Tennessee 2025-2026 Regular Session

Tennessee House Bill HB0535

Introduced
1/29/25  
Refer
2/5/25  
Refer
3/5/25  
Refer
3/12/25  
Refer
3/12/25  
Chaptered
5/13/25  

Caption

AN ACT to amend Tennessee Code Annotated, Title 8, Chapter 25; Title 8, Chapter 34; Title 8, Chapter 35; Title 8, Chapter 36 and Title 8, Chapter 37, relative to retirement.

Impact

The bill is likely to have a substantial impact on the retirement landscape for local officials and part-time employees across Tennessee. By integrating part-time public workers into the retirement system, the legislation potentially enhances job attractiveness and may improve employee retention within state agencies. Additionally, the bill emphasizes that all retirement costs remain the responsibility of local governments, which could lead to increased financial planning requirements for these entities as they adjust to accommodate mandatory participation in the retirement system. This could create variances in how different local governments respond to the requirements outlined in the bill.

Summary

House Bill 0535 proposes significant amendments to various sections of the Tennessee Code Annotated that relate to the retirement system, specifically for part-time state employees and local officials. A major aspect of this bill is to mandate that part-time employees who begin work after July 1, 2025, automatically become members of the retirement system unless they choose otherwise within a specified time frame. This change indicates a shift towards broader participation in the retirement system, aimed at providing benefits to part-time workers who may previously have been excluded from such opportunities. The bill sets parameters for employer contributions, aiming to ensure financial stability within the retirement system while avoiding any financial burden on the state government itself.

Sentiment

The general sentiment around HB0535 appears cautiously optimistic among proponents who envision enhanced employee security and the potential for increased workforce participation in state employment. However, there may be concerns among local government officials regarding the financial implications and the management of increased contributions to the retirement system. This balance of perspectives highlights the varied priorities involved in public sector employment: securing benefits for employees while managing fiscal responsibility at the local government level.

Contention

Contention surrounding the bill revolves around the implications of mandatory participation and the respective financial responsibilities of local governments. Some local officials express apprehension about the scalability and sustainability of funding these additional retirement benefits, particularly if employer contributions increase substantially. Furthermore, the question of how this change will influence the budgetary constraints faced by various municipalities remains a critical point of discussion. The legislative debate reflects a wider conversation about the evolving nature of public sector benefits and the rights of workers in gaining access to retirement plans.

Companion Bills

TN SB0510

Crossfiled AN ACT to amend Tennessee Code Annotated, Title 8, Chapter 25; Title 8, Chapter 34; Title 8, Chapter 35; Title 8, Chapter 36 and Title 8, Chapter 37, relative to retirement.

Previously Filed As

TN SB0436

AN ACT to amend Tennessee Code Annotated, Title 8, Chapter 34; Title 8, Chapter 35; Title 8, Chapter 36 and Title 8, Chapter 37, relative to retirement benefits.

TN HB1135

AN ACT to amend Tennessee Code Annotated, Title 8, Chapter 34; Title 8, Chapter 35; Title 8, Chapter 36 and Title 8, Chapter 37, relative to retirement benefits.

TN HB2683

AN ACT to amend Tennessee Code Annotated, Title 4, Chapter 24; Title 8, Chapter 34; Title 8, Chapter 35; Title 8, Chapter 36 and Title 8, Chapter 37, relative to retirement benefits.

TN SB2902

AN ACT to amend Tennessee Code Annotated, Title 4, Chapter 24; Title 8, Chapter 34; Title 8, Chapter 35; Title 8, Chapter 36 and Title 8, Chapter 37, relative to retirement benefits.

TN HB2315

AN ACT to amend Tennessee Code Annotated, Title 8, Chapter 25; Title 8, Chapter 34; Title 8, Chapter 35 and Title 8, Chapter 36, relative to deferred compensation.

TN SB2251

AN ACT to amend Tennessee Code Annotated, Title 8, Chapter 25; Title 8, Chapter 34; Title 8, Chapter 35 and Title 8, Chapter 36, relative to deferred compensation.

TN HB0884

AN ACT to amend Tennessee Code Annotated, Title 8, Chapter 34; Title 8, Chapter 35; Title 8, Chapter 36 and Title 8, Chapter 37, relative to funding retirement benefit improvements.

TN SB0990

AN ACT to amend Tennessee Code Annotated, Title 8, Chapter 34; Title 8, Chapter 35; Title 8, Chapter 36 and Title 8, Chapter 37, relative to funding retirement benefit improvements.

TN SB1815

AN ACT to amend Tennessee Code Annotated, Title 4, Chapter 3, Part 24; Title 8, Chapter 34; Title 8, Chapter 35; Title 8, Chapter 36; Title 8, Chapter 39; Title 9 and Title 50, relative to retirement.

TN HB2526

AN ACT to amend Tennessee Code Annotated, Title 4, Chapter 3, Part 24; Title 8, Chapter 34; Title 8, Chapter 35; Title 8, Chapter 36; Title 8, Chapter 39; Title 9 and Title 50, relative to retirement.

Similar Bills

TN SB0510

AN ACT to amend Tennessee Code Annotated, Title 8, Chapter 25; Title 8, Chapter 34; Title 8, Chapter 35; Title 8, Chapter 36 and Title 8, Chapter 37, relative to retirement.

TN HB0324

AN ACT to amend Tennessee Code Annotated, Title 8, Chapter 27 and Title 8, Chapter 50, Part 8, relative to public employment benefits.

TX HB2559

Relating to the powers and duties of and benefits available under the Employees Retirement System of Texas and to a chronic disease prevention and wellness pilot program administered by the system and the Department of State Health Services for department employees.

TN SB0276

AN ACT to amend Tennessee Code Annotated, Title 8, Chapter 27 and Title 8, Chapter 50, Part 8, relative to public employment benefits.

TX SB1939

Relating to contributions to, benefits from, membership in, and the administration of systems and programs administered by the Teacher Retirement System of Texas.

NC H477

Retirement Death Benefits Rewrite.-AB

TX SB1663

Relating to contributions to, benefits from, late fees imposed by, and the administration of systems and programs administered by the Teacher Retirement System of Texas.

MO SB75

Modifies provisions relating to retirement systems