The City of Memphis Retirement System (Plan) is designed to help you as a City Employee enjoy an important part of your future…your retirement. The Plan is a defined benefit pension plan established to provide a guaranteed retirement benefit for eligible employees and their beneficiaries. In addition, the Plan may also provide you a pension if you become disabled, or leave before retirement or provide your eligible spouse a continuation pension if you die.
The Plan's funded ratio has deteriorated over the past 5 years, primarily as result of the Great Recession that hit in 2008-09. The funded ratio decline is projected to continue, despite better than average pension fund asset returns for 2010 and 2011. The plan's funded status has dipped to 73 percent. Assuming no other change in plan design or reduction in benefits, it is estimated to require an annual asset return of at least 13 percent over each of the next 10 years in order to fully fund the plan.
That is why our financial experts have concluded the current pension plan is not sustainable and the current $640 million in unfunded pension liabilities demand we take a different course. We must do so now to ensure this growing problem is addressed by balancing our responsibilities to taxpayers, employees and retirees. And we must make decisions that ensure today’s challenge do not become tomorrow's crisis.
General Employee Plan Summary
Commissioned Employee Plan Summary
· Current Pension Fund:
Balance = $1,884,000,000
Liability = $2,566,000,000
Unfunded = $682,000,000
Percent funded = 73%
As of 7/1/2012:
6,093 active employee/participants
4,037 retired participants and beneficiaries
633 disabled participants.