DATE: March 8, 2019
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Kristine Tallent, Assistant City Administrator/CFO
Kevin Townsel, Human Resources Director
SUBJECT: Transition of monthly payment dates for City of Franklin Pension Plan
Purpose
The purpose of this memorandum is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) with information concerning the transition of monthly pension payment dates for the City of Franklin Employee Pension Plan.
Background
Description of Current Issue
At all three 2018 meetings of the Employee Pension Committee, City staff presented various reports related to a Pension Plan Services Agreement (COF Contract # 2018-0014) between the City of Franklin and the State of Tennessee Consolidated Retirement System ("TCRS") for transition of administrative services for the City's closed single employer employee pension plan effective January 2019. As a result, the first payment administered by TCRS occurred on January 31, 2019. On February 13, 2019, a group of retirees held a meeting with Mayor Moore and City Administrator Stuckey to express various areas of displeasure with the Pension Committee's recommendation and the Board of Mayor and Alderman's ("BOMA's") decision to enter into the agreement with TCRS which thereby necessitated the changing of payment dates from first business to last business day of the month. Furthermore, on February 26, 2019, five retirees gave public comment to BOMA at their work session. The retirees who spoke on February 26th requested that BOMA provide retirees an additional (13th) payment (either a full or partial payment) in calendar year 2019 as compensation for their inconvenience and hardship that resulted from the two 45-day periods between payments (November 1-December 14, 2018 and December 14, 2018-January 31, 2019) that occurred during the transition from City administration to TCRS.
BOMA referred this issue back to City staff an...
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