Bill > HB1296

This bill amends Tennessee's retirement system regulations to provide a cost-of-living adjustment (COLA) for beneficiaries based on state tax over-collections and changes in the Consumer Price Index (CPI). Starting July 1, 2025, if state tax revenues exceed authorized amounts and the CPI increases by at least 0.5%, retirement allowances will be increased by a percentage matching the CPI increase. If the CPI increase is between 0.5% and 1%, it will be rounded up to 1%. If the CPI increase is less than 0.5%, no increase will be granted. The Commissioner of Finance and Administration must determine over-collections by November 1 each year and report to the board of trustees, who will then implement the increase. The provision does not automatically apply to all retirement system participants; employers must pass a resolution to accept the associated costs. Importantly, no retroactive benefits will be paid, and the increase becomes effective only after an employer's resolution is adopted. The bill defines "over-collections" as state tax revenue collected above the amounts approved in the general and supplemental appropriations acts for a fiscal year.

Government Affairs, Labor and Employment

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB1296&ga=114