<BillNo> <Sponsor>
SENATE BILL 1157
By Kyle
SB1157
002380
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AN ACT to amend Tennessee Code Annotated, Section 8-
36-701, relative to cost-of-living adjustments for
beneficiaries of the retirement system.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 8-36-701, is amended by adding the
following new subsection:
(e)
(1) Effective July 1, 2025, if, in any fiscal year, there are over-collections
and there is a percentage increase in the consumer price index, as determined in
accordance with subdivision (a)(1), of at least one-half of one percent (0.5%),
then in lieu of the adjustments provided in subsections (a) and (b), the retirement
allowance payable to each beneficiary in receipt of an allowance prior to the July
1 next following must be increased commencing on such July 1 by an amount
determined by multiplying the beneficiary's then-current retirement allowance by
such percentage. Notwithstanding this subdivision (e)(1), if the percentage is
one-half of one percent (0.5%) or more but less than one percent (1%), the
percentage must be rounded to one percent (1%).
(2) If the percentage increase in the consumer price index is less than
one-half of one percent (0.5%), then a retirement allowance increase is not
granted pursuant to this subsection (e).
(3) On or before November 1, 2025, and on or before each subsequent
November 1, the commissioner of finance and administration shall determine the
amount of over-collections, if any, during the prior fiscal year. The commissioner
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shall report this determination to the board of trustees. If over-collections are
reported, then the board shall implement the increase pursuant to this subsection
(e).
(4) Notwithstanding another law to the contrary, this subsection (e) does
not apply to individuals who are members of the retirement system by virtue of
their employment with any employer participating in the retirement system
pursuant to chapter 35 of this title unless the governing body of any such
employer passes a resolution to accept the associated liability and costs to
provide such benefits. This increase in benefits becomes effective following the
adoption of the resolution. Retroactive benefits must not be paid under this
subsection (e).
(5) As used in this subsection (e), "over-collections" means state tax
revenue collected for a fiscal year above the authorizations, allocations, and
appropriations approved in the general appropriations act and any supplemental
appropriations act for that fiscal year.
SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.