8-34-607 - Service credits following reduction of regularly scheduled hours for full-time officers, employees and teachers on non-permanent basis due to reductions in funding levels or shortage of fun
8-34-607. Service credits following reduction of regularly scheduled hours for full-time officers, employees and teachers on non-permanent basis due to reductions in funding levels or shortage of funds. [Effective until June 30, 2011. See the Compiler's Notes.]
(a) In the event the regularly scheduled hours of work per month for any full-time officer or employee of the state are reduced on a non-permanent basis by no more than thirty percent (30%) pursuant to a statute, executive order or action of the officer or employee's appointing authority done by reason of reductions in funding levels, the amount of service and salary credit that the officer or employee would have otherwise received in the retirement system had the scheduled hours not been reduced shall continue to be included for purposes of computing retirement, death and disability benefits as provided under chapters 34-37 of this title. The employers of the officers and employees shall be responsible for reporting to the retirement system the additional service and salary, and for the payment of the employer and employee contributions attributable to the additional service and salary. The director of the division of retirement shall prescribe procedures for the reporting the additional service and salary, and for the payment and remittance of the contributions to the retirement system. This subsection (a) shall have retroactive application to January 1, 2009.
(b) For the purposes of subsection (a), officer and employee mean any officer or employee of the state, any member of the general assembly or any employee employed in a Tennessee public institution of higher education.
(c) Any employer participating in the retirement system pursuant to chapter 35, part 2, of this title that reduces on a non-permanent basis the regularly scheduled hours of work by no more than thirty percent (30%) per month for its full-time officers, employees or teachers pursuant to a resolution or ordinance of its chief governing body, which was enacted by reason of shortage of funds, may authorize the provisions of subsection (a) for all its affected full-time officers, employees and teachers upon the adoption of a resolution by its chief governing body authorizing and accepting the liability therefor. Any such resolution authorizing the provisions of subsection (a) shall set forth the date on which the resolution shall be effective. The effective date may be made retroactive to January 1, 2009, or on the first day of any month thereafter.
(d) This section shall cease to be effective on June 30, 2011.
[Acts 2009, ch. 142, § 16.]