SB 966

Present law provides that a ny member or retired member who performed peacetime military service in the armed forces of the United States at any time from October 15, 1940, through May 7, 1975, is entitled to establish retirement credit for that military se rvice in the Tennessee consolidated retirement system (TCRS) under the following conditions: (1) For the member's first year of peacetime military service, the credit is on the basis of one day of creditable service for each day of military service rend ered. To establish the first year of such military service, the member must pay employee contributions for the service claimed based on a contribution rate of 10 .5 %. The rate must be applied to the member's earnable compensation at the time of the claim o r, if not in service at the time of the claim, the member's earnable compensation at termination of employment; (2) After the first year of peacetime military service, the credit is on the basis of one day of creditable service for each two days of mili tary service rendered. To establish such military service, the member must pay employee contributions for the service claimed based on a contribution rate o f 9%. The rate must be applied to the member's earnable compensation at the time of the claim or, if not in service at the time of the claim, the member's earnable compensation at termination of employment; and (3) The member meets the following conditions: (i) t he member was honorably discharged from such military service; (ii) t he member cannot es tablish the military service in any other retirement system unless this provision is preempted by federal law; and ( iii ) t he military service credit cannot be used in determining any rights under the retirement system prior to the member becoming vested. This bill revises the current law in the following ways:  Allows it to apply to service beyond May 7, 1975 .  Removes (1) above completely.  Re vises (2) above such that creditable service must be calculated on the basis of one day of creditable service for each day of military service rendered , instead of each two days of military service rendered.