Notwithstanding anything 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 political subdivision under this chapter, for which reserves have not been previously created from funds contributed by such political subdivision or its employees for such benefits.Acts 1947, ch. 231, § 9; C. Supp. 1950, § 1034.73 (Williams, § 1034.45).
Tennessee Legal Code