Notice: All 1099-Rs will be mailed out on January 31, 2012. This information is not currently available online. If you have not received your 1099-R by February 10, 2012, please contact our office at 800-770-8277, option 3.

The Tennessee Consolidated Retirement System (TCRS) is a defined benefit pension plan that covers state employees, higher education employees, K-12 public school teachers, and employees of political subdivisions who have elected to participate in the plan.  This means that the amount of any future retirement benefits is determined by a benefit formula rather than an account balance.

The TCRS provides retirement benefits as well as death and disability benefits to plan members and their beneficiaries.  Benefits are determined by a formula using the member’s high five-year average salary and years of service.  Members become eligible to retire at the age of 60 with five years of service or at any age with 30 years of service.  A reduced retirement benefit is available to vested members with five years of service who become disabled and cannot engage in gainful employment.  There is no service requirement for disability that is the result of an accident or injury occurring while the member was in the performance of duty.

Treasurer Lillard Proposes New Pension Options for Local Governments
(January 23, 2012)

To give local governments more choices for their employees’ retirement plans, Tennessee State Treasurer David H. Lillard Jr. today proposed several new options to state legislators for their consideration. more...


2012 COLA for Retirees
(January 23, 2012)

Retired teachers and state employees who have been on the TCRS retired payroll for at least 12 consecutive months as of July 1, 2012 will receive a 3.0% cost-of-living adjustment. Retirees of local governments that have authorized COLAs will receive the same increase.

2011 COLA for Retirees
(April 29, 2011)

Retired teachers and state employees who have been on the TCRS retired payroll for at least 12 consecutive months as of July 1, 2011 will receive a 1.5% cost-of-living adjustment. Retirees of local governments that have authorized COLAs will receive the same increase.


Important Tax Notice
(January 19, 2011)

Many of you may have noticed a change in the withholding tax deducted from your TCRS benefit payment in January.  In 2009 and 2010 there was a "Making Work Pay" federal tax credit in effect as part of the American Recovery and Reinvestment Act.  The “Making Work Pay” tax credit expired on 12/31/2010.  This means that most retirees will notice an increase in the amount of federal withholding deducted.

In addition, TCRS has received several questions concerning the effect the Social Security rate decrease from 6.2% to 4.2% will have on their monthly pension benefits.  This change will not affect TCRS pension recipients since the pension benefits are not subject to the Social Security tax.

At any time, you can change the amount of taxes being withheld from your monthly retirement benefit by completing a Substitute Withholding Certificate for Pension or Annuity Payments form.  This form can be downloaded at tcrs.tn.gov.  You may also send a letter indicating any changes to TCRS, ATTN: Retired Payroll, 502 Deaderick Street, Nashville, TN 37243-0201.

Tennessee's Retirement Fund in Good Shape Compared to Others
(July 25, 2010)

Good economic news can be hard to find in the Capitol building, but Tennesseans can breathe a little easier about one corner of the state budget. ...more

(Knoxville News Sentinel article by Josh Flory. Posted July 25, 2010.)

Financial Welfare of TCRS
The financial marketplace has been exhibiting a high degree of volatility for several months, mainly due to issues related to the mortgage industry.  Several Tennessee Consolidated Retirement System (TCRS) members and retirees have expressed concern. ...more

Recent Letters to TCRS Retirees

Approximately 10% of TCRS retirees received a letter dated July 30, 2010 from TCRS where the insurance premium(s) was not shown correctly. The letter provided the amount of the COLA increase, the new gross value of the pension benefit, insurance deductions, tax withholding deductions, other deductions, and the net amount deposited to your checking or savings account.

Unfortunately, the medical insurance deduction shown for retired state employees under the age of 65 was not correct. The medical insurance premium did not change. The premium for July was the same amount as the June premium.

In addition, the letters for retirees enrolled in the long term care plan and dental insurance plan did not show a deduction.

The correct deductions were taken from your pension benefit and the correct amount was deposited in your bank account. The only issue occurred in the printing of the letters.

Please contact our office if you have any questions concerning this issue at (800) 770-8277 or 741-4913.

In an effort to help local governments better understand contribution rate changes, actuarial valuations, and additional information about TCRS, the following Power Point presentation has been provided.  Click here to access the presentation.

This presentation will be given at the 2012 Employer Seminars held January 31 through February 10, 2012. The meeting dates and times are as follows:

• January   31 –  Jonesborough Visitor Center, 117 Boone St., Jonesborough, TN
  
• February   1 –  Sevierville Civic Center, 200 Gary Wade Blvd, Sevierville, TN
  
• February   2 –  East Ridge Community Center, 1517 Tombras Avenue, East Ridge, TN
  
• February   3 –  Cookeville City Hall/Gas Department, 16 N. Oak Ave., Cookeville,TN
  
• February   7 –  Doubletree Hotel, 1770 Highway 45 Bypass, Jackson, TN
  
• February   8 –  Henry County Medical Center, Classroom 2 & 3, 301 Tyson Ave., Paris, TN
  
• February 10 – Williamson County Agricultural Center, 4215 Long Ln, Franklin, TN

Specific actuarial information will be provided to those employers who RSVP.  Please contact TCRS Field Services at 800-770-8277, option 1 for more information.

Note:  Additional information may be added at a future time.  Please check back periodically for updates.

On January 23, 2012, Treasurer David Lillard presented to the Legislative Council on Pensions and Insurance a proposal to expand the retirement options local governments can offer to their employees.  If legislation is adopted, these changes would only apply to new local government employees hired after passage of a resolution by the local government.  Since these changes are optional, there is no requirement for local governments to implement these changes.  To view more information regarding these proposed options, please click on the link(s) below.

• New Plan Presentation
  
  
• Summary of Plan Options
  
  
• Letter from Treasurer
  
  
• Consultant Report
  
  

Click here to view the video of the Council on Pensions and Insurance meeting from January 23, 2012.