Tennessee
Overview
The Tennessee Consolidated Retirement System is the sole statewide retirement system in Tennessee, administering retirement benefits for employees of the state, public school teachers, and employees of political subdivisions that have elected to participate. The City of Chattanooga, the Metropolitan Government of Nashville & Davidson County, and the City of Memphis, among other political subdivisions, also maintain retirement systems.
Plan Design
Newly-hired employees into the Tennessee Consolidated Retirement System since July 1, 2014 participate in a hybrid, DB-DC plan. Those hired previously participate in a traditional DB plan.
According to the US Government Accountability Office, 91 percent of employees of state and local government in Tennessee participate in Social Security.
Authorizing Statutes and Board Structure
Tennessee Code § 8-34-201 establishes the Tennessee Consolidated Retirement System as a defined benefit plan. Tennessee Code § 8-34-302 establishes the system’s board of trustees, which includes 20 members.
Details regarding the composition of these and other retirement boards is accessible via the Retirement and Investment Board Characteristics search tool located at the bottom of this page.
Fiduciary Duty/Prudence Standard
Tennessee Code Title 35 Chapter 14:
The board of trustees shall invest and manage assets solely in the interest of the beneficiaries of the retirement system in a manner consistent with § 35-14-107, the prudent investor rule pursuant to § 35-14-103, the standard of care pursuant to § 35-14-104, and the exercise of reasonable care in delegation of investment and management functions pursuant to § 35-14-111.
Legal Protections of Retirement Benefits
No explicit constitutional protection for public pension benefits, but courts provide protection based on impairment of contract principles, holding that changes can be made to a retirement plan as long as the changes do not impair vested rights. Blackwell v. The Quarterly County Court of Shelby County, 622 S.W.2d 535 (Tenn. 1981) (holding that public pension benefits may be adjusted when necessary to protect or enhance the actuarial soundness of the plan, provided that no such modification can adversely affect an employee who has complied with all conditions necessary to be eligible for a retirement allowance); Davis v. Wilson County, 70 S.W.3d 724 (Tenn. 2002) (holding that health care benefits amounted to welfare benefits that did not automatically vest and could be altered or terminated by county at any time). (TN CONST., Article 1, §20) Source: Robert Klausner, Esq., State Constitutional Protections for Public Sector Retirement Benefits
See also the following search tools:
| Retirement System Account Interest Policies | Economic Actuarial Assumptions | Retirement and Investment Board Characteristics |
| Information about interest rates applied to account balances of inactive plan participants | Assumed rates of investment return and inflation | Composition and characteristics of public retirement and investment oversight boards |
| Mortality Assumptions | Plan Design Features | Post-retirement Employment Policies |
| Public retirement system actuarial assumptions for mortality | Numerous elements of retirement plan design | Policies governing return-to-work for retirement system annuitants |
More Data
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Population (2023) 7,126,489 |
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Tennessee public pension statistics, per U.S. Census Bureau as of FY 2023 |
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Assets |
$76.5 billion |
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Active Members |
263,222 |
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Annuitants |
220,640 |
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Benefits Paid |
$4.1 billion |
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Employee Contributions |
$581.2 million |
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Employer Contributions |
$1.95 billion |
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Systems |
One state retirement system that accounts for 85 percent of assets and 87 percent of public pension plan participants in the state. There are 38 local retirement systems in Tennessee: the City of Chattanooga, the Metropolitan Government of Nashville & Davidson County, and the City of Memphis, among other political subdivisions in the state, also maintain retirement systems. |