(a) The minimum retirement allowance for an employee, during the remainder of such employee’s life, shall be computed as follows:

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Terms Used In Tennessee Code 6-54-803

  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Department: means the fire department or police department of any municipality that pays wages to its employees for services rendered. See Tennessee Code 6-54-801
  • Employee: means any person who, on the adoption of this part, is a paid employee in the fire department or police department of any municipality and a member of a municipal retirement system or pension plan. See Tennessee Code 6-54-801
  • Month: means a calendar month. See Tennessee Code 1-3-105
  • Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
  • Retired employee: means any person who has been a paid employee in the fire department or police department of any municipality and who, on the adoption of this part, is receiving from such municipality a retirement allowance based upon such person's service in such department. See Tennessee Code 6-54-801
  • Retirement allowance: means the monthly payment for life made to a retired employee or the retired employee's survivors or beneficiaries under a municipal employees retirement system or pension plan. See Tennessee Code 6-54-801
  • United States: includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
  • Year: means a calendar year, unless otherwise expressed. See Tennessee Code 1-3-105
(1) The retirement allowance of such employee who retires upon reaching the minimum age of fifty (50) years or older after a total of not less than twenty-five (25) separate years of service in either or both departments shall be two percent (2%) multiplied by the number of years of service, up to a maximum of thirty (30) years of service, multiplied by such employee’s highest monthly salary during such employee’s period of service in the department.
(2) Such allowance shall not be less than fifty percent (50%) or greater than sixty percent (60%) of such employee’s highest monthly salary during such employee’s period of service in the department.
(b) In addition to the retirement allowance, a retired employee shall be paid a cost of living benefit each month beginning January 1 of the year following the twenty-fourth month of such employee’s retirement. Such benefit shall be adjusted annually thereafter and shall be computed by multiplying the retirement allowance by the percentage of increase or decrease in the consumer price index, as compiled by the bureau of labor statistics in the United States department of labor, for the twelve-month period ending September 30 of each year. Such percentage shall not exceed three percent (3%) in any year. The retirement allowance shall not be decreased below the amount provided in subsection (a). Such percentage shall be applied only to the retirement allowance and shall not be compounded from year to year.
(c) The retirement allowance of the survivor or beneficiary of any employee or retired employee shall be computed by using the allowances in subsection (a). The cost of living benefit shall be computed in the same manner as provided in subsection (b).
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