Pensions and Retirement Benefits

Plain English Breakdown

The bill summary and text do not provide specific details about funding sources for the changes.

Changes to Retirement Benefits for Tennessee Legislators

This bill changes retirement benefits for members of the Tennessee General Assembly who have served at least ten years starting from July 1, 2014.

What This Bill Does

• Requires the board of trustees to convert a legislator's participation in the hybrid plan to the legacy plan upon completing ten years of service if they became a member on or after July 1, 1974 (corrected to July 1, 2014).
• The office of legislative administration must notify the board when a legislator completes ten years of service.
• Makes retiree health benefit coverage available for retired legislators who have served at least ten years since July 1, 2024.
• Requires supplemental medical insurance to be made available for retired senators or representatives with at least ten years of service starting from July 1, 2024.

Who It Names or Affects

• Members of the Tennessee General Assembly who have served at least ten years since July 1, 2014.
• The board of trustees and the office of legislative administration.

Terms To Know

Hybrid plan

A retirement plan that combines elements of defined benefit and defined contribution plans.

Legacy plan

An older type of pension plan typically offering a fixed monthly payment upon retirement.

Limits and Unknowns

• The bill does not specify how the changes will be funded.
• It is unclear if there are any limits on the number of legislators who can benefit from these changes.

Official Summary Text

This bill
requires
the board of trustees
to
convert a person's participation in the retirement system, for service as a member of the general assembly
and as a participant in the hybrid plan, from the hybrid plan to the legacy plan upon the person completing 10 years of service as a member of the general assembly if the person became a member of the general assembly on or after July 1, 2014.
T
he office
of legislative administration must notify the board of trustees upon a member of the general assembly completing 10 years of service as a member of the general assembly.

The board must
then
provide written notification to the member after the conversion f
rom the hybrid plan to the legacy plan is completed.

ELECT TO RETAIN HEALTH BENEFITS

Present law authorizes
a senator or representative
u
pon retirement from the general assembly, and
the governor
upon completion of a term of office,
to
elect to retain r
etiree
group
health benefits by participating in the
group insurance
plan authorized by the state insurance committee
.
The surviving spouse or dependent children of a senator, representative, or governor, who dies in office or who is a member of the state
retirement system
,
may elect to retain health benefits by participating in either the applicable active or retiree health benefit and paying the required contribution amount.

If the surviving spouse or dependent children are ineligible to receive a retir
ement pension benefit, the spouse or dependent children may participate in the state employees group insurance plan by making payment for the required cost to the office of legislative administration.

However, present law provides that this
right to co
ntinue coverage under the state employees group insurance plan
does
not apply to a senator, representative, governor, or their dependents, when first election to any of these offices did not occur before July 1, 2015.
This bill revises this provision to,
instead, only apply this provision to the governor, or the governor's dependents. This bill requires

such
retiree coverage
to
be made available to a retired senator or representative who completes 10 years of service as a member of the general assembly on
or after July 1, 2024.

SUPPLEMENTAL MEDICAL INSURANCE

This bill requires
the supplemental medical insurance benefit
to

also
be made available to a retired senator or representative who completes 10 years of service as a member of the general assembly o
n or after July 1, 2024.

Current Bill Text

HOUSE BILL 463
By Travis

SENATE BILL 722
By Hatcher

SB0722
000894
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 3;
Title 8, Chapter 27, Part 2; Title 8, Chapter 34;
Title 8, Chapter 35 and Title 8, Chapter 36, relative
to retirement benefits for members of the general
assembly.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 8-36-903, is amended by adding the
following as a new subsection (f):
(1) Notwithstanding this section, § 8-35-109, or another law to the contrary, the
board of trustees shall convert a person's participation in the retirement system, for
service as a member of the general assembly and as a participant in the hybrid plan,
from the hybrid plan to the legacy plan upon the person completing ten (10) years of
service as a member of the general assembly if the person became a member of the
general assembly on or after July 1, 2014. The board shall provide written notification to
the member after the conversion from the hybrid plan to the legacy plan is completed.
(2) The office of legislative administration shall notify the board of trustees upon
a member of the general assembly completing ten (10) years of service as a member of
the general assembly.
SECTION 2. Tennessee Code Annotated, Section 8-27-208(a)(2), is amended by
deleting the following language:
The right to continue coverage under the state employees group insurance plan
provided under this section shall not apply to any senator, representative, governor, or
their dependents, when first election to any of these offices did not occur before July 1,
2015.

- 2 - 000894

and substituting instead the following:
The right to continue coverage under the state employees group insurance plan
provided under this section shall not apply to the governor, or the governor's
dependents, when first election to the office did not occur before July 1, 2015.
SECTION 3. Tennessee Code Annotated, Section 8-27-205, is amended by adding the
following as a new subsection:
( ) Notwithstanding this section to the contrary, the retiree coverage authorized
under this section must be made available to any retired senator or representative who
completes ten (10) years of service as a member of the general assembly on or after
July 1, 2024.
SECTION 4. Tennessee Code Annotated, Section 8-27-209, is amended by adding the
following as a new subsection:
( ) Notwithstanding this section to the contrary, the supplemental medical
insurance benefit authorized under this section must be made available to any retired
senator or representative who completes ten (10) years of service as a member of the
general assembly on or after July 1, 2024.
SECTION 5. This act takes effect July 1, 2025, the public welfare requiring it, and
applies to persons completing ten (10) years of service as a member of the general assembly
on or after July 1, 2024.