HB 1910

This bill provides that e ach state trooper who is a member of the Tennessee consolidated retirement system (TCRS) as of July 1, 2026, become s an electing officer if the state trooper notifies the board of trustees of the retirement system in writing of such irrevocable election no later than October 1, 2026. A state trooper who is a member of the retirement system on July 1, 2026, and who doe s not make such a valid election is not eligible for the enhanced benefits provided for in this bill. On the other hand, a state trooper hired on or after July 1, 2026, automatically becomes a participant in the STAR plan and is entitled to the enhanced benefits of the STAR plan under this bill. BENEFITS This bill provides that each electing officer is entitled to all the same benefits provided otherwise for similarly situated members of the retirement system, except for the following:  Each state trooper leaving the legacy plan and electing to join the STAR plan must contribute 5% of the state trooper's average base salary over the totality of the state trooper's career within the retirement system. This buy-in constitutes a one-time assessment for entry into the STAR plan and must be paid by the electing officer within one year of STAR plan entry. If this initial assessment is not paid within the allotted time, then the electing officer must be removed from the STAR plan and revert to the legacy plan for retirement purposes .  Each state trooper leaving the hybrid plan and electing to participate in the STAR plan is not required to contribute a buy-in or other fee .  Each electing officer must contribute 5% of the electing officer's monthly earnable compensation beginning July 1, 2026, to the retirement system .  Each electing officer hired prior to July 1, 2026, becomes vested upon five years of state service under the retirement system and entitled to the enhanced retirement benefits provided in this bill.  Each state trooper hired on or after July 1, 2026, becomes vested upon 10 years of state service under the retirement system and entitled to receive the enhanced retirement benefit provided in this bill. ELIGIBILITY SCHEDULE This bill provides that each electing officer is eligible for enhanced retirement benefits, to be determined in accordance with the following schedule:  Once vested, an electing officer is to receive a monthly retirement benefit equal to 3% of the electing officer's average final compensation for each creditable year of service, for a maximum benefit of creditable service at 25 years of 75% of the electing officer's AFC .  There is no minimum retirement age for state troopers to use the STAR plan once 25 years of service is achieved .  A reduced survivor benefit is available for an electing officer to a beneficiary or beneficiaries equivalent to 2.6% per year of the AFC for a maximum benefit of 65% of the AFC at 25 years. RETIREMENT BENEFIT AMOUNT CALCULATION After an electing officer obtains 25 years of creditable service from all service rendered while a member of the retirement system , this bill provides that the electing officer's contributions of 5% of the electing officer's monthly earnable compensation to the retirement system cease, and the officer's retirement benefit amount must be calculated based upon the officer's AFC at that time. On and after the time at which the retirement benefit is so calculated, if the electing officer does not elect to ret ire under the STAR plan, then the electing officer's monthly retirement benefits must be paid into the electing officer's d eferred retirement option program (" DROP "") account until the member elects to retire. The monthly payments must accrue any postretirement benefit adjustments granted to other members of the retirement system. The retirement system must retain all interest on the DROP account for each state troo per participating in DROP to help fund the STAR plan. State troopers participating in DROP can elect annually to stay in the program for no more than eight years. However, contributions of 5% of the electing officer's monthly earnable compensation to the retirement system must continue if participation in DROP is elected until retirement. DROP ACCOUNT This bill requires the board of trustees for the retirement system to establish a DROP account for each electing officer into which the electing officer's monthly retirement benefit payments must be deposited. The amounts in each account must earn interest at a market rate to be determined by the board. Each electing officer, at the time of electing to participate in DROP, must notify in writing the board of trustees of how long the electing officer will utilize the DROP account. This election must recu r annually 60 days prior to the member's anniversary in DROP until the maximum benefit of eight years under the prior paragraph is obtained. REVIEW OF PARTICIPANTS This bill requires the highway patrol to review the conduct of each DROP participant to ensure this state is receiving satisfactory service for compensation. This review must consist of the current evaluation, disciplinary history during the current year of service, and any other factors of pe rformance deemed necessary. The highway patrol must create a policy for reviewing employment during DROP participation. CONTINUED EMPLOYMENT From July 1, 2026, until June 30, 2031, this bill authorizes a state trooper to elect to continue employment at the highway patrol without participating in DROP, subject to all of the following conditions:  The state trooper has at least 21 years of creditable service in the retirement system .  The state trooper may earn a new AFC while using the enhanced benefits of the STAR plan for retirement purposes .  The state trooper, at the time of election into the STAR plan, must also elect to participate in DROP or to continue earning an AFC based on how many years the state trooper will be in the STAR plan and DROP .  The state trooper may elect to use certain benefits and be eligible to use the DROP benefits at a later date. The retirement system must be notified in writing of the intent to use both types of benefits at the election timeframe. RETIREMENT ELECTION Upon retirement of an electing officer, this bill provides that the electing officer is entitled to receive a lump sum, a partial lump sum, or an annuity payment from the principal funds in the state trooper's DROP account. The board may also make available options to roll such funds into certain tax-advantaged retir ement accounts. All creditable service in the retirement system must be calculated toward the STAR plan for state troopers."