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

Retirement . . . A New Beginning
A Member’s Guide to TCRS Retirement
Introduction
This retirement information booklet is intended for use by Group I members of the Tennessee
Consolidated Retirement System (TCRS). TCRS is a trust fund established by the General
Assembly for the purpose of administering a retirement program for public employees. Group I
consists of state employees, teachers, local government and higher education employees and all
employees becoming members of TCRS on or after July 1, 1976, except for state judges who were
members or became members on or after September 1, 1990.
TCRS provides a very important benefit for more than 230,000 active members, as well as more
than 117,000 retired members. This benefit increases in value with each year you work as a
Tennessee public employee. We hope this booklet will help you understand your retirement
program and the benefits available to you through your membership in TCRS.
Retirement Plans
Typically, there are two types of retirement plans covering public employees: Defined Benefit
Plan and Defined Contribution Plan. TCRS is a defined benefit plan. These type plans are
summarized below:
Defined Benefit Plan
• Annuity at retirement is based on a set formula.
• The employer bears the risk of investment loss.
• Contributions are not available for loans or withdrawal until termination of employment.
• Benefit payments are for an employee’s lifetime.
• Examples of defined benefit plans: TCRS and Social Security
Defined Contribution Plan
• The annuity at retirement is based on the retiree’s account balance.
• The employee chooses the investments and bears the risk of investment losses or gains.
• Contributions may be available for withdrawal or loans, subject to early withdrawal penalties.
Contact Great West for details.
• Examples of defined contribution plans: 401(k), 457, 403(b) plans.
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