(Memphis) Consultants hired by the Memphis City Council report the city’s pension problem may not be as dire as the Wharton administration first predicted, but is worse than the firefighters union found in its own report.
The Segal Company, a human resources consulting firm, found the city pension is underfunded by $467 million.
That contradicts a report commissioned by the firefighters union which put the number at $301 million and a report done by PricewaterhouseCoopers which put it at $682 million.
Segal recommended increasing the city’s annual contribution from $20 million to under $70 million.
That’s a lot of money but still less than the $85 million the mayor’s office originally estimated.
Mayor Wharton wants to move to a 401k type of program rather than the current pension plan. Opponents say the city actually saves money with the pension plan compared to a 401k.
Council members are working against a July first deadline.