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12.1.1 All regular academic, executive, administrative and professional employees, as a condition of employment, shall become a member of the Tennessee Consolidated Retirement System unless they exercise the option to become a member of the Optional Retirement Program. Companies participating in the Optional Retirement Program are ING, TIAA-CREF and AIG/Valic. Membership is optional for all regular part-time academic, executive, administrative and professional employees. For participants in the Optional Retirement Program, TTU contributes 10% of all earnings up to the social security base and 11% of all earnings over the social security base, on a calendar year basis. TTU contributes a percentage of all earnings at a rate actuarially determined by the state for members of the Tennessee Consolidated Retirement System. Non-contributory retirement became effective July 1, 1981.
12.1.2 All regular full-time clerical and support employees become members of the Tennessee Consolidated Retirement System as a condition of employment. Membership is optional for regular part-time clerical and support employees. Temporary full-time staff employees become members of the Tennessee Consolidated Retirement System after six months of continuous employment. Non-contributory retirement became effective July 1, 1981. TTU contributes a percentage of all earnings at a rate actuarially determined by the state.
12.1.3 Academic, executive, administrative and professional employees who are members of the Tennessee Consolidated Retirement System, or who are members of a local retirement fund having rights under the Tennessee Consolidated Retirement System, may elect to participate in the Optional Retirement Program in lieu of accumulating creditable service in the Tennessee Consolidated Retirement System while employed at an institution with an Optional Retirement Program. Any eligible employee who elects to cease membership in the Tennessee Consolidated Retirement System and commence membership in the Optional Retirement Program should contact the Human Resource Services Office for assistance. Once this election is made, it cannot be rescinded. Employees who participate in ORP generally may not transfer membership to TCRS. However, beginning in 2005, ORP members with five years service have a one-time transfer option. TCRS will communicate directly with eligible employees.
12.1.4 For employees who began state service prior to July 1, 1981, all contributions made by employees through payroll deduction to TCRS plus that portion of the employer's contribution made on behalf of the employee after July 1, 1981, plus any accrued interest are fully transferable to the Optional Retirement Program. Employer contributions are not transferable. For employees who began state service after July 1, 1981, no contributions to TCRS are transferable to the ORP.
12.1.5 An eligible new employee who is not a member of the Tennessee Consolidated Retirement System, and who has not accumulated creditable service thereunder as a member of a local retirement fund, may elect, prior to the preparation of his/her first salary payment, membership in either the Tennessee Consolidated Retirement System or the Optional Retirement Program.
12.1.6 When an employee who enrolled before July 1, 1981 in Tennessee Consolidated Retirement System terminates employment with the University, he or she may apply for a refund of the employee's contributions plus the 5% contributions made by the state on his/her behalf after July 1, 1981, plus any earned interest. To request a refund, the employee must complete the necessary forms in the Human Resource Services Office. Refund checks are issued 60 to 90 days after the date of the employee's last check. Persons enrolling after July 1, 1981 will not contribute to Tennessee Consolidated Retirement System and thus will not be eligible for a refund.
12.1.7 Effective April 4, 1994, Public Chapter 710 was enacted to permit a participant who has separated from service and has an aggregate total of less than $4,000 credited to his/her retirement account to receive a lump sum distribution of contributions upon the participant's written request and in any manner permitted by the companies holding the accounts. Refunds shall require the completion of form(s) for both the participant's company/companies and the Tennessee Consolidated Retirement System. Verification of contributions and separation from service information shall be provided by the last employer; verification of an aggregate current balance of less than $4,000 shall be provided by the participant in the form of current quarterly statement(s). Both forms must be returned to the company/companies in order for the lump sum distribution to be processed. The $4,00 exception to lifetime distribution has been reviesed to increase by $1,000 annually until $15,000 limit is reached.
12.1.8 Employees who are members of the Tennessee Consolidated Retirement System are eligible to retire upon attainment of age sixty (60) with five (5) years of creditable service or upon completion of thirty (30) years of creditable service.
12.1.9 Credit toward retirement may be granted for military service. To receive this credit, a member must complete an application and provide documentation of the service period (Exhibit EB-12). The retirement system will grant military service credit if the necessary requirements are met. Additional information is available in Employee Benefits, Section 8 and at the Tennessee Consolidated Retirement System website.
12.1.10 Employees who are members of the Optional Retirement Program may retire at any time permissible under the provisions of the annuity contracts purchased from the designated carriers of the program.
12.1.11 During leaves of absence for the purpose of furthering education or engaging in academic research relative to the member's employment which will increase his/her efficiency to the University, service credit not to exceed two (2) years may be granted. These must be approved by Tennessee Consolidated Retirement System and no contributions will be credited to the member's refundable account. The member must return to service with the University after the leave for at least one (1) year.
12.1.12
A. The provisions of this policy which constitute amendments or revisions of the previous Tennessee Board of Regents policy adopted September 29, 1978, became effective January 1, 1979.
B. The provisions of this policy which constitute amendments or revisions adopted on June 26, 1981, became effective on July 1, 1981.
C. The provisions of this policy under which regular full-time executive, administrative and professional employees are eligible to participate in the optional retirement program became effective July 1, 1983.
D. Regular part-time employees became eligible for retirement system membership July 1, 1984.
12.1.13 Employees who are members of the Tennessee Consolidated Retirement System may designate more than one beneficiary for retirement death benefits. The state retirement system, however, requires multiple beneficiaries be treated as equal. Employees who were employed after July 1, 1981 and who have no cash contributions credited to their accounts are encouraged to name only one beneficiary since there are not cash refunds available for these employees. Also see Employee Benefits, Section 12.1.6. Additional information to assist in your selection of a beneficiary is available at the TCRS website (www.treasury.state.tn.us/selectbeneficary).
12.1.14 The optional retirement program allows the designation of primary and contingent beneficiaries.
12.2 F.I.C.A
12.2.1 All full-time and part-time faculty members except those electing in the January, 1978 social security referendum not to participate in social security shall contribute at the rate of 6.2% of all earnings up to the social security base established by the Social Security Administration on a calendar year basis; Tennessee Technological University contributes at the rate of 6.2%. All earnings are subject to Medicare tax at the rate of 1.45%. Tennessee Technological University also contributes at the rate of 1.45%.
12.2.2 All regular and temporary full-time and part-time employees shall have social security deducted from their gross earnings commencing with the date of their employment. The contribution rate is 6.20% of all earnings up to the social security base established by the Social Security Administration on a calendar year basis. Tennessee Technological University contributes at the rate of 6.20%. All earnings are subject to Medicare tax at the rate of 1.45%. Tennessee Technological University also contributes at the rate of 1.45%.
12.2.3 Students who are enrolled in at least six hours as undergraduate or graduate students do not participate in social security.
12.3 Insurance
12.3.1 Health, life and accident insurance is available for all full-time regular employees (See Human Resource Services Policies and Procedures, Section 19.1.5). (Full-time for insurance purposes is defined as at least thirty (30) hours per week) through the State of Tennessee and Ft. Dearborn Insurance Company. If coverage is not elected within the first 30 days of employment as a regular full-time employee, coverage can only be obtained if a qualifying event occurs. Questions on qualifying events should be directed to the Manager of Payroll and Benefits. Tennessee Technological University pays 80% of the basic coverage cost for the employee.
12.3.2 An employee on approved unpaid leave of absence may elect to be continued in the group insurance program, provided he or she pays the total premium cost. (If both husband and wife are employed by the state, the employee on approved unpaid leave may be covered under the spouse's policy for the duration of the leave.)
12.3.3 Employees eligible for unpaid leave as provided by the Family Medical Leave Act may elect to continue coverage in the group insurance program, provided they pay the applicable premium (See Employee Benefits, Section 19).
12.3.4 An employee on leave with educational grant-in-aid pays only the employee's share of the premium; the institution pays the employer's share. In any case, if an employee elects to discontinue insurance coverage during a leave of less than six months, the employee is eligible for coverage on the first day of the calendar month following his or her return to work. For leaves of absence longer than six months, the employee must serve the one month waiting period as required for new employees before coverage is reinstated and satisfy the six month pre-existing condition clause unless the employee provides a certificate of coverage verifying other coverage while on leave and there has not been a 63-day lapse in coverage.
12.3.5 Other insurance plans available through payroll deductions include universal life insurance and term insurance offered by UnumProvident Life and Accident Insurance Company. Cancer insurance and hospital intensive care insurance are available with American Family Life Assurance Company. Long-term disability is available with Hartford for all full-time, regular employees. A dual option dental insurance plan is available through the State Group Insurance Program. Detailed information on all of these plans is available from the Human Resource Services Office. The employee must bear the full cost of these plans.
12.3.6 To terminate insurance coverage, an employee must complete a "Group Request for Change Form" available in Human Resource Services. The change form must be completed by the employee and received by the Human Resource Services staff before the day the termination will become effective. Insurance coverage will terminate at 12:00 p.m. on the last day of the month. An employee cannot terminate coverage for the month once the month begins.
12.3.7 Any questions concerning insurance should be directed to the Human Resource Services Office.
12.4 U.S. Savings Bonds
Any regular employee may purchase U.S. Savings Bonds. Visit www.treasurydirect.gov for more information.
12.5 Charitable Deductions
Payroll deduction is available for charitable organizations approved by the Tennessee Board of Regents. A list of approved organizations and specific procedures is available in the Human Resource Services Office.
12.6 Deferred Compensation Program
Tax deferred programs, including 403(b), 401(k) and 457 plans are available to faculty and staff at Tennessee Technological University. These programs provide supplemental retirement funds and a deferment of income tax on the amount contributed. A list of currently approved companies is available in the Human Resource Services Office. TTU matches the 401(k) contribution to a maximum determined by state statute.
12.7 Credit Unions
Any regular employee may become a member of the Cornerstone Credit Union, Tennessee Credit Union or Middle Tennessee Credit Union and participate in these programs using direct deposit. Further information and forms are available in the Human Resource Services Office.
12.8 Claims Against Tennessee Technological University
Listed below are the laws of the State of Tennessee relating to claims against the University and rules of the University concerning the Board of Claims. Claims against the University must be presented as specified in the following sections.
12.8.1 Any claim resulting from alleged liability or negligence on the part of the University or any employee must be presented to the Vice President for Business and Fiscal Affairs of Tennessee Technological University.
12.8.2 It is the responsibility of deans, directors, and other administrative officers to notify the Vice President for Business and Fiscal Affairs and the Safety Officer of the University in writing using a Notification of Accident or Occupational Illness Form (See Exhibit EB-13) concerning any accident in his or her area of responsibility. Supervisors and employees who work in academic and service buildings can obtain this form from the person designated as "in charge" for that building. All accidents to employees, even though they may be considered of minor nature and may result in no lost time or little or no medical expense, are to be reported. Accidents that require first aid treatment must be reported. Employees should be constantly reminded that all accidents occurring on the job should be reported immediately to their supervisors or department head. In case of medical complications after the date of an accident, if the accident was not reported, it will become the responsibility of the injured employee to then prove at a later date that an accident did occur while on the job.
12.8.3 The completed report should be forwarded to the Director of Environmental Health and Safety Services in Facilities and Business Services on the next regularly scheduled work day following the accident. In the event that an injured student or employee is hospitalized or cannot be immediately contacted to complete a report, contact the Director of Environmental Health and Safety Services as soon as possible (372-3524).
12.8.4 When it is evident that the report cannot be completed within seventy-two hours after the accident, the person responsible for completing the form is to notify the Director of Environmental Health and Safety Services in Facilities and Business Services.
12.8.5 When an incident occurs which has the potential to result in a claim against the State, forms TR- 0231, 0232 and 0233 must be obtained from, completed, and returned to the Human Resource Services Office. This must be done in addition to completing the Notification of Accident or Occupational Illness form. These forms will not serve as duplicates of each other. Sedgwick James, claims management company for State of Tennessee, must receive notification of accidents within twenty-four hours. The phone number for Sedgwick James is 1-800-526-2305. Sedgwick James will instruct employees of procedures to follow.
12.8.6 Any claims against the University must be presented in writing with necessary supporting documentation from all persons involved within one year of the alleged incident or the claim will not be accepted.
12.8.7 The following excerpts are taken directly from rules and regulations promulgated by the State Board of Claims and Tennessee Code Annotated.
Allowance for Injuries or Death of an Employee
Said Board of Claims is authorized to pay and compensate employees of any department, division, bureau, or agency of the state government, who shall receive injury in the line of duty and in the course of official employment whether such injury shall be accidental or otherwise, or the dependents of such employee in case of death arising out of injury, such compensation to be paid out of the general highway fund in the case of employees of the Department of Highway and Public Works, and out of the general fund in all other cases. [Acts 1945, ch. 73, 2; C. Supp. 1950, 1034.2 (Williams 1034.27)]
Injuries and Property Damage Arising from Negligence of State Employees.
Said Board of Claims is vested with full power and authority to hear and determine all claims against the State based upon, or arising out of, any written contract executed as prescribed by law on behalf of any Department of the State; and its awards, if any, under this section are to be paid out of funds of the Department in each case available for the performance of the contract. (Acts 1965, ch. 218.) No claim provided for under this section may be considered by the Board of Claims which has not been presented to it by sworn petition duly filed within one (1) year from the date on which the claim first accrued. The provision of this section shall apply only to claims against the state arising from the performance of functions of its various departments and agencies imposed upon them by law where in such performance said departments have exclusive control of the personnel and equipment involved. [Acts 1945, ch. 73, 5; C. Supp. 1950,1034.5 (Williams, 1034.30)]
Finality of Decisions
The decision of the Board of Claims, upon any claim filed hereunder, shall be final. Acts 1945, ch. 73, 10; C. Supp. 1950, 1034.9 (Williams, 1034.35).
Investigation of Claims and Limitations
The State Board of Claims is vested with jurisdiction to investigate, hear, and make awards upon the claim provided for in T. C. A. 9-816, providing the act or acts forming the basis of such claims occurred within (6) years preceding March 7, 1957, and said claims are filed within one (1) year subsequent thereto. As to claims arising from injuries occurring subsequent to March 7, 1957, the Board of Claims shall have jurisdiction to hear and make awards upon the same only if such claims are filed within one (1) year subsequent to the date of the injuries upon which such claims are based. (Acts 1955, ch. 120.2; 1957, ch. 361.2.)
12.9 Unemployment Compensation
When any employee is involuntarily terminated, he or she should be directed to obtain a separation notice from the Human Resource Services Office. This notice is to be used in applying for any unemployment compensation which he or she may be eligible to receive through the Tennessee Department of Labor and Workforce Development. The department should provide the Human Resource Services Office with a Personnel Action Form indicating the last date of employment and reason for termination.
12.11 Discounts at University Center Bookstore
A 15% discount on purchases totaling over $1.00 is granted to individual faculty and staff members, on all purchases from the University Center Bookstore except computer software and sale items.
All faculty and staff personnel must have a Tennessee Tech employee identification card to be eligible for the 15% discount. Spouses and children of faculty and staff are also eligible for the discount.