Tennessee Code Title 9. Public Finances § 9-4-1502

(a)(1) With respect to the retirement system and political subdivision pension plans, the board and governing body for each respective political subdivision pension plan, as applicable, shall, no later than January 15, 2026, and by January 15 of each subsequent year, review the retirement system's or political subdivision pension plan's direct holdings as of December 31 of the prior calendar year to determine which direct holdings, if any, constitute restricted investments;  provided, that the board or governing body may review the retirement system's or the respective political subdivision pension plan's direct holdings more frequently.

(2) If the board identifies a restricted investment in the retirement system's direct holdings, then the state treasurer shall divest from the restricted investment and report the divestment to the retirement system's investment committee.  If a governing body identifies a restricted investment in its political subdivision pension plan's direct holdings, then the governing body shall divest from the restricted investment in accordance with the governing body's investment policy.

(3) If the board or a governing body cannot cause the retirement system or political subdivision pension plan to divest expeditiously from a restricted investment, then the board or governing body shall develop a written divestment plan for these direct holdings in restricted investments no later than July 1 of each year and submit a copy of the divestment plan to the chair of the council on pensions.  The divestment plan must be developed and implemented in a manner consistent with § 35-14-107, the prudent investor rule pursuant to § 35-14-103, and the standard of care pursuant to § 35-14-104.

(4) The board or governing body, as applicable, shall divest from the securities identified in a divestment plan developed pursuant to subdivision (a)(3), with divestment occurring no later than December 31 of each year, or such later time established by the board or governing body to implement the divestment plan consistent with each entity's fiduciary duty.

(1) The divestment plan for the retirement system must be implemented consistent with § 8-37-110;

(2) The categorization of the retirement system's securities or investment vehicles must be done at the discretion of the state treasurer if not specifically addressed in the retirement system's investment policy;  and

(3) The board may delegate its responsibilities under this section to the state treasurer.

(1) This state, and its officers and employees;

(2) Each political subdivision, and its officers and employees;

(3) The retirement system and its board members;  and

(4) Each political subdivision pension plan and its governing body.