Section 8-35-303 - State annuity for teachers eligible to participate in local fundsIf a teacher in the service of an employer operating a local retirement fund who is eligible for membership therein ceases to be a teacher, and if at such time such person would have been eligible for retirement under this retirement system had such person been a member, the board of trustees shall pay from the state accumulation fund of this retirement system to the managing board of the local retirement fund a state annuity equal to the state annuity which would have been payable under this retirement system if such teacher had been a member of this retirement system during service with such employer subsequent to the date of establishment to the time of retirement and a member of the Tennessee teachers' retirement system during service with such employer prior to the date of establishment:
(1) The excess of any such state annuity payable under this system over the retirement income provided by the local retirement fund by contributions of the employer shall be payable to the retired teacher and not to the local retirement fund;(2) Payments to beneficiaries of local retirement funds shall be based upon the amount of money expended through the Tennessee consolidated retirement system on behalf of the beneficiary and shall be paid directly to the beneficiary;(3) In the case of a teacher whose service commenced prior to the date of establishment, the state annuity shall be computed as if the teacher had been a Class B member of the Tennessee teachers' retirement system and a prior class member of this retirement system;(4) The payment of the state annuities under this part shall be subject to all the conditions and requirements governing the payment of state annuities to members retired under this retirement system, and payment of such state annuities to be withheld until such members meet the conditions and requirements of this retirement system; and(5) Notwithstanding this part to the contrary, the board of trustees shall, upon the request of the managing board of a local retirement fund, henceforth pay the entire amount of the state annuity directly to the members of the local retirement fund.Acts 1972, ch. 814, § 9; 1973, ch. 347, § 25; T.C.A., § 8-3933(1).