Amends TCA Title 8, Chapter 34; Title 8, Chapter 35; Title 8, Chapter 36 and Title 8, Chapter 37.

This bill revises provisions governing early service retirement of emergency medical services personnel, police officers, and firefighters, effective with such persons who retire on or after January 1, 2023. PRESENT LAW Under present law, a person in a position covered by the definition of emergency medical services personnel, police officer, or firefighter who is a member of TCRS, regardless of the person's participation in the legacy pension plan, the hybrid plan, or any other alternative plan, is eligible for early service retirement upon attainment of 25 years of creditable service. The retirement allowance is computed as the actuarial equivalent of the benefit that would have been payable under a service retirement allowance. Under present law, a political subdivision employing a person in a position covered by the definition of emergency medical services personnel, police officer, or firefighter who voluntarily chooses to retire pursuant to the above provision may require the person to pay any insurance coverage otherwise provided to members who are 100 percent vested in the service retirement benefit from the time the person voluntarily chooses to retire until the date that the person would have become 100 percent vested in the service retirement benefit pursuant to present law. A person in a position covered by the definition of emergency medical services personnel, police officer, or firefighter who voluntarily chooses to retire pursuant to the above provisions is entitled to any insurance coverage otherwise provided to members who are 100 percent vested in the member's service retirement benefit pursuant to present law on the date that the person would have become 100 percent vested in the service retirement benefit pursuant to present law. THIS BILL This bill adds the following, which will be applicable to those above-referenced persons who retire on or after January 1, 2023: (1) For police officers, firefighters, or emergency medical services personnel who retire on or after January 1, 2020, and prior to January 1, 2023, the retirement allowance must be computed as the actuarial equivalent of the benefit that would have been payable under a service retirement allowance; (2) For police officers, firefighters, or emergency medical services personnel who retire on or after January 1, 2023, the retirement allowance must be computed as the full benefit that would have been payable under an unreduced service retirement; (3) A police officer, firefighter, or person in a position covered by the definition of emergency medical services personnel who voluntarily chooses to retire pursuant to the above-described provisions on or after January 1, 2023, will be entitled to any insurance coverage otherwise provided to members who are 100 percent vested in the member's service retirement benefit upon attainment of 25 years of creditable service; (4) A police officer, firefighter, or person in a position covered by the definition of emergency medical services personnel who voluntarily chooses to retire pursuant to the above provisions on or after January 1, 2020, must receive, in addition to that member's retirement allowance, a supplemental bridge benefit calculated in accordance with present law. The bridge benefit must not be paid retroactively. The bridge benefit must commence on the member's effective date of retirement or on the first day of the month following the month the member reaches age 55, whichever is later. The bridge benefit and any cost-of-living adjustments attributable to that benefit must cease on the first day of the month following the month in which the member dies, or on the first day of the month following the month in which the member reaches the age of 62, whichever occurs first. The bridge benefit must not exceed 22.5 percent of the member's average final compensation. This limit will not apply to any cost-of-living increases to which the member is entitled. Any retired member covered by these provisions will be entitled to receive an adjustment in the retiree's bridge benefit based on the consumer price index, as provided in present law. Any such adjustment to the bridge benefit will be computed separately from the member's service retirement allowance. This bill specifies that the present law provisions governing limitations on the amount of retirement allowance and maximum allowances will not reduce or eliminate the bridge benefit provided by the provisions in this item (4), and the benefit will not be reduced as a result of any optional retirement allowance selected by the member.