Knox County, Tenn., voters rejected for the third time a charter that would have joined city and county governments and their employees' pension plans. James Hubbs, investment adviser to the Knoxville City Employees' Pension Fund, said the charter could appear on the ballot again in two years.
Mr. Hubbs is working on a new plan for city employees that would be a hybrid of a defined contribution and defined benefit. Bryan Pendelton, Swats and McAllister, the fund's actuary, is helping to create the new plan. Employees would be able to join the plan in January. There are no plans to eliminate the current plan; employees could opt out of the defined benefit plan and join the new hybrid plan and take all their assets with them. No plans have been made to hire managers for the new plan. The city fund has $550 million in assets.