MEMPHIS, Tenn. — As of July 1, the State of Tennessee requires local governments to contribute 100% of the cost, determined by outside agencies, needed to keep their pension funded.
One city council member said it could cost up to $120 million per year to fully fund the pension.
Governments have six years to get to that 100% funding mark.
Unlike Memphis, some governments are members of the Tennessee Consolidated Retirement System, which has long required 100% pension funding.
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.
The new law spurred Mayor A C Wharton and city council members to search for extra money to pay into the pension.