TN HB1296

Effective July 1, 2025, retirement system beneficiaries receive cost-of-living adjustments equal to the consumer price index increase when the state has over-collected tax revenue during the prior fiscal year

CPI increases between 0.5% and 1% are rounded up to 1%; increases below 0.5% result in no adjustment under this provision

Commissioner of Finance and Administration must determine over-collections by November 1 each year and report to the board of trustees, who then implement any approved increases

"Over-collections" defined as state tax revenue exceeding amounts authorized in the general and supplemental appropriations acts for that fiscal year

Local government employers participating in the retirement system are excluded unless their governing body passes a resolution accepting the associated liability and costs; no retroactive benefits are permitted