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Retirement Office

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1. How Do I Retire?

Make an appointment with the Retirement Office no later than 3 months prior to your expected retirement date.  Please contact our office at 901-222-1950, or you may e-mail our office at retirement.office@shelbycountytn.gov.

At the time of your appointment, you will be provided with a retirement packet and pension estimate.  However, if you would like to download a packet ahead of your appointment, you may click on the link below.

Notify your payroll representative or office of your anticipated retirement date so that your final pay, vacation and bonus time may be properly calculated and paid out.   It is best to notify your payroll office as soon as your retirement packet is turned in to the Retirement Office.  Failure to notify your payroll office will delay the timely process of receiving your first pension payment.

In order to facilitate meeting deadlines and not create an interruption in your health and life insurance benefits, your last working day should be the last day of the month, making your retirement date the first day of the next month.  

You will need to provide all required documents when you turn your retirement packet in to our office.  We will not accept an incomplete packet.  A complete list of required documents can be found in the retirement packet and listed below for your convenience.  We do not require original documents, copies may be provided.

• Marriage License
• Divorce Decree (If Divorced)
• Birth Certificate
• Spouse’s Birth Certificate
• Social Security Card
• Spouse’s Social Security Card
• Death Certificate (If applicable to your spouse)
• Medicare Card if over 65 for retiree and spouse

Once you have turned in your packet with all required documents we will begin processing your retirement.  Your paperwork will then go before the Shelby County Pension Board for approval. The Shelby County Retirement System’s Pension Board meets the first Tuesday of each month, unless rescheduled for the second Tuesday. After approved, you will receive an “Option Letter” with an “Option Form” from our office directing you to sign, date and choose the appropriate pension option.  You must return your “Option Form” as quickly as possible in order for us set you up for payroll. After we received your “Option Form”, we will then send you an “Award Letter”.  Please review the letter for accuracy and notify our office of any discrepancies.  You will be asked to supply a copy of this letter for various reasons to prove income, please retain for your records. No pension funds can be paid from the System until approved by the Pension Board.  Click on the link below for a complete schedule of Pension Board meeting dates.

Pension Board Schedule

2. How much will my pension be at retirement?

You will need to call our office if you are going to retirement within the next three months to find out the amount. If you’re not retiring in the next three month, please email us with your anticipated date of retirement and we will happy to mail you an estimate within three to five  days of receiving the email or use our Retirement Member Web Services Application.

3. What Does Vesting Mean?

You Vest by:

• Having 7 ½ years of credited service
• You could be entitled to a refund of the pension value or a monthly benefit from the plan in which you enrolled.
• If you terminate employment before 7 ½ years of credited service, there will be no benefit available to you except your contributions plus interest.
• If you terminate employment after completed of 7 ½ years of credited service, but before attaining age 55, you have the option of a refund of contributions or rolling the amount over. (Restrictions do apply)

4. Termination of employment (not eligible to retire)

The following applies to employees who terminate employment: either by voluntary resignation, or terminated for cause.

Termination prior to your vesting period (7 ½ years of service) will result in a refund or rollover of your contributions plus interest.  Taxes consequences apply to all refunds, please be sure to read the following.

Refunds are subject to a 20% withholding tax deducted prior to you receiving your check, and may be subject to a 10% early withdrawal fee applied by the Internal Revenue Service. 

You may choose to rollover your funds to another qualified plan, IRA, or the County’s Deferred Compensation Plan.  No tax consequences apply when rolling funds over.

5. Active Death Benefit

Not Vested:

If you deceased while actively employed but married, your received your contributions plus interest

If not married at the time of death, your contribution will be paid to your designated beneficiary

No other benefit will be payable to your spouse or beneficiary

              

Vested with 15 Years or more of service:

 Married Participants:

Spouse and or child could be entitled to a monthly benefit

Children might be entitled could receive a benefit up till age 23 provided they remain in an accredited college or school; age 19 if they do not remain in school.            

Unmarried Participants:

                Designated beneficiary will receive your contributions with interest.

6. Unused Sick Leave Payout

Shelby County Government currently allows for payment of unused sick leave to immediate or deferred retirements.  Immediate retirements will receive their payouts within 6 weeks of retirement.  Deferred retirements will not receive payouts until the date they become eligible to retire.

 In order to be eligible for a sick leave payout your salary must be under $60,000for a period of 5 years prior to retirement.  Sick leave payout is based on an annual salary amount of $20,000 and is only payable for up to 75 days.  Payments are process by the Finance Department and will be mailed to the retiree in a separate check to their address on file.  For further information regarding sick leave payouts, consulted your employee handbook.  Sick leave payouts are not a pension benefit; therefore, the Retirement Office does not set the eligibility rules or process the payment.

7. Annual and Bonus Leave

Unused annual and bonus leave will be processed at the time of your final salary distribution.  Failure to properly and timely notify your department will delay in payment of these benefits.  

8. Pension Service Time

If you have had any unpaid leave during your employment, there will be an adjustment to your credited pension service credit time. Please make sure that you have considered the adjustment when preparing to retire.  Falling short on credited pension service time will delay your eligibility to retire.

9. What is a Service Retirement?

Member must be 65 or have 25 years of service time under plan C.      

10. What is an Early Retirement?

Early retirement is drawing a reduced pension for life.

11. What is a Deferred Retirement?

Member must have 7 ½ years of credited service and is under the age of 55 at the time of departure from Shelby County.

12. If I do not want to draw an early retirement, can I defer the pension?

You may deferred the pension up until your age 65, once you reach 65, you will have to draw the benefit.

13. What benefits can I carry into retirement?

• Health insurance (Restrictions Do Apply)
• Life insurance (Restrictions Do Apply)
•  Dependent Life insurance
• Dental
•  Vision
•  Cancer

                *Note:  must have benefits at the time of retirement

14. Can I leave my pension to anyone I wish?

• If you are not married, you can leave the pension to anyone you wish.  Take into consideration, that if you leave your pension to a child, your amount will be greatly reduced based on life expectancy and the age difference between you and the child.
• If you are married at the time of retirement, you will have to leave your pension to your spouse, unless your spouse opts out of taking the pension.  He or she can only opt out at the time of your retirement and would need to make an appointment and meet with the Retirement Manager.   
• If you are separated, you will need to obtain a divorce before retiring if you don’t want the spouse to get your pension.

15. Can I change my pension beneficiary once I retire, if my spouse dies?

At the time of retirement, your pension is calculate and based on your age, your spouse’s age, and your final average earnings. Once you begin drawing your pension, your beneficiary can never change.

16. Which pension plan am I in?

You can find out which pension play you are in by

• logging into our Employee Service Portal, 
• selecting the Statement tab, to view your Payment Statement, and
• In the “Deductions” section of your Payment Statement, you will see your retirement plan.

17. What percent am I contributing to my retirement and can I increase the percentage and or amount?

• Plan A – 2%
• Plan C – 8%
•  Plan D – 8%

 Percentage and amounts cannot be increase. 

18. Do I have to be in Shelby County’s Retirement Plan?

Yes. It is mandatory that all Shelby County Employees participate in the retirement plan.  

19. Do I have to do direct deposit?

Yes. Direct deposit is mandatory for all retirees.

20. How do I get a retirement badge?

Once you approved for retirement, you can make an appointment with the Human Resources department to have a Retiree badge made.

21. Can I take funds out of my pension plan?

Shelby County pension plans are defined plans. Disbursement of pension funds cannot occur until you retire or your employment is terminated with Shelby County.

22. Am I eligible for a Cost of Living Adjustment (COLA)?

Under Plan A and C, retirees have to be 65 before December 31 of the current year to be eligible for a COLA. The COLA is calculated based on the Consumer Price Index (CPI).  The Retirement board and the County Commissioners approve COLA.  

23. How is my pension calculated?

• Plan A - calculated based on your highest consecutive 36 months of earning, age, years of service and percentage on the calculation table
• Plan C - calculated based on your highest consecutive 36 months of earning, years of service x 2.35%
• Plan D - calculated based on your highest consecutive 60 months of earnings, age and years of service and percentage on the calculation table   

24. Can my spouse keep my health insurance if I die?

Your spouse at the time of retirement may keep your health insurance in the event of your death.  If you remarry while in retirement, your new spouse cannot be added to the health insurance.