Tennessee Code Title 8. Public Officers and Employees § 8-35-210

(a) Notwithstanding anything in this part to the contrary, the retirement system shall not be liable for the payment of any retirement allowances or other benefits on account of the employees or beneficiaries of any employer participating under this part for which reserves have not been previously created from funds contributed by such employer or its employees for such benefits.

(b) Benefits payable on behalf of political subdivisions participating under this part shall not be paid if assets credited to that political subdivision are not equal to or greater than their benefit obligation for that month. Retroactive benefits shall be paid upon accumulation of sufficient assets.