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SB 251

Public Employees - As enacted, establishes that a retiree who is a member of the Tennessee consolidated retirement system must have had a bona fide separation of service before the retiree is allowed to accept temporary reemployment without a loss or suspension of benefits in the retirement system; makes other changes to the present law relative to reemployment after retirement from public employment. - Amends TCA Section 8-25-213 and Title 8, Chapter 36, Part 8.

114th Regular Session (2025-2026) Introduced by Ken Yager

Tennessee requires public retirees to have genuine employment breaks before rehiring to temporary positions without pension loss, effective mid-2025.

Pub. Ch. 159
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Bill Summary · SB 251

Legislative bill overview

SB 251 requires Tennessee public employees who retire from the consolidated retirement system to have a genuine break in service before they can be rehired temporarily without losing or suspending their retirement benefits. The bill modifies existing reemployment rules for public sector retirees and takes effect July 1, 2025, with additional provisions effective January 1, 2026.

Why is this important

This change affects retired public employees (teachers, administrators, government workers) who may want to return to work part-time or temporarily. It clarifies what constitutes a legitimate separation, potentially protecting pension funds from being depleted while also determining whether retirees can supplement their income through public sector work without penalties.

Potential points of contention

  • Definition disputes: The bill requires "bona fide separation" but may leave room for interpretation about what constitutes sufficient time away from employment before rehiring is allowed
  • Retiree financial impact: Retirees seeking temporary work to supplement fixed incomes may face restrictions, potentially affecting lower-income retirees most severely
  • Workforce availability: Public agencies relying on rehired retirees for institutional knowledge and flexible staffing may face challenges filling positions or maintaining continuity, particularly in specialized roles

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

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