Tennessee House Bill HB1906

Tennessee 2025-2026 Regular Session

• Introduced: 1/22/26
• Refer: 2/4/26
• Refer: 3/11/26
• Refer: 3/31/26
• Refer: 4/15/26
• Refer: 4/17/26

Caption

AN ACT to amend Tennessee Code Annotated, Title 8, Chapter 34, Part 6, relative to creditable service for a period of disability.

Impact

The bill is set to take effect on July 1, 2026, and introduces modifications that enable public employees to benefit from a fair retirement credit assessment during periods of disability. It's designed to ensure that individuals receiving temporary disability benefits under workers' compensation can still contribute to their retirement plans without the burden of additional costs for certain public employees, particularly police officers. This adjustment is expected to positively impact retention and overall morale among state employees facing hardship through no fault of their own.

Summary

House Bill 1906 amends the Tennessee Code Annotated, specifically Title 8, Chapter 34, Part 6, concerning retirement credit for individuals on temporary disability due to workers' compensation. The bill allows members, excluding those from political subdivisions, to establish retirement credit formerly accrued during their period of disability. This includes provisions for state police officers to establish such credit at no cost to them if regulations are met by July 1, 2026. The changes aim to benefit employees who suffer temporary disabilities by facilitating their retirement planning and ensuring they are not at a disadvantage due to unforeseen circumstances that hinder their work capacity.

Sentiment

The general sentiment surrounding HB1906 appears to be supportive among those who advocate for employee rights and benefits. Proponents argue that the bill offers necessary support to public employees who encounter temporary disabilities, allowing them to maintain a pathway to retirement rather than facing diminished benefits. However, there may also be concerns regarding the financial implications for local governments who must bear the costs associated with these liabilities. Overall, the tone of discussions seems to lean towards aiding employees in navigating their retirement alongside disabilities.

Contention

One point of contention may arise from the stipulation that political subdivisions must pass a resolution to adopt the credit for their employees. This requirement might present a financial burden on local governments either to absorb the costs of such programs or to navigate the complexities of implementing the changes. Moreover, the bill raises questions about equity and the allocation of costs associated with providing disability-related retirement credits to their employees, with differing opinions on whether this creates an undue financial strain or represents a necessary step towards employee equity.