| 1 | 1 | | |
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| 2 | 2 | | <BillNo> <Sponsor> |
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| 3 | 3 | | |
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| 4 | 4 | | SENATE BILL 1157 |
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| 5 | 5 | | By Kyle |
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| 6 | 6 | | |
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| 7 | 7 | | |
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| 8 | 8 | | SB1157 |
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| 9 | 9 | | 002380 |
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| 10 | 10 | | - 1 - |
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| 11 | 11 | | |
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| 12 | 12 | | AN ACT to amend Tennessee Code Annotated, Section 8- |
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| 13 | 13 | | 36-701, relative to cost-of-living adjustments for |
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| 14 | 14 | | beneficiaries of the retirement system. |
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| 15 | 15 | | |
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| 16 | 16 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE: |
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| 17 | 17 | | SECTION 1. Tennessee Code Annotated, Section 8-36-701, is amended by adding the |
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| 18 | 18 | | following new subsection: |
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| 19 | 19 | | (e) |
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| 20 | 20 | | (1) Effective July 1, 2025, if, in any fiscal year, there are over-collections |
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| 21 | 21 | | and there is a percentage increase in the consumer price index, as determined in |
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| 22 | 22 | | accordance with subdivision (a)(1), of at least one-half of one percent (0.5%), |
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| 23 | 23 | | then in lieu of the adjustments provided in subsections (a) and (b), the retirement |
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| 24 | 24 | | allowance payable to each beneficiary in receipt of an allowance prior to the July |
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| 25 | 25 | | 1 next following must be increased commencing on such July 1 by an amount |
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| 26 | 26 | | determined by multiplying the beneficiary's then-current retirement allowance by |
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| 27 | 27 | | such percentage. Notwithstanding this subdivision (e)(1), if the percentage is |
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| 28 | 28 | | one-half of one percent (0.5%) or more but less than one percent (1%), the |
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| 29 | 29 | | percentage must be rounded to one percent (1%). |
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| 30 | 30 | | (2) If the percentage increase in the consumer price index is less than |
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| 31 | 31 | | one-half of one percent (0.5%), then a retirement allowance increase is not |
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| 32 | 32 | | granted pursuant to this subsection (e). |
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| 33 | 33 | | (3) On or before November 1, 2025, and on or before each subsequent |
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| 34 | 34 | | November 1, the commissioner of finance and administration shall determine the |
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| 35 | 35 | | amount of over-collections, if any, during the prior fiscal year. The commissioner |
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| 36 | 36 | | |
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| 37 | 37 | | |
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| 38 | 38 | | - 2 - 002380 |
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| 39 | 39 | | |
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| 40 | 40 | | shall report this determination to the board of trustees. If over-collections are |
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| 41 | 41 | | reported, then the board shall implement the increase pursuant to this subsection |
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| 42 | 42 | | (e). |
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| 43 | 43 | | (4) Notwithstanding another law to the contrary, this subsection (e) does |
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| 44 | 44 | | not apply to individuals who are members of the retirement system by virtue of |
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| 45 | 45 | | their employment with any employer participating in the retirement system |
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| 46 | 46 | | pursuant to chapter 35 of this title unless the governing body of any such |
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| 47 | 47 | | employer passes a resolution to accept the associated liability and costs to |
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| 48 | 48 | | provide such benefits. This increase in benefits becomes effective following the |
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| 49 | 49 | | adoption of the resolution. Retroactive benefits must not be paid under this |
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| 50 | 50 | | subsection (e). |
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| 51 | 51 | | (5) As used in this subsection (e), "over-collections" means state tax |
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| 52 | 52 | | revenue collected for a fiscal year above the authorizations, allocations, and |
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| 53 | 53 | | appropriations approved in the general appropriations act and any supplemental |
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| 54 | 54 | | appropriations act for that fiscal year. |
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| 55 | 55 | | SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it. |
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