(a) Appointed or elected school board members of special school districts, and of city or county boards, commissions, committees, councils and the like, by whatever name known, who are elected by popular vote and whose duties are performed intermittently or periodically for the purposes of fixing rates, issuing permits or licenses, regulating trades or professions, or who serve in an advisory, study or planning capacity and the like, shall be eligible for membership in the Tennessee consolidated retirement system at the option of the chief legislative body of the city, special school district or county, upon satisfying the provisions of the following subdivisions:

(1) The chief legislative body of the city, special school district or county passes a resolution approved by a two-thirds (⅔) majority authorizing membership for such employees and accepting the liability therefor;

(2) Upon such authorization and assumption of the employer liability, any such employee who meets the requirements of § 8-35-203(a)(2)(A) and (B) shall be eligible to establish retirement credit for such periods of previous service as authorized for other employees of the city, special school district or county;

(3) An employee establishing such prior service must make a lump sum payment equal to the employee contributions such employee would have made had such employee been a member of the system during the period claimed, plus interest at the rate provided in § 8-37-214; and

(4) Membership in the retirement system pursuant to this section shall be permitted only if the chief legislative body that has authorized retirement participation for its departments or instrumentalities extends such coverage to all nonparticipating departments and instrumentalities. If such option is elected, the remaining departments and instrumentalities shall participate under the conditions of § 8-35-201.

(b)

(1) Upon becoming a vested member of the Tennessee consolidated retirement system, any employee of a city who was formerly an elected official of the city where such employee is so employed shall be eligible to establish retirement credit for such time such employee served as an elected official of the city if the following conditions are met:

(A) The city has by a two-thirds (⅔) majority of its legislative body approved a resolution as provided in subsection (a);

(B) Such person was an employee of the city on the date such resolution was enacted;

(C) The city at its option approves by a two-thirds (⅔) majority of its legislative body a resolution authorizing an actuarial study to determine the liability associated with such prior service, and in such resolution the city accepts responsibility for the costs of such study; and

(D) Following receipt of the actuarial study, the city adopts a resolution approved by a two-thirds (⅔) majority of the legislative body authorizing prior service for such employee and accepts the liability for such service.

(2) Any employee establishing such prior service must make a lump sum payment equal to the employee contributions such employee would have made had such employee been a member of the retirement system during the period claimed, plus interest at the rate provided in § 8-37-214.

(3) The retirement system shall not be liable for the payment of retirement allowances or other benefits on account of such employee or such employee's beneficiaries for which reserves have not been previously created from funds contributed by the city and/or by or on behalf of such employee.

(4) It is the legislative intent that the state shall realize no increased cost as a result of this section. All costs associated with retirement coverage, including administrative costs, shall be the responsibility of the city legislative body.

(c) Retirement benefits payable on service established pursuant to this section shall be computed in accordance with chapter 36 of this title. In no event shall the benefit payable on such service be less than that provided under § 8-36-209(a)(1)(A), (a)(1)(B), (a)(2)(A)(i) or (a)(2)(A)(ii), depending upon which option is exercised by the chief legislative body. Such benefit is subject to the limitations of § 8-36-102.

(d) Service pursuant to this section shall be independent of all other creditable service for the purpose of calculating the member's average final compensation.

(e) For the purposes of determining the limitations on the amount of the retirement allowance as provided in § 8-36-102, the average final compensation for service granted pursuant to this section shall be independent of the average final compensation calculation on any other creditable service in the retirement system.