House Bill 462, introduced by Tennessee State Representative Travis on January 28, 2025, aims to significantly alter retirement benefits for members of the General Assembly. The bill proposes a shift for legislators who have served ten years or more, transitioning their retirement plan from a hybrid model to a more traditional legacy plan, provided they began their service after July 1, 2014.

This legislative move is designed to enhance retirement security for long-serving lawmakers, a topic that has sparked considerable debate among state officials and constituents alike. Proponents argue that the change will provide greater financial stability for legislators who dedicate a decade or more to public service, while critics raise concerns about the potential long-term financial implications for the state’s retirement system.

The bill's key provision mandates that the board of trustees notify members of the General Assembly once they qualify for this conversion, ensuring transparency in the process. The proposed changes are set to take effect on July 1, 2025, applying to those completing their ten years of service on or after July 1, 2024.

As discussions around HB 462 unfold, experts are weighing in on its potential impact. Some view it as a necessary adjustment to attract and retain experienced lawmakers, while others caution that it could strain the state’s pension resources. The outcome of this bill could set a precedent for how retirement benefits are structured for public officials in Tennessee, making it a significant point of contention in the ongoing legislative session.