Council recommends housekeeping bill to update TCRS rules, adds 70% joint-and-survivor option

The Council on Pensions gave a unanimous positive recommendation to House Bill 535/Senate Bill 510, a housekeeping bill from the Tennessee Consolidated Retirement System that makes technical changes to conform state law with federal law and ease administration.

Senator Wally, the bill sponsor, told the council the bill "is a housekeeping bill" and summarized changes including elimination of employer contribution limits to encourage greater employer contributions, clarification that payments for withholdings, taxes or insurance premiums are not earnable compensation, and elimination of optional membership going forward (while not affecting elected or appointed officials who made an irrevocable election). He said the bill also allows the state treasurer to waive recoupment of benefit overpayments consistent with fiduciary duty and federal law.

The bill establishes a 70% joint-and-survivor benefit option that may be selected by any member and includes technical changes to required minimum distributions and eligible rollover provisions so they comport with federal law. Senator Wally noted drafting-code amendment 2850 was applied to the bill and that the change from "are eligible" to "is eligible" was a language correction.

Mr. Weyman, TCRS staff, described the bill as technical and no-cost and reiterated that the 70% joint survivorship benefits are a newly available option to members.

After discussion, the committee voted by roll call to recommend the bill for passage to its respective standing committees; the clerk recorded unanimous support on the recommendation.