Senate Bill 251 amends various sections of the Tennessee Code Annotated regarding the reemployment of retired members of the retirement system. The bill establishes that retired members may return to service temporarily while continuing to receive their retirement benefits, provided they meet specific conditions. These include having a bona fide separation of service, which requires a minimum of 60 days between retirement and reemployment, and limits on the number of days worked and compensation received. Additionally, the bill allows for exceptions for substitute teachers and outlines the responsibilities of the employing entity to certify compliance with these conditions.

The bill also introduces provisions for reemployment in hard-to-fill positions, allowing retirees to work without losing their benefits under certain conditions, such as a reduction in retirement benefits to 70% of the normal allowance. The employer must contribute to the retirement system during the reemployment period, and the retiree must not be drawing disability benefits. Furthermore, the bill repeals certain existing sections and clarifies that the new regulations will take effect on specified dates, with some provisions starting as early as July 1, 2025, and others on January 1, 2026.

Statutes affected:
Introduced: 8-36-805, 8-36-809, 8-36-801(c), 8-36-801, 8-25-213(1), 8-25-213