Tennessee to hike employer contribution rates

The Tennessee Consolidated Retirement System, Nashville, will raise its employer contribution rate for the fiscal year beginning July 1, said Ed Hennessee, director of the $24 billion plan. The rate for state employees will be 10.5%, from 7.3%, and 5.5% for state teachers, from 3.4%, Mr. Hennessee said. Actuary Bryan, Pendleton, Swats & McAllister recommended the increase. The plan returned 4.9% for the year ended June 30, 2003; it had an expected rate of return of 7.5%, he said. The plan is 99.8% funded. Plan officials have not "earmarked" the extra contribution for any particular portfolios, Mr. Hennessee said.