Retirement ... A New Beginning - Tennessee Department of Treasury

Vested Member — A member who has accrued enough service to guarantee him a retirement
benefit once the age requirements are met. Group I members attain vesting rights with five years
of service. Group I members of a political subdivision attain vesting rights with 10 years of
service unless the governing body passes a resolution authorizing five-year vesting.
Withholding — TCRS must follow IRS rules for withholding taxes from benefit payments. The
withholding will be calculated as married with three exemptions unless the member or the
beneficiary files a W-4P withholding form with TCRS. TCRS will send a 1099-R form each year
with the January 31 check which will show the total amount of the TCRS benefit, the taxable
amount and the amount of income tax withheld.
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