Bill > SB0251

This bill modifies Tennessee's regulations on reemployment after retirement for members of the Tennessee Consolidated Retirement System by establishing stricter guidelines for retired public employees returning to work. The key provisions include requiring a "bona fide separation of service," which means a retired member must completely stop working for at least 60 calendar days and have no prearranged agreement to return to work before retirement. For temporary reemployment, retirees are limited to working 120 days (or equivalent) within a 12-month period, and their compensation cannot exceed 60% of their previous annual full-time salary, adjusted annually. For reemployment in hard-to-fill positions, retirees can work up to one year with their retirement benefit reduced to 70%, and employers must pay a contribution to the retirement system. The bill also specifies that reemployed retirees cannot accrue additional retirement benefits and are not eligible if they are currently receiving disability retirement benefits. These changes aim to provide flexibility for public employers while maintaining the integrity of the retirement system, with most provisions taking effect on July 1, 2025, and some sections becoming effective on January 1, 2026.

Government Affairs

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB0251&ga=114