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PUBLIC CHAPTER NO. 367
SENATE BILL NO. 510
By Walley
Substituted for: House Bill No. 535
By Haston, White
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.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 8-25-303(a)(1 ), is amended by deleting the
second sentence in the subdivision and substituting:
Beginning on July 1, 2021, any such employer match must equal one hundred percent (100%)
of the amount contributed by each state employee to the plan per month, up to a maximum of
fifty dollars ($50.00) per month or, alternatively, up to a higher maximum that may be
specifically prescribed in the annual general appropriations act.
SECTION 2. Tennessee Code Annotated, Section 8-34-101 (14)(0), is amended by adding the
following as a new subdivision:
(iv) Compensation paid as an offset of a tax liability or as a reimbursement of any
withholdings required by state or federal law;
SECTION 3. Tennessee Code Annotated, Section 8-35-103, is amended by deleting the
section and substituting:
(a) Any person who becomes a part-time state employee or part-time teacher on or
after July 1, 2025, shall become a member of the retirement system unless the person elects
not to participate in the retirement system by submitting a written, irrevocable election to the
Tennessee consolidated retirement system no later than thirty (30) calendar days after the
person's first day of employment. Any person who becomes a part-time employee on or after
July 1, 2025, for an employer participating under part 2 of this chapter that allows part-time
employee participation in the retirement system, shall become a member of the retirement
system unless the person elects not to participate in the retirement system by submitting a
written, irrevocable election to the Tennessee consolidated retirement system no later than
thirty (30) calendar days after the person's first day of employment.
(b) A person who became a part-time employee between July 1, 1984, and June 30,
2025, and made an irrevocable election to participate in the retirement system shall continue
participation in the retirement system, as provided in chapters 34-37 of this title.
(c) The following employees are not eligible for membership in the retirement system:
(1) Students;
(2) Seasonal or temporary employees under twenty-five (25) years of age;
(3) Temporary employees in institutions of higher education; or
(4) Substitute teachers, unless ,such substitutes are under contract and
scheduled to work the same time as a regular teacher.
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(d) Part-time employees working in institutions of higher education are eligible for
membership in the optional retirement plan found in chapter 25, part 2 of this title if the
institution certifies that the employee is a teacher.
(e) In cases of doubt as to the classification of an employee, the board of trustees
shall determine from objective criteria whether an employee is properly classified.
(f) Any retiree who accepts part-time employment with an employer participating in
the retirement system will be considered as restored to employment within the meaning of
chapter 36, part 8 of this title, regardless of whether the retiree is eligible for membership.
SECTION 4. Tennessee Code Annotated, Section 8-35-109, is amended by deleting the
section and substituting:
(a) Except as provided in § 8-35-123(c), any person who assumes office as a state
judge, a county judge, a county official, a commissioner, a county chair, a member of the
general assembly, or any district attorney general and any assistant thereto by whatever
name called, on or after July 1, 2025, shall become a member of the retirement system as a
condition of taking office or assuming a position.
(b) Any person who assumed office as a state judge, a county judge, a county official,
a commissioner, a county chair, a member of the general assembly, or any district attorney
general and any assistant thereto by whatever name called, prior to July 1, 2025, and made
an irrevocable election to participate in the retirement system, shall continue membership in
the retirement system, as provided in chapters 34-37 of this title.
SECTION 5. Tennessee Code Annotated, Section 8-35-110, is amended by deleting the
section and substituting:
(a) Except as provided in § 8-35-123(c), any person who becomes a member of the
general assembly on or after July 1, 2025, shall become a member of the retirement system
as a condition of taking office.
(b) Any person who became a member of the general assembly before July 1, 2025,
and who made an irrevocable election to become a member of the retirement system shall
continue membership in the retirement system, as authorized by the employer and chapters
34-37 of this title.
SECTION 6. Tennessee Code Annotated, Section 8-35-111 (b), is amended by deleting the
subsection and substituting:
(b) As used in this section, "public employee retirement system" includes any political
subdivision retirement system, but does not include the following:
(1) The Social Security Act (42 U.S.C. §§ 301-1397f) or another federal
retirement program;
(2) A local retirement system as provided for in part 3 of this chapter;
(3) A deferred compensation plan, including, but not limited to, plans
established pursuant to §§ 401 (k), 403(b), 457(b), and 457(f) of the Internal Revenue
Code (26 U.S.C. §§ 401(k), 403(b), 457(b), and 457(f)); or
(4) A defined benefit pension plan established and maintained by a local
government employer that is supplemental to the employer's participation in the
retirement system, and was established prior to May 17, 2023, where the total
combined employer and employee contributions do not exceed seven percent (7%) of
the employee's salary, and the supplemental benefits are subject to the limitations set
forth in § 8-36-102. At the request of the retirement system, the local government
shall conduct a periodic audit using an auditing or accounting firm to demonstrate
compliance with the limitations set forth in § 8-36-102 and any applicable limitation
pursuant to federal law, regulation, or ruling, with the cost of the audit to be paid by
the local government.
SECTION 7. Tennessee Code Annotated, Section 8-35-111, is amended by adding the
following new, appropriately designated subsection:
(h) All tax-deferred retirement plans established by public employers participating in
the state retirement system, wherein employer contributions are made, must be approved by
the director of the state retirement system.
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SECTION 8. Tennessee Code Annotated, Section 8-35-113(c)(1 ), is amended by deleting
the subdivision and substituting:
(1) Members or former members of the state election commission with a minimum of
five (5) years of service on such commission are eligible for membership in the Tennessee
consolidated retirement system if the member assumes office prior to July 1, 2025, and shall
become a member in the retirement system, as a condition of employment, if the member
assumes office on or after July 1, 2025; except that retirement benefits of such members
must be based on the Group 1 benefit formula as defined by§ 8-36-206(1 )(A) and not on the
minimum retirement allowance provided for in§ 8-36-209. This service is independent of all
other creditable service for the purpose of calculation of the average final compensation.
Such benefits are subject to the limitations of§ 8-36-102.
SECTION 9. Tennessee Code Annotated, Section 8-35-116, is amended by deleting the
section and substituting:
(a) Notwithstanding another law to the contrary, a full-time employee assuming office
as a county official or county judge, as defined in § 8-34-101, on or after July 1, 2025, shall
become a member of the Tennessee consolidated retirement system as a condition of taking
office, and shall participate in the same manner, making and receiving the same
contributions, and is eligible for the same benefits, as other employees of the county, if the
county in which the county official or county judge is employed is participating in the
retirement system in accordance with part 2 of this chapter.
(b) Full-time employees in the positions of county judge and county officials, as
defined in§ 8-34-101, who took office between June 30, 1981, and June 30, 2025, and made
an irrevocable election to participate in the retirement system shall continue their
participation in the retirement system, as authorized by the county's governing body and
chapters 34-37 of this title.
(c) Notwithstanding subsection (b), any county official or county judge who takes
office on or after July 1, 2018, shall become a member of the Tennessee consolidated
retirement system as a condition of taking office if the county official or county judge is a
current or former member of the retirement system. This subsection (c) does not apply if the
county official or county judge was in office as a county official or county judge with the
county on the date the county elected to participate in the retirement system, unless the
county official or county judge was a member or former member of a closed preexisting
defined benefit plan maintained by that county.
(d) The retirement system is not liable for the payment of retirement allowances or
other payments for a local government's employees or beneficiaries, for which reserves have
not been previously created from funds contributed by the local government or its
employees. It is the legislative intent that the state realizes no increased cost as a result of
this section or the local government's participation in the retirement system pursuant to part 2
of this chapter. All costs associated with retirement coverage, including administrative costs,
are the responsibility of the local government.
SECTION 10. Tennessee Code Annotated, Section 8-35-123, is amended by deleting the
section and substituting:
(a) Any person participating in the Tennessee consolidated retirement system prior to
July 1, 2025, pursuant to §§ 8-35-101, 8-35-103, 8-35-115, 8-35-116, and 8-35-226, or as a
state judge, county judge, county official, commissioner, county chair or attorney general,
and who elected to become a member of the retirement system, shall continue to participate
in the retirement system under the member's irrevocable election. Such members are subject
to the same terms and conditions applicable to members whose participation is mandatory
under this title, as may be amended through an enactment of the general assembly.
(b) Except as provided in subsection (c), any person employed or assuming office on
or after July 1, 2025, pursuant to §§ 8-35-101, 8-35-103, 8-35-115, 8-35-116, and 8-35-226,
or as a state judge, county judge, county official, commissioner, county chair, or attorney
general whose membership was otherwise optional in the retirement system, shall become a
member of the retirement system as a condition of employment.
(c) A person whose membership was otherwise optional in the retirement system and
who was employed or holding office prior to July 1, 2025, as a state judge, county judge,
county official, commissioner, county chair, attorney general, or general assembly member,
and made an irrevocable election to not participate in the retirement system shall maintain
that election if, with or without interruption in service, the member is:
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(1) Reappointed or reelected to the same position after June 30, 2025; or
(2) Appointed or elected to a new position listed in this subsection (c) after
June 30, 2025.
(d) The retirement system is not liable for the payment of retirement allowances or
other payments on account of the employees or beneficiaries of any employer participating
under part 2 of this chapter for which reserves have not been previously created from funds
contributed by the employer or its employees. It is the legislative intent that the state realizes
no increased cost as a result of this section. All costs associated with retirement coverage,
including administrative costs, are the responsibility of the respective employer.
SECTION 11. Tennessee Code Annotated, Section 8-35-226(a), is amended by deleting the
subsection and substituting:
(a) Appointed or elected school board members of special school districts, and of city
or county boards, commissions, committees, councils, and the like, by whatever name
known, who are elected by popular vote, and whose duties are performed intermittently or
periodically for the purposes of fixing rates, issuing permits or licenses, regulating trades or
professions, or who serve in an advisory, study or planning capacity and the like are eligible
for membership in the retirement system if the board member assumes office prior to July 1,
2025, and shall become a member in the retirement system if the board member assumes
office on or after July 1, 2025, assuming the employer allows participation upon satisfying the
following:
(1) The chief legislative body of the city, special school district, or county
passes a resolution approved by a two-thirds (2/3) majority authorizing membership
for such employees and accepting the liability therefor;
(2) Upon such authorization and assumption of the employer liability, any such
employee who meets the requirements of § 8-35-203(a)(2)(A) and (B) is eligible to
establish retirement credit for such periods of previous service as authorized for other
employees of the city, special school district, or county;
(3) An employee establishing such prior service shall make a lump sum
payment equal to the employee contributions the employee would have made had the
employee been a member of the system during the period claimed, plus interest at
the rate provided in§ 8-37-214; and
(4) Membership in the retirement system pursuant to this section is permitted
only if the chief legislative body that has authorized retirement participation for its
departments or instrumentalities extends such coverage to all nonparticipating
departments and instrumentalities. If such option is elected, then the remaining
departments and instrumentalities st:tall participate under the conditions of § 8-35-
201.
SECTION 12. Tennessee Code Annotated, Section 8-35-234, is amended by deleting the
section and substituting:
(a) Notwithstanding another law to the contrary, a full-time employee serving as a city
judge or city attorney for a municipality on or after July 1, 2025, shall become a member of
the Tennessee consolidated retirement system as a condition of employment, and shall
participate in the same manner, making the same contributions, and is eligible for the same
benefits, as other employees of the municipality, if the municipality in which the city judge or
city attorney is employed is participating in the retirement system in accordance with part 2 of
this chapter.
(b) The city judges and city attorneys participating in the retirement system separately
from other municipal employees prior to July 1, 2025, shall continue their participation in the
retirement system, as authorized by the municipality's governing body and chapters 34-37 of
this title.
(c) The retirement system is not liable for the payment of retirement allowances or
other payments for a local government's employees or beneficiaries, for which reserves have
not been previously created from funds contributed by the local government or its
employees. It is the legislative intent that the state realizes no increased cost as a result of
this section or the local government's participation in the retirement system pursuant to part 2
of this chapter. All costs associated with retirement coverage, including administrative costs,
are the responsibility of the local government.
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SECTION 13. Tennessee Code Annotated, Section 8-35-237, is amended by deleting the
section and substituting:
(a) Notwithstanding another law to th.e contrary, a full-time employee assuming office
as an elected purchasing agent or appointed administrator of elections for an employer on or
after July 1, 2025, shall participate in the Tennessee consolidated retirement system in the
same manner, making the same contributions and is eligible for the same benefits as the
employer's other employees, if the employer in which the purchasing agent or administrator
of elections is employed is participating in the retirement system in accordance with part 2 of
this chapter.
(b) The purchasing agents and administrator of elections participating in the
retirement system separately from other county employees prior to July 1, 2025 through an
irrevocable election to participate in the retirement system, shall continue their participation in
the retirement system as authorized by the county's governing body and chapters 34-37 of
this title.
(c) The retirement system is not liable for the payment of retirement allowance or
other payments for a local government's employees or beneficiaries, for which reserves have
not been previously created from funds contributed by the local government or its
employees. It is the legislative intent that the state realizes no increased cost as a result of
this section or the local government's participation in the retirement system pursuant to part 2
of this chapter. All costs associated with retirement coverage, including administrative costs,
are the responsibility of the local government.
SECTION 14. Tennessee Code Annotated, Section 8-35-256(a)(2), is amended by deleting
the subdivision and substituting:
(2) A political subdivision that adopts the hybrid plan authorized in this section may
make employer contributions to the defined contribution plan component of the hybrid plan
pursuant to § 8-36-916 and to any one (1) or more additional tax-deferred compensation
plans established pursuant to§§ 401(k), 403(b), 457(b), and 457(f) of the Internal Revenue
Code (26 U.S.C. §§ 401 (k), 403(b), 457(b), and 457(f)), and subject to the limitations in the
Internal Revenue Code.
SECTION 15. Tennessee Code Annotated, Section 8-36-116, is amended by deleting the
section and substituting:
(a) It is the intent of the general assembly to recover amounts that have been
overpaid in error to members, beneficiaries, or persons who are not entitled to receive the
payment or payments.
(b) These overpayments may be recovered through any one (1) or more methods,
including, but are not limited to, the following:
(1) A bank reclamation of the overpaid amount;
(2) A benefit reduction from a member's or beneficiary's benefit, which amount
must be determined based on facts and circumstances. The benefit reduction may
occur by:
(A) Reducing the monthly benefit payment to the member or
beneficiary for as many months as necessary to recover the overpayment; or
(B) Reducing the monthly benefit payment to the member or
beneficiary by an amount actuarially determined to be adequate to recover the
overpayment during the period the monthly benefit payment will be made to
the member or beneficiary; •
(3) A payroll deduction in the event the member returns to service with an
employer participating in the retirement system. The employer shall comply with the
retirement system's request for a payroll deduction;
(4) A promissory note or other documentation obligating the repayment of the
overpaid amount;
(5) A collection agency;
(6) Filing a claim against the estate of the person overpaid;
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(7) Legal action; or
(8) Any other methods approved by the state treasurer.
(c) Consistent with the board's duty as a fiduciary to the fund and guidance issued by
the United States treasury, and notwithstanding this section or another law or rule to the
contrary, including the Uniform Administrative Procedures Act, compiled in title 4, chapter 5,
the retirement system may establish and implement policies and procedures to waive
recovery of the overpayment, with the exception of an overpayment caused by a failure to
observe any limitation imposed by 26 U.S.C. §§ 401 (a)(17) and 415.
SECTION 16. Tennessee Code Annotated, Section 8-36-203(3), is amended by deleting the
subsection and substituting it with:
(3) Distribution of a member's benefit must begin with the required beginning date,
which is April 1 of the calendar year following the calendar year in which the member attains
seventy and one-half (70.5) years of age or seventy-two (72) years of age if the member was
born on or after July 1, 1949, as such age is extended or otherwise modified by the Internal
Revenue Code or the regulations promulgated thereunder, or April 1 of the calendar year
following the calendar year in which the member terminates, whichever is later. If a member
fails to apply for retirement benefits by the later of either of those dates, then the retirement
system shall begin distribution of the benefit, assuming the member did not select a
retirement allowance of equivalent actuarial value in favor of a beneficiary under one (1) of
the options named in§ 8-36-601 (b); and
SECTION 17. Tennessee Code Annotated, Section 8-36-601(b), is amended by adding the
following new subdivisions:
(5) Option 5. A reduced retirement allowance payable during the retired member's
life, with the provision that it must continue after the member's death at seven tenths (0. 7) the
rate paid to the member and be paid for the life of, and to, the beneficiary nominated by the
member by written designation duly acknowledged and filed with the board of trustees at the
time of retirement.
(6) Option 6. A reduced retirement allowance payable during the retired member's
life, with the provision that it must continue after the member's death at seven tenths (0. 7) the
rate paid to the member and be paid for the life of, and to, the beneficiary nominated by the
member by written designation duly acknowledged and filed with the board of trustees at the
time of retirement; provided, that if the designated beneficiary predeceases the retired
member, then the retirement allowance payable to the member after death of the designated
beneficiary must be equal to the retirement allowance that would have been payable had the
member not elected an option.
SECTION 18. Tennessee Code Annotated, Section 8-36-606, is amended by deleting the
section and substituting:
(a) A retired member who has not selected an optional retirement allowance under§
8-36-601 (b) may change the retiree's designated beneficiary at any time; provided, that the
change is in writing, duly executed and filed with the retirement system.
(b) The election of a designated beneficiary under an optional retirement allowance
as provided in § 8-36-601 (b) must not be canceled or changed by the retiree after the
retiree's effective date of retirement except as provided in subsections (c)-(f).
(c) After a retired member's effective date of retirement or such later time as may be
provided in rules adopted by the board of trustees, the retiree may cancel the retiree's
designated beneficiary because of the death of the beneficiary or the retiree's divorce from
the designated beneficiary, upon the written request of the retiree. If the retiree designated
multiple beneficiaries, then the portion of the benefit payment that was payable to the
cancelled beneficiary must not be distributed or redistributed to the remaining beneficiaries.
The retiree shall provide the retirement system with the completed and signed written
cancellation request accompanied by either of the following, whichever is applicable:
(1) A copy of the marital dissolution agreement and final decree of divorce or
annulment to confirm that the cancellation is not in conflict with the marital dissolution
agreement or decree. If the requested cancellation conflicts. with the marital
dissolution or decree, then the cancellation request must not be honored; or
(2) A copy of the designated beneficiary's death certificate.
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(d) If a retired member cancels the retiree's designated beneficiary pursuant to
subsection (c), then the retiree may:
(1) Designate a new beneficiary; provided, however, that upon the retiree's
death, the newly designated beneficiary is only entitled to the remaining accumulated
contributions in the retiree's account, if any, and to the last retirement allowance
payable in the month of the retiree's death. The retirement allowance payable to the
retired member after the cancellation of the designated beneficiary pursuant to this
section is not affected by the cancellation of the beneficiary designation; or
(2) If the retiree selected only one (1) individual as the retiree's beneficiary,
designate the retiree's spouse as the member's sole, new designated beneficiary,
resulting in a reannuitization of the member's benefit.
(e) If the retiree elects to reannuitize pursuant to subdivision (d)(2), then the retiree
shall submit an application to reannuitize to the retirement system after the retired member's
marriage to the proposed new beneficiary, and provide the retirement system with the
marriage certificate demonstrating the marriage between the retiree and the proposed new
beneficiary.
(f) Upon receiving a completed application, the retirement system shall process the
reannuitization of the retiree's retirement benefit pursuant to the option selected by the retiree
on the retiree's effective date of retirement. The value of the new joint and survivor annuity
must be the actuarial equivalent of the retiree's benefit prospectively, in effect at the time the
new annuity is elected. The benefit must be reduced based on the ages of the retiree and the
new beneficiary at the time of the change. The change in beneficiary must become effective
in the month following the month that the retirement system approves the change in
beneficiary.
SECTION 19. Tennessee Code Annotated, Section 8-36-903(c), is amended by deleting the
subsection and substituting:
(c)(1) Except as provided in subdivisions (c)(2) and (c)(6), membership in the hybrid
plan or the optional retirement program, as applicable, is not required for any part-
time state employee or part-time teacher who would otherwise be covered under this
part, or for any state employee who had .optional membership in the retirement
system pursuant to chapters 34-37 of this title prior to July 1, 2025.
(2) Notwithstanding another law to the contrary, and except as provided in this
subdivision (c)(2) and subdivision (c)(6), any person who becomes a part-time state
employee or a part-time teacher on or after July 1, 2016, but prior to July. 1, 2025, and
who otherwise would be covered under this part, shall, upon initial date of hire, file an
irrevocable election to become or not to become a participant in the hybrid plan or in
the optional retirement program described in § 8-36-923, as applicable. Any person
serving as a part-time state employee.or part-time teacher on June 30, 2016, but prior
to July 1, 2025, and who otherwise would be covered under this part, but who did not
elect to participate in the hybrid plan or in the optional retirement program described
in § 8-36-923, shall, by no later than October 31, 2016, file an irrevocable election to
become or not to become a participant in the hybrid plan or in the optional retirement
program described in § 8-36-923, as applicable. This subdivision (c)(2) does not
prohibit an eligible employee from making the elections authorized in chapter 25, part
2 of this title. Any person who becomes a part-time state employee or part-time
teacher on or after July 1, 2025, shall become a member of the retirement system
unless the person elects not to participate in the retirement system by submitting a
written, irrevocable election to the Tennessee consolidated retirement system no later
than thirty (30) calendar days after the person's first day of employment.
(3) Notwithstanding this subsection (c), § 8-35-109, or another law to the
contrary, any person who becomes a state judge, district attorney general, or member
of the general assembly on or after July 1, 2016, but prior to July 1, 2025, and who
has not otherwise maintained membership in the retirement system based on
previous service as a state employee or teacher, shall, upon the initial date of taking
office, file an irrevocable election to become or not to become a participant in the
hybrid plan. A person serving as a state judge, district attorney general, or member of
the general assembly on June 30, 2016, and who is not a participant in the hybrid
plan or who has not otherwise maintained membership in the retirement system
based on previous service as a state employee or teacher, shall, by no later than
October 31, 2016, file an irrevocable election to become or not to become a
participant in the hybrid plan. Notwithstanding this subdivision (c)(3), any person who
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assumes office as a state judge, district attorney general, or member of the general
assembly, on or after July 1, 2025, shall become a member of the retirement system
as a condition of taking office or assuming a position.
(4) Notwithstanding another law to the contrary and except as provided in this
subdivision (c)(4) and subdivision (c)(6), any member of the state election
commission who has not otherwise maintained membership in the retirement system
based on previous service as a state employee or teacher, shall, on the first day
following completion of five (5) years of service on the commission, file an irrevocable
election to become or not to become a participant in the hybrid plan. Any member of
the state election commission who has completed a minimum of five (5) years of
service on the commission as of June 30, 2016, and who is not a participant in the
hybrid plan or who has not otherwise maintained membership in the retirement
system based on previous service as a state employee or teacher, shall, by no later
than October 31, 2016, file an irrevocable election to become or not to become a
participant in the hybrid plan. Notwithstanding this subdivision (c)(4), any person who
assumes office as a member of the state election commission on or after July 1,
2025, shall become a member of the retirement system as a condition of taking office
or assuming a position.
(5) The elections provided for in this subsection (c) must be made in the
manner prescribed by the retirement system and must be filed with the retirement
system. The elections provided for in this subsection (c) do not include any option for
the employee to have a cash or deferred election right with respect to designated
employee contributions, and the employee contributions must be picked up in
accordance with § 8-36-904(b).
(6) Notwithstanding this subsection (c), any current or former member of the
retirement system or of a superseded system who accepts, or is elected to, a position
between July 1, 2018, and June 30, 2025, for which membership in the hybrid plan
was optional pursuant to this subsection (c) shall become a member of the hybrid
plan as a condition of employment. This subdivision (c)(6) does not apply to retired
members of the retirement system or of a superseded system who return to service in
a position covered by the retirement system as provided in§ 8-36-805, § 8-36-809, §
8-36-810, § 8-36-818, § 8-36-820, or§ 8-36-821.
SECTION 20. Tennessee Code Annotated, Section 8-36-916(c)(1 ), is amended by deleting
the subdivision and substituting:
(1) Each employer shall make a mandatory contribution to the defined contribution
component of the plan on behalf of each of its employees participating in the hybrid plan,
regardless of whether the empl:oyees make any employee contributions pursuant to
subsection (b). Employer contributions for kindergarten through twelve (K-12) teachers must
be paid by the respective local education agency for which the teachers are employed. The
amount of the contribution must be five percent (5%) of the respective employee's salary.
The mandatory contributions required in this subdivision (c)(1) are in addition to any match
provided for in § 8-25-303 to participants who otherwise participate in a profit-sharing or
salary reduction plan under chapter 25, part_ 3 of this title; provided, that the contributions
conform to all applicable laws, rules, and regulations of the internal revenue service
governing profit-sharing and salary reduction plans for governmental employees.
SECTION 21. Tennessee Code Annotated, Section 8-36-919(a)(1 )(B), is amended by
deleting the subdivision and substituting:
(B) Mandatory for all eligible employees entering the service of the political
subdivision thereafter; provided, however, and except as provided in subdivisions (a)(3) and
(4 ), membership is not required for any person who became a part-time employee who would
otherwise be covered under this part, or for any employee who has optional membership in
the retirement system pursuant to chapters. 34-37 of this title. Any election made by an
employee to become a participant is irrevocable and such employee is thereafter subject to
the terms and conditions of the hybrid plan.
SECTION 22. Tennessee Code Annotated, Section 8-36-919(a)(4), is amended by adding
the following language at the end of the subdivision:.
Notwithstanding another law to the contrary, ciny person who becomes a part-time employee
on or after Jl.ily 1, 2025, for an employer participating under chapter 35, part 2 of this title that
allows part-time employee participation in the retirement system, shall become a member of
the retirement system unless the person elects not to participate in the retirement system by
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SB 510
submitting a written, irrevocable election to the Tennessee consolidated retirement system
no later than thirty (30) calendar days after the person's first day of employment.
SECTION 23. Tennessee Code Annotated, Section 8-37-210(c), is amended by deleting the
language in the subsection and substituting:
(c) Distribution of a member's benefit must begin by the required beginning date,
which is April 1 of the calendar year following the calendar year in which the member attains
seventy and one-half (70.5) years of age or seventy-two (72) years of age if the member was
born on or after July 1, 1949, as such age is extended or otherwise modified by the Internal
Revenue Code or the regulations promulgated thereunder, or April 1 of the calendar year
following the calendar year in which the member terminates, whichever is later. If a member
fails to apply for retirement benefits by the later of either of those dates, has been absent
from service for more than seven (7) years after last becoming a member, and has not
completed the eligibility requirements for retirement as set forth in § 8-36-204, then such
person's accumulated contributions must be paid to such person within ninety (90) days after
the board is notified to that effect.
SECTION 24. Tennessee Code Annotated, Section 8-37-219(b)(3), is amended by adding
the following as a new subdivision:
(H) A SIMPLE IRA account described in§ 408(p) of the Internal Revenue Code (26
U.S.C. § 408(p)); provided, that the rollover is made two (2) years after the first contribution
is made to the member's SIMPLE IRA account;
SECTION 25. This act takes effect upon becoming a law, the public welfare requiring it.
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SENATE BILL NO. 510
PASSED: April 16, 2025
RANl)Y McNALLY
SPEAKER OF tHE SENATE
C?&:
CAMERON SEXTON, SPEAKER
HOUSE OF REPRESENTATIVES
± YY\r111 APPROVED this 2025
day of
~
BILL LEE, GOVERNOREvery fact on this page links to its source, starting with the official bill record.