TCA § 8-36-113 — Withholding of payment of contributions or monthly benefit under certain circumstances — Satisfaction of claims of state against terminated member upon application for withdrawal of contributions

Notwithstanding § 8-36-111, the board may withhold payment of a member's accumulated contributions and interest or monthly benefit upon: The filing of criminal charges or a civil suit against a member relating to the member's employment with an employer; An audit finding from the comptroller of the treasury relating to the member's employment with an employer; or An affidavit submitted by the employer to the director of the retirement system containing the employee's actions that the employer asserts could constitute a crime. The board may withhold payment of the member's contributions and interest or monthly benefit until such time as the charges have been dismissed or the charges have resulted in a determination that the member owes money to the employer. Should a member not be charged criminally or civilly, the member may appeal the decision to withhold the member's accumulated contributions and earnings or monthly benefit based on an audit finding or affidavit by submitting an appeal request to the director of the retirement system. If the service of any member is terminated, for any reason, and such member is found to owe money to an employer participating in the retirement system, the employer shall be entitled to claim from the member's accumulated contributions such amounts as are owed to the employer upon the application to withdraw the member's accumulated contributions. The claim shall be made in writing to the director of the retirement system by the appropriate party of the employer involved and must specify the reason for the claim and the amount involved. After the employer's claim is satisfied from the contributions, the member may withdraw any portion of the member's remaining contributions. Should the member elect not to withdraw the accumulated contributions, no claim on the contributions shall be enforceable under this section.