Official Summary Text
CHANGES IN RETIREMENT ALLOWANCE
Present law provides that as of
the end of each calendar year, the difference between
the
end of each calendar year commencing with t
he year ending December 31, 1972, the difference between
the
percentage representing the consumer price index as of the end of such calendar year divided by that index as of December 31, 1971, or the most recent December 31 subsequent thereto as of which a
n increase or decrease in retirement allowance
must
have been granted pursuant to th
e present law provisions of retirement and 100% must be determined. Further, if such percentage is at least equal to 1%, the
retirement allowance payable to each beneficia
ry in receipt of an allowance prior to the July 1 next following
must
be increased or decreased, as the case may be, commencing on such July 1, by an amount determined by multiplying the retirement allowance
that
would have been payable without regard to t
his
law
by such percentage, but not to exceed 3%.
If the percentage increase or decrease in the consumer price index determined in accordance with t
he previous provisions
is less than 1%,
an
increase or decrease in retirement allowance
must not
be granted.
Present law additionally provides that effective
July 1, 1998, if there is a percentage increase in the consumer price index, as determined in accordance with
the provisions above
, of at least 0.5%, the retirement allowance payable to each beneficiary
in receipt of an allowance prior to the July 1 next following
must
be increased commencing on such July 1 by an amount determined by multiplying the beneficiary's then current retirement allowance by such percentage, but not to exceed 3%.
I
f such percenta
ge is 0.5% or more but less than 1%, the percentage
must
be rounded to one percent 1%.
This adjustment
must
be in lieu of the adjustments provided for in
the paragraph above
.
If the percentage increase in the consumer price index is less than 0.5%,
a
ret
irement allowance increase
must not
be granted
.
EFFECT OF OVER COLLECTIONS
This bill provides that effective July 1, 2025, if, in
any fiscal year, there are over-collections and there is a percentage increase in the consumer price index, as determined i
n accordance with
the retirement provisions of present law
, of at lea
st
0.5%, then in lieu of the adjustments provided in
the above provisions,
the retirement allowance payable to each beneficiary in receipt of an allowance prior to the July 1 next followi
ng must be increased commencing on such July 1 by an amount determined by multiplying the beneficiary's then-current retirement allowance by such percentage.
I
f the percentage is 0.5% or more but less than 1%, the percentage must be rounded to one percent
1%.
This bill provides that if the
percentage increase in the consumer price index is less than 0.5%, then a retirement allowance increase is not granted pursuant to this
bill.
On or before November 1, 2025, and on or before each subsequent November 1,
the commissioner of finance and administration
must
determine the amount of over-collections, if any, during the prior fiscal year. The commissioner
must
report this determination to the board of trustees
("the board")
. If over-collections are reported, then the board
must
implement the increase pursuant to this
bill.
RESOLUTION REQUIRED
This bill does not apply
to individuals who are members of the retirement system by virtue of their employment with any employer
participating in the retirement system unless the governing body of any such employer passes a resolution to accept the associated liability and costs to provide such benefits. This increase in benefits becomes effective following the adoption of the res
o
lution. Retroactive benefits must not be paid under this
bill.
Current Bill Text
Read the full stored bill text
SENATE BILL 1157
By Kyle
HOUSE BILL 1296
By Powell
HB1296
002380
- 1 -
AN ACT to amend Tennessee Code Annotated, Section 8-
36-701, relative to cost-of-living adjustments for
beneficiaries of the retirement system.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 8-36-701, is amended by adding the
following new subsection:
(e)
(1) Effective July 1, 2025, if, in any fiscal year, there are over-collections
and there is a percentage increase in the consumer price index, as determined in
accordance with subdivision (a)(1), of at least one-half of one percent (0.5%),
then in lieu of the adjustments provided in subsections (a) and (b), the retirement
allowance payable to each beneficiary in receipt of an allowance prior to the July
1 next following must be increased commencing on such July 1 by an amount
determined by multiplying the beneficiary's then-current retirement allowance by
such percentage. Notwithstanding this subdivision (e)(1), if the percentage is
one-half of one percent (0.5%) or more but less than one percent (1%), the
percentage must be rounded to one percent (1%).
(2) If the percentage increase in the consumer price index is less than
one-half of one percent (0.5%), then a retirement allowance increase is not
granted pursuant to this subsection (e).
(3) On or before November 1, 2025, and on or before each subsequent
November 1, the commissioner of finance and administration shall determine the
amount of over-collections, if any, during the prior fiscal year. The commissioner
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shall report this determination to the board of trustees. If over-collections are
reported, then the board shall implement the increase pursuant to this subsection
(e).
(4) Notwithstanding another law to the contrary, this subsection (e) does
not apply to individuals who are members of the retirement system by virtue of
their employment with any employer participating in the retirement system
pursuant to chapter 35 of this title unless the governing body of any such
employer passes a resolution to accept the associated liability and costs to
provide such benefits. This increase in benefits becomes effective following the
adoption of the resolution. Retroactive benefits must not be paid under this
subsection (e).
(5) As used in this subsection (e), "over-collections" means state tax
revenue collected for a fiscal year above the authorizations, allocations, and
appropriations approved in the general appropriations act and any supplemental
appropriations act for that fiscal year.
SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.