8-37-301 - Source of funds.
8-37-301. Source of funds.
(a) The state accumulation fund shall be the fund in which shall be accumulated:
(1) All reserves for the payment of all state annuities payable from contributions made by employers;
(2) Any amounts transferred thereto from a superseded system;
(3) The amounts transferred from the members' fund; and
(4) The amount of the penalty assessed against the employer;
and from which shall be paid all costs of administering the retirement system, and all retirement allowances and other benefits payable under the retirement system other than those payable from the members' fund.
(b) The total amount payable to the state accumulation fund in each year on account of each member classification shall not be less than the sum of the normal contribution rate and the accrued liability contribution rate, multiplied by the total compensation earnable by all members in such classification for each year, plus the amount determined as the cost-of-living contribution.
(c) Until the completion of the first actuarial valuation, the normal contribution rate and the accrued liability contribution rate shall be set at such percentages of the earnable compensation of members as the actuary shall recommend and the board of trustees shall approve.
[Acts 1972, ch. 814, § 8; 1974, ch. 788, § 6; T.C.A., § 8-3930(2); Acts 1994, ch. 958, § 3.]