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SB 1416

General Assembly - As introduced, requires the board of trustees of the Tennessee consolidated retirement system to convert a person's participation in the retirement system, for service as a member of the general assembly and as a participant in the hybrid plan, from the hybrid plan to the legacy plan upon the person completing 10 years of service as a member of the general assembly if the person became a member of the general assembly on or after July 1, 2014. - Amends TCA Title 3; Title 8, Chapter 34; Title 8, Chapter 35 and Title 8, Chapter 36.

114th Regular Session (2025-2026) Introduced by Bo Watson

Converts Tennessee legislators' retirement benefits from hybrid to legacy plan after 10 years of service, increasing pension payouts at taxpayer expense for those hired after 2014.

Failed in Senate State and Local Government Committee
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Bill Summary · SB 1416

Legislative bill overview

SB 1416 would automatically convert Tennessee state legislators' retirement benefits from a hybrid plan to a more generous legacy plan after they complete 10 years of service, but only for those who joined the legislature after July 1, 2014. The bill amends multiple sections of Tennessee's retirement code governing the consolidated retirement system.

Why this is important

This change would significantly increase retirement benefits for affected legislators, as legacy plans typically offer higher pension payouts than hybrid plans. The fiscal impact could be substantial given that legislators' pensions are taxpayer-funded, and this creates a two-tiered system where newer legislators would receive enhanced benefits after a decade of service.

Potential points of contention

  • Fiscal responsibility: Converting to legacy plans increases long-term pension liabilities and costs to the state budget, with unclear total fiscal impact disclosed in the bill summary
  • Equity concerns: Creates differential treatment between legislators based on service start date, potentially disadvantaging those who entered before 2014 or rewarding newer members disproportionately
  • Precedent setting: Could incentivize similar conversion requests from other public employee groups in Tennessee's retirement system, cascading costs across multiple pension programs

Compiled from official sources — confirm details with the bill’s official record.

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