Case Summaries 
of Importance to Counties

2014 Retirement

• Shoffner v. Tennessee Consolidated Retirement System, 2014 WL 7432123 (Tenn. Ct. App. 2014)—Plaintiff was terminated from his position as director of schools approximately two years earlier than his contract term.  Plaintiff and the county entered into a new contract whereby plaintiff was to be employed as “Safety Coordinator” for the school system for ten months.  For five of those months, plaintiff was to be paid monthly installments of approximately $47,000, which represented the amount of pay he would have received under the remaining term of his director of schools contract.  Under the terms of the new contract, plaintiff could not be terminated and his pay was not related to work done in the new position.  The contract also stipulated that the plaintiff released all claims against the county related to his termination as director or schools. After the revised contract expired, plaintiff applied for retirement benefits and in his application, included the monthly installment payments he received under the revised contract.   TCRS did not count these payments in calculating his retirement benefits finding that the payments were not “earnable compensation” under the applicable statutes.  Plaintiff contested the decision and the ALJ affirmed the decision.  Plaintiff sought judicial review and the trial court affirmed.  Plaintiff then appealed and the Court of Appeals affirmed finding that the payments were not for “services rendered to an employer” and thus “earnable compensation” as required by statute in order to be used in the calculation for retirement benefits (October 24, 2014).

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