As you may know, earlier this week Tennessee State Treasurer David Lillard proposed to the Council on Pensions and Insurance a new Hybrid Pension Plan for state employees, higher education employees, and teachers.
TSEA has reviewed the proposed plan and can confidently state that, as currently written, the new proposed hybrid plan only applies to new state employees, higher education employees, and teachers hired after June 30, 2014. The proposed plan will not in any way affect existing pension plans for current employees, retirees, or anyone who has prior service with the state (e.g. if an employee leaves state service for a short period and later returns, that employee would retain his or her status under our current plan). Again, anyone currently in the system, or anyone who enters the system prior to July 1, 2014, will not be affected in any way by the new proposed pension plan, should it become law.
It is important to note that your pension represents a contract between you and the state. Tennessee’s courts have consistently protected a pension plan participant’s right to his or her earned pension benefits under state law. TSEA’s continuing involvement with this legislation is with regard to protecting the interests of future state workers. As of now, as we continue to review the materials provided by the Department of the Treasury and discuss the changes internally and with lawmakers, TSEA’s position on the legislation is still in development.
We will continue to keep you up to date on this and all legislation impacting you and your future.