Bill > HB0313

This bill modifies Tennessee's retirement and reemployment rules for retired public employees, establishing more stringent conditions for retirees who wish to return to work while continuing to draw retirement benefits. The legislation defines a "bona fide separation of service" as requiring no prearranged agreement to return to work and a complete 60-day separation from retirement system-covered employment before returning. For temporary reemployment, retirees are limited to working 120 days in a 12-month period, with compensation not exceeding 60% of their previous annual full-time salary (adjusted annually), and they cannot be drawing disability retirement benefits. The bill introduces a new provision for reemployment in "hard-to-fill positions," which allows retirees to return to work for up to one year with their retirement benefit reduced to 70%, subject to specific employer certification requirements. Employers must pay additional contributions to the retirement system for such reemployment, and retirees cannot accrue additional retirement benefits during this period. The changes aim to provide flexibility for public employers while maintaining fiscal responsibility and preventing potential retirement system abuses. The bill will take effect in stages, with most provisions becoming active on July 1, 2025, and some sections implementing on January 1, 2026.

Government Affairs, Labor and Employment

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB0313&ga=114