This document was prepared on February 6, 2015 and all information is believed to be correct as of this date. All information on pension system provisions contained in this document are subject to the City of Knoxville Charter provisions on pensions (title XIII). Actual benefits payable must be in accordance with such provisions. Plan A is a closed plan.
Participation: All certified Teachers hired prior to January 1, 1977 by the City of Knoxville Board of Education were required to participate in Plan A beginning on the first day of the month following the completion of six months of employment with the City. Non-certified staff hired prior to June 30, 1987.
Employees Contributions: 3% of first $184.62 and 5% above $184.62 of bi-weekly salary (does not include overtime); 5% of holiday pay; 5% of any bonus; 5% of any pay for unused vacation leave upon termination from the City
Employer’s Contributions:
Defined Benefit Component: Determined actuarially to fully fund benefit
Credited Service: Certified Personnel (Teachers) All service with the City of Knoxville Board of Education through June 30, 1987 and all service with the Knox County Board of Education since June 30, 1987
Non Certified Personnel (Staff) All service with the City of Knoxville Board of Education through June 30, 1987. All non-certified staff considered as terminated employees upon the consolidation of the city school system with Knox County effective July 1, 1987.
Final Average Monthly Salary: Determined by the three (do not have to be consecutive) twelve month (must be consecutive months) periods when divided by 36 yields the highest monthly average.
Normal Retirement Benefit: Monthly benefit payable at age 62 determined by multiplying the Final Average monthly salary by the retirement factors shown in Table A and then multiplying this result by the total years and total completed months of credited service.
Table A:
| Age | Base Salary (First $400) | Excess Salary (First $400) |
|---|---|---|
| 62 & less | .0075 | .0150 |
| 63 | .0078 | .0158 |
| 64 | .0083 | .0166 |
| 65 & later | .0088 | .0176 |
Employees who terminate employment prior to completing ten years of service are entitled to a return of their employee contributions plus 4% simple interest computed on each beginning calendar year balance.
Significant Dates:
- 10th year of creditable service: Employees vests for a lifetime monthly benefit beginning at age 62. Survivor benefits are payable if member were to die while in service with the City. Employee should file a pre-retirement optional benefit form to direct any benefits which may be payable with the Pension Board.
- 15th year of creditable service: Active Employee with at least 15 years of service who is determined to be disabled by the pension board is entitled to a not in line of duty disability benefit.
- 25th year of creditable service: Employees are eligible for early retirement. Member may apply for a benefit to begin upon termination of employment prior to age 62. Benefit will be calculated as described above and then reduced by the factor in Table C.
Table C:
| Age | Factor | Age | Factor | Age | Factor |
|---|---|---|---|---|---|
| 50 | .3459 | 54 | 4824 | 58 | .6859 |
| 51 | .3753 | 55 | .5257 | 59 | .7517 |
| 52 | .4077 | 56 | .5737 | 60 | .8252 |
| 53 | .4432 | 57 | .6268 | 61 | .9075 |
Members at retirement have several alternate retirement options in lieu of the Normal Retirement Benefit. There are Joint and Survivor options (50, 75,100%), period certain options (5, 10, 15 years) and a cash refund option.
Post Retirement (COLA) Adjustments:
All Plan A (1360.30 (F)) retirees who terminated employment and began receiving benefits on or before July 1, 1987 (were never employed by Knox County) and beneficiaries thereof:
Increase Amount: Payees less than age 62 on January 1st of each year will receive a 3% post retirement adjustment. Payees age 62 or older on January 1st of each year will receive a 3% plus one-half of Consumer Price Index (“CPI”) above 3% with a maximum of 4%.
Benefit Adjustment Base: Monthly benefit amount as of the immediately preceding December for all payees
All Plan A (1360.30 (A)) retirees and beneficiaries thereof who began retirement benefits after July 1,1987 and who have been receiving benefits for at least 12 months prior to January 1 of any given year:
Increase Amount: Payees less than age 62 will receive an adjustment of the percentage that the CPI increases or decreases for the twelve (12) months ending September 30th of the preceding year not to exceed 3%. Payees age 62 or older will receive an adjustment of the percentage that the CPI increases or decreases for the twelve (12) months ending September 30th of the preceding year up to 3% plus one-half of Consumer Price Index (“CPI”) above 3% with a maximum of 4%
Benefit Adjustment Base: Original (initial) benefit for all payees
Please contact the Pension Office at 215-7750 for additional details on these options and other information on Plan A.