Pension News Updates

*****   Very Important Pension Update below - after Pension figures   *****

City of Memphis
Pension Fund Figures

Pension Fund totals are in Billions and entries will always be two months behind as the Pension Board Meets on the last Thursday of the Month.   The City's Pension Fund is being handled by SEGAL FINANCIAL ADVISORS and it appears that the Pension Fund is in good shape.   The Pension Fund liabilities from July 2017 were increased from 2.53 Billion to 2.62 Billion.   The July liabilites were again increased to 2.66 Billion for projected payraises and promotions.   Percentages from July 2018 forward have been adjusted accordingly to the $2.66 liability.

  If you have any questions about the Pension Fund or your Pension please contact me or Bobby Collins at, and I will try and get you an answer to your question as quickly as possible.

                                                                                                      Dan Melancon,
                                                                                                      ACRE Pension Board Chairman








85.45%87.78%87.31%86.88% 87.83%88.74%87.19%88.54%85.97%86.80%87.19%86.60%


$1.858No Report$1.997$1.998$1.896$1.922$1.934$1.955$1.985 $1.965$1.950$1.970
74.32%  79.88%79.92%75.84%76.88%77.36%78.20%79.40%78.60%78.00%78.80%

$1.969$2.005$2.004No Report$2.012$2.000 $1.986$1.899$1.785No Report$1.876$1.886
78.76%80.24%80.16%  80.48%80.00%79.44%75.96%71.40%  75.04%75.44%

The U.S. Federal recommeded acceptable level of the Pension Fund should be no lower than 80% to be considered stable.
    Funding 79% and above
    Funding 75% to 79%
    Funding below 75%
<h3>Quarterly Pension Fund Deductions as of January 2014</h3> ***Pension Fund Deductions totals are in Millions,***<p> <table border="0"> <tr><td width="20">  </td><td>Investment Fees</td><td width="60" align=right>3.500</td><tr> <tr><td width="10">  </td><td>Material & Supplies</td><td width="60" align=right>0.770</td></tr> <tr><td width="10">  </td><td>Pension Benefits</td><td width="60" align=right>102.000</td></tr> <tr><td width="10">  </td><td>Pension Refunds</td><td width="60" align=right>9.400</td><tr> <tr><td width="10">  </td><td width="200">Commission Recapture Expense</td><td width="60" align=right>0.389</td></tr> <tr><td width="10">  </td><td>Miscellaneous Expense</td><td width="60" align=right>0.172</td></tr> <tr><td width="10">  </td><td><b>TOTAL DEDUCTIONS</td><td width="60" align=right><b>116.000</td></tr> </table> Contributions made to the Pension Fund for the previous nine (9) months ending 07/31/2013:<p> <table border=0> <tr><td>Employer</td><td>   $1,380,840 <i>(This amount is 6% of the total salary being paid to the City's active employees)</i></td></tr> <tr><td>Plan Members</td><td><u>   $1,636,159</u></td></tr> <tr><td>  </td><td>   $3,016,999</td></tr> </table>

If you need to review the Charter and/or the Code of Ordinaces please click here
If you need to review the Pension & Retirement System click here (1948 & 1978 Plans)



<!-- ################################# Begin the Important Pension Update ################################ ---> <center> <table border=1 cellpadding=5 cellspacing=0 border=0 width=680 bgcolor=#FFFFFF><tr> <td class=mainBold background=images/blueBG.gif valign=top>   <br><center><font color=red>********************   Very Important Pension Update   ******************** </font></center><br>   <table border=0 cellpadding=0 cellspacing=0 border=0 width=680 bgcolor=#FFFFFF> <tr><td class=mainBold background=images/blueBG.gif align=right>Wednesday, February 13, 2013   <br>     </td></tr> <tr><td class=mainBold background=images/blueBG.gif valign=top> Subject:   City of Memphis Disabilty Pension Audits <p> This message will give you a brief update on the status of the City's Disability Audit process, and the steps that your union representatives are taking in response. <p> The City hired Memphis Consulting Group to conduct an audit of former City employees who retired with either Ordinary or Line-of-Duty Disability benefits. The consultant sent out Disability Audit packages to retirees that instructed the retirees to provide financial and medical information by a certain date, or risk losing their benefits. Since many of the retirees receiving these packages are represented by either the Memphis Police Association, Memphis Fire Fighters Association or Operating Engineers Local 369, these labor organizations are working together to respond to the audit. <p> These unions filed a lawsuit in Chancery Court on Friday, February 1, 2013, seeking an injunction to stay the disability audit process, and the court set a hearing for an injunction on Thursday, February 14. On Monday, February 3, attorneys for the unions met with the chancellor and attorneys for the City to discuss the case. In the course of those discussions, and in the subsequent exchange of correspondence, the parties reached a tentative understanding on certain important issues. The lawsuit is still pending, and the parties still need to work out certain issues, but based on this mutual understanding, the injunction hearing is no longer appropriate. <p> The issues on which the parties reached a tentative understanding are as follows: <p><ul> <li>No retiree’s disability benefits (whether ordinary or line of duty) will be affected without a specific decision by the Pension Board to take such action; and any such action will only take effect after the participant’s rights to a contested case hearing have been exhausted or waived. In other words, you are entitled to notice and due process hearings before any benefits will be affected. Your benefits will not simply stop, even if the Pension Board decides to take any action at all.</li> <li>Retirees receiving ordinary disability benefits only need to provide financial information related to their gainful employment or occupation. The audit does not require such participants to provide any other type of financial information, including but not limited to information related to capital gains, income earned by a spouse, or income from other passive or investment-type activities (irrelevant information may be redacted from whatever forms are provided).</li> <li>If retirees are unable, through no fault of their own, to obtain any medical opinion from their personal physician, they may state the reason for that inability on the Disability Audit Response Form; and that inability will not be a refusal to cooperate with the audit, or grounds to discontinue or otherwise adversely affect their benefits. Legitimate reasons include, but are not limited to 1) Inability to afford an appointment or examination; 2) Refusal of insurance carrier to pay for an appointment or examination; 3) Health care provider unwilling or unable to render an opinion due to death, retirement or other grounds; 4) Destruction of relevant medical records by health care provider; 5) Inability to obtain an appointment and get an opinion by the deadline set by the audit letter; or 6) Inability to visit a doctor due to infirmity.</li></ul> Our office sent letters with instructions and guides on how to respond to the City audit to all those retirees who contacted us. It is our recommendation that you continue to follow those guides for the moment. The City has indicated that the Pension Board would be "clarifying" the audit requirements, and we will be working to protect the interests of City retirees during that process. Once the outstanding issues are resolved, we will provide further updates. In the meantime, follow the instructions we previously provided. <p> If you have any questions, please feel free to contact our office. <p> <b><i>Timothy Taylor</i></b><br> Attorney at Law <p> GODWIN, MORRIS,<br> LAURENZI & BLOOMFIELD, P.C.<br> P.O. Box 3290<br> 50 North Front Street, Suite 800<br> Memphis, Tennessee 38173-0290<br> Telephone:   901-528-1702<br> Facsimile:   901-528-0246 <p>   <tr><td class=mainBold background=images/blueBG.gif><hr width=50%><p>   </td></tr> </td></tr></table> <table border=0 cellpadding=0 cellspacing=0 border=0 width=680 bgcolor=#FFFFFF> <tr><td class=mainBold background=images/blueBG.gif align=right>Wednesday, February 6, 2013   <br>     </td></tr> <tr><td class=mainBold background=images/blueBG.gif valign=top> The Memphis Fire Fighters and Memphis Police Assns. have filed a lawsuit in Chancery Court to limit the requirements of the line of duty and ordinary disability pension audits.   The case is set for a hearing on February 14, 2013 at 10:00 a.m. in Part III of Chancery Court.   Attorneys John Canale and Deborah Godwin are representing the respective associations.   I will also be in attendance at the hearing.   As soon as the Court makes any ruling, or agreements are reached with the City, I will post those results on this website along with our recommendations for you to respond to the audit package. <p> <i>Clyde W. Keenan</i><br> KEENAN LAW & CONSULTING<br> 5356 Estate Office Park Drive, Suite #2<br> Memphis, TN 38119<p> (901) 767-1842 <p>   </td></tr></table> </td></tr></table> </td></tr></table></center> <!-- End Section --->