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.

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.)

2010 COLA for Retirees
Retired teachers and state employees who have been on the TCRS retired payroll for at least 12 consecutive months as of July 1, 2010 will receive a 2.7% cost-of-living adjustment. Retirees of local governments that have authorized COLAs will receive the same increase.

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.