(a)

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Terms Used In Tennessee Code 8-25-303

  • Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
  • 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
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • Internal Revenue Code: means the Internal Revenue Code of 1986, codified in United States Code, title 26, as amended. See Tennessee Code 8-34-101
  • Month: means a calendar month. See Tennessee Code 1-3-105
  • profit: means the excess revenue over expenditures prior to the expenditure of the amount which may be optionally made available for employees in cash or placed in trust by the state on behalf of the employees under the plan. See Tennessee Code 8-25-302
  • Retirement: means withdrawal from membership with a retirement allowance granted under chapters 34-37 of this title. 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
(1) Subject to subsection (c), the state shall provide for employer matching of contributions to the plan on behalf of participating state employees who are eligible to participate in the Tennessee consolidated retirement system, or the optional retirement program established pursuant to part 2 of this chapter, and on behalf of participating seasonal or temporary state employees under twenty-five (25) years of age who are paid on the centralized state payroll system. Notwithstanding § 8-35-111, beginning on July 1, 2021, any such employer match shall equal one hundred percent (100%) of the amount contributed by each state employee to the plan per month, up to a maximum of fifty dollars ($50.00) per month or, alternatively, up to a higher maximum that may be specifically prescribed in the annual general appropriations act. Subject to the approval of the department of finance and administration, state employees, other than employees of an institution of higher education, may elect in the manner prescribed by the state treasurer to have the employer matching based on the amount contributed by the employee from the employee’s longevity pay in lieu of the monthly matches as otherwise provided in this subsection (a). If the employee makes the election, the employer match shall equal the amount contributed by the state employee from the employee’s longevity pay, up to the maximum annualized employer match that could have been made had the match been made on a monthly basis. Subject to the approval of a state supported institution of higher education, employees of that institution may elect in the manner and under the conditions provided in this subsection (a) to have the employer matching based on the amount contributed by the employees from the employees’ longevity pay in lieu of the monthly matches as otherwise provided in this subsection (a).
(2) Notwithstanding subdivision (a)(1) or any other law to the contrary, for fiscal years beginning on July 1, 2010, and July 1, 2011, the state may provide for employer matching of contributions to the plan on behalf of eligible, participating state employees. The amount, if any, provided by the state for employer matching contributions shall be specifically prescribed in the general appropriations act each such year.
(3) Notwithstanding subdivision (a)(1) or another law to the contrary, for the fiscal year beginning on July 1, 2022, the state employer match equals two hundred percent (200%) of the amount contributed by each state employee to the plan per month, up to a maximum of one hundred dollars ($100) per month. In subsequent fiscal years, the employer match reverts to the calculation described in subdivision (a)(1).
(4) Notwithstanding subdivision (a)(1) or another law to the contrary, for the fiscal year beginning on July 1, 2023, the state employer match equals one hundred percent (100%) of the amount contributed by each state employee to the plan per month, up to a maximum of one hundred dollars ($100) per month. In subsequent fiscal years, the employer match reverts to the calculation described in subdivision (a)(1).
(b) Notwithstanding this or any other provision to the contrary, the amount of the employer matching shall not exceed the maximum allowed under the Internal Revenue Code (26 U.S.C.) and shall conform to all applicable laws, rules and regulations of the internal revenue service governing profit sharing and/or salary reduction plans for state employees.
(c) It is the legislative intent that the employer match pursuant to this section shall be provided each fiscal year as the general appropriations act sets forth the dollar amount to be matched and contains an appropriation to provide for such matching amount. Further, it is the legislative intent that the amount, terms and conditions of any employer matching of contributions pursuant to subsection (a) for employees of institutions of higher education shall be governed in accordance with the same provisions affecting state employees who are paid on the centralized state payroll system. Notwithstanding this subsection (c), an institution of higher education may authorize the employees of that institution to elect to have the employer matching based on the amount contributed by the employees from the employees’ longevity pay in accordance with subsection (a) regardless of whether the matching is authorized for employees who are paid on the centralized state payroll system.
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