Public Employees - As enacted, establishes that a retiree who is a member of the Tennessee consolidated retirement system must have had a bona fide separation of service before the retiree is allowed to accept temporary reemployment without a loss or suspension of benefits in the retirement system; makes other changes to the present law relative to reemployment after retirement from public employment. - Amends TCA Section 8-25-213 and Title 8, Chapter 36, Part 8.

HB 313 (now Public Chapter 159) changes Tennessee retirement rules for public employees who return to work after retiring. It requires retirees to have a complete, 60-day separation from their previous job with no prearranged return agreement before accepting temporary reemployment without losing retirement benefits. Retirees may work up to 120 days per year (or 24 credit hours for teachers) with earnings capped at 60% of their prior full-time salary, and employers must certify compliance annually. The law ensures retirees cannot exceed these limits without benefit reductions, and retirement systems may recover overpaid benefits through monthly deductions. This applies to all Tennessee public retirees covered under the state retirement system.