Bill > SB1157

This bill amends Tennessee's retirement system law to provide a new mechanism for cost-of-living adjustments (COLAs) for retirement beneficiaries, contingent on state tax over-collections and changes in the Consumer Price Index (CPI). Starting July 1, 2025, if state tax revenues exceed budgeted amounts and the CPI increases by at least 0.5%, retirement allowances will be increased by a percentage matching the CPI increase (with a minimum rounding up to 1% if the increase is between 0.5% and 1%). The Commissioner of Finance and Administration must determine and report over-collections by November 1 each year, and the retirement system's board of trustees will implement the increase accordingly. Importantly, this adjustment is optional for employers participating in the retirement system through a specific chapter of Tennessee law; such employers must pass a resolution to accept the associated liability and costs. No retroactive benefits will be paid, and the increase only applies to beneficiaries receiving retirement allowances prior to the July 1 adjustment. If the CPI increase is less than 0.5%, no retirement allowance increase will be granted. The bill takes effect immediately upon becoming law.

Government Affairs

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB1157&ga=114