HB1296 proposes cost-of-living adjustments for Tennessee retirement system beneficiaries based on consumer price index increases and state tax.

HB1296 amends Tennessee Code to adjust retirement allowances for beneficiaries if there are state tax over-collections and a consumer price index increase of at least 0.5%. If the increase is 0.5% or more but less than 1%, it rounds up to 1%. If the increase is less than 0.5%, no adjustment is made. The commissioner of finance and administration determines over-collections by November 1 each year, and the board of trustees implements the increase if over-collections are reported. The act takes effect upon becoming law.

HB1296 proposes cost-of-living adjustments for Tennessee retirement system beneficiaries based on consumer price index increases and state tax.

HB1296 amends Tennessee Code to adjust retirement allowances for beneficiaries if there are state tax over-collections and a consumer price index increase of at least 0.5%. If the increase is 0.5% or more but less than 1%, it rounds up to 1%. If the increase is less than 0.5%, no adjustment is made. The commissioner of finance and administration determines over-collections by November 1 each year, and the board of trustees implements the increase if over-collections are reported. The act takes effect upon becoming law.