Memphis, Tenn., announced a plan to reopen its defined benefit plan to public safety employees hired since July 1, 2016.
The city announced in a news release Wednesday that all commissioned police officers, firefighters and dispatchers will be eligible to select participation in its pension plan effective July 1, 2023, pending city council approval.
The $2.4 billion Memphis City Retirement System's defined benefit plan was originally closed to new hires effective June 30, 2016, and employees hired after that date were automatically enrolled in a new hybrid plan. About 1,000 police officers, firefighters and dispatchers will be eligible to select the DB plan, known as the 1978 pension plan.
The 1978 pension plan allows participants to contribute up to 8% of their salary with matching contributions from the city of no less than 6% of their salary.
The hybrid plan established in 2016 consists of a cash balance plan and defined contribution plan. Cash balance plan assets are held in the Memphis City Retirement System's trust fund, which also holds the assets of the 1978 DB plan, along with the city's original DB plan established in 1948.
Mayor Jim Strickland said in the news release the change is part of efforts that are "essential in maintaining our public safety workforce."
City spokeswomen Arlenia Cole and Ursula Madden could not be immediately reached for further information.