Amends TCA Title 8, Chapter 34; Title 8, Chapter 35 and Title 8, Chapter 36.

This bill authorizes certain Tennessee consolidated retirement system (TCRS) members who are honorably discharged veterans of the United States armed forces to receive military service credit in TCRS. Under present law, a TCRS member receives membership service credit for all service rendered since becoming a member of the retirement system, or since the member last became a member in the event of a break in such member's membership. Any member who left the employ of an employer participating in TCRS in order to perform military service in the armed forces of the United States, and who is reemployed by such employer within six months of honorable discharge from such service, has the option of establishing retirement credit for the military service, but generally must make a back payment equal to the amount of employee contributions the member would have made had the member remained continuously employed with the employer during the period of military service claimed. However, a member or retired member who served in the armed forces of the United States is entitled to establish retirement credit for such military service without charge if certain conditions are met. Under this bill, a member who is an honorably discharged veteran of the United States armed forces will be entitled to establish retirement credit for each day of the service without charge under the following conditions: (1) The member was honorably discharged from such military service; (2) The member received an order or a statement of discharge from the appropriate branch of the United States armed forces classifying the member as an honorably discharged veteran; (3) The member cannot establish the military service in any other retirement system; however, this provision will not apply to the extent it is preempted by federal law; and (4) The military service credit cannot be used in determining any rights under the retirement system prior to the member becoming vested.