Bill > SB2058

This bill, known as the Supporting Troopers through Advanced Retirement (STAR) Act, allows current and future state troopers to opt into an alternative retirement plan that offers enhanced benefits. Eligible troopers who choose this STAR plan, which is a type of defined benefit retirement plan, will contribute five percent of their monthly earnings. For those already in the legacy pension plan, there's a one-time buy-in fee based on their average salary. Those in the hybrid plan do not have this fee. The STAR plan provides a higher retirement benefit, calculated as three percent of a trooper's average final compensation (AFC) for each year of service, up to a maximum of seventy-five percent of their AFC after twenty-five years of service, with no minimum retirement age once twenty-five years of service is achieved. A key provision is the Deferred Retirement Option Program (DROP), where troopers with at least twenty-five years of service can defer their retirement benefits, continue working full-time for up to eight additional years, and have their retirement pay deposited into an interest-bearing account until they officially retire. The retirement system will keep the interest earned on these DROP accounts to help fund the STAR plan. The bill also outlines specific vesting periods for eligibility, with troopers hired before July 1, 2026, vesting after five years of service, and those hired on or after that date vesting after ten years. The highway patrol will review the conduct of DROP participants to ensure satisfactory service. This act takes effect on July 1, 2026.

Government Affairs

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB2058&ga=114