Tennessee House Bill HB1543

Tennessee 2023-2024 Regular Session

• Introduced: 2/13/23
• Refer: 2/23/23
• Refer: 4/18/23
• Engrossed: 4/19/23
• Enrolled: 5/1/23
• Passed: 5/11/23
• Chaptered: 5/17/23

Caption

AN ACT to amend Tennessee Code Annotated, Title 3; Title 4; Title 5; Title 6; Title 7; Title 8; Title 9; Title 10; Title 11; Title 12; Title 13; Title 16; Title 17; Title 18; Title 29; Title 33; Title 36; Title 37; Title 38; Title 39; Title 40; Title 41; Title 43; Title 44; Title 45; Title 47; Title 48; Title 49; Title 50; Title 53; Title 54; Title 55; Title 56; Title 57; Title 58; Title 59; Title 60; Title 61; Title 62; Title 63; Title 64; Title 65; Title 66; Title 67; Title 68; Title 69; Title 70 and Title 71, relative to statutory revisions required for implementation of the annual appropriations act.

Impact

The adoption of HB 1543 affects the state’s fiscal management by altering how employer contributions to employee retirement funds are calculated, creating short-term boosts in retirement benefits for the state workforce. By supporting increased employer matches, the state government aims to attract and retain talent while promoting financial security among its employees. This bill could pave the way for potential future discussions surrounding funding allocations for public employee benefits and its implications on the state budget.

Summary

House Bill 1543, passed in April 2023, amends various titles of the Tennessee Code Annotated for the purpose of implementing statutory revisions necessary for the annual appropriations act. Specifically, it includes a significant update allowing for a state employer match of 100% of the contributions made by state employees to their retirement plans for the fiscal year beginning July 1, 2023, up to a maximum of $100 per month. This adjustment is intended to enhance the benefits for state employees participating in the retirement plan and subsequently reverts to previous calculations in following years.

Sentiment

The sentiment around HB 1543 appears to be positive, particularly among stakeholders who advocate for enhanced employee benefits and fiscal responsibility. Supporters view the bill as a crucial step towards improving retirement security for state employees, fostering a proactive approach to employee welfare. However, there may be counter sentiments among fiscal conservatives concerned about the long-term budget impacts of increased pension liabilities stemming from enhanced benefits provisions.

Contention

While HB 1543 had broad support and passed without opposition (33-0), notable contention may arise in the future regarding the sustainability of such employer match enhancements, especially given the reliance on state appropriations. Critics could potentially argue that these benefits expand financial obligations without guaranteeing secure long-term funding, prompting discussions about balancing employee welfare with fiscal prudence.