Tennessee House Bill HB1447

Tennessee 2025-2026 Regular Session

• Introduced: 10/6/25
• Refer: 1/14/26
• Refer: 3/18/26
• Refer: 3/25/26
• Refer: 3/30/26
• Engrossed: 4/6/26
• Enrolled: 4/14/26
• Passed: 5/1/26

Caption

AN ACT to amend Tennessee Code Annotated, Title 4; Title 8; Title 9 and Title 50, relative to retirement.

Impact

This legislation significantly impacts state laws regarding retirement savings, providing a structure for the creation of a defined contribution retirement savings plan managed by a state-created board. The Act obligates employers of a certain size to facilitate participation, which may lead to a wider distribution of retirement savings across the state's workforce. Furthermore, it aims to enhance financial literacy and awareness about retirement savings among Tennesseans, ultimately fostering financial security and preparedness for buyers once they reach retirement age.

Summary

House Bill 1447 introduces the 'Tennessee Retirement Savings Plan Act,' which establishes a framework for a new retirement savings option targeted at employees in Tennessee. The bill mandates that employers with more than five employees must offer their workers the chance to contribute to a payroll determination savings account unless they already provide a qualified retirement plan. One of the key features of this plan is automatic enrollment for employees, with an opt-out option available, aimed at increasing employee participation in retirement savings.

Sentiment

The general sentiment surrounding HB 1447 appears to be predominantly positive among proponents, who view it as a long overdue measure that can enhance retirement savings for many workers who lack such options. Supporters emphasize the necessity of encouraging savings among employees who might not have access to employer-sponsored plans. Conversely, some critics express concerns, particularly regarding the administrative burden it may place on smaller businesses, and the potential ramifications of state involvement in personal retirement planning.

Contention

Notable points of contention include the potential costs and administrative challenges that employers may face when implementing the plan. While the bill provides a framework intended to simplify the process for businesses, skeptics argue that the automatic enrollment provision and the associated administrative requirements might create complications for those not equipped to manage such programs. Additionally, some stakeholders worry about the implications for individuals who may not fully understand the program's structures, especially regarding their ability to opt out or adjust contribution levels.