8-36-705 - Recomputation of benefits of certain beneficiaries who have elected an optional form of benefit.

8-36-705. Recomputation of benefits of certain beneficiaries who have elected an optional form of benefit.

(a)  In the case of a retired member of the superseded Tennessee teachers' retirement system, the superseded Tennessee state retirement system, or the Tennessee consolidated retirement system who elected an optional form of benefit, the recomputation of the member's retirement allowance determined under §§ 8-36-702 8-36-706 shall be adjusted on the basis of the appropriate option in effect on June 30, 1972, or thereafter, but the actuarial equivalent factors in effect on July 1, 1972, or thereafter, shall be used to determine the increase in retirement allowance.

     (1)  In the case of a retired teacher who elected Option I under the provisions of the superseded Tennessee teachers' retirement system, the teacher's benefits shall be recomputed under the maximum plan as provided under the retirement system.

     (2)  In the case of a beneficiary of a deceased member of a superseded system, or the retirement system, in receipt of a monthly retirement allowance as the person designated under an election of an optional form of benefit, the increase in the retirement allowance to such beneficiary shall be determined as if the member had been living on the date of recomputation.

(b)  The maximum plan, Option II and Option III of the superseded Tennessee teachers' retirement system shall equate to the maximum plan, Option I and Option II of the retirement system respectively and the maximum plan, Option I and Option II of the superseded Tennessee state retirement system shall equate to the maximum plan, Option I and Option II of the retirement system respectively.

(c)  (1)  A retired member of the superseded Tennessee teachers' retirement system who designated a beneficiary under Option II or Option III of that system and a retired member of the superseded Tennessee state retirement system who designated a beneficiary under Option I or Option II of that system, may elect to have that member's retirement allowance recomputed ab initio under the equivalent Option III or Option IV of the Tennessee consolidated retirement system by making written application and payment of any amount due to the Tennessee consolidated retirement system on or before April 30, 1976.

     (2)  Any increase in monthly retirement allowance shall not be paid retroactively, but shall become effective the next following month.

[Acts 1974, ch. 796, § 1; 1976, ch. 661, § 1; T.C.A., § 8-3943.]