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POLICY 06:08:00

RETIREMENT

This policy is consistent with Tennessee Board of Regents Policy No. 5:01:03:00

Purpose

The purpose of this policy is to set the standards for a consistent process and treatment of
employees regarding retirement.

Policy

  1. Retirement Policy
    1. Except as otherwise provided herein, all regular full-time employees of Pellissippi
      State as governed by the Tennessee Board of Regents shall be members of a state
      supported retirement system, subject to the eligibility provisions of T.C.A. § 8-35-
      101 et seq.
    2. Regular part-time employees are eligible to become members of a state-supported
      retirement system, but such membership is not mandatory.
    3. Pursuant to T.C.A. § 8-35-403 et seq., any individual who is exempt from the Fair
      Labor Standards Act and who is employed in a state-sponsored institution of
      higher education may elect either membership in the retirement system or
      participation in the optional retirement program. Therefore, all regular academic,
      executive, administrative, and professional employees of Pellissippi State shall
      have the option of becoming members of either the Tennessee Consolidated
      Retirement System (TCRS) or the Optional Retirement Program (ORP).

      1. Employees who are members of the TCRS are eligible to retire upon
        attainment of appropriate age and years of creditable service, or a
        combination thereof.
      2. Employees who are members of the ORP may retire at any time after
        separation from service, subject to IRS regulations.
    4. Any person who has served as the president of the college for a period of not less
      than ten (10) years may, upon approval of the Board, be retired as President
      Emeritus of the college.

      1. For presidents hired after September 1, 2002, this will be an honorary title
        earned through service with no material benefit other than the honor
        associated with its granting.
      2. Only for presidents hired prior to September 2002, an annual salary of
        twenty percent (20%) of the last year’s salary, exclusive of perquisites,
        may be paid monthly from college appropriations subject to the terms and
        conditions of T.C.A. § 8-36-714.
    5. For either retirement system (TCRS or ORP), the annual limit to employer
      contributions made on behalf of employees hired after July 1, 1996 will be subject
      to applicable federal and state limits.
    6. There is no contribution limit for employees employed before July 1, 1996.
      1. Additionally, for employees enrolled in the ORP, there is also an annual
        aggregate contribution limit for contributions to the ORP and 401(k). This
        limit is defined on an annual basis.
    7. Temporary Employment. Any retired member of TCRS (except those receiving a
      disability retirement allowance) or ORP (except those who have never taken a
      withdrawal or distribution from his/her account) may return to service in a
      position covered by the TBR system and continue to draw their retirement
      allowance under the following conditions:

      1. The retiree must have a break in service for a minimum of sixty (60) days,
        unless an exception has been applied for and approved.
      2. Retirees employed as teachers by an institution of higher education are
        limited to 24 quarter hours or 18 semester credit hours.
      3. The entire compensation payable to the retiree for such work should not be
        more than 60 percent of the annual full-time salary received by the
        member in the year immediately prior to retirement. This limit on salary
        increases by 5 percent for each year since the member’s retirement.
    8. When a retiree begins temporary employment, they will be required to complete
      the appropriate form.

      1. TCRS retirees must complete the Temporary Employment form and the
        college shall submit the form to the TCRS. The TCRS must be notified by
        letter when the retiree’s temporary employment reaches the 120 day limit
        and/or when employment is terminated to avoid possible overpayment or
        suspension of the monthly benefit.
      2. ORP retirees must complete the Optional Retirement Program (ORP) Part
        time Reemployment Certification/Waiver form for the college’s files.
      3. New forms for TCRS and ORP retirees must be completed for each 12-
        month period.

Sources: TBR Policy 05:01:03:00; T.C.A. §§ 49-8-203, 8-35-101 et seq., 8-35-403 et seq., 8-36-714

Adopted by TBR September 24, 1976
Revised by TBR September 29, 1978
Revised by TBR June 29, 1979
Revised by TBR June 26, 1981
Revised by TBR March 19, 1982
Revised by TBR September 30, 1983
Revised by TBR December 14, 1984
Revised by TBR March 20, 1987
Revised by TBR December 13, 1991
Revised by TBR June 25, 1993
Revised by TBR September 20, 2002
Revised by TBR March 30, 2006
Revised by TBR March 27, 2015
Revised by TBR March 30, 2023
Reviewed/Recommended: President’s Council, November 27, 2023
Approved: President L. Anthony Wise, Jr., November 27, 2023

Note:
(a) The provisions of this policy which constituted amendments or revisions adopted on
September 29, 1978, became effective on January 1, 1979.
(b) The provisions of this policy which constituted amendments or revisions adopted on June 26,
1981, became effective on July 1, 1981.
(c) The provisions of this policy under which regular full-time executive, administrative, and
professional employees are eligible to participate in the optional retirement program became
effective on July 1, 1983.
(d) Regular part-time employees became eligible for retirement system membership on July 1,
1984.