NASHVILLE, Tenn. (AP) — Proposals to change the retirement system for public employees in Tennessee stalled Monday in the Legislature when a joint panel of lawmakers decided they need more study.
One measure before the Joint Council on Pensions and Insurance expands the statute denying retirement benefits to state employees and officials who are convicted of a felony while in office. Under the proposal, benefits would end if there's a guilty plea.
However, the state treasurer's office had some concerns with the legislation. For one, it said the measure could be unconstitutional on the grounds that there's no language in the proposal to address restoration of benefits if a court later finds a person is innocent.
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Senate sponsor Randy McNally, an Oak Ridge Republican and chairman of the joint committee, delayed the proposal for two weeks to address the concerns.
Two other measures were withdrawn from consideration. The proposals are similar and would essentially set up a so-called "contribution plan" for new employees and require the state to contract with an outside financial institution to manage the plan.
Sen. Brian Kelsey is the sponsor of both proposals. The Germantown Republican said it's important that employees have a plan that will be in place down the road.
"We've seen other governments that have failed to fulfill their promises to their employees," Kelsey said. "This legislation ensures that … new employees have their own personal accounts that they know will be there even 30 years from now."
However, Treasurer David Lillard said there needs to be a comprehensive study of the proposals over the coming year.
"I don't think we should be taking up the state pension system this year," said Lillard, who was also on the joint committee. "We're proposing changes for new hires only for local governments this year, and i think that's enough for us to deal with at this time."
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