Tennessee Senate Bill SB0966

Tennessee 2025-2026 Regular Session

• Introduced: 2/5/25

Caption

AN ACT to amend Tennessee Code Annotated, Title 8, Chapter 34, relative to creditable service for retirement for public employees.

Summary

SB0966 amends Tennessee law governing retirement credit for public employees who performed peacetime military service. Under current law, eligible members or retired members may establish creditable service for qualifying military duty, and this bill restates that authority while specifying how the credit is calculated and paid for. The bill provides that one day of military service equals one day of creditable service, and requires the member to pay employee contributions at a 9% rate based on the member’s earnable compensation at the time of the claim, or at termination of employment if the person is no longer in service. The bill also keeps the existing eligibility framework by requiring the member to meet the conditions referenced in Tennessee Code Annotated § 8-34-605(b)(1)(A)-(C). It applies to peacetime military service in the armed forces of the United States performed on or after October 15, 1940, and takes effect July 1, 2025.

Impact

This bill would amend Tennessee Code Annotated § 8-34-605(c) within the state’s public employee retirement statutes. Its practical effect is to clarify and restate the rules for purchasing or establishing retirement credit for qualifying peacetime military service, including the service-to-credit conversion rate and the contribution rate required from the member. The change affects public employees and retirees who served in the military and seek to count that service toward state retirement benefits, as well as the retirement system administering those claims.

Sentiment

The available vote history suggests the bill was received positively in committee, passing the Senate State & Local Government Committee unanimously by a 9-0 vote and being recommended for passage. No committee transcript is available, so there is no recorded debate to indicate broader disagreement or support beyond the favorable committee action. Overall, the bill appears to have been treated as a technical or supportive retirement-related measure rather than a controversial policy change.

Contention

No specific points of contention are documented in the provided materials. The main policy issue inherent in the bill is the cost and eligibility structure for buying military service credit, including the 9% employee contribution requirement and the use of current or termination earnable compensation as the contribution base. Any concerns would likely center on retirement system costs, fairness of credit purchase terms, or the scope of eligible military service, but none are explicitly reflected in the available discussion or vote record.