|Austin Peay State
||March 25, 2017
||Vice President for Finance and Administration
It is the policy of Austin Peay State University that all employees of the University
be a part of the state-reported retirement system if the employee is eligible.
The purpose of this policy is to set the standards for a consistent process and treatment
of employees regarding retirement at the University.
- Except as otherwise provided herein, all regular full-time employees of the University
shall be members of a state-supported retirement system, subject to the eligibility
provisions of T.C.A. § 8-35-101 et seq.
- Regular part-time employees are eligible to become members of a state-supported retirement
system, but such membership is not mandatory.
- Pursuant to T.C.A. § 8-35-403 et seq., any individual who is exempt from the Fair
Labor Standards Act and who is employed in a state-sponsored institution of higher
education may elect either membership in the retirement system or participation in
the optional retirement program. Therefore, all regular academic, executive, administrative,
and professional employees of the University shall have the option of becoming members
of either the Tennessee Consolidated Retirement System (TCRS) or the Optional Retirement
- Employees who are members of the TCRS are eligible to retire upon attainment of appropriate
age and years of creditable service, or a combination thereof.
- Employees who are members of the ORP may retire at any time after separation from
service, subject to IRS regulations.
- Any person who has served as the president for a period of not less than ten (10)
years and has attained the age of sixty (60) while being employed by the University
may, upon approval of the Board of Trustees, be retired as President Emeritus of the
University where he/she served a minimum of ten (10) years.
- For presidents hired after September 1, 2002, this will be an honorary title earned
through service with no material benefit other than the honor associated with its
- Only for presidents hired prior to September 2002, an annual salary of twenty percent
(20%) of his/her last year’s salary, exclusive of perquisites, may be paid monthly
from institution appropriations subject to the terms and conditions of T.C.A. § 8-36-714.
- For either retirement system (TCRS or ORP), the annual limit to employer contributions
made on behalf of employees hired after July 1, 1996 will be subject to applicable
federal and state limits.
- There is no contribution limit for employees employed before July 1, 1996.
- Additionally, for employees enrolled in the ORP, there is also an annual aggregate
contribution limit for contributions to the ORP and 401(k). This limit is defined
on an annual basis.
- Temporary Employment. Any retired member of TCRS (except those receiving a disability
retirement allowance) or ORP(except those who have never taken a withdrawal or distribution
from his/her account) may return to service in a position covered by this system and
continue to draw his/her retirement allowance under the following conditions:
- The retiree must have a break in service for a minimum of sixty (60) days, unless
an exception has been applied for and approved.
- Retirees employed as teachers by an institution of higher education are limited to
24 quarter hours or 18 semester credit hours.
- The entire compensation payable to the retiree for such work should not be more than
60 percent of the annual full-time salary received by the member in the year immediately
prior to retirement. This limit on salary increases by 5 percent for each year since
the member's retirement.
- When a retiree begins temporary employment, he/she will be required to complete the
- TCRS retirees must complete the Temporary Employment form and the University shall submit the form to the TCRS. The TCRS must be notified
by letter when the retiree's temporary employment reaches the 120 day limit and/or
when employment is terminated to avoid possible overpayment or suspension of the monthly
- ORP retirees must complete the Optional Retirement Program (ORP) Part-time Reemployment Certification/Waiver form for the University's files.
- New forms for TCRS and ORP retirees must be completed for each 12-month period.
APSU Policy 5:042 – Issued: March 25, 2017
President: signature on file