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.

SB 251 clarifies rules for Tennessee public retirees who return to work. It requires retirees to have a "bona fide separation" (a 60-day gap with no prearranged return agreement) before temporary reemployment. Retirees can work up to 120 days per year or 24 quarter credits for teachers, with earnings capped at 60% of their prior full-time salary (adjusted annually). Exceeding these limits triggers reduced retirement benefits, and employers must certify compliance. The bill directly affects public retirees in Tennessee's state and local retirement systems.