$400M Memphis pension difference of opinion - FOX13 News, WHBQ FOX 13

$400M Memphis pension difference of opinion

Posted: Updated:
  • $400M Memphis pension difference of opinionMore>>

  • Get FOX13 Breaking News on your mobile device

    Get FOX13 Breaking News on your mobile device

    Friday, October 4 2013 3:43 PM EDT2013-10-04 19:43:45 GMT
    Get breaking news alerts on your mobile device direct from the FOX13 news desk. On average, you could get as many as three to five alerts on a busy day, as the news merits. Just fill out the form below
    Get breaking news alerts on your mobile device direct from the FOX13 news desk. On average, you could get as many as three to five alerts on a busy day, as the news merits. Just fill out the form below
DOWNTOWN MEMPHIS, Tenn. (FOX13) -

There is a $400 million difference of opinion when it comes to positions on the city of Memphis' pension problem.

Both Mayor A C Wharton's and the city's unions respective positions on the pension problem are very different and Councilman Harold Collins wants to see it investigated.

Councilman Collins first told FOX13 News he wanted an investigation into why the Memphis Fire Fighters Association IAFF Local 1784 and the administration were $400 million apart. After hearing the mayor's presentation Tuesday, Collins was not satisfied and has formally asked that a certified public accountant be hired to look into the issue.

DOWNLOAD: Collins' letter to Chairman of Memphis City Council
MORE: Memphis council mulls Wharton's pension proposal


Mayor Wharton told the council Tuesday the pension fund was underfunded by $700 million, saying that is bad news for the city and meaning the State could have budget oversight or drastic cuts would have to be made.

Instead, Mr. Wharton said says Memphis needs pension reform. The administration proposed that new and employees on the job fewer than 10 years be switched to a 401k type of retirement plan.

Memphis Fire Fighters Association IAFF Local 1784 said that's not necessary because the pension fund is only underfunded by about $300 million. Local 1874 said all it would take is the city paying into the fund like it's supposed to every year.

Councilman Collins said a $400 million difference of opinion is too big to ignore.

"Somebody has to be wrong, and it would not be in our best interest to go into this making a decision with inaccurate information," the councilman said. "We've seen that before. We've seen what that looks like before.  So why would we do that again?"

Brian Collins, city of Memphis Director of Finance, said he's not worried about an investigation into the accounting.

"We feel real good about where we're at," the city's finance director said. "There variability? Sure there's a lot of variability in this sort of thing but we feel as good as we can."

Councilman Collins' request was sent to the councilman chairman Jim Strickland, who says he's unsure at this time if he will employ a CPA to look into the difference. He's going to look into the cost.

Click here to leave a comment on our Facebook page
Click here to comment on our Twitter


Powered by WorldNow

WHBQ-TV | Fox 13
485 S. Highland St.
Memphis, TN 38111

Main Station: (901) 320-1313
Newsroom: (901) 320-1340

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | New Terms of Service What's new | Ad Choices