Pensions and Retirement Benefits

Plain English Breakdown

The official source material does not provide information on the exact impact of the bill on the retirement system's funding or how much money will be spent.

Tennessee Retirement Credit for Disability Benefits

This bill changes Tennessee law to allow state police officers and other members subject to mandatory retirement to establish free retirement credit during a period of disability starting July 1, 2026.

What This Bill Does

• Allows state police officers to get free retirement credit for periods when they were disabled and received workers' compensation benefits, if the application is submitted on or after July 1, 2026.
• Expands this benefit to any member who must retire by law at a certain age or service level.
• Permits political subdivisions (like cities or counties) that participate in the Tennessee consolidated retirement system to pass resolutions allowing police officers to get free retirement credit for disability periods starting from July 1, 2026.
• Allows political subdivisions that had previously passed similar resolutions but with costs to update their rules and offer free retirement credit for police officers.

Who It Names or Affects

• State police officers who receive temporary disability benefits under workers' compensation programs.
• Any member subject to mandatory retirement laws.
• Political subdivisions that participate in the Tennessee consolidated retirement system.

Terms To Know

Creditable service

Time during which a person is considered eligible for retirement benefits, even if they were not actively working due to disability.

Political subdivisions

Local government units such as cities or counties that can make their own laws within the state's framework.

Limits and Unknowns

• The bill does not specify how much money will be spent on this new benefit.
• It is unclear if all political subdivisions will choose to adopt these changes for their employees.
• The exact impact on the retirement system and its funding is not detailed in the summary.

Official Summary Text

Upon approval of the board of trustees, present law generally requires any person included in the membership of the Tennessee consolidated retirement system ("member") who receives temporary disability benefits under a workers' compensation program to be
entitled to establish retirement credit at any time during or after the period of disability. This bill requires such credit for state police officers to be at no cost to the state police officer member, if the application for the credit is submitted on
o
r after July 1, 2026.

POLITICAL SUBDIVISIONS

Present law authorizes political subdivisions of this state that participate in the Tennessee consolidated retirement system to adopt the provision allowing for any member who receives temporary disability benefits under a workers' compensation program t
o be entitled to establish retirement credit at any time during or after the period of disability, by passing a resolution and accepting the liability for its employees to establish the credit. This bill authorizes a resolution adopted on or after July 1
,
2026, to include the establishment of such credit for police officers at no cost to the police officer members. However, if a political subdivision passed a resolution to establish retirement credit prior to July 1, 2026, that included a cost for police
officer members, this bill authorizes the political subdivision to pass a subsequent resolution to permit the establishment of a retirement credit at no cost for its police officer members.

ON FEBRUARY 23, 2028, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 2017, AS AMENDED.

AMENDMENT #1 expands the application of the credit in the bill from state police officers to any
member who
is
subject to mandatory retirement pursuant to
present law.

Current Bill Text

SENATE BILL 2017
By Reeves

HOUSE BILL 1906
By Scarbrough
HB1906
011209
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 8,
Chapter 34, Part 6, relative to creditable service
for a period of disability.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 8-34-625, is amended by deleting the
section and substituting instead:
(a) Subject to the approval of the board of trustees, a member, other than an
employee of a political subdivision, who receives temporary disability benefits under a
workers' compensation program administered by or on behalf of an employer is entitled
to establish retirement credit at any time during or after the period of disability.
(b) Upon the member's submission of an application to establish retirement
credit for a period of disability, the member's employing department or agency shall
provide certification, in a manner prescribed by the state treasurer, of the period of
disability and salary in effect immediately prior to the disability. Contributions by, or on
behalf of, a member must be remitted to the retirement system in a manner prescribed
by the state treasurer based on the member's salary in effect immediately prior to the
period of disability, plus interest at the rate provided in § 8-37-214, if applicable.
Retirement credit established pursuant to this section for state police officers must be at
no cost to the state police officer member; provided, that the member submits an
application for retirement credit to the retirement system on or after July 1, 2026, to
establish retirement credit for the member's period of disability. This subsection (b) does
not apply to members who received retirement credit for a period of disability pursuant to
this section before July 1, 2026.

- 2 - 011209

(c) Notwithstanding § 8-35-217, participating political subdivisions may adopt
this section for its employees; provided, that the chief governing body of the political
subdivision passes a resolution allowing its members to establish retirement credit for a
period of disability and accepting the liability for its employees to establish this credit.
The resolution adopting this section for participating political subdivision employees on
or after July 1, 2026, may include the establishment of retirement credit for police
officers at no cost to the police officer members. If a political subdivision passed a
resolution to establish retirement credit for its members prior to July 1, 2026, and if the
establishment of this credit had an associated cost, then the political subdivision may
pass a subsequent resolution to permit the establishment of retirement credit for its
police officers at no cost to the police officer members. This subsection (c) is available
for adoption by political subdivisions on or after July 1, 2026, and becomes effective on
the effective date of the resolution to adopt the establishment of retirement credit for a
member's period of disability.
(d) Upon the member's submission of an application to establish retirement
credit for a period of disability, the member's employing political subdivision shall provide
certification, in a manner prescribed by the state treasurer, of the period of disability and
salary in effect immediately prior to the disability. Contributions by, or on behalf of, a
member must be remitted to the retirement system in a manner prescribed by the state
treasurer based on the member's salary in effect immediately prior to the period of
disability, plus interest at the rate provided in § 8-37-214, if applicable.
(e) A member must not be credited with the temporary disability as creditable
service at a rate exceeding one (1) year per occurrence of temporary disability.
SECTION 2. This act takes effect July 1, 2026, the public welfare requiring it.