds actually in the system as of such date. “Minimum actuarial level” means that the contributions to a retirement system are equal to the sum of normal contribution and five per cent (5%) of unfunded past service liability. “Contributions” means the total amount paid to the retirement system by the employer and its employees. Whenever a report of contributions is required by this act, the portions of the amount attributable to employers and employees shall be separately stated. “Retirement board” means the person or persons charged with the administration of a retirement system. Acts 1961, ch. 332, § 1; 1965, ch. 254, § 1.