Pensions and Retirement Benefits - As enacted, requires retirement credit established for a period of disability for a commissioned member of the department of safety or agent of the Tennessee bureau of investigation to , the official text

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                             PUBLIC CHAPTER NO. 1110

                                                    SENATE BILL NO. 2017

                                                By Reeves, Hatcher, Jackson

                                           Substituted for: House Bill No. 1906

                                 By Scarbrough, Cochran, Helton-Haynes, Camper

AN ACT to amend Tennessee Code Annotated, Title 8, Chapter 34, Part 6, relative to creditable
         service for a period of disability.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

         SECTION 1. Tennessee Code Annotated, Section 8-34-625, is amended by deleting the
section and substituting instead:

                   (a) Subject to the approval of the board of trustees, a member, other than an
         employee of a political subdivision, who receives temporary disability benefits under a
         workers' compensation program administered by or on behalf of an employer is entitled to
          establish retirement credit at any time during or after the period of disability.

                   (b) Upon the member's submission of an application to establish retirement credit for
          a period of disability, the member's employing department or agency shall provide
          certification, in a manner prescribed by the state treasurer, of the period of disability and
          salary in effect immediately prior to the disability. Contributions by, or on behalf of, a member
          must be remitted to the retirement system in a manner prescribed by the state treasurer
          based on the member's salary in effect immediately prior to the period of disability, plus
          interest at the rate provided in § 8-37-214, if applicable. Retirement credit established
          pursuant to this section for members who are subject to mandatory retirement pursuant to §
          8-36-205 must be at no cost to the member; provided, that the member submits an
          application for retirement credit to the retirement system on or after July 1, 2026, to establish
          retirement credit for the member's period of disability. This subsection (b) does not apply to
          members who received retirement credit for a period of disability pursuant to this section
          before July 1, 2026.

                    (c) Notwithstanding § 8-35-217, participating political subdivisions may adopt this
          section for its employees; provided, that the chief governing body of the political subdivision
          passes a resolution allowing its members to establish retirement credit for a period of
          disability and accepting the liability for its employees to establish this credit. The resolution
          adopting this section for participating political subdivision employees on or after July 1, 2026,
          may include the establishment of retirement credit for members subject to mandatory
          retirement pursuant to § 8-36-205 and as authorized by the employer, at no cost to the
          members. If a political subdivision passed a resolution to establish retirement credit for its
          members prior to July 1, 2026, and if the establishment of this credit had an associated cost,
          then the political subdivision may pass a subsequent resolution to permit the establishment
          of retirement credit for its members subject to mandatory retirement pursuant to § 8-36-205
          at no cost to the members. This subsection (c) is available for adoption by political
          subdivisions on or after July 1, 2026, and becomes effective on the effective date of the
          resolution to adopt the establishment of retirement credit for a member's period of disability.

                    (d) Upon the member's submission of an application to establish retirement credit for
          a period of disability, the member's employing political subdivision shall provide certification,
          in a manner prescribed by the state treasurer, of the period of disability and salary in effect
          immediately prior to the disability. Contributions by, or on behalf of, a member must be
          remitted to the retirement system in a manner prescribed by the state treasurer based on the
SB 2017
          member's salary in effect immediately prior to the period of disability, plus interest at the rate
          provided in § 8-37-214, if applicable.
                    (e) A member must not be credited with the temporary disability as creditable service
          at a rate exceeding one (1) year per occurrence of temporary disability.
          SECTION 2. This act takes effect July 1, 2026, the public welfare requiring it.

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         SENATE BILL NO. 2017

PASSED:  April 21, 2026

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                                               \ • ..,_ • =-RANDY lncNALLY
                                                    SPEAKER OF THE SENATE

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                                               CAMERONSEXTON,SPEAKER
                                              HOUSE OF REPRESENTATIVES

:z::r.'- APPROVED this  day of ~         2026

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                     BILL LEE, GOVERNOR