Memphis Council Approves Hybrid Pension Plan; Changes Will Affect Many Current Workers

Memphis City Council

After several meetings worth of debate, the Memphis City Council passed major changes to the city’s pension system on Tuesday – and the changes won’t just affect new hires.

Details of the new hybrid plan, reported by Fox Memphis:

Council passed a hybrid plan that was backed by Councilwoman Wanda Halbert that grandfathers in current employees with 7.5 years of experience, effective July 1, 2016.

This plan was introduced by Councilwoman Halbert, who drew harsh criticism from the crowd despite that her plan was approved.

So what does it mean? New hires and city employees with less than 7.5 years on the job will switch over to a new pension system. It mixes a retirement account with a defined contributions plan. Her plan only introduced two weeks ago after Councilman Myron Lowery introduced his plan that would only apply to new hires.

City employees in the crown expressed their anger over the changes. From Fox Memphis:

Members in the audience, many of them city employees, agreed with Councilman Lowery and blasted Councilwoman Halbert saying she had betrayed the city.

[…]

“This was an embarrassment to the City of Memphis that they make decisions that are that callous with that little bit of research on he table,” ,” said Kathy Hurley of Memphis. “If you just watch the film and see what all went on it’s obvious the right hand doesn’t know what the left hand it doing. It’s sad.”

Labor groups will likely sue over the changes.

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One Response to “Memphis Council Approves Hybrid Pension Plan; Changes Will Affect Many Current Workers”

  1. […] late 2014, the Memphis City Council voted to shift many employees into a hybrid pension system that has characteristics of a 401(k). The change applied to all new hires and all employees with […]

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