House Bill 535 amends the Tennessee Code Annotated to revise the membership requirements and responsibilities related to the retirement system for part-time employees, judges, and elected officials. Starting July 1, 2025, part-time state employees and teachers will be required to join the retirement system as a condition of employment, while full-time employees assuming office as county officials or judges will also be mandated to participate. The bill introduces provisions for employer contributions, requiring that any employer match must equal 100% of the employee's contribution up to a maximum of $50 per month, or a higher amount as determined by the annual appropriations act. It also clarifies that the retirement system will not be liable for payments unless reserves have been created from contributions, placing the financial responsibility for retirement coverage on local governments.

Additionally, the bill includes amendments that allow for the inclusion of a SIMPLE IRA account into the retirement benefits framework, specifying that rollovers can only occur two years after the first contribution. It outlines the application process for retirement benefits, emphasizing adherence to timelines, and stipulates that if a member does not apply for benefits within designated dates and has been absent for over seven years without meeting eligibility requirements, their contributions must be returned within ninety days of notification. Overall, House Bill 535 aims to streamline the retirement system's operations while ensuring local governments are accountable for the financial aspects of their employees' retirement benefits.

Statutes affected:
Introduced: 8-25-303(a)(1), 8-25-303, 8-34-101(14)(D), 8-34-101, 8-35-103, 8-35-109, 8-35-110, 8-35-111(b), 8-35-111, 8-35-113(c)(1), 8-35-113, 8-35-116, 8-35-123, 8-35-226(a), 8-35-226, 8-35-234, 8-35-237, 8-35-256(a)(2), 8-35-256, 8-36-116, 8-36-203(3), 8-36-203, 8-36-601(b), 8-36-601, 8-36-606, 8-36-903(c), 8-36-903, 8-36-916(c)(1), 8-36-916, 8-36-919(a)(1)(B), 8-36-919, 8-36-919(a)(4), 8-37-210(c), 8-37-210, 8-37-219(b)(3), 8-37-219