(a) 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.
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Terms Used In Tennessee Code 49-1521
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- board: means the board provided for in part 3 of this chapter. See Tennessee Code 8-34-101
- Covered compensation: means , with respect to any calendar year, the amount of a member's earnable compensation subject to contributions under the Federal Insurance Contributions Act (26 U. See Tennessee Code 8-34-101
- Earnable compensation: includes , but is not limited to, any bonus or incentive payment. See Tennessee Code 8-34-101
- Employer: means : (A) The state or any department, commission, institution, board or agency of the state government by which a member is paid, with respect to members in its employ. See Tennessee Code 8-34-101
- Member: means any person included in the membership of the retirement system, as provided in chapter 35, part 1 of this title. See Tennessee Code 8-34-101
- Person: includes a corporation, firm, company or association. See Tennessee Code 1-3-105
- Regular interest: means interest at such rate or rates compounded annually as may be set from time to time by the board of trustees in accordance with §. See Tennessee Code 8-34-101
- Service: means service as a general employee, a teacher, a state police officer, a wildlife officer, a firefighter, a police officer, a state judge, a county judge, an attorney general, a commissioner or a county official which is paid for by an employer, and also includes service for which a former member of the general assembly is entitled to under former §. See Tennessee Code 8-34-101
- State: means the state of Tennessee. See Tennessee Code 8-34-101
- Year: means a calendar year, unless otherwise expressed. See Tennessee Code 1-3-105
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.
(c) 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.
