TN SB2397

Creates the Tennessee Retirement Savings Plan Act, establishing a 7-member Tennessee retirement savings board (state treasurer as chair, 4 governor appointees, 2 non-voting legislative members) with terms beginning January 1, 2027

Requires employers with more than 5 employees to offer the state retirement plan through payroll deduction unless they already provide a qualified retirement plan (401(k), 403(b), etc.); employees are automatically enrolled with a default 5% contribution rate but may opt out

Phases in employer participation by size: employers with 100+ employees begin January 1, 2029; 25-100 employees begin January 1, 2030; 5-24 employees begin January 1, 2031

Establishes the Tennessee retirement savings plan administrative fund and requires the board to conduct market and legal analyses before implementation, with a report due to the legislature by July 1, 2027

Prohibits local governments from creating retirement plans for non-governmental employees and specifies that neither the state nor employers guarantee investment returns or bear ERISA fiduciary duties