Tennessee House Bill HB2117

Tennessee 2025-2026 Regular Session

• Introduced: 2/2/26
• Refer: 2/5/26
• Refer: 3/18/26

Caption

AN ACT to amend Tennessee Code Annotated, Section 8-36-916, relative to retirement benefits.

Summary

HB2117 amends Tennessee’s retirement law for members of the General Assembly by changing the required employer contribution rate under the hybrid retirement plan. Under the bill, the standard employer contribution remains 5% of salary, but for a sitting legislator on or after November 3, 2026, who has at least 10 years of creditable service in the hybrid plan as a General Assembly member, the employer contribution increases to 10% of salary. The bill is narrowly focused on retirement benefits for legislators and does not change retirement rules for other state employees or public workers generally. It updates Tennessee Code Annotated Section 8-36-916 and applies only to members of the General Assembly in office on or after the specified date, making it a prospective change tied to legislative service and vesting in the hybrid plan.

Impact

The bill would amend the statutory contribution formula in Tennessee’s hybrid retirement system as it applies to General Assembly members, creating a higher employer contribution rate for a subset of long-serving legislators. It would affect state retirement funding obligations and the pension-related compensation structure for sitting lawmakers with at least 10 years of creditable service, while leaving the general 5% employer contribution rule in place for others. The act takes effect upon becoming law and applies beginning November 3, 2026.

Sentiment

Available voting history suggests the bill moved forward without opposition in the House Public Service Subcommittee, where it received a 4-0 recommendation for passage and referral to the State & Local Government Committee. With no committee transcript provided, there is no recorded debate in the materials, but the unanimous vote indicates at least initial procedural support and little visible resistance at that stage.

Contention

The main point of potential contention is the special treatment of sitting members of the General Assembly who meet the 10-year service threshold, since the bill creates a higher employer contribution rate for that group than the standard rate. Supporters may view the change as a retirement benefit adjustment for long-serving legislators, while critics could question whether lawmakers should receive a distinct contribution formula compared with other participants in the hybrid plan. No specific objections or amendments are included in the provided record.