1. Group IV Membership Provisions

2. Introduction TCRS provides benefits to more than 220,000 active members, and over 110,000 retired members TCRS provides benefits to more than 220,000 active members, and over 110,000 retired members Currently there is over $30 Billion Dollars held in trust for TCRS Currently there is over $30 Billion Dollars held in trust for TCRS TCRS ranks number 88 in the top 100 global pension funds (www.pensionfundsonline.co.uk) TCRS ranks number 88 in the top 100 global pension funds (www.pensionfundsonline.co.uk)

3. Membership Group IV of the Tennessee Consolidated Retirement System (TCRS) opened for membership to state judges on September 1, 1990. Group IV of the Tennessee Consolidated Retirement System (TCRS) opened for membership to state judges on September 1, 1990. A state judge is defined as any person employed as a judge of a court of record whose salary is paid wholly from the Treasury of the State or as the Executive Secretary to the Supreme Court. A state judge is defined as any person employed as a judge of a court of record whose salary is paid wholly from the Treasury of the State or as the Executive Secretary to the Supreme Court.

4. Membership (continued) Beginning July 1, 2005, any person who becomes the attorney general and reporter shall be a Group IV member provided the attorney general served as a Group IV state judge immediately prior to being appointed the attorney general and reporter. Membership in the TCRS is optional to all state judges and attorneys general; however, once membership has been elected, the election is irrevocable.

5. 401 (a) Defined Benefit Plan Annuity at retirement is calculated on a set formula Annuity at retirement is calculated on a set formula The employer bears the risk of investment loss The employer bears the risk of investment loss Monthly benefits are paid to the member for their lifetime. Monthly benefits are paid to the member for their lifetime. Contributions are not available for loan or withdrawal until termination of employment Contributions are not available for loan or withdrawal until termination of employment

6. Contributions The state assumed employee contributions to the retirement system of up to five percent (5%) of a Group IV member’s earnable compensation on September 1, 1990. Every Group IV member must make the necessary monthly contributions based on his salary until he terminates his employment or retires from the system

7. What Determines the Member’s Benefit? Years of Service – your total number of years and months of creditable service Years of Service – your total number of years and months of creditable service Average Final Compensation (AFC) – the average of your highest five consecutive years of salaries Average Final Compensation (AFC) – the average of your highest five consecutive years of salaries

8. Retirement Requirements Service Retirement Service Retirement A Group IV member is eligible to apply for an unreduced service retirement allowance upon attaining age 55 with 24 years of service OR age 60 with 8 years of service. A Group IV member is eligible to apply for an unreduced service retirement allowance upon attaining age 55 with 24 years of service OR age 60 with 8 years of service.

9. Benefit Formula Benefit Formula The formula for computing a full service monthly retirement allowance is as follows: 2.5% x Average Final Compensation 2.5% x Average Final Compensation (AFC) x number of creditable service years divided by 12

10. Election of Benefit Payment Plans Single Life Annuity Plans Single Life Annuity Plans Regular Plan or Maximum Plan Regular Plan or Maximum Plan Social Security Leveling* Social Security Leveling* Joint and Survivor Plans Joint and Survivor Plans Option I - 100% Joint and Survivor Option I - 100% Joint and Survivor Option II - 50% Joint and Survivor Option II - 50% Joint and Survivor Option III - Modification of Option I Option III - Modification of Option I Option IV - Modification of Option II Option IV - Modification of Option II

11. Soc. Sec. Leveling Example Reg./Max Amount 1,000.00 Soc. Sec. Est. @ Age 62 1,000.00 % of S.S. paid by TCRS Based on Age 60 (82%) 820.00 820.00 Benefit Paid to Member until 62 from TCRS 1,820.00 Benefit Paid to Member after 62 From TCRS 820.00 Soc. Sec. Paid @ 62 1000.00 Total Paid from TCRS & SS after 62 1,820.00

12. Selecting A Beneficiary Please make sure your active beneficiary is kept up to date. Please make sure your active beneficiary is kept up to date. Check beneficiary designation on TCRS annual statement. Check beneficiary designation on TCRS annual statement. If adjustments are necessary please fill out a “Change of Beneficiary Form”. If adjustments are necessary please fill out a “Change of Beneficiary Form”.

13. Active Member Death Benefits There are several death benefits payable to the beneficiary of an active member who dies prior to retirement: There are several death benefits payable to the beneficiary of an active member who dies prior to retirement: Lump-Sum Death Benefit: Lump-Sum Death Benefit: The member’s designated beneficiary (s), may receive the member’s accumulated contributions plus interest. Plus an additional amount equal to the accumulated contributions and interest. The member’s designated beneficiary (s), may receive the member’s accumulated contributions plus interest. Plus an additional amount equal to the accumulated contributions and interest.

14. Death Benefits (continued) 100% Joint & Survivor Annuity After 10 Years Service 100% Joint & Survivor Annuity After 10 Years Service The surviving spouse of a member who has 10 years or more of creditable service and who dies in service is automatically eligible for a 100% Joint and Survivor Monthly Annuity, provided the spouse is the member’s designated beneficiary. The surviving spouse of a member who has 10 years or more of creditable service and who dies in service is automatically eligible for a 100% Joint and Survivor Monthly Annuity, provided the spouse is the member’s designated beneficiary.

15. Death Benefits (continued) 100% Joint & Survivor Annuity of Any Beneficiary If a member meets the requirements of service or early retirement, a monthly benefit under Option I is payable to any beneficiary designated if the member dies in service.

16. Disability Benefits A Group IV member with eight years of service who becomes totally and permanently disabled from engaging in any type of gainful employment may apply for an ordinary disability retirement benefit. A Group IV member with eight years of service who becomes totally and permanently disabled from engaging in any type of gainful employment may apply for an ordinary disability retirement benefit.

17. Refunded Service Member must have one year of service before reestablishing service. Member must have one year of service before reestablishing service. Member will be required to redeposit the amount withdrawn plus 7 ½ percent interest compounded annually from the date of refund. Member will be required to redeposit the amount withdrawn plus 7 ½ percent interest compounded annually from the date of refund. Payment may be made in a lump sum or in an installment plan. Payment may be made in a lump sum or in an installment plan.

18. Military Service Retirement law allows a vested member (8 years) to establish up to 4 years of credit for military service rendered under certain conditions. Retirement law allows a vested member (8 years) to establish up to 4 years of credit for military service rendered under certain conditions. (Please refer to Application for Military Service Credit for more details)

19. Cost-of-Living Adjustment (COLA) Must be retired 12 full months prior to the July 1 on which the adjustment is made. Must be retired 12 full months prior to the July 1 on which the adjustment is made. Increases are calculated on the June 30 benefit. Increases are calculated on the June 30 benefit. Increase is payable up to three percent (3%) annually. Increase is payable up to three percent (3%) annually. Based on the Consumer Price Index. Based on the Consumer Price Index.

20. Internet Site www.treasury.state.tn.us/tcrs  Downloadable Forms  Publications  Contact Information